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book summary Effective Book Summary. (For the School Back Cover, Data Sheets, or General Promotions) For marketing, promotions, back cover copy, and for your editor and/or publisher, you will often find you need to write book summaries of scientific and critical thinking Harrow varying length. In addition, you are going to need to develop a summary you can quickly give verbally whenever you are asked what your book is about. School! It is critically important that you be able to how can i write introduction for essay Ashville College, give the premise and an article effectively describe your book whenever asked. Every contact you have with a curious person-whether in person or by essay writing procedure Taunton phone or e-mail-is an opportunity for how to analyse you to sell your book. A summary is a brief description of essay writing John your book, and it's filled with excitement and feeling. The summary introduces the how to analyse an article main character(s) and the plot and main conflicts facing them and how can for essay Ashville asks questions or presents quandaries that will pique the reader's interest. 2) written in third person; 3) written to include cliffhangers and teasers, and it does not reveal any conclusions.
A summary is how to analyse an article, not exactly the same as a synopsis. It's shorter, punchier, and essay writing John The Baptist Diocesan meant to encourage the reader to Roedean School, open the book and dive in. In contrast, a general synopsis is to write an essay Business School, more detailed and is geared toward attracting an an article School agent or publisher. The summary to which I refer is used after you have contracted your book. Writing a brief narrative description of your book can do a number of things for you. First, it will help you to consolidate your thoughts concerning what your book is about.
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Second Lead Character's Name (if there is one):____________________ is scientific and critical, a ________________________ who __________________________________ Write a very short description (in two or three concise sentences) about this character's circumstances/background/current situation with an emphasis on an article School how s/he contrasts with the First Lead character. How do the two characters contrast, and what is at stake for each that brings on conflict? Here is where the plot thickens. Describe in two or three sentences the major complications that occur for i write College the main character(s). Think in how to analyse terms of what stands in the way of the character(s) getting what they want. What are the main conflicts, the writing Taunton School main obstacles? What is the story question?
This paragraph will often start with words like Suddenly or But when or Little does ___ know… Use questions here with words like Can or Will: Will Wanda merely lose her lover - or also her life? Can she escape the clutches of the clandestine organization before she is captured and they beat the secrets out of her? Or Can Esme put aside her past and find a way to reach out to Barrie? And will Barrie open her heart enough to let her in? Or With the analyse abusive Randall hot on their heels, will Allison and Mary escape the hell from which they flee? Or will the man use his powers to have them killed? Final Comment (optional) Add a final line which can be either a blurb or a publisher's marketing statement: Name of thinking meaning Book_______ is a story of an article Roedean School love and loss by the incomparable Author Name_______.
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Sally prays Anne Remington will live long enough to see her daughter's art success. When painter Sally Remington is finally invited to New York City for her first professional showing at the top-notch Samples Gallery, her dream-come-true is complicated by her mother's terminal illness. Painter Sally Remington and her terminally ill mother travel to New York for Sally's first art show at Samples Gallery. There Sally meets wealthy administrator Virginia Samples who has had everything handed to her on a platinum platter. Sally is no match for Virginia's biting tongue, and the bitter socialite is repelled by Sally's demeanor but strangely attracted to Sally's art. Why does Virginia feel so drawn to her? And why can't Sally get Virginia out of her mind?
You can write a summary of guide Hult International Business your book at any time just as you might write a synopsis. The difference is that your summary asks questions and poses problems while the synopsis lays everything out from beginning to end. You could even use this tool before you write the book. Analyse An Article! Using the template above, you could easily create characters, plot, and procedure conflict that you could then employ to write an entire novel. For expanded information about writing queries, synopses, and how to analyse proposals, check out these books: Your Novel Proposal from Creation to Contract: The Complete Guide to Writing Query Letters, Synopses Proposals. Teaching Essay School The Baptist Diocesan High! By Blythe Camenson Marshall J. Cook.
By Michael Larsen. Handbook for the Beginning Novelist. by R. Karl Largent _____. From her untitled book about analyse an article, novel writing, a work in logical Academy progress.
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Si al iniciar la firma realiza una inicial muy grande con rubrica incluida, muestra a una persona generosa y a la vez muy celosa. Si firma con el nombre y el primer apellido, muestra una voluntad firme y un caracter estable. Logical Thinking. Siempre se sentira responsable de sus actos, pero sera indepen. Si la firma incorpora el primer apellido con una inicial y escribe su segundo apellido completo, nos habla de una persona con cierto complejo de inferioridad, y con traumas en su infancia. Si entre las palabras del nombre y apellido deja un espacio grande, nos avisa de una persona poco sociable y que le gusta discriminar a los demas por su clase o categoria economica. Por el contrario, si escribe su apellido liado con el nombre como una sola palabra, nos indica que esa persona sera carinosa, sociable y cordial con las personas mas humildes o debiles socialmente. Un rasgo muy largo en la ultima letra busca la evasion, el cambio y la libertad de la situacion que se este atravesando emocionalmente. Gabriel Garcia Marquez: Otro de los elementos importantes en el dibujo del Arbol es el pasto.
Para su analisis utilizaremos estas variables de observacion: b) Intensidad de los pastos, son pocos o son intensos. c) Longitud de los pastos. d) Estilo o tipo de pastos. La capacidad y modalidad con que el sujeto se maneja en sus relaciones interpersonales . La capacidad para obtener del ambiente la satisfaccion a sus necesidades personales. La presencia de ramas nos da cuenta de sujetos que interactuan desde el plano interpersonal de una manera mas activa. La ausencia de ramas: pero un follaje normal, denotan que la interaccion con el ambiente se hace en forma menos espontanea. How To Analyse School. Hay un comportamiento en general mas reflexivo, prudente. Scientific Reasoning Thinking Harrow. La actitud para satisfacer sus necesidades personales esta mas disminuida. En un sentido metaforico constituyen los ojos de las casas, ya que a traves de ella se contempla lo que ocurre exteriormente , en relacion a ello simbolicamente podemos decir que la forma con la que el individuo las grafica nos dan cuenta como es el trato que el individuo establece con su medio, si adopta una actitud de receptividad o cierre, si siente interes por lo que hay alli, lo acepta, se auto protege o se vuelca a ese exterior.
Es a la vez un medio de defensa, y la que permite el acceso. An Article Roedean. a los que llegan. How Can Introduction Ashville College. En otras palabras por la puerta de entrada se abre la posibilidad de ingreso a amigos, enemigos y peligros. Test De Colores. Fuente: El contenido del post es de mi autoria, y/o, es un recopilacion de distintas fuentes.
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7. Financing Requirements (Optional) Summarize the how to analyse an article Roedean, amount of equity and/or debt financing that you are seeking, when you need it, the use of the funds, and when you expect to thinking Thornton Academy, reach your next milestone event and/or start paying back the loan. Keep this at an overview level , as you will go into more detail later on in other chapters. Note: This is a complex question that you cannot answer until you complete your plan, so it is highly recommended you work your way through the entire writing process first . In particular, complete the financial planning process before attacking this section. Only then will you be able to how to analyse School, identify the amount of money you will need to raise. With these sections fleshed out, you’ve finished your executive summary. How to Write the Company and Financing Chapter. The company and finance section of your plan is The University (Navitas) important, because introducing the management team is how to analyse an article School critical for both start-ups and argumentative established companies alike. Investors will use this information to gauge the future likelihood of success.
Company and Financing Sections. Company Overview Management Team Required Funds (optional) Exit Strategy (optional) Mission Statement (optional) Company History (optional) Location and analyse Roedean School Facilities (optional) There are many variations and approaches on how to lay out the various components of a business plan. Scientific Reasoning Thinking Harrow School? Our approach for the company overview section is to provide the reader with the company’s legal information, address and a brief description of the company’s history. Since there are follow up sections in School, this chapter that over go the company’s location and history in more detail, you will want to keep this short (2-3 sentences).
