Entrepreneurship¶
-
The Personal MBA: Master the Art of Business
See also:
Planning¶
See also:
- Business Plans (Pessimistic, Realistic, Optimistic)
- Business Strategies
- Scenarios
- Team Building > The same page
Plan for Failure¶
Many businesses fail.
What is the survival rate for new businesses?
About half of all new establishments survive five years or more and about one-third survive 10 years or more.
—https://www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf (p.1)
Many businesses are not profitable in their first year(s) of operation.
Contingency plan¶
Exit strategy¶
- Cash out
- Sell to: A, B, or C
- Find an EXIT sign [“plan your route”]
Plan for Success¶
Mission Statement¶
Project¶
Goal¶
Objective¶
Imagine Success¶
Profitability¶
- Profit ~= Income = Revenue - Expenses (ROI)
- There is an incentive to re-invest revenue into the business.
- https://en.wikipedia.org/wiki/Break-even
- https://en.wikipedia.org/wiki/Customer_profitability (Smoothies)
- https://en.wikipedia.org/wiki/Profitability_index
USA Entrepreneurship¶
- Choosing a name
- DNS availability
- Search result count
- (Multi-) state business name registration
- https://www.sba.gov/starting-business/choose-register-your-business
- “Trade Name”
- Scope
- Market Share / Market Size
- Growth potential
- number of customers
- marginal customer value (see: Smoothies)
- Legal team factors to consider
- Already-prepared, already-tested document library
- Multi-state network
- Registering a business
- State of incorporation
- Types of business entity
Types of business entity¶
No liability protection, no double-taxation (“pass-through taxation”):
- https://en.wikipedia.org/wiki/Types_of_business_entity#United_States
- https://en.wikipedia.org/wiki/Partnership_taxation_in_the_United_States
- https://en.wikipedia.org/wiki/Sole_proprietorship
- https://en.wikipedia.org/wiki/Partnership
Limited liability, no double-taxation (“pass-through taxation”):
- https://en.wikipedia.org/wiki/Limited_liability
- https://en.wikipedia.org/wiki/Limited_liability_partnership#United_States (“LLP”)
- https://en.wikipedia.org/wiki/Limited_liability_limited_partnership (“LLLP”)
- https://en.wikipedia.org/wiki/Limited_liability_company (“LLC”)
- https://en.wikipedia.org/wiki/Articles_of_organization
Types of corporations:
https://en.wikipedia.org/wiki/Types_of_business_entity#United_States
https://en.wikipedia.org/wiki/S_corporation
- some LLCs and LLPs can be taxed as S corporations
- closely held
- pass-through income taxation (according to shareholder %)
- no aliens allowed
- one class of stock
- health insurance benefits and HSAs must be included as W-2 wages if the shareholder holds greater than 2% of the outstanding shares
- https://en.wikipedia.org/wiki/S_corporation#Qualification_for_S_corporation_status
https://en.wikipedia.org/wiki/C_corporation
taxed separately (business income tax, payroll tax; and then income tax)
https://en.wikipedia.org/wiki/Corporate_tax_in_the_United_States#Tax_rates
https://www.irs.gov/pub/irs-pdf/i1120.pdf
https://www.irs.gov/instructions/i1120/ch02.html#d0e2707
(“Tax Rate Schedule” 2015 p.17 )
- Corporate income tax rates (2015 Form 1120): 15-35% (*)
- Personal Income tax rates (2015 Form 1040): 10-39.6% (*)
>>> ((1.0 * (1-0.35)) * (1-0.396)) 0.3926 >>> ((1.0 * (1-0.15)) * (1-0.10)) 0.765
See also:
- Information Systems > Accounting (* “Accountant”)
- Small Business Consulting > ROI