3 DOG BAKERY Week 5 IP Essay

Submitted By purpletaz97
Words: 1126
Pages: 5

3 DOG BAKERIES

3 DOG BAKERIES
Tina Olinger
American Intercontinental University Unit 3 Individual Project

In this paper it will show how a plan was developed into a business with no more than $50,000 startup money, myself a colleague and one employee. Also how bank and loan arrangements were made and kept along with a tax that’s collected and we pay for the business. How in 6 months we hope to more than double our profit and in time expand the business. The business its self is a bakery unlike any other not only will we have items for people of all ages but we will also cater to cats and dogs. This business has potential to become a hit with local flavor and customers as well as our internet clients.
3 DOG BAKERY The type of loan an banking we will use is what’s known as a collateral loan which is secured by an asset and also it’s a promise to hand the asset over to the lender if we cannot repay the loan in this case our asset is the bakery its self, should we be unable to re pay the loan they will get the business. By doing this the lender takes less risk and it’s easier to get funding. Our lender who is an old friend was kind enough to accept taking the business should we not pay back the loan. My colleague and I will be the only ones with the ability to monitor and ensure accuracy on this loan, it will be our joint effort to make sure the lender receives every dime back so that we won’t lose our business and can maintain a good professional and friendly appearance with the lender as well as the community. Financing arrangements differ by type of owner and type of facility one example many municipal projects are financed in the United States with tax exempt bonds for which interest payments to a lender are exempt from income taxes. This results as tax exempt municipal bonds are available at lower interest charges and different institutional arrangements have evolved for specific types of facilities and organizations. Private corporations which plan to undertake large capital projects may use its retained earnings, seek equity partners in the project issue bonds offer new stock in the financial markets or seek borrowed funds in another fashion. As for the taxes to consider one of the most complex yet little details in the business will be our taxes. Business face a host of taxes imposed at every level of government from federal Internal Revenue Service, state departments of revenue, county and city tax assessors. Also pay tax on the business profits and also responsibilities for withholding, collecting and remitting certain other taxes such as payroll and sales taxes. If the business makes profit then you’ll probably owe income taxes however what you pay depends on the form of the business. If it’s a sole proprietorship, partnership or limited-liability company then the income tax is usually not imposed on the business but the owners. In our case it’s a partnership so if the business made $1,000 then the profits would be equally split each of us would report income as $500.
Pricing, commissions, discounts, markups or markdowns will be handled individually. Pricing is an important strategic issue because it is related to product positioning. Furthermore pricing affects other marketing mix elements such as product features. This sequence of steps might be followed for developing the pricing: develop marketing strategy, make marketing mix decisions, estimate the demand curve, calculate cost, understand environmental factors, set pricing objectives and determine pricing.
Inventory and computers will be the first things bought for the business such as all ingredients for the cakes, pies and cookies. Baking pans and bowls and mixers will also be bought in double. The kitchen will be set up with 4 ovens two on one side and two on the other, the kitchen will be divided in half one side for human items and the other side for animal treats this way there is no way to mix up things. Each item of inventory…