Business Planning and Organizations

elements of a business plan

cover page, executive summary, company summary, products and services, market analysis, financial plan

executive summary

highlights of the plan, gets readers attention

company summary

vision and mission, legal structure, management personel

products and services

what you offer product/service wise, expansion opportunities

market analysis

what’s needed at the moment? Niche

financial plan

financial projections and statements

sole proprietorship pros

easy to form, minimal legal restrictions, freedom in decision making

sole proprietorship cons

unlimited liability, less available capital, difficulty with long term financing, business dies with you

general partnerships

assume all liability together, have full control over their business

limited partnership

assume liability for section agreed upon, no personal iability

general partnership pros

easy to form, direct profit rewards, more management than sole proprietorship

general partnership cons

unlimited personal liability, limited life of business, change of partners/change of agreements is difficult

c-corporations pros

business has legal existence; exists beyond the owners, can conduct in its own name, stockholders (owners) not personally responsible for business loss

c-corporation cons

complex and expensive, limits on corporate activity by corporate charger, extensive regulation and record-keeping requirements, double taxation

s-corporation

like c-corporation with no double taxation; have to be 100 or less shareholders, all shareholders consent, domestic w/ one class of stock

limited liability company (LLC)

limited documentation, no advance IRS filings, no public disclosure of finances

what type of business isn’t taxed at an entity level

LLC

why was the GC licensing board created

to protect the public

property insurance

covers property owned by the contractor, protects from damage or loss

commercial general liability (CGL)

covers bodily injury, damage/property loss, personal injury

all-risk builder’s insurance

covers property owners and builders for buildings under construction; ex: machinery, supplies, materials, equipment

named peril builder’s risk insurance

narrower coverage for specific scenarios; hurricanes, floods, etc

inland marine/equipment theft insurance

coverage for goods in transit & on projects

equipment floater policy

covers physical loss of equipment while on job premises, temporary locations or while in transit

umbrella liability insurance

additional coverage in things not mentioned in the CGL

business owner’s policies (BOPs)

bundle property and liability coverage together