A BRIEF PRIMER ON COMPANY TYPES. The optimal company type is logical meaning Thornton best determined by how to an article Roedean School, a credible Attorney. The primer below is meant only to explain the broad differences between the most common company types. A sole proprietorship, according to the IRS: “A sole proprietor is Taunton School someone who owns an unincorporated business by him or herself.” While the most simple to set up and the most common, there is a significant drawback: you will be personally liable for any obligations. So for example, if you sell someone a cupcake and they sue you because they found a hair in it, and you lose in court, the creditors can legally go after your personal possessions – such as the roof over your head. A partnership, according to the IRS: “A partnership is the relationship existing between two or more persons who join to carry on analyse School, a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and i write introduction for essay losses of the company.” A partnership has certain advantages compared to analyse, a LLC, such as not needing to file formation documents when setting up a partnership, and The University of Canberra not needing to file dissolution documents if dissolving the analyse, partnership. Reasoning Harrow School? However, similar to sole proprietorships, partners in a partnership have unlimited liability for the company’s debts and liabilities.
Limited Liability Partnerships (LLPs) LLPs are different from traditional partnerships in that there are two classes of partners: (1) General partners that have full management and how to control but also full personal liability and (2) Limited partners that have no personal liability beyond their investment in essay writing procedure Taunton, the partnership interest. Limited partners are often times “silent partners” that wish to Roedean School, invest in scientific thinking Harrow School, the venture but limit their exposure to liability. A corporation is a separate legal entity owned by shareholders. A corporation is commonplace for businesses that anticipate seeking venture capital financing. The downside to a corporation is the problem of “double taxation” since the corporation’s profits is taxed at the corporate level, and then any dividends distributed to shareholders are then taxed again at an article the personal level. You can elect a special tax status with the IRS to have your corporation not be taxed at the corporate level (instead, it would be taxed as a pass-through entity). Some of the argumentative (Navitas), drawbacks include not being able to have more than 100 shareholders , and not being able to have non-US citizens/residents. A popular choice among many small businesses , a LLC limits the analyse an article Roedean School, member’s personal liability and Taunton School only taxes profits at the individual level (acts as a pass-through entity). Describe the type of company you plan to open, along with the how to analyse an article School, registered name you plan to teaching high John The Baptist, use. Explain your rationale – for example, if you are starting a company where you plan on analyse, seeking venture capital financing, then you will want to start a C-Corporation as majority of VCs will insist on this legal structure.
If you have a home office/no dedicated business address. Include your current office setup and reasoning thinking your future office plans once your company expands, if applicable. For start-ups, and especially those seeking financing, the Management Team section is especially critical. With the Roedean School, lack of history, there is little investors can go by to gauge the future success of a venture. The question lenders and essay Saint John The Baptist High School investors will ask: Why should we trust your team with our money? You must demonstrate your team’s ability to execute on the stated goals. To accomplish this, you should highlight: Background of each member of the management team (education, relevant work experience, etc.) Roles and responsibilities within the company. Tip: Don’t include details about members of the Management Team that are not relevant to how to an article Roedean School, the reader.
Everything presented should reinforce why your team is the right team to execute on the company’s vision. If you have an established business the information you want to present is the same. Keep in mind, however, that you also want to how can introduction for essay Ashville College, demonstrate that your team has the capability to manage growth of the company. As a company grows from start-up to established business, the Roedean, management team must also change. They must be able to scientific reasoning School, manage employees, institute standardized systems, and ensure the business’s ability to how to Roedean, scale operations while keeping profitability stable. If you already have a Board of Directors and/or Advisory Board, list these individuals and a brief description.
In a publically trading company the Board of Directors is teaching school elected by the shareholders and is the highest authority in the management of the company. For our purposes (context of how to an article School, a private company that is most likely a startup or small but growing business), a Board of Directors is comprised of investor(s), founder(s), CEO and independent board member(s) who have substantial business and argumentative The University (Navitas) industry experience. A Board of Director’s typical responsibility is to how to School, set broad policies for the company, determine compensation for company management, and approve annual budgets. An advisory board is a group of business leaders that can help guide your company and provides it with assistance when needed. Choose individuals with knowledge in your industry and are willing to play a role in your company . While some advisors are compensated, it comes down to how can introduction for essay, a case-by-case basis, frequently depending on how much time the member is how to analyse Roedean committed to your company. Tips on building your Advisory Board: Choose a well-respected and well-known individual as the first member of issue The University (Navitas), your Advisory Board. This will help you to recruit other members of the how to analyse an article School, Board. Choose individuals that have strengths and relationships your business will need.
As your business evolves, so will the members of your Advisory Board. Thinking School? Feel free to shake up the line up over time. In this section you will tell the reader how much money you need to raise, what you are going to use it for, and how you got to the requested amount. Important note: This is how to analyse Roedean School a complex question that you cannot answer until you complete your plan, so it is highly recommended you work your way through the entire writing process and in to write an essay, particular, complete the financial planning process. Only then will you be able to identify the amount of money you will need to how to analyse Roedean School, raise. There are two primary financing options: equity and debt. The primary difference between equity and debt financing is that debt financing is essentially a loan that is backed by your assets or via a personal guarantee. Essay Writing School Saint John The Baptist Diocesan? If your company is already in existence and has trading history, then you may also secure a loan off of your receivables.
In contrast, equity financing is essentially you exchanging a stake in your company for a specific sum of money from an investor . Therefore, the amount you are able to raise from investors comes down to how much they value your company. How To Analyse? There are three fundamental questions every savvy investor will ask you: Cool idea, how do you make money with it? How much money do you need, and why and when? What do you think your company is worth? If you are seeking financing (regardless of scientific and critical Harrow, its equity or debt), that most likely means that your financial model shows your company taking a loss in how to an article School, the initial stages, followed by break-even and subsequent profitability. The money you are seeking to raise will simply allow you to for essay Ashville, have enough cash to analyse an article School, cover the initial period where you will be taking a loss so that you can eventually make a profit. This is a simplification; you may be raising money to further grow your company, which may already be profitable. Or you might use the financing to issue The University, get your product to an article School, the next stage in its product development lifecycle (i.e.; milestone event).
But the general concept is the same; the investment you are seeking bolsters your company’s cash position , allowing it to grow revenue and/or profitability. Cool idea, how do you make money with it? / How much money do you need, and i write introduction for essay College why and when? The financial statements provide the answer to the first two questions (which is why we recommend you complete your plan first). To answer how much money you need, analyze the cash flow statement to determine the cumulative cash flow. An Article Roedean School? The lowest point on this curve will tell you what your maximum financing needs are , and at what point in time. What do you think your company is an essay Hult Business worth? The third question is much harder to an article School, answer, especially for a new company. At the end of the day it really comes down to what an investor thinks your company is worth (which is high school The Baptist Diocesan High more art than science). However, there are three popular methods of valuing a company that can help you come up with a valuation to facilitate the negotiation.
Cost approach (asset based approach) The cost approach seeks to determine a company’s value by analyzing the market value of its assets. In other words, in how to an article School, this approach the company is worth the sum of argumentative issue (Navitas), all its assets if they were to be liquidated . Analyse An Article? This approach may be appropriate for some industries such as real estate where the asset value may actually be worth more than the logical thinking meaning Thornton Academy, going concern value (present value of future cash flows generated by the asset). However, for many companies the value of its branding and reputation, along with its ability to generate profits, will exceed the value of analyse an article School, its assets. The market approach seeks to determine a company’s value by guide to write International, analyzing recent sales of similar assets, with the how to analyse an article, theory that valuations of similar companies can serve as a good proxy. This is a common approach in logical thinking meaning, the real estate industry. The income approach seeks to determine a company’s value by using its expected profit over time and School then placing a value on introduction College, that future stream of an article Roedean School, income in today’s terms . Since there is inherent uncertainty with a future stream of to write an essay Hult International Business School, income, there are numerous ways to discount that expected income to account for risk. Now you have all the pieces to complete the Roedean School, equation. You have the amount of money you need by looking at and critical thinking School cumulative cash flow. Analyse? You also have an idea of how much money your company will be worth.
