Venture Screening Free Essays

. Venture Screening BUS604 June 3, 2012 My business idea is to have light weight compact exercising equipment that can be move from place to place without taking up too much space or being to heavy to carry. My venture will be to promote good and healthy habits that will include a daily work out with a multi- purpose unit. We will write a custom essay sample on Venture Screening or any similar topic only for you Order Now This unit will be sold in the United States and abroad it will have a reasonable price of fifty dollars per unit it will be advertised on infomercials and online (Barringer, Ireland2006). The essential components are the needs of the customer, pricing, and value creation proposition, marketing niche and product mix. If the consumer feels that this machine meets, their needs as far as being easy to carry, store and is very convent for a quick work out;out side of a gym then this venture will be a success. When you start a venture, you have to invest lots of money into it so that you can get your venture off the ground. When you keep your over head low, your product is reasonable and people are aware of your product then your cost out of pocket to start will be returned to you in a short period of time. You will do more than just break even you will start to see profits this will give you an option to afford to maybe invest in a new venture this could be call a venture screening (Davison 2006). A screening of the new venture will identify potential markets abroad competitive advantages are low fixed costs, control over costs and location . An opportunity has been screened for exporting of compact exercising equipment to other countries the venture is promising. New business processes along with new technology will provide exercising equipment to people in many places abroad. The value of each consignment is about one thousand American dollars plus credit cards payments. All orders will be delivered within seven days of placing order and the retailers will have a grace period with the credit card company. To penetrate the market there will be direct mail, telemarketing, and bilingual staff used to reach those who have no knowledge of the product (Davison 2006). The profile for the market is reachable customers who would like more flexibility when choosing to work out. The economics of this venture is low capital and free cash flow this venture will break even in maybe 12 months. This venture has a good fit with long term goals one of those goals will be having a bilingual team within two years of the venture. Good customer service will set my company apart from the strategic differentiation of my competitors also use of technology, pricing, and quality products. The entry strategy is creating consumer awareness that it is possible to quickly receive goods from abroad in small quantities at a great price from companies that are new to the market. The essential questions that need to be ask are sales projections realistic and are customers interested in purchasing this product. The most valuable question is how will staff with good customer service skills be acquired also will the customer be willing to accept the terms of payment? A lot of times when you start a new venture it never occurs to the investor that maybe they are in over there head with start up cost. How will the business maintain until the profits start to come in those profits will help to pay for things that I like to call house whole bills. These have to be paid if your venture is doing well or doing badly in a new venture how will you get the notoriety that you have been looking for. When I start my new venture with my exercising unit, I want people to know just how well my product works. I will do some advertising but mostly I want word of mouth to promote my business because word of mouth is some times quicker and better than paying for lots of advertisements (Davison 2006). Value proposition can be gain by communication to the retailers about their cost, the low inventory turnover they currently have, and how my venture can help them to increase their inventory value proposition. This would reduce the amount of their capital in stock the new venture can improve their value proposition by having agents or distributors in certain areas to penetrate the targeted market. In conclusion, having an idea and putting it into action takes more than just words on paper you have to do your home work and hit the ground running so that you can get recognized then you let your products and good customer service do the rest (Davison 2006). The essential components are the needs of the customer, pricing, and value creation proposition, marketing niche and product mix. A creening of the new venture will identify potential markets abroad competitive advantages are low fixed costs, control over costs and location . An opportunity has been screened for exporting of compact exercising equipment to other countries the venture is promising. New business processes along with new technology will provide exercising equipment to small gyms in many places abroad. The economics of this ve nture is low capital and free cash flow this venture will break even in maybe 12 months. This venture has a good fit with long term goals one of those goals will be having a bilingual team within two years of the venture. Good customer service will set my company apart from the strategic differentiation of my competitors also use of technology, pricing, and quality products. When I start my new venture with my exercising unit, I want people to know just how well my product works. Reference: Davison, R. (2006,October 31) Venture Opportunity Screening Retrieved on June 3,2012 russell-davison. blogspot/2006/10/venture-ooportunity-screening Barringer, B. R. , Ireland, R. D. (2006). Entrepreneurship successful launching new ventures Pearson Prentice Hall How to cite Venture Screening, Essay examples Venture Screening Free Essays The business plan is a written proposal that identifies the intended company, analyzes the business situation, lists planned operations, and projects financial data. It puts your business ideas into written form. Planning is critical to a successful business. We will write a custom essay sample on Venture Screening or any similar topic only for you Order Now Types of plans vary according to the needs of the business. For example, plans may be long-term and/or short-term; simple or complex; detailed or general; lengthy or brief. The specific needs of the business should include: purpose and objectives; expansion or curtailment strategies under consideration; possible new reduces; financing needs; and identification of problems and potential solutions. The primary purpose of business planning is to ensure profitability. Planning helps you determine the purpose of the business. It also helps you know where you are, where you want to go, and how to get there. A plan gives you a path to follow as you seek your goals. It