Starting a business requires that all aspects and processes pertaining to it be clearly stated. Indeed, it is imperative that the business idea id guided by a clearly defined framework that explains all its aspects to the pioneers and prospective investors.
A-Cut-Above Lawn Maintenance and Landscaping is a sole proprietorship form of business that is under the ownership of John White. The business has no stock since it is not incorporated. The A-Cut-Above Lawn Maintenance and Landscaping became registered fort business operations in September 2013 and is based in Houston, Texas. The sole proprietorship business has to plan for risks that can affect the business (Malecki, 1992). For instance, because of the nature of the business, employees may experience some injuries which the business has to compensate for. Besides, the business requires having liability coverage in order to cover errors and omissions that may occur or even cases of employee misconduct. Therefore, John White will require to have an adequate insurance coverage. The insurance coverage should be affordable to John White. An unaffordable insurance coverage will have the effect of increasing operating costs, which is likely to lead to the closure of the business.
Besides, in planning for risks in the business, John White will require to factor in the amount of tax payable and its implications for the business. Since the business is a sole proprietorship, the business will not be taxed separately from its owner (Cowan, 2005). The business owner will be required to report all the income or losses of the business on his personal income tax return (Cowan, 2005). Therefore, the profits of the business will pass from the business to the owner for personal tax return. This will imply that the sole proprietorship business will not be capable of cutting its tax bill since every income or loss will have to pass to John White for personal income tax return. This is different from a corporation since a corporation will be treated as a separate entity while submitting taxes (Seidman, 1950).
The Business Idea
The proposed business is lawn maintenance and landscaping company situated in Pennsylvania. This business has its mission as the provision of clean professionally manicured lawns, as well as landscaping services that would ensure that the lawn and the constituent business to stand out. Its service provision is aimed at ensuring that it goes beyond the expectations of the customers.
The proposed business name for the company is A-Cut-Above Lawn Maintenance and Landscaping.
The Four C’s of the Business.
As a small business enterprise, the day-to-day operations of A-Cut-Above Lawn Maintenance and Landscaping Company will be handled by the directors. Any investors in the company apart from the pioneers will not have any control over the day-to-day operations. However, the performance of lawn cleaning and maintenance activities will be delegated to the employees, but will be under the direct supervision of the pioneers (Abrams, 2003).
The key challenge will be ensuring that the lawn maintenance business can operate efficiently and optimally despite its scattered clients. More marketing will need to be done so as to ensure that the clients are as close to each other as possible thereby minimizing the costs of operation.
While it is difficult to ensure that the lawn maintenance services of the company stand out, it will be imperative that some creativity is incorporated so as to enhance the competitiveness of the company (Rogoff, 2007). This will be achieved through customization of the services where the lawns could be spelling the client’s names or even “Welcome” message to the homesteads.
While the growth of the company is desirable, substantial finances would be required so as to purchase equipment and hire workers. In this case, it will be imperative that a loan of $100000 is solicited from the local bank so as to fund the activities of the company in the initial stages.
The key competitors of A-Cut-Above will be Ariel Janitorial Service company and Greenup, Inc. this is because these companies operate in the same area as A-Cut-Above and provide almost similar services (Baker, 2004). The companies compare, in terms, of the services that they provide. While A-Cut-Above provides specialized services in lawn maintenance and landscaping, Greenup and Ariel Janitorial Service companies offer a variety of services. Besides, the companies compare with that; although they offer lawn maintenance services, they do not offer landscaping services while A-Cut-Above provides the service (Baker, 2004).
The service that the company offers is in demand in the area and the services offered are unique since not everyone would desire doing the services. Besides, there are few firms offering the services of the company implying that there is less competition. In addition, the company offers attractive prices.
The company is new in the service, which may make it difficult to challenge old companies in the service. The company does not have a major company, which it can attach to in providing the services. Besides, the company has few employees that may not be capable of meeting the demand in the area.
The company has an opportunity to grow; this is because of the availability of demand for its services in the area. It can utilize the opportunity in expanding its business. The company also has an opportunity in winning the community trust since there are a few companies providing the services.
Weather is a threat to the company since some weather conditions are not favorable for workers to work. The company is not also sure about the community response regarding its services, which is a threat to business. Since it is new in the business, the company may run out of money as it tries to compete old companies.
- Abrams, R. M. (2003). The successful business plan: Secrets & strategies. Palo Alto, Calif: The Planning Shop.
- Rogoff, E. G. (2007). Bankable business plans. New York, NY: Rowhouse Pub.