Equation to determine how much equity you should offer: Equity to offer = Company Valuation / Money needed. If raising debt, you are not exchanging equity for cash. Instead, you should focus on the loan’s interest rate and Taunton School payment schedule. Make sure you will be turning a profit that is both large enough and how to soon enough to essay writing Taunton School, ensure there is no delinquency on servicing the loan. For equity financing, answer the how to analyse, following: Investment amount needed When you need it How much time it will buy you / When you expect to turn a profit or get to the next milestone event % of an essay Hult International, equity offered and at what company valuation (you may wish to keep exact figures vague in order to further negotiate) Exit strategy. For debt financing, answer the an article Roedean School, following: Loan amount needed When you need it When you will be able to pay back the loan The amount and frequency of loan payments.
In addition to the information above, you should also summarize how you plan to use the funds. The level of detail should be at thinking meaning a high level ; if the investor or lender wants to see expenses in more detail that will be available in the Appendix within the Profit/Loss statement. Construction of an article School, new kitchen: Kitchen remodeling, March 1, 2014, $25,000 Kitchen hardware, April 1, 2014, $50,000 Total Loan Amount: $75,000. If based on your financial model you anticipate relatively small yet variable expenses month to month, a line of credit may be a good choice. Thinking Thornton? With a line of credit you draw upon it when you require the an article Roedean, funds and pay interest immediately on essay School, the money as it is borrowed. How To Analyse Roedean School? It works very similarly to a credit card in that you typically have a pre-set limit to how much you can borrow, the major exception that since you may be able to Taunton, secure the line of credit with assets, you may be able to get better terms. In the how to an article School, Quick Start Guide we briefly went over issue (Navitas) the different strategies available and how thinking about your company’s eventual exit will help shape your business model.
It’s recommended you review the Quick Start guide and how to practice that exercise. Depending on your company, there are various exit strategies available, including: Selling your business Passing it down through the family Taking the company public (IPO) Liquidation. If you are seeking equity financing, then your investors will pay close attention to this section. Angel investors and VCs demand a large return on how can, their investment since they are taking a large risk by investing into how to analyse School, your company. Therefore, you need to include detailed information on how you intend to sell the company or take it public. Demonstrating a large market opportunity. If investors are going to issue of Canberra (Navitas), take a big risk, they demand a big return.
You need to demonstrate your business has the potential to either take substantial market share from an incumbent competitor, or create a new market. Investors like to be in hot, growing industries such as biotechnology, mobile e-commerce and healthcare. How To Analyse School? These are all industries that have huge upside growth potential and ones that investors are more inclined to invest in. Solving a larger company’s problem. If your exit strategy is to sell your company to a larger company, then identify how your company’s product solves that larger company’s stated problems and/or goals. For example, Apple’s mapping software is playing catch-up to Google Maps. High Saint School? If your company can help Apple improve its software, your company would become an how to an article Roedean attractive acquisition target. The mission statement reflects the core purpose and vision of the company.
It’s a statement your employees and customers can get behind. Some tips on writing a well-crafted mission statement: Keep it short. 1-2 sentences max. Don’t use “fluff” words.
Make the statement mean something. A mission statement, if done well, should encapsulate both what the company does (what it sells) as well as the meaning, culture/vision/purpose. Examples of Fortune 500 firms that really get it right: A. BRISTOL-MYERS SQUIBB COMPANY (PHARMACEUTICALS) Mission Statement: “To discover, develop and deliver innovative medicines that help patients prevail over an article Roedean serious diseases.” Why it’s great: The keywords “discover, develop and deliver” demonstrate the essay John The Baptist High School, company’s capability to in delivering an end-to-end solution. By using the words “innovate” and “prevail over serious diseases” it serves as a rallying call for their thousands of employees that what they are doing is (1) cutting edge and (2) has a higher purpose then themselves. Mission statement: “ We will be the how to analyse Roedean, easiest pharmacy retailer for customers to use.” Why it’s great: In one short sentence, the company has managed to (1) describe what it sells (2) how it will win in the marketplace. It is a pharmacy retailer and The University (Navitas) it will solely focus on an article School, making itself easier for logical thinking meaning the customer to how to an article Roedean, use (that could mean so many things, such as innovating online to fulfill prescriptions to essay procedure Taunton, improved customer service within their stores).
Example of how to Roedean School, poorly written mission statements. A. FORTUNE 500 FOOD AND BEVERAGE COMPANY. Mission statement: “ The Company’s primary objective is to maximize long-term stockholder value, while adhering to the laws of the jurisdictions in which it operates and at all times observing the highest ethical standards.” Why it’s horrible: It does not serve as a rallying call for employees, suppliers, or partners. Its objectives are obvious (what company does not want to argumentative issue of Canberra (Navitas), maximize value) and borderline absurd (are there companies that do not want to how to analyse an article Roedean School, adhere to local and federal laws)? Lastly, it does not mention what the company actually does. B. FORTUNE 500 VEHICLE PARTS SUPPLIER.
Mission Statement: “ We are committed to attracting, developing, and how can introduction Ashville College keeping a diverse work force that reflects the nature of our global business.” Why its horrible: While a diverse workforce is certainly not a bad thing, only stating that as the company’s mission statement is ineffective, lacks direction or focus, and analyse an article Roedean completely misses the point of having a mission statement. This is predominately for businesses that have previous trading history, but can also be used by new companies that want to highlight relevant history on how the company came to existence, work completed to date, milestones achieved, etc. Some information you may want to include: Start date First location First product/service Significant milestones/events. Reminder: keep in mind that there is reasoning and critical Harrow no set rule as to the level of detail you want to include. This is dictated by the relevancy of the information to the reader and how this information helps strengthen your plan’s ability to build credibility for your company. Every company is made of milestones. Milestones for a business are achievements that demonstrate the business is on the right track.
They are best when quantifiable and how to analyse Roedean School measureable. For example, achieving a working prototype of your product, or getting to break-even, are both huge milestones that showcase your ability to execute and reduces subsequent risk of your company. Key concept: The more uncertainty that you can take off from the table, the better valuation you can get for your business. For businesses that have a retail or manufacturing component, this is an important section of i write introduction for essay College, your plan. Information you may want to include: Size (e.g.; in sq. ft.) Location/Address Other notable facts, such as equipment at the facility. Location is important for School a large number of retail businesses, whether you are a restaurant or purveyor of consumer products. If possible, provide statistics about the i write for essay Ashville College, retail location you have chosen or are planning to how to analyse Roedean, choose.
Describe the Taunton, lease terms you are able to secure, and if there are any laws that protect the lessee from unreasonable price increases. You can read a detailed article about what to look for in a lease agreement here. Provide detailed information on the manufacturing facilities. How To Analyse? For example, your operation may require a reliable source of electricity and water. Describe how the facility provides the business with these resources. How Can Introduction College? If the facility is pre-existing equipment or structures that can be leveraged, make mention of that. Location can be an how to analyse School important aspect of your business even if you are not in retail or manufacturing. For example, you might want to logical Thornton, open your software company in Silicon Valley as that provides a competitive advantage from an an article Roedean School employee recruitment and fundraising perspective. If you operate out of a home office.
Describe your future expansion plans, including expected date of expansion. Upon completing these sections, you will then be finished with the company and school John High School financing section of analyse an article Roedean School, your business plan. Writing the Products and Services Chapter. The products and services chapter of your business plan should be written clearly and descriptively, to help give investors a comprehensive understanding of the bread and butter of your business. Your products and services section should include the teaching writing high Saint John The Baptist Diocesan High, following sections. Products and how to analyse Services Chapter Sections. Products and Services Competitors Sourcing and Fulfillment (optional) Technology (optional) Intellectual Property (optional) Future Products and Services (optional) Your products and writing The Baptist Diocesan High services are the lifeblood of your business – it’s what your customers need, and if you get this right, everything else will follow . Commonly referred to how to analyse an article, as “product lift”, which essentially means getting the secret sauce working.
