Creating, Financing, And Marketing A Business

1301 words - 6 pages

Creating, Financing, and Marketing a Business
Kimberly M. Albuquerque
Business 100
Strayer University
26 February 2013

Creating, Financing, and Marketing a Business
When creating a business, entrepreneurs start with goals that help them create, finance and market their business. To stand up their business, they must decide what form of ownership they will use. This decision will affect the establishment and operation of their business, including financing and regulation, as well as marketing.
One form of ownership commonly used in the United States is a partnership. This is where two or more people enter an agreement and become co-owners of a firm. There are limited ...view middle of the document...

A lawsuit can be filed against any partner or all partners regardless of who caused the action. This means if you have more to lose than the other partners, you could be targeted even if you didn’t participate in the fault. (2). Potential for disagreements. This can cause friction within the business, affecting the morale and welfare, while undermining cooperation essential to keeping the business on track. Disagreements can also complicate decision making among the partners. (3). Lack of continuity creates uncertainty of how long a partnership will remain. If a partner decides to withdraw, the course of the business relationship changes and possibly ends the partnership. For this reason, continuity is key because the remaining partners may decide to bring someone else on board or just be able to pick up where the former partner left off.
When it comes to funding a small business, most new firms are started with the founder’s personal resources, such as their own money or family, friends or credit cards. Other options include bank loans, investors and venture capital firms. Lenders are sometimes hesitant to fund new businesses and most require a minimum of 25 to 30 percent of startup costs from the entrepreneur. The Small Business Administration (SBA) gives partial loan guarantees from local commercial lenders. They also have a microloan program which lends small amounts (roughly about $13,000) through community nonprofit organizations. Angel investors are wealthy people who seek to invest in new businesses with the goal of profiting for themselves. They look for companies that are likely to grow 30 to 40 percent per year. Venture capital firms invest in new companies with high potential, but in exchange for shared ownership which can be as much as 60 percent. However, the economic crisis has greatly impacted this type of funding.
Managerial accounting is designed to meet the needs of company managers. They rely on accountant reports, analysis and other information to make important decisions. One of these important decisions is product costing and the allocation of funds associated with it. In order to set prices, determine variety in products, and depict efficiency, managers must have an accurate measure of costs associated with their goods and services. Other costs include production facility costs, or overhead costs. These consist of property taxes, insurance policies, and general maintenance costs. Recently, managerial accountants developed a new approach to cost allocations called activity-based costing (ABC). This is a more complex approach but will likely provide more results based on what drives overhead costs.
Incremental analysis takes a look at financial impacts of different alternatives in decision making. For example, if a firm is trying to decide whether to repair its equipment or replace it with new equipment, the managers can use this analysis to make an informed decision based on the impact of the...

Other assignments on Creating, Financing, And Marketing A Business

Defining Marketing Paper

866 words - 4 pages to buy it. There is the function of financing. In this function the organization must have all the proper financing before they can even make their product and have all the necessities to keep their business running. There is the function of the risk involved for an organization when having a business. In this function the organization must focus on all the risk involved when opening a business and if the business will even make a profit

Due Process Essay

923 words - 4 pages Strayer University Creating, Financing, and Marketing a business . 5/27/12   Partnerships have many benefits, but they also can be maintained very easily. You do not have to register with your state and pay fees, as you do to establish a corporation or a (LLC). And with a partnership, filing income tax returns is relatively easy. Unlike a regular corporation, there is no need to file separate tax returns for the corporate entity

Final Notes

2361 words - 10 pages Week 1 TCOs A, B, C Marketing, Strategies, and Research Chapter 1: Defining Marketing for the 21st Century Chapter 2: Developing Marketing Strategies and Plans Chapter 4: Conducting Marketing Research and Forecasting Demand, pp. 88-105 A. Given information gathered through applied business research, develop a Marketing Plan for a product or service of your choice consistent with its position in the market. Understand how this Marketing Plan

Franchising

575 words - 3 pages RISE AND FALL OF FRANCHISING Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs. Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an