provides details for potential lenders to examine. Lenders must gain insight into your situation before deciding whether or not to lend you money. The business plan serves as a communication tool to consultants, advisers, investors, true employees and suppliers who need to learn about your operation and objective. Collecting data causes you to discuss your proposed business with specialists in your field of interest. Banks and other lending institutions vary in their business requirements. Lenders are taking a risk when they lend money to a new business. Therefore, the plan must convince them that your business has the potential of a making a profit, enabling you to repay the borrowed money. Business Plan Outline: Identification Business Name Business Owner Date of Preparation Introduction Types of Business Goods and/or services Sources of information Primary sources Secondary sources Analysis of Business Situation Self-Analysis Trading-Area analysis Market-segment Analysis Analysis of Location Planned Operation Organization Proposed Services Proposed Products Proposed Marketing Strategies Planning Financing Income and Expenses Capital Needs Being able to have a small business that is important to the community is the ultimate goal for my company. Providing lost cost party and wedding planning is goal of Deed’s Supreme Planning. Deciding on the best business form out of sole repositories, partnership, â€Å"C† corporation, and â€Å"S† corporation are the first step in building a lucrative company. Once the business organization has been decided, we have to decide on the best financial statement associated with the business. Understanding the business forms such as tax implications, legal implications and accounting implications will provide clarity during the filing for taxes. There are several advantages and disadvantages to sole proprietorship, partnership, â€Å"C† corporation and â€Å"S† corporation. A sole proprietorship is one person alone. He or she ill have unlimited liability for all debts of the business, and the income or loss from the business will be reported on his or her personal income tax return along with all other income and expense he or she normally reports (although it will be on a separate schedule). Although proprietorship avoids the expense of forming a partnership or corporation, many start businesses this way because they are unfamiliar with the other forms of organizations (Business Organization, 2011). All profits and can be re-invested in the business or it can be used by the owner and active aspect is Owner has full liability for entire business operations including all debts or lawsuits against the business. The owner’s entire personal assets are at risk. There are two types of partnerships. General and Liability both allow unlimited liability for debits of the business. The general partnership, each of the two or more partners will have unlimited liability for the debts of the business. The income and expense is reported on a separate return for tax purposes, but each partner then reports his or her pro-rata share of the profit or loss from the business as one line on is personal tax return (Perez, 2011). Limited seems to more for every partner for themselves based on the amount they are able to input to the business. With a limited partnership, each of the general partners has unlimited liability for the debts of the partnership, but the limited partner’s exposure to the debts of the partnership is limited to the contribution each has made to the partnership. With certain minor exceptions, the reporting for tax purposes is the same as for a general partnership (Perez, 2011). Partnerships are advantages because they are still easy to establish but o should have a professionally done operating agreement and the disadvantage is employee benefits cannot be deducted from the businesses income. This includes The â€Å"C† corporation files its own tax return and pays taxes on its insurance. Income. If the corporation distributes some of its earnings in the form of dividends, it does not deduct the dividend in computing its taxes, but the shareholder recipients must pay taxes on those dividends even though the corporation has paid taxes on its earnings. A corporation has some tax benefits such as deductibility of health insurance premiums (Woodruff, 2011). Finally, the â€Å"S† corporation is for federal income tax purposes is treated as a partnership for tax purposes, although it is treated as a regular corporation for other purposes. The sole proprietorship has the balance sheet and the income sheet, which is associated with all of the business origination forms. In sole proprietorships, the profit of a business occurs after the owner has taken a reasonable draw for his salary. A sole proprietorship must make enough profit to pay the owner’s salary and still have enough left to support the growth of the business (Woodruff, 2011). The major difference between for the readership financial statement is the earnings can be allocated based on a stated fractional basis; a ratio of capital investment or on salary and interest allowances, but are still associated with a balance sheet and using the company’s equity financial statement. The different types of financial statements for corporation are income statement, balance sheet, statement of cash flows, and statement of retained earnings. Their purpose is to provide information on the performance and strength financially to the position of a company. This financial statement is valuable for the users while they go for economic decisions. The consequences associated with each form of business will vary based on the business organization selected. The legal implications are based on the organization selected as well. Legal problems can come from taxation liabilities and making sure that the correct tax information is being added. Deed’s Supreme Planning will take away the stress from customers in planning for that big day or that special occasion. We are able to provide your dreams within your budget. We also sponsor for the community so we are able to show them how we can provide our services for their budget. We also get discounts or products and venues for these events when business or customers use our service. We can get meet and exceed your demands with your budget. The business choice for Deed’s Supreme Party planning is general partnership organization. This option is selected because it will fit our needs the best. Having the ability to be considered self-employed, and sharing of profits are subject to the self- employment tax with each partnership having at least one partner. A value proposition in business and marketing is a statement summarizing the customer segment, competitor targets and the core differentiation of one’s product from the offerings of competitors. A company’s market contribution normally extends further than its core product to include services, programs and systems rudiments. How to cite Venture Screening, Papers