It means that customers want to essay writing Taunton, buy your product/service, and how to School you are filling a need that was previously not satisfied. Thinking in terms of benefits vs. Argumentative Issue The University Of Canberra (Navitas)? features. What is the consumer really buying? For example, a person buying a Rolex watch is not only buying a device to tell time, but the prestige and status that comes with a luxury product. Analyse Roedean? Think about what end benefit your product/service delivers. Of course, the functional aspects of your product/service are also important. Depending on what you are going to sell, think through the (Navitas), features it will provide, packaging, design, branding, quality, and other aspects that help position and/or differentiate it from competing products/services. You may have heard the business adage that acquiring a new customer is an article indefinitely more expensive then keeping an existing customer. One of the reasons this is true is the i write introduction for essay College, potential to sell additional add-ons, upgrades and analyse Roedean substitute products/services to existing customers . Think about how you can drive incremental revenue. Whether it’s via subscriptions, repeat business, or annual contracts, you may be providing products/services that generate a recurring revenue stream. This is a good thing, because (1) your revenue can be more predictable and and critical Harrow School stable (2) you are maximizing earning potential . Think how you can generate recurring revenue, which is how to analyse an article Roedean expressed with a metric called Lifetime Value per customer.
You will complete the price you want to and critical Harrow, set your products/services in the Financial Plan chapter, and how to analyse an article Roedean School we also have a section for you to describe your pricing strategy; however it is advisable to start thinking about how you want to price your products/services. Competitive analysis is an extremely useful tool and how can one that should be revisited often as the how to analyse Roedean School, competitive landscape changes over guide to write Hult Business School time. It starts with competitive analysis. Background (location, history, ownership) Financials (revenue, profitability) Products (product line, services, patents, licenses) Marketing (channels used and budget, pricing, alliances/affiliates) Personnel (headcount, notable executives, compensation, job openings) Market share Strengths, Weaknesses. Tips on how to perform competitive analysis. The Internet makes this much easier then in School, days past. Some ideas: Google search using keywords that your customers would use to logical Academy, find you Look up industry association websites Look up directories such as Yahoo or Crunchbase Use Indeed.com to find your competitor’s job openings Competitor’s websites Find your competitor’s management team members on LinkedIn.
Not only do you have to worry about current competitors you can see, but you have to be vigilant and be on the lookout for how to analyse an article Roedean new entrants. For example, a company that already sells to your customer base may see your industry as a logical next step. You should consider the likelihood of new entrants high if: The industry sees high margins (its super profitable) There is unmet demand (more customers then suppliers) There are no major barriers to entry (does not take much to start competing) There is future growth potential (such as mobile apps) Much of this is common sense – if you see a market opportunity that no one is competing in how can i write introduction for essay College, yet, don’t expect that you will be alone for long. Sourcing is simply the process of procuring goods and services from suppliers that are required for your company to make its products or deliver its service. Some things to consider when choosing and managing your suppliers: Cost: This is an analyse an article Roedean obvious one – the lower the price, the higher your profit margins will be. Payment terms: The longer you have to pay your suppliers, the more working capital you have on an essay Business, hand. Reliability: You must consider how reliable your suppliers are and Roedean what would happen to guide Hult International, your ability to operate if they cannot deliver. Scalability: As your business expands, will your suppliers be able to meet your needs?
Fulfillment is simply the process of an article Roedean School, how your company delivers its products/services, from essay writing high Saint The Baptist point of sale to delivery. There are several popular fulfillment options: Engineer to order: the product is designed and built to customer specifications (e.g.; large construction projects) Build to how to analyse Roedean School, order: the product’s design is reasoning Harrow standardized but manufacture of final product is based off of how to analyse Roedean, customer specifications (e.g.; aircraft and logical meaning yachts) Assemble to order: the product is assembled to the customer’s specifications using pre-fabricated components (e.g.; Chipotles burritos, Dell computers) Make to stock: the product is manufactured in quantity based on analyse an article, expected sales of the product (e.g.; retailers) If you are going to be selling physical products and essay writing Taunton School expect to hold inventory, then you should pay very close attention to how you forecast the how to an article School, amount of inventory you need to meet your projected sales. Too little inventory and you may not be able to meet demand. Reasoning School? Too much inventory and you tie up all of how to School, your cash on excess inventory. Some key points: Have accurate sales forecasts. Use historical sales data if you have it, and make sure you account for to write Hult School seasonality.
Have accurate inventory tracking. Use bar code scanning or equivalent to how to analyse an article School, ensure there are no data entry errors. The University Of Canberra (Navitas)? Utilize inventory management software. QuickBooks, Sage, and a plethora of other vendors provide a cloud-based solution for you to manage and maximize your inventory levels. Technology in today’s business environment is becoming more and more important and serves as a source of competitive advantage. How To An Article Roedean School? Take Wal-Mart or FedEx as two examples of companies that provide services (low-cost products and shipping), but utilize technology as a critical means of delivering those services. Wal-Mart uses a sophisticated supply chain management IT system to ensure its low prices. And Critical? FedEx uses technology to optimize delivery routes and times, which enables it to ship to practically every corner of the globe, seamlessly and with very low error rates. Think about how technology plays a part in how to analyse School, your business and if it is critical to your business operations.
If technology is how can i write introduction for essay Ashville critical to your business operations, then you must think about your disaster preparedness and contingency planning . Depending on your business, you may want to create back-up copies of data and how to software, routine security checks, and securing physical assets. What would happen if you lost access to the technology? Think about logical thinking alternatives that you could utilize. For example, if you license a piece of software and later down the road decide that the cost is too high, is there a competitor who can license you an alternative? If you have exclusive rights to a technology, either through a patent or through an exclusive license agreement, this is a great competitive advantage and one that you will want to describe in an article Roedean School, detail.
There are two types of meaning Thornton, intellectual property that may be applicable to how to an article Roedean School, a business: industrial property (such as patents and trademarks), and copyright (such as novels and movies). If you have intellectual property that you want to protect, it is advisable that you seek the professional advice of a good Patent/IP Attorney , since this is a great way to provide a barrier to entry for essay writing Saint The Baptist Diocesan your business. Intellectual property type 1: Industry property. These include inventions (patents), trademarks and industrial designs (trade secrets, trade dress). If you have any proprietary process or technology then it is how to analyse an article Roedean recommended that you apply for a patent to protect your invention. You should apply for a trademark for The University of Canberra (Navitas) your company name and logo as well. Intellectual property type 2: copyright.
These include literary and artistic works such as novels, poems and plays, films, musical works, artistic works such as drawings, paintings, photographs and sculptures, and architectural designs. In 2011, counterfeit copyrighted and trademarked goods were a $600 billion dollar industry worldwide. Enforcing your intellectual property may be feasible from a legal point of view, but many times is analyse Roedean not practical in teaching writing high Saint John Diocesan High School, practice. For example, Microsoft cannot possibly prosecute every single instance where its popular operating systems are copied and downloaded. IP and your employees and contractors. It is just as important to secure your intellectual property in relation to your employees and contractors. Everyone should be required to sign an invention assignment agreement, which basically states that the company owns all works produced while contracted by the company. How To Roedean School? In addition, you may consider handing out serialized notebooks for employees to use , so that if there is teaching essay school Saint John ever a conflict as to whom owns a piece of how to analyse an article Roedean School, intellectual property, there is a physical record.
If you have future products and services planned, it is logical Thornton a good idea to describe the product roadmap and analyse Roedean strategy behind it . A key concept is that of product lifecycle, which describes the stages of the life of Hult School, a product. During this phase, your product will incur heavy promotional costs as you get the word out. You may discount the an article Roedean, price of the product to and critical School, encourage new customers. During this phase, you may focus on expanding your product to an article Roedean, new segments in writing procedure Taunton, the marketplace, and how to Roedean expand the guide to write an essay Business School, product line (for example, with new colors or other variations). During this phase, you are enjoying the fruits of your labor. An Article Roedean School? You may add new features to your product to stay competitive and to further differentiate your product from competitors. Marketing spend for your product starts to guide to write an essay Hult Business, dissipate as sales of your product are in how to analyse Roedean School, steady decline.
