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Business Plan - Essay Example

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The name of the business is Pizza Heaven. In the United States there are over 50,000 pizzerias nationwide. The differentiating factor that Pizza Heaven offers is the ability to cook pizza at a quarter of the time of regular pizza. The technique used to cook pizza faster is ovens that operate between 800 to 1,000 degrees Fahrenheit…
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Business Plan
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Business Plan

Download file to see previous pages... There are three types of business structures to choose from. The three business structures are sole proprietorship, partnership, and corporation. A sole proprietorship is a business owned by a single person. Most owners of sole proprietorships are also the managers of the business. One of the cons of sole proprietorships is that the owners are personally liable for the debt of the business. Two advantages of sole proprietorships are absolute control over decision making and the owner gets 100% of the profits. A partnership can be defined as the relationship existing between two or more persons who join to carry on a trade or business (Irs, 2012). Partnerships share in the profits and losses of a business based on the partnership agreement. Some of the advantages of partnerships are flexibility, greater human capital, and transferability. The third form of business is corporations. A corporation is a legal entity that exists separate from its owners. Three advantages of corporations are limited liability of stockholders, continuous life, and the ability to acquire capital. Some of the cons of corporations include separation of ownership and management, governmental regulations, and additional taxes. The business structure chosen for Pizza Heaven is corporation. ...
The business will start by opening a restaurant facility. After one year of operation the company will start selling franchises. The franchise will sell for under $100,000. Investors interested in a smaller investment will be able to buy mobile units franchises for $30,000. The business will sell personal pizzas, medium and large pizzas, calzones, frappes, mozzarella sticks, nachos, breadsticks, sodas and sandwiches. The company’s products are going to be priced to compete with the industry leaders. Accounting is going to play a very large role in the success of the company. The corporation seeks to have a franchising model. It is imperative to keep track of the sales of all the franchises due to the fact that the company will charge a 5% royalty on all sales. To attract investors the accounting books of the company must be up to date following the generally accepted accounting principles. Pizza Heaven must release its financial statements on a yearly basis. The four financial statements are the income statement, balance sheet, statement of return earnings, and statement of cash flow. Once the company becomes public it must register with the Securities and Exchange Commission (SEC). All companies register with the SEC are mandated to release trimester and yearly financial statements. Hiring the correct accounting staff is very important because accountants play a key role in the administration of a company. All members of the accounting staff must have a minimum education credential of a bachelor in business administration in accounting. Applicants that have an MBA degree or have a CPA license will be given preferential treatment in the recruiting process. The members of the accounting staff must have at least one year of experience ...Download file to see next pagesRead More
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