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The business plan in the given scenario requires a comprehensive plan covering the business entity structure, marketing, operations, human resources, purchasing and production plan. It would be advisable for the company to follow a sole proprietorship ownership structure…
This essentially means that in order to simplify the complexities, the production, purchasing and staffing will be done according to the demand of the products. The higher the demand, the higher the production, purchasing and staffing. This means that the staffing will mostly consist of part-time employees rather than full-time employees who will be effectively scheduled around depending on the production schedule and runs.
It is necessary to put forth a set of assumptions before a business plan can be built. The details of the financial statements and the projections of the business require a great deal of tasks to be carried out - this will require separation of tasks and duties. Furthermore, it is necessary to consider the tax implications of a business structure before deciding upon a structure.
The aim and objective of any business is to maximize the return from operations of a business. The business structure in this case will have to be a sole proprietorship. Though there will be a complete organizational chart and hierarchy with the division of task and responsibilities, the business will be owned single-handedly in order to reduce the income tax expenses that the business will have to bear. A partnership structure will result in partnership profit taxes too and thus sole proprietorship will be the best structure for this case.
Though there is the concern of risk management in this scenario, the division of profits and the res ...
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