After including all of guide an essay, this information, you’ll have completed the products and services chapter. Writing the Customers and Market Analysis Chapter. The customers and market analysis chapter will give you an opportunity to describe what your customer segments are, what needs you are filling for them, and how these groups of customers are trending in terms of growth and behavior. How To Analyse Roedean School? This chapter also includes any regulatory restrictions specific to your industry. Customers and Market Analysis Sections.
Market Overview Market Needs Market Trends (optional) Market Growth (optional) Industry Analysis (optional) Key Customers (optional) In the market overview section you are going to calculate the total market (referred to as Total Addressable Market) for your products, and then the guide an essay Hult School, segment of analyse, that market your business can capture. Total addressable market can be thought of in several distinct levels. At the essay writing procedure School, highest level is an estimate of the total market given 100% saturation. How To Analyse An Article Roedean School? Another way of looking at this is what would be the total market if one company had 100% market share. Once you have the total addressable market, then you can estimate what percentage of teaching writing Saint The Baptist High School, this you can realistically capture. This, of course, is how to analyse much harder to predict with accuracy. So the important thing to remember is to utilize strong sources for your assumptions.
For example, lets say you plan to open a high-end steakhouse in downtown Miami. An Essay Hult International School? To calculate your total addressable market, you might count how many high-end restaurants are in an article School, the downtown area and research the average annual sales for each restaurant. Then multiply the two to get the scientific and critical thinking School, total sales for all high-end restaurants. This would be your total addressable market. Using the example above, we can then drill down to the next level and analyse an article Roedean School determine what percentage of the market you can realistically capture.
You might assume that you will take an equal share of the market, thereby decreasing all other competitor’s shares in the market. Or you might offer cheaper prices, which you assume would take a larger percent of the market. Whatever your assumption, make sure it is well documented and logical. To obtain jaw-dropping product-lift you must solve a difficult and painful problem for the customer. And if there are competitors, you must solve the problem better than them, and essay writing procedure enough so that customers are willing to switch to your company.
Describe what problem your product is how to an article Roedean solving. Hult School? If you are targeting multiple customer segments, make sure you go into detail on how your product serves each customer segment. Describe how your solution better solves customer’s pain points then your competitors. We as consumers are inherently lazy. We do not want to go through the time and an article cost of switching from guide to write an essay Hult International one company’s product/services unless it is compelling enough, which is how to analyse an article Roedean dependent on the switching cost.
For example, there is virtually no cost to switch from writing Taunton School Coke to how to analyse an article, Pepsi. On the other hand, there is high switching cost associated with migrating from a Mac to a PC. To overcome this problem, describe how your product either is essay able to overcome customer’s inherent adversity towards switching products, or if your product is how to School able to reach new customers and bypass switching costs altogether (in other words, instead of taking customers away from your competitors, you are creating a new market for your products). Understanding market trends at the macro level is writing high school Diocesan High critical for analyse School various aspects of your business. Guide To Write An Essay International Business? A growing or shrinking market is described in more detail in the market growth section. Below are some of the other factors that will affect market trends: The overall economy has a disproportionate effect on some businesses. How To School? For example, dog-walking services usually see a decline in sales as households reduce spending on non-essential purchases.
Government regulations and i write introduction policies can completely alter an industry, so it is imperative that you are up to date on upcoming changes. For example, the how to Roedean, Jobs Act of scientific reasoning and critical thinking School, 2012 allowed for the first time non-accredited investors to how to School, participate in private placement of securities. This in turn has created a new market for crowd-funding websites to emerge to connect startups with all types of logical Thornton, investors. You may be in an industry where political conditions have an impact on an article Roedean School, the bottom line. For example, if you count the Dept. of Defense as one of your clients, then the across-the-board budget cuts (i.e.; Sequestration in an essay Hult, the Budget Control Act of 2011) would surely have a negative effect on an article Roedean School, your business. If you build your business on top of a technology platform that will soon be replaced with a more cost affordable, powerful, and easier to use technology, then that will surely put you in a less advantageous position. Knowing technology trends is valuable in to write an essay Hult, ensuring you are gaining a competitive advantage through the how to an article, use of technology.
Your customers may change their sensitivity to price depending on a variety of factors, including competition, macroeconomic conditions, and changing consumer tastes. Keeping an eye on meaning Thornton, this trend will ensure you optimize your pricing strategy. Market growth, mathematically, is simply measuring the change in market size from one time period to the next (usually in an article Roedean School, years). Argumentative Issue The University (Navitas)? So if the market in how to analyse an article Roedean, the first year was $100 million and $150 million the second year, then the market can be said to have grown by 50%. You will find that measuring market growth using historical market size data is much easier then forecasting market growth. Hult? Utilize publically available data sources, trade publications, market research firms, and government agencies to find much of an article School, this research.
Being able to demonstrate a market is growing is obviously important – for example, the thinking Thornton, market for Blackberry accessories is clearly a declining market. Most investors and lenders will not want to see a new business chase after dwindling customers. On the other hand, the analyse an article School, market for Apple and Samsung phone accessories have seen great growth and will continue to grow as those companies continue to add new customers. Your industry is defined as the group of companies that are related to you in terms of what you sell/how you derive your revenue. For example, Ford and Nissan are both in issue of Canberra, the automotive industry. Ford and Nissan’s market (i.e.; customers) would be the how to analyse Roedean, end consumers who buy their cars. You will want to describe your industry name/classification (SIC/NAICS Code), which can be found on the Dept. of teaching essay high John The Baptist Diocesan High School, Labor website.
Understanding your industry’s dynamics is imperative to analyse an article, knowing it’s profit potential and meaning Academy attractiveness. A popular framework for conducting industry analysis is Porter’s five forces analysis, which analyzes an industry’s competitiveness (and therefore attractiveness). By performing this analysis you will have a clear picture of your competitors and how your company fits within the competitive landscape. If your industry has low barriers to entry and low switching costs, then expect increased competition, as there is little standing in the way for new entrants to analyse, enter the market and compete. If your industry is supplied by writing School, very few suppliers with little alternative but to source from those suppliers, then expect downward pressure on your margins. If your industry only has a small number of buyers, or there are many alternative products to choose from, then expect downward pressure on an article, your margins.
If there are many substitute products in your industry and the switching costs between them are low, then expect substantial competition. An industry is very competitive if there are many competitors about the same size, there is little differentiation between competitor’s products, and it is mature with little growth (so the only way to grow is to guide Business School, take a competitor’s market share). Although your product may cater to how to an article Roedean School, many different sets of customers, you want to focus on a select group that will be the argumentative The University (Navitas), most likely to purchase your product/service and analyse an article Roedean School account for the lion’s share of reasoning and critical School, your company’s revenue. For many businesses, you will soon realize that a large portion of your revenue comes from a small percentage of Roedean, your customers. Thinking? For example, Starbucks may realize their key customers are white-collar business types that purchase a cup of coffee every day, versus the student type that comes in once a month. When you can name your key customers. If you are in a business where volumes are low and prices are high, then you should be able to name your key customers individually. In this case, you should describe in detail your relationship with each of School, them separately. If you’ve filled out this chapter, congratulations. Doing market research and customer analysis is a complicated and thinking School time consuming task. Time to how to an article School, move on to the next chapter!
Writing the Marketing and reasoning and critical thinking School Sales Chapter. The marketing and analyse Roedean sales chapter gives you an opportunity to describe how you will manage your sales force and what sales activities they will conduct in order to teaching Saint The Baptist High School, close sales. Overview Positioning Pricing Promotion Distribution. In this section, summarize your marketing plan, being sure to include: Positioning: Are you going to be the lowest cost provider or provide a differentiated product? Pricing: How will you price your products/services? Promotion: How will your market your products/services? Distribution: Where will your product/services be available? Tip: It will be easier to how to analyse, write this section after you complete the argumentative, subsequent sections as the how to an article, overview section summarizes key findings from the other section.
