Acc 561 - Small Business Idea

Small Business Idea

ACC/561

March 4, 2013

Small Business Idea

Small businesses are what keep the United States economically strong. These types of business are not like larger ones in that they keep their operations in the United States. Job growth in the United States is due to the creation of small businesses.

For a business to be successful a business plan needs to be created. The business plan is a sales pitch to a bank or lender. This can be the deciding factor of receiving a loan or not. This business plan needs to describe what product or service is going to be provided and how it may be unique or add to the already existing market. The business plan will need to include financial statements to forecast how the business will be successful and will not have any issues repaying their loan.

A description of the four forms of business organizations along with their advantages and disadvantages, associated financials statements. These descriptions will aid in deciding which one suits my small business.

Business Idea

With the development of the wireless industry growing at such a fast pace, the physical layout of the network is ever changing due to the emergence of new technology. With this environment changing there is a need for tower crews to change out equipment on towers. The competition between wireless providers has made tower crews a hot commodity which has made them hard to employ for projects that have to be completed.

RKC Tower is a small business that I am working to establish. With the lack of tower crews already in the industry, this business should not have any issues with receiving work once we are up and running. To ensure this company is successful I will need to review the four different forms of business organizations and incorporate it into my business plan.

Business Organizations

Sole Proprietorship

A sole proprietorship is a business organization that is easy to establish and provides the owner full control over the business. This type of organization is ideal for a small owner operated company. (Kimmel, Weygandt, & Keiso, 2009) A disadvantage of a sole proprietorship is that the owner is able to do what they like with the profits. If the profits are not handled correctly, there could be issue when it comes to paying any debts.

The financial statement that is of interest with a sole proprietorship is the statement of cash flows to ensure proper record keeping. Since sole proprietorships are not publically sold, they are not required to keep financial statements. It would benefit the business to keep all financial statements in the