Legal form of Business
When starting a business, it is normally important for one to start by deciding on the particular form of business to operate since each form of business develops a different legal operating structure different from the others. In different nations of the world, different forms of businesses operate differently. Basing on the capital we can be able to raise, we will be operating a partnership form of business that will be based in Houston Texas and more specifically, a general partnership.
As general partners, we will be abided together by the partnership agreement in which the agreement will provide for the different ways in which we will contribute to the capital of the business as well as the different methods of sharing the profits. As general partners we will all be responsible for any undertakings in the business. We will not only share the profits but also the different liabilities that will arise in this particular business. A general partnership form of business is more advantageous since the partners are able to raise more capital to start the business (Kaplan and Schoar 1793). Starting a general partnership only requires the different partners to abide to the partnership agreement. There is no law that requires the general partners to file a partnership agreement with any legal entity and therefore legal procedures are lesser than in formation of limited liability companies or the cooperatives. Apart from the less legal requirements, this form of partnership can be able to operate in different states without more permits to the business because of the fact that they are under lesser supervision by the government (Cole 3).
General partnership is simpler to operate since it a way of bringing different together and consolidating them. This means that the different roles and decisions in the business are arrived at after an agreement between the partners. General partnerships are also advantageous when it comes to the issues of taxation and dissolution of the business. The law stipulates that, all forms of partnerships are supposed to be taxed just like the sole proprietorships. This means that the different business partners are only taxed as individual persons and not as a business (Luna 6-8). On the other hand, the dissolution of such form of business does not require any legal intervention since this form of business can be dissolved any time the partners feels like as long as each and every partner gets his or her own share.
Target Consumers
According to the different scholars of the world, it is a fact that most new businesses do struggle in the market. This is so because they fail to adequately narrow down their sights. The market size is overestimated and also very broad. It is therefore almost impossible to arrive at the key target consumers. It is also of great importance for different businesses to know that the different target markets are driven by the consumer inferences (Meyers 2-3). Therefore, as an owner of a business, one has to find ways of communicating to his or her target consumers so as to adequately reach out to them and convince them to buy your products. Target consumers are very important businesses since they make the businesses grow. Every business has to adequately define its target consumers by use of some crucial demographics of the target population. Such population demographics include: age, sex, marital statuses, and number of the children, location, incomes and even education. These are the most basic population demographics that can help new businesses to adequately their target market and identify the target consumers. We will still use the same demographics to define our target consumers.
The product soy whipped topping will be targeting both genders; males and females in the city of Houston. It will more specifically target key age groups in the city of Houston; the young and aged. These are normally the most vulnerable groups to lactase problems in our society. Also, our product will not specifically favor any ethnic group or marital status. These soy whipped topping products will also be adequately affordable to everyone in Texas regardless of the income one has or the level of education one has attained. This will be achieved by coming up with the lowest possible price for the product. This can only be achieved through a market research on the similar existing products in the market.
Competitors Strengths and Weaknesses
Strengths
Soyatoo and Viana brands have been there in the American market and have been selling in this particular market like hot cakes since many people find them quite delicious and affordable. The Viana products comprises of various creamy spreads that are differentiated by ingredients and other natural herbs. This gives each type of the Viana product a certain unique flavor. The different tasty flavors that have been incorporated in the Viana products include Papaya Curry, Italian vegetables, and Wild herbs, Lentil Curry, Red Pepper and Onion Butter amongst others. This makes Viana creamy pastes perfect to be used in different foods including Veggie Gyros, Veggie Cevapcici and Cowgirl Veggie Steaks amongst others. On the other hand, the Soyatoo products are just perfect for anyone who feels that he or she needs a sweet treat. Currently, the price of three hundred milliliters (ML) soyatoo soy whipped topping canister is 6.99 dollars with its basic ingredients including soybeans, water, sea salt, kernel oil, coconut oil, tartaric acid and nitrous oxide amongst others (Shurtleff and Aoyagi 136-138). The Soyatoo whipped toppings perfectly fits hot cocoa, mochas and even hot coffee. Soyatoo products as well work well with fresh berries, quick breads, cakes, cookies, brownies and even pudding. Both the Viana and Soyatoo products offer a variety of health alternatives as well as flavors and not forgetting the different textures.
Weaknesses
Despite the popularity the Viana and Soyatoo brands have in the market, there are some weaknesses that have been associated with these products. First, the products are not a hundred percent lactase-free. There are still traces of the lactose element in these products which is not good enough for some key target groups of the market. Also, the Viana and Soyatoo brands have not yet fully exploited the American market since the availability of these brands in the market has been a problem to some groups of the targeted population who are either not able to buy them online or not in a position to visit the different stores which are sparsely spread. Lastly, the spray cans where the products are packed have in the recent past been criticized by different customers for being faulty. The different customers have raised queries on these spray cans by revealing the fact that once you spray your whipped topping from these spray can, chances are that you will not be able to spray from the similar can again.