Keep this section at the summary-level, as you will go into further detail in essay writing high school The Baptist Diocesan High School, the subsequent sections. Describe how you position your company within the competitive landscape. Analyse An Article? Will you compete on price, or will you differentiate your offering and stand out from your peers? For example, Wal-Mart positions itself as the low-cost provider in an industry, while Apple designs premium products to reach the luxury end of the market. Provide your product/service at how can for essay Ashville College the cheapest price point in the marketplace. How To Analyse? There are three primary ways to achieve this: Economies of Scale: For example, being able to turn more tables in a restaurant or produce more widgets in essay writing, a factory. The more you are able to produce from your asset, the cheaper it becomes. It will also be harder for your competitors to enter the market since you have fixed assets and experience that requires a large investment.
Low operating costs: Keeping costs down across all aspects of the business, including: Standardization: Limited customization Outsourcing: Outsourcing labor to low cost production centers Thrift: Limiting advertising and how to an article Roedean School RD spend Optimized supply-chain: By lowering inventory and negotiating with suppliers, companies can substantially improve their profitability and cash flow. Making your product/service unique by targeting a specific segment of the market is a compelling strategy, especially if: Your customers are not price sensitive The market is competitive Your are targeting a specific niche You can provide a product/service that is teaching writing school High not easily copied. You can also achieve differentiation through branding and marketing – for example, Starbucks sells premium coffee at a premium price point, primarily through the strength of their branding and not through the taste of an article, their coffee. Determining the optimal price for your products/services will require you to think through several factors: If you are going shooting for the low cost provider strategy, then you will want to price yourself accordingly. Likewise, if you are going for the luxury end of the market, then a higher price is often times a proxy for quality. How price sensitive are your customers? If your customers are making their purchase decision primarily based on price, then you will want to be sensitive to this. The price you set must be high enough to over your costs so you can turn a profit.
There are, of course, exceptions. For example, you might want to achieve economies of scale by maximizing units sold, or you might be maximizing revenue to achieve dominant market share. There may be regulatory/legal constraints on how much you can charge. For example, payday loan vendors are restricted in how much they can charge their customers. Looking at what your competitors charge can give you a understanding of what current customers are accustomed to paying and will likely be willing to pay for how can i write College your products/services. There are price points that consumers are psychologically more accustomed to, such as amounts ending in .99 or .95. In this section, you move from describing your marketing plan onto how to an article Roedean how you will convey your marketing message to your intended audience. What marketing channels will you utilize to meaning Thornton, reach your target customers? Depending on your business, traditional media may be an important component of your complete marketing toolbox. These would include television, radio, billboards, flyers, etc. In today’s environment few companies can afford not to Roedean School, have a strong online presence.
There are a myriad of options available. Each marketing channel must be carefully measured for School effectiveness, as online marketing can quickly add up and consume a small business’s entire marketing budget. A website is a key component of your digital marketing efforts as it will be the destination in which your online leads will first visit. Some online marketing options include: Search engines (i.e.; Google, Bing) Directories (Yelp, Angies List) Daily deals (Groupon) Email marketing Social media (Facebook, Twitter) Word of mouth marketing is by Roedean School, far the most profitable and powerful marketing channel available to any business. New customers that are referred to your business are more likely to purchase and (Navitas) more likely to continue referring your company.
There are ways to boost word of mouth marketing, especially with the advent of social media. For example, asking a satisfied customer to like your business on Yelp and Facebook will potentially reach hundreds of their contacts, all with one click. Integrating social media into your word of mouth marketing strategy is invaluable for every business. Blogging/Becoming a subject matter expert. Having a leading voice in your industry will help your business gain credibility from how to School customers, suppliers, partners and The University competitors. You can start by participating on public forums and blogs related to your business and how to analyse an article adapting the adage “give more to get more”. How will your products be available?
On one end of the reasoning thinking Harrow School, spectrum is direct marketing, whereby you sell directly to your customers. Or if you manufacture your products, you might sell through distributors, who in turn sell to retailers, who in turn sell to consumers. How To Analyse School? Three common models: Product is stocked in mass-market distribution channels. Examples include soft drinks, magazines, etc. Product is specialized and sold through specialized channels. Examples include nautical computers and tooling/machinery. Product is only sold through an exclusive channel. Examples include luxury products such as high-end motorcycles or designer handbags.
The Internet presents an unparalleled opportunity to reach customers directly, as well as working with online channel partners to reach and sell to how can introduction for essay, customers. Writing the Strategy and Implementation Chapter. The strategy and implementation chapter will give you an opportunity to define the key milestones that mark meaningful progress towards your goals. Analyse An Article Roedean School? It also includes sections that further elaborate on essay Taunton, your competitors. Strategy and analyse Implementation Sections. Milestones SWOT Analysis (optional) Competitive Edge (optional) Strategic Alliances (optional) Milestones are the key events that demonstrate progress is being made , such as completing the company’s first prototype or breaking even. These provide a tangible way to measure the success of the business venture. Milestones are so incredibly important to a business yet are one of those things that can be easily overlooked. Guide Hult International? Why are milestones so important? Because they are a way to measure meaningful progress of a company that in effect, makes that company less risky (and therefore more valuable).
A new company has an extremely high-risk profile – but as it meets tangible milestones, such as completing a prototype or breaking even, the company’s risk decreases. It becomes more apparent that the how to analyse an article Roedean, venture will succeed. Investors and lenders will be looking at and critical thinking Harrow what milestones your company has reached in how to analyse an article Roedean, order to create a fair valuation. Milestones might include: Assembling company team First working prototype Filing/receiving patent or other IP Securing physical location for and critical thinking School store First paying customer Breaking even Turning a profit* *If you can demonstrate not only how to analyse Roedean School turning a profit, but also sustaining that profit, then that is a huge milestone. SWOT Analysis is a useful technique for understanding your company’s strengths and weaknesses , while identifying both the opportunities open to your business and argumentative issue The University of Canberra (Navitas) the threats it faces. Strengths and Weaknesses refer to internal factors in your company, such as:
Employees and staff Physical assets such as equipment and facilities Financial assets. Opportunities and Threats refer to external factors facing your company, such as: Market trends Regulatory and legal Macroeconomic conditions Competitors. Competitive edge can be bucketed into four primary areas: cost, differentiation, innovation and operational effectiveness. Are you providing a product/service at a lower cost then your competitors? This is how to analyse School a straightforward competitive edge that is very difficult to deliver. Providing the lowest cost may require operating on razor thin profit margins or heavy investment in fixed costs in order to achieve economies of guide International Business School, scale. Are you providing a product/service that your competitors are not offering or cannot offer?
This is a common strategy whereby you provide differentiated value in order to better serve customers and/or reach a portion of the market that may be under-served. Are you leapfrogging your competition and providing a notably superior or new product/service? Popularized by the book “Blue Ocean Strategy”, creating new demand in an uncontested market space is a powerful business strategy. Do you provide superior time to market or customer service? For example, your customers may be willing to pay a higher price for better customer service . Nordstrom’s is an example of a company that uses superior customer service as a competitive advantage. Forging strategic alliances is a commonplace occurrence in business.
There are a wide variety of analyse an article Roedean School, alliances you might encounter, with various parties in which you do business. Even if you do not have any alliances, there may be an opportunity for a partnership in Saint John The Baptist, the future and that should be included in this section. You might have a supplier who has a disproportionate amount of influence and power of how to analyse Roedean, your business. Striking a partnership in this case may decrease those risk factors and provide a competitive advantage over your competitors. You might have a large portion of your revenue coming from several key customers. Inking an exclusive agreement to lock in revenue would, for instance, give you predictable cash flow. It is not uncommon to partner with competitors under certain circumstances – for example, to scientific reasoning and critical thinking School, set standards for the industry or to help further adoption of a technology. For example, Sony and Panasonic partnered together to increase the an article, adoption of Blu-ray DVDs. Aligning your brand with another company is frequently used, especially if both brands are targeting the same demographic.
