Team Time

What’s the Plan?

Imagine that you work for the U.S. Small Business Administration and have the opportunity to advise new business owners on the form of ownership their businesses should take. Form groups of three to five people and choose one of the business ideas below. Work as a group to create an outline of a business plan for each business idea (see Mini Chapter 2 for some sample outlines). What kind of business forms would you suggest for each idea and why? Be sure to consider the potential risks and liabilities, the potential income tax situations, and the current and future investment needs of each business. Assume that in five years, the business needed additional capital to expand by adding a new building in a different location. Would your business structure support raising the necessary capital? Why or why not?

Business Ideas

  • Roofing and siding company

  • Ice cream parlor

  • Yoga instruction

  • Lawn mowing company

  • Clothing donation company

Process

Meet as a group to discuss your business idea. Remember that you must prepare an outline of a business plan. Use what you know about the forms of business ownership to create the business plan.

  1. Step 1. Prepare an individual report that explains the form of ownership your business should take and why.

  2. Step 2. Determine who will be the group’s primary spokesperson for your business plan.

  3. Step 3. Your group will have five minutes to present your recommendations.

  4. Step 4. After each group has presented, discuss any differences of opinion about the proposed business structures.

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