Our Product/Service
There are numerous strengths linked to our product line. For instance, our Soyatoo Whipped Soy Topping will be more nutritious. This will increase its acceptability to our target customers who in this case are not used to such quality products. In addition to the distinctive nutritional element alluring to the health conscious target market, our products will also be highly appealing to vegetarians. The latter is a population segment that is progressively growing, as people shift dietary habits consequently increasing demand for organic food. The lower cost of production will also enable the company to avail the soy topping at a price cheaper than that of competing companies.
Just like other products, our company’s product line is not devoid of weaknesses. The key weakness in this case lies in the fact that the target market is not adequately informed about our soy products. This may make it difficult to build a strong market base soon after venturing into the market. The company does not have adequate requisite resources to launch an aggressive marketing campaign for Soyatoo Whipped Soy Topping, in order to compete properly with already established firms.
Requirements to Operate the Business
For any particular business to operate there must be a number of requirements that have to be first fulfilled. Such requirements are both tangible and intangible in nature. The key requirements to any business are largely influenced by the industry in which the business will operate in as well as the form of the business organization that is to be operated. This is because the industry defines the competitors one has to face in the market while the form of business organization ascertains the needed requirements to begin operations. Initially, it is hard to start a business and one of the core requirements that determine the start of any business is availability of finances. Every business needs finances to start running and it does not matter whether it is a small business or a big business (McKernan and Chen 1-3). The finances form the capital of the business that is to be invested. Other requirements of a business start up include assets such as equipment and facilities and also the human resource. Assets are very important to businesses since play a role in generation of revenues and expenses to the business. On the other hand, human resource is important in that it is what makes businesses achieve the set goals and objectives and stick to the missions and the visions of the businesses (Mason and Stark 227-248).
For the business to commence on the activity of making soy whipped topping products, it will certainly need a number of things. They include personnel, different facilities, equipment and a delivery van.
Personnel
These are the most important assets in any given business. Apart from the partners to the business, the business will need an additional workforce so that the business is in a position to adequately produce the aspired product and manage to sell it in the market. Houston is a big city and in fact one of the largest in terms of population in Texas. The business will therefore need at least seven individuals who will act as the product marketers and at the same time make deliveries. The business will need three more individual; one secretary to make and note down the sales and deliveries made in a day as well as act as an accountant to the business. The business will also need an addition of two more individuals who will assist us make soy whipped topping products. The partners will basically be involved in the entire process of making the soy whipped topping products for quality assurance purposes.
Facilities and Equipments
This will basically include an office and a manufacturing plant. Since the business is new, it will first begin its operations in a single building with offices only limited to the use of partners and the secretary who will be in charge of making the sales and accounting of the business partnership. The business will not run if it lacks the necessary equipments to adequately manufacture soy whipped topping products. First, the business will need big refrigerators to preserve our raw products as well as the finished products. Secondly, the business will need machine to crush the soybeans and mix all the basic ingredients to come up with our products. Thirdly, the business will also need the right machine to adequately extract lactase from our product. Lastly, the business will need a packaging machine to seal the soy whipped toppings in spray canisters. The spray canisters will not be manufactured in the business following the high costs of manufacture. The manufacture of canisters will therefore be outsourced to an outside company.
Delivery Van
The business will require a delivery van so as to adequately make speedy and convenient deliveries in the city of Houston. The business will also use other means to make deliveries where necessary.
Work Cited
- Cole, Rebel A. How do Firms Choose Legal Form of Organization? 2011. Web. 14 November 2014. <http://www.sba.gov/sites/default/files/files/rs383tot.pdf >
- Jooyandeh, Hossein. Soy Products as Healthy and Functional Foods. Middle-East Journal of Scientific Research, 7.1(2011): 71-80.
- Kaplan, Steven, and Antoinette, Schoar. Private Equity Performance: Returns, Persistence, and Capital Flows. The Journal of Finance, X.4 (2005): 1791-1823.
- Luna, LeAnn. Effects of State Tax Structure on Business Organizational Form. n.d. Pp. 1-31. Web. 14 November 2014. <http://cber.utk.edu/confpapers/LunaMurray.pdf>
- Mason, Colin & Stark, Matthew. What do Investors Look for in a Business Plan? International Small Business Journal ,22.3(2004): 227-248.
- McKernan, Signe-Mary and Chen, Henry. Small Business and Microenterprise as an Opportunity and Asset-Building Strategy. An Urban Institute Project Exploring Upward Mobility, 3.6(2005).
- Meyers, Jeanine, Yuvay. Target marketing and the product: categorizing products to understand the resulting marketing communication outcome measures. 10475 – Journal of Management and Marketing Research. n.d. Web. 14 November 2014. <http://www.aabri.com/manuscripts/10475.pdf>