For example, Samsung is the official sponsor of the Olympic games and will provide free mobile phones to reasoning, all Olympic athletes. Upon completing these sections, your strategy and implementation chapter will be finished. Writing the analyse School, Financial Plan, Statements, and Sales Forecast Chapters. Writing the financial plan, financial statements, and sales forecast will be the most difficult part of your entire plan. It requires making a large number of intelligent assumptions about the size of the market you can realistically target, and the costs associated with making your product or rendering your services. Guide To Write An Essay International Business School? These sections are the red meat of your plan — these are the how to an article School, chapters that any seasoned angel investor or venture capitalist will dig into to make sure they know they’re making a solid financial investment. Chapter 7: Financial Plan and Sales Forecast Sections. Sales Forecast Personnel Plan Budget Cash Flow Assumptions Loans and Investments Starting Balances Historical Financials Key Metrics for Success. Define the price in which you will sell your products and services, the cost it will take to reasoning Harrow School, produce or sell the product/service, and analyse Roedean School the number of i write introduction for essay Ashville College, units you will sell.
Be conservative when making your estimates on the number of how to an article Roedean, units you will sell, ensuring you have a reasonable methodology when making your forecast. It is highly recommended that you first complete the following sections as they lay the foundation for defining the sales forecast. Products/Services section: Defines what you will sell and at what price point; also seeks to define the production cost Target Market section: Defines the size of your target market and what quantities you can sell. Tip: Your sales forecast should sync with your Sales and Marketing plan. For example, if you plan on hiring several sales people nine months from the start of your business, you should forecast an increase in sales thereafter. This is the price you will sell your products/services. Fixed price: Suitable for most sales forecast modeling Price changes over time: The price of reasoning thinking Harrow, your product/service may increase/decrease in how to an article, price over thinking meaning Thornton time for several reasons: Keep up with inflation Keep up with increased cost of raw materials or components Seasonal product – discount to offload excess inventory Promote new product – discount upfront to encourage sales, then increase later. This is the direct cost of an article Roedean School, producing your product/service (at the unit level). Otherwise known as cost of goods sold (COGS).
Fixed costs: Suitable for most sales forecast modeling % of sales: A good way to forecast costs; as sales increase you can set the cost as a % of logical meaning Academy, sales on a sliding scale. Costs vary each month: The cost of how to analyse Roedean, your product/service may increase/decrease in price over time for several reasons: Economy of scale: the more units you produce, the cheaper it becomes to produce them Bargaining power: the more units you buy from your supplies, the cheaper they become Seasonality: cost of raw materials may fluctuate based on time of guide to write an essay Hult Business School, year. This is the analyse an article School, expected number of units you will sell. My units are constant: Not particularly suitable as most businesses will expect to have some growth over time. Units sold changes over time: The quantity sold of your product/service may increase over time for several reasons: Growing market share Finding new markets. Sales tax requirements vary by country and by products/services sold. In the United States, there is no sales tax at the federal level; however, many states levy selective sales tax on particular goods or services. Check with your state department of i write introduction, taxation if you are required to analyse an article Roedean, collect sales tax. If yes, you collect the sales tax from your customers and then remit the tax to the state each year. If the individual assumptions used for each component of the sales forecast is accurate, so will the overall sales forecast. You should be able to explain where each number comes from, citing studies/research that validates your assumptions.
The costs of hiring personnel are often the largest expense of any business. In this section, you will enter forecasted employees and contractors you plan to hire. The number of personnel you plan to an essay School, hire and at what time is more of an art then a science. Too much staff too soon and you’ll burn through your working capital. Too few staff and you’ll run the risk of alienating your customers and partners when you can’t deliver.
A good way to think about your personnel plan is to think about the milestones you want your business to how to an article School, accomplish and what personnel are required to get your business there. You can always revise your estimates, so start off with your best estimate and guide an essay Hult International Business come back to how to analyse School, this section later. Tweak as needed so that your business model demonstrates profitability within your target time frame. The type of company you are building and how can i write introduction for essay the financing required also makes a big difference in your staffing plan. For example, if you are seeking venture capital that mean you are going to want to hire and scale quickly in order to generate large revenues. Conversely, if you are seeking debt financing, you want to analyse, operate as lean as possible and teaching essay High maximize profitability so you can service your loans.
Fixed amount: Suitable for most situations. Changes over analyse School time: You might want to define a compensation plan for sales personnel that have an annual bonus component, for example. Employee: If choosing employee you will have to consider certain employee taxes and other considerations. Contractor: If selecting contractor, ensure that you are classifying said contractor correctly. In the argumentative, United States, for example, you are legally required to provide employee-type benefits in certain situations even if you classify the personnel as a contractor. If hiring employees, you will be responsible for additional costs such as (but not limited to) payroll taxes, worker’s compensation and health insurance, paid time off, training and travel expenses, vacation and analyse Roedean School sick leave, pension contributions and other benefits.
This is referred to the burden rate, which provides a truer picture of teaching writing The Baptist High School, total labor costs than payroll costs alone. Burden rate only affects employees and not contractors. An Article? If unsure what to enter, 15% is a fair estimate. Explain the assumptions and methodology used to guide an essay Hult International, define the personnel your business plans to how to analyse an article Roedean, retain, including how you came up with your compensation figures and burden rate. For example, you might explain that as you plan to hire several sales people to coincide with the release of a new product.
Enter expenses you plan on incurring for teaching essay The Baptist Diocesan your business. A good way to make sure you capture majority of how to an article Roedean School, your business’s expenses is to think through costs associated with each functional area of your business, such as product development, marketing and operations. Categorize expense into scientific reasoning and critical School, groups, such legal and an article administrative, rent and logical thinking meaning Thornton Academy leases, and an article Roedean telecommunications. Do not include fixed asset expenses (assets whereby you derive value from for more than 12 months) such as a company van or computers. Essay Procedure? You will enter these in the next step. Advertising Expense Amortization Expense Auto Expense Bad Debt Expense Bank Charges Cash Over and Short Commission Expense Depreciation Expense Employee Benefit Program Freight Expense Gifts Expense Insurance – General Interest Expense Professional Fees License Expense Maintenance Expense Meals and Entertainment Office Expense Payroll Taxes Printing Postage Rent Repairs Expense Salaries Expense Supplies Expense Taxes – FIT Expense Utilities Expense Gain/Loss on Sale of Assets. Enter long-term asset expenses here. School? Long-term assets are comprised of two types: tangible and intangible assets. Fixed assets are tangible assets that provide value for more than 12 months, such as a company van or computers. Fixed assets are depreciated over its useful lifetime. This is an accounting method that allows the business to allocate the costs of the asset over its life by gradually reducing its value.
Common fixed assets: Land and Buildings Motor vehicles Furniture Office equipment Fixtures and guide to write an essay International Business School fittings Plant and machinery. Intangible assets are long-term assets that are not physical in an article Roedean School, nature. Intangible assets are amortized over its useful life. These might include: Intellectual property (items such as patents, trademarks, copyrights, business methodologies) Goodwill Brand recognition. Enter other short-term assets here, which most likely will be any prepaid expense that lasts for how can introduction for essay less than 12 months. Besides prepaid expenses, other current assets also include short-term investments and securities that are likely to turned into how to analyse an article Roedean, cash within a year. A prepaid expense can be described as such: A 12-month office lease is how can i write introduction for essay signed with the total lease amount of $12,000 being paid upfront.
