I would like to start a company in tax consultancy and financial advice for individuals. I want to give individuals advice about taxes and also about their financial situation.
I think I will need '''15.000 to start up this company. Because I think I will use a lot of things that belong to my company in private, I will put '''2000 in the company as equity. So I need '''13.000 external financing. I would like to loan '''7500 from my parents and for the other '''5500 I would like a bank loan.
The purpose of my company is to give individuals structure and to give them an overview in their financial situation and the financial obligations they have. Of course, it is important to make money and profit, but that is not the most important reason for me to start up this company. I really want to make people happy and to share the knowledge I acquired in my study Business Administration. This will really give me satisfaction.
The most important reason for me to start up a business is that I really want to contribute in the society. I want to share the knowledge I acquired in my study Business Administration so that other people will get a bit more insight in the economy and financial world. I think it is important to know a bit about the economy and the financial world, because that is the basis for all everyday financial transactions we do. A lot of people experience tax return as a burden, because they do not know everything about for example laws and regulations. I want to give them structure, so that they be aware of their financial situation. That is not only necessary for tax return, but also to have a financial overview of the income and the expenses, which is important to know about the financial possibilities they have.
I want to start my own business in the legal status of a sole proprietorship. Maybe if my company runs well, I will hire an extra employee. Then I want to change the legal status of my company to a general partnership, so that we are both fully responsible for everything that happens within the company. That means it is less risky for me.
I already told about the amount of external financing I think I will need. So the breakdown is as follows: '''2000 equity and '''13.000 debt or liabilities. The advantage of the loan from my parents is that we can discuss the conditions together. So I want to propose the following: I will not have to pay interest. Because they put in a lot of capital, they get a free consult every year. There is no payback deadline for this loan, but I will pay a part of the loan back every month anyway. It is easier for me when the payments are spread, because then it will not affect my company badly.
I really want to have a flat organizational structure in my company. It is important that everybody is honest and that we work together to achieve the best and most optimal results. I want to use the capacities of every person, because that leads to the best result. In the first instance, I am the only person in the company. But if the company runs well, I want to hire more employees. It is very important for my company to have qualified employees.
The qualifications and experiences needed to be a part of my company are:
- knowledge about the actual tax laws and regulations
- At least started with or finished MBO level 4 (a study related to business administration)
- Knowledge about the economy and the financial world
- be analytical
- work structured
- be customizable
- be honest
- be friendly
- be confident
- have a willing to learn
The services I want to provide must be of very good quality. I think it is very important that customers can fully rely on what I say or do.
The distinguishing feature of my company is that my company is focused on individuals instead of companies. I have more than one unique selling point. I want to provide high service. Customers can always ask questions if they have some uncertainties about their financial situation during the year, that is included in the price they pay for a consult. I want to be known as a very customizable person and I want to carry that out in my company.
The market where my company belongs to is a bit hard to enter. It is very important to be confident, because people share the most sensitive information with you. It is also important to always have your knowledge up to date, because the laws and regulations often change. There are a lot of companies that give advice about taxes and financials, so it is very important to distinguish my company of other companies.
The target group where I want to focus on with my company is individuals.
When I start up my company, it is not huge. To have a good running company, it is important to grow. I start the company on my own, but when the company runs well, I can hire more employees. I don'''t want my company to become too big, because I think the smallness of my company can just be the power of my company. When my company grows too big, it is no longer possible to provide such a high service and customer service. And that was just one of the most important things of my company.
A strong marketing strategy is a very important part of my organization. It is very important that my company will be known by a lot of people, so that I always have work to do. In general, there are 5 elements of a marketing strategy, namely: product launch, price, promotion, selling and distributing.
To launch my company, I will place advertisements in regional newspapers. The first week, there will be a discount campaign to attract customers. When the customers come, I will really do my best to make them enthusiastic about my company. Maybe then they tell other people about my company and then it will start to run. So a very important way of promoting my company is what my customers tell to other people. For my company, promotion is quite the same as product launch. When the time comes that people have to do tax return, I will also place advertisements in regional newspapers to make them aware my company can really help them.
The price of a tax return consult is '''70. It is also possible for customers to have a subscription to my services. That means they have a tax consult and a detailed overview about their financial situation for only '''100 a year. It is also possible for customers to only get an overview about their financial situation, which will cost '''50. Customers can have a consult at my office, but it is also possible to have a consult at location. When customers want a consult at location, I charge '''15 travel costs.
Selling is a very important point for my company, because I always have to get new work. It is important for me to build up a network of regular customers. I want to have my own website, but I also want to be on social media like Facebook to promote my services.
I already told about distribution. It is possible for my customers to have a consult at my office, but it is also possible for customers to have a consult at location, but then they have to pay a bit more.
If a customer want a consult at location, I will go there with my car, which is used for my company as well as in private.
In first instance, my company is located at my home in Staphorst. But when my company starts to grow, it is attractive for me to look at an external location, because then I need a lot of space for an orderly customer administration. I think it is most attractive to me to rent a location. To make a professional impression, this location has to be neat and orderly. Customers often find it attractive when a company is at the centre, so they can easily reach the company. Therefore, I will look at a location for my company at the edge of the centre. I don'''t want to pay the highest prices to rent a location, because I think then my company isn'''t profitable anymore.
My company isn'''t existing yet, so I do not have a balance sheet or a budgeted profit and loss account. In the first years, I hope that there are 10 regular customers at my company. 4 customers who only want tax return consults, 2 customers who only want an overview about their financial situation and 4 customers with a subscription, makes a total incoming cash flow of about '''825 for the first years, including travelling costs. I agree that this is not enough to live from, when I also have to pay all the expenses. So I will work part time at my own company and I will also have another job, a paper round for example.
The expecting expenses of my company are about '''550 a year.
The total borrowing requirement of my company is '''15.000. '''2000 equity and '''13.000 external finance, as already said. I need this money to buy things like a car, a laptop a mobile phone and maybe later on also storage for my customer administration. I will buy everything immediately at the start of my company, because I can also use these things in private. As I said, the storage for my customer administration is only needed when my company starts to grow.
The bank and many other institutions only wants to provide loans if they have a security that you as an entrepreneur will pay the loan back. Because I really need a bank loan to get enough money to make my company successful, it is important to think about a security for the bank loan. I will set the car as a security for the bank loan of '''5500. A big advantage of the loan of my parents is that we can discuss the terms together. My parents really want to stimulate me if I want to set up my own company and because we know each other very well, they don'''t need a security to provide the loan of '''7500 to me. Because I don'''t really want to get an argue about money with my parents, I will pay a part of the loan back every month.
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