Create an idea for your own company to conduct local or international business.

Question

Create an idea for your own company to conduct local or international business. Your idea should be simplified to the degree that you could possibly implement it someday. However, your idea should also be sufficiently creative to be successful if done properly. Your idea should focus on one product and one currency.

Your idea should be for a small company instead of a large one because even most large companies began as small firms.

The following questions will help you define your idea:

1. What type of business organization will you create? (i.e Sole Proprietorship, Partnership, or Corporation?) Justify your choice.
2. What is the amount of startup capital? How will you use investment and financing decisions?
3. What is the product that you plan to sell?
4. Is there some evidence that consumers would buy this type of product?
5. Where would you like to operate (US or foreign country?)
6. If you decide to operate internationally, what foreign country do you plan to target?
7. How will you sell the product? (i.e., directly to customers, through a distributor, online/by mail? etc.)
8. Do you need to purchase supplies or to hire labor?
9. What are the team size, planning time, and operating time?
10. What expenses you expect your business to incur? From registering the company, to producing the product…ending by delivering it to the final destination).

Explanation / Answer

1). I will begin my business with the model of sole propritorship as a startup firm.

Justification: For a sole propritorship model the size of the business will be small and therefore management will be easy. This will result in some saving of time which could be used for taking strateginc decisions such as whether to increase the current production capacity or to buy another small business to expand my business and so on.

2) The amount of Startup capital I would estimate for the business would be $ 100,000

Financing decission would be to decide on how to raise these funds. So I propose to use 50 : 50

debt to equity ratio for gathering this capital.

Investment decisions involve how much what kind of assets to be purchased and how much cash

needs to be retained. I propose to buy fixed assets worth $50,000 dollars, invest in shares of

another company worth $ 20,000, maintain stock worth $ 15,000 and retain cash worth $ 15,000

3) I plan to sell pharmacutical products.

4) All people require medicines to support their lives as they grow old

5) I would like to operate in US.

6) I would like to target Euros because it is a common currency for many European countries.

7) I will sell my product by setting up a business in one place and also adopt online method.

8) I need to purchase medicines and also hire labor to help me run the business

9) Since I propose to setup business in a busy area and since the demand for medicines follows

normal distribution, I will have a team of 10 members, each working for 8 hours in shifts.

10) Expenses:

a) Registration Expenses and other preliminary expenses

b) Business Running expenseso: Purchase of medicines, hiring the space, salaries to team

members, monthly utility payments, audit fees, other legal expenses, Godown rent, godown

manager's salary,

c) Delivery charges---

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