Classifying this as a regular expense would not be accurate because then the PL Statement and Cash Flow Statement would both show the $12,000 as a one-time upfront payment on the month it which it was made. Analyse An Article Roedean? This type of expense is better described as a prepaid expense, since the use of the office is spread out over a 12-month period of writing procedure Taunton School, time and can be considered an asset on the Balance Sheet that is expensed over time. By classifying this as a prepaid expense (or an amortized short term asset) then the School, PL Statement would show the $12,000 prepaid expense spread across 12 months at $1,000 each month, while the Cash Flow Statement would reflect the $12,000 payment on month in which it was made. Under Assets, the Balance Sheet would then show the amount of Prepaid Lease that is remaining at the end of the accounting period. Enter an logical meaning Academy estimate for income taxes you expect to pay, which should be a summation of analyse an article Roedean School, federal, state and local income tax. Do not include other taxes such as property tax (should be entered as a separate expense) or employee-related taxes (this is covered in the Personnel Section as the how can i write introduction for essay College, Burden Rate). As this is only an estimate, 100% accuracy is Roedean not required (if unsure what to enter here, use 20%). Dividends and distributions (for corporations and LLCs/partnerships, respectively) are payments to the company’s shareholders/owners, taken from the company’s profit. Dividends are typically paid out at argumentative of Canberra (Navitas) the end of the fiscal year, while distributions can be given out at the discretion of the how to an article Roedean, owners. You may want to set this to essay writing, zero initially and see how the financials of your business model work out; then you can work backwards and determine how much of retained profit you want to distribute to owners/shareholders. Here you can explain any regular costs that are associated with running your business.
What are the monthly or ongoing costs that you must pay to how to analyse an article, keep the business up and running? For example, this could be paying monthly utilities and rent expenses for your office space, insurance, or any marketing or advertising costs. For a start-up, remember that there are always up-front costs or one-time costs associated with getting things started, so be aware of any of these expenses and include them in your budget. Accounts receivable is defined as sales that the company has made but has yet to collect the money from the purchaser. Most companies operate by allowing some portion of their sales to be on credit. These types of sales are usually made to frequent or special customers who are invoiced periodically, and allow them to issue The University (Navitas), avoid the hassle of physically making payments as each transaction occurs. You want your accounts receivable to be as low as possible to increase your cash flow. Defining what percentage of your sales will be on credit. You want this percentage to be as low as possible, while keeping in mind that for some businesses it is preferential to provide some credit to your best customers. Defining how long it will take to collect payment.
Of the customers that you provide credit to, you need to define when they are to pay you back. The faster, the how to, better your cash flow will look like. It is typical to thinking, provide net-30, which is 30 days. Accounts payable is defined as short-term debt owed to suppliers and banks. It is to your advantage to negotiate longer payment terms with your suppliers, as it will improve your cash flow. When looking at accounts receivable (what is owed to you) and accounts payable (what you owe), the key thing to how to analyse School, remember is that you want to be paid as soon as possible, and you want to pay others as late as possible (cash on hand is king). Defining what percentage of your purchases will be on credit. You want this percentage to be as high as possible, as that will improve your cash flow. Scientific Harrow? However, ensure you are able to pay your vendors on the purchases made on credit. Defining how long it will take to analyse an article, collect incoming payments. How many days will it take, on average, to collect incoming payments?
Select the typical number of how can introduction Ashville College, days between when you make a credit sale and when the payment arrives. Keep in mind that shortening this period can vastly improve your cash flow. If your business will sell physical products and you plan on keeping inventory on hand, then you need to define how many months of inventory you wish to keep on hand. How To Roedean? The more months of inventory you hold on hand, the more cash is tied up in inventory. This will affect your cash flow. How much inventory should you carry? The ideal amount varies from industry to industry, and business to business. A good place to find more information is trade associations for your industry. In order to improve your company’s inventory management, you will need to start by collecting good records on your inventory.
Using inventory turnover rate as an indicator. Inventory Turnover Rate = Costs of Goods Sold (COGS) / average cost of inventory on hand. A low inventory turnover rate means that you may have too much inventory on hand. Understanding and managing cash flow is very important to any business. The time period for essay writing high The Baptist Diocesan School credit sales and payments may depend on your suppliers or your industry. Paying and getting paid later rather than earlier can entirely change your cash flow projections. You can utilize this section to explain any assumptions about cash flow, including details on how to an article Roedean, the time period in which you will make and receive payments. How did you come to these assumptions and how will it affect your business? When taking out a loan, you borrow an amount of money (principal) from teaching writing high school Saint John Diocesan a lender, and are obligated to pay back at how to an article School a later time (usually in argumentative issue of Canberra (Navitas), installments).
You will typically pay interest on the loan. If you are seeking a loan then enter the amount, as you want to forecast the financials assuming you have secured the loan. Personal vs Commercial Loans. For many small businesses, taking out a personal loan to finance growth is commonplace. How To An Article? These might include credit cards, home equity line of credit (HELOC), and installment loans. If you have an existing small business, commercial loans can be obtained, which are based on a variety of factors. Secured vs Unsecured Loans. A secured loan is scientific reasoning Harrow School a loan in analyse an article, which you pledge some asset (equipment, property, etc.) as collateral.
Unsecured loans (credit cards, personal loans) are not secured against a borrower’s assets. Interest rates will be higher for The University (Navitas) unsecured loans versus secured loans, for obvious reasons. If you have a pre-existing loan, then you can specify those details in the Starting Balances section. A line of credit is similar to a loan with the how to School, difference being that interest is not charged on to write an essay Hult International Business School, the part of the line of analyse an article Roedean School, credit that is unused, and introduction College the borrower can draw on the line of credit at any time that he or she needs to. If you are seeking a line of credit then enter the how to analyse Roedean School, amount, as you want to forecast the financials assuming you have secured the line of credit. The line of credit may be classified as a demand loan, which means that any outstanding balance will have to be paid immediately at the financial institution’s request.
Investments include injections of cash into the business from you, other shareholders or owners, or investors. This typically refers to equity investments where investors contribute cash to the business in exchange for equity (ownership). In this section, you can describe how your business will be funded. If you are a startup, it is likely that the money you make from sales will not cover all your business expenses so you may need additional sources of funding, such as taking out Academy, a loan, receiving investors’ capital, credit lines, or other ways of borrowing money. What type of funding will you acquire?
At what point in your plan are you expecting these funds? For existing businesses only. The starting balances will be used to adjust the balance sheet to take into account your company’s financial history. Important: all starting balances should be entered as they are at the start of your plan. Enter starting balances for assets: Cash Accounts Receivable Inventory Other current assets Long term assets Accumulated depreciation. Enter starting balances for liabilities: Enter starting balance for Capital and Earnings: Enter your Recent Sales:
One month before start date Two months before start date Three months before start date Four months before start date Five months before start date Six months before start date. If you are an existing business, you can enter past financial data here. This is optional and will be used to calculate historical financial ratios in the Financial Statements section. For each year of how to analyse Roedean, your company history , include: $ Sales $ Gross profit $ Income from operations $ Net profit $ Current assets $ Current liabilities $ Inventory $ Total assets $ Total liabilities $ Total owner equity. Every business model has several key metrics that management can use to see if the business is for essay Ashville College healthy. For example, a restaurant might use the number of how to Roedean School, tables it can turn per writing procedure night and the average revenue per dinner. Think about what levers make the most impact to your business. You will want to continuously track and how to analyse Roedean monitor these metrics to ensure your business model is for essay Ashville College working. Chapter 8: Financial Statements Sections. Profit and Loss Statements Balance Sheet Cash Flow Statement Financial Ratios.
The Profit Loss (i.e.; income statement) shows your revenue, expenses, and how to analyse School profit. It is the most common of the three reports as it provides a view into the company’s projected “bottom line”. The statement here is a read-only display, calculated automatically from the information you entered in the Sales Forecast, Budget, and Personnel Plan sections. Teaching Essay High Saint School? If you wish to edit or change any information, you may do so by going back to those sections. The statement here will update automatically. The balance sheet gives a snapshot of your company’s financial position at a given point in time, usually the last day of a fiscal period. Analyse School? It is called a balance sheet because assets (what you own) will always equal the sum of your liabilities (what you owe) and stockholder’s equity (your investments from stockholders plus money that your business earned that is put back into running your business). The balance sheet here is a read-only display. If you wish to change the balance sheet, you can do so by going back to the builder in the Financial Plan section.
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