Marketing Notes

844 words - 4 pages will continue to affect everyone’s business and personal life. ➤ Technology will continue to advance and amaze us. ➤ There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregulation— spell endless opportunities. But what is marketing and what does it have to do with these issues? These three developments—globalization, technological advances, and

Marketing

6768 words - 28 pages INTRODUCTION TO MARKETING MARKET MEANING OF MARKET The term MARKET is derived from the latin word “MERCATUS” which means merchandise or a place where business is conducted. THUS MARKET WOULD IMPLY : * A place where goods and persons are physically present. * An assemble of people (buyers and sellers) * An area of operation * An act of buying and selling * A place where consumer’s wants are satisfied However in a

Marketing

1759 words - 8 pages wants through exchange processes and building long term relationships. The process of communicating the value of a product or service through positioning to customers. Marketing can be looked at as an organizational function and a set of processes for creating, delivering and communicating value to customers, and managing customer relationships in ways that benefit the organization and its shareholders. Marketing is the science of choosing target

Kotler Summary

750 words - 3 pages Marketing Management By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha logo copy.tif SUMMARY by Chapter 1 Understanding Marketing Management Marketing is an essential art and science that is engaged in a vast number of activities by both persons and organizations. It has become an increasingly vital ingredient in the success of a business. Good marketing is the result of careful planning and execution. There are two

Business

7113 words - 29 pages to the consumers needs. Marketers use the process of marketing environmental scans, which continually acquires information on events occurring outside the organization to identify trends, opportunities and threats to a business. The six key elements of a marketing scan are the demographic forces, socio-cultural forces, economic forces, regulatory forces, competitive forces, and technological forces. Marketers must look at where the threats and

Oracle

580 words - 3 pages on equity in 1990. This made Oracle extremely attractive to investors for financing. Oracle utilized its equity financing to enhance its business strategy. According to Oracle’s Income Statement for the year ending May 31, 1990, about 60% of its operating expenses belonged to sales and marketing, with an additional 11% being tied to research and development. The large budget for sales and marketing allowed the company to continue to expand

Defining Marketing

1514 words - 7 pages of marketing Marketing is a concept that is always growing and changing, and definitions of marketing seem to be written each day. Marketing is defined by a diverse collection of methods and definitions, based upon the businesses media platform and the audience that it reaches. Many marketers have different definitions of marketing. Marketers base their definitions on their business practices and what they do differently. One definition of

Similar Documents

Urban Outfitters Continuing Case Study 4 Marketing A Business

1144 words - 5 pages Urban Outfitters Continuing Case Study 4 Marketing a Business Felicia Lee Introduction to Business BUS 100 May 30, 2011 Abstract Marketing is a process which a company draws potential consumers/customers’ interest towards its goods and services. This process involves activities such as research, promotion

“Marketing Should Be The First Activity In Starting A New Business Venture”

814 words - 4 pages “Marketing is the first activity in starting a new business venture” Introduction: Marketing is the first and most important activity for a new business venture. Marketing introduces business in the market. Marketing plays a vital role in building new business venture's reputation. Company / Firm doesn't take back move to spend more money on marketing. Because initially, this is the only way where the company can pull the attention of

Information Systems: Running And Managing A Business

4298 words - 18 pages , information, and knowledge to produce their valuable products or services. Business processes for the manufacturing and production area include product assembling, quality checking, and producing bills of materials. For the sales and marketing area, business processes include identifying customers, making customers aware of the product, and selling the product. For finance and accounting, business processes includes paying creditors, creating

Business Model And Strategic Plan Part I: Conceptualizing A New Product Or Service Division Of An Existing Business

3061 words - 13 pages through a few different promotional selling strategies in order to get their feet off the ground. They will use minimal advertising at first because they will need the funds in order to advertise as advertising can be fairly expensive. This is why it is important to find the right person to get cheaper advertising through newspapers and flyers, but get the “bang for their buck” they are looking for as well. They will use also use digital marketing