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Structure of a Business Plan

professional looking at a plan

How do you create a business model?

Business structure planning serves to identify and describe a business opportunity, or an existing business. It analyzes and examines the economics, financial feasibility and technical factors that are used to develop procedures and strategies that are necessary to go from a business opportunity to an actual functioning and profitable business. 

When starting a new business venture or expanding an existing business, it is essential to create a business model. Business structure planning provides a way to capture the fundamental expectations and choices about the opportunity so that you have clear direction for future success.

There are many types of business structure planning, with each one based on the type of organization and what it will be offering. An advertising agency will have different business structure planning than a manufacturing company because each are a unique and specific industry. Business structure planning should provide answers to important questions about the business, setting a strong vision where the business is going, among the answer that should be answered are: 

  • The Vision: Introduces the company’s business model at a high level.
  • The Key Objectives: Stating the top level goals and how they are measured.
  • Customer Challenges and Target: List the different type of customer, what message will potential customer be gen and how they will be targeted.
  • Solutions: What solution is the business products or services providing.
  • The Value: What key value will the business be offering that makes it different.
  • Required Investment: What will the cost be to get the solutions in place. This is especially important when your business structure planning is going to presented to a bank or financial backer.
  • The Growth: Stating how the business is going to grow.  

What is structure of business plan?

As we stated, business structure planning isn’t a one-size-fits-all. However, the following are primary sections that every business structure planning includes:  

  • An Executive Summarization: This is the five-minute elevator pitch and can include a table of contents,  with the company background and the market opportunity the business is targeting. It can include the competitive advantages and management overviews, including the financial highlights. It should be kept a maximum of two pages. 
  • The business description and its structure: Explaining why you are in business and what the business is providing or selling. Describe the process how it is manufactured or provided, where the materials used are acquired, and how inventory is handled, and orders are fulfilled. For a business that provides a service, describe the service and the value it will give your customers. Details that should be included are your administrative issues, strategic relationships, intellectual property, company expenses, and the company’s legal structure. 
  • Market research and strategy: Detail the market analysis and marketing strategy, with the sales forecasts, milestones, and deadlines. Include the planned advertising and public relations with comparison how the competitor matches (or doesn’t).   
  • Management and staffing: Provide bios of yourself, the executives, and the managers and how their history and expertise will help the company meet the business goals. 
  • The financial documents: Numbers are everything to bankers and financial backers.  Conservative projections should be included, showing your P&L, balance sheet, and cash flow statements currently and for the following three years. 

How do you structure a good business plan?

Every business structure planning should begin with an executive summary. Then the sections we detailed above, wrap up with supporting documentation. Provide stuff that will support your business structure planning like an appendix of key numbers and additional details. 

What is a basic business plan?

Perhaps you don’t have all the details to fill this extensive business structure planning. Create a simple, standard business plan that consists of a one document with sections that include the organization’s description, your market research and competitive analysis. State your sales strategies, existing capital, and foreseeable labor requirements. Your financial data should be included as well, including financial documents.

How do you write a simple business case?

To create a simple business case from your business structure planning, the following steps will state your case without all the bells and whistles a full blown business plan includes: 

  1. Be brief, conveying nothing more than the basic essentials.
  2. Make it clear, concise, and interesting.
  3. Remove speculation and minimize nonsense.
  4. Describe the vision of the business’ future as you have envisioned.
  5. Explain the benefits your business will provide.
  6. Stay consistent with your style and make it readable.

What are the main components of a business?

At the foundation of every business is five interdependent processes. These five processes should flow easily from one to the next:

  • Creation
  • Marketing
  • Sales
  • Delivery
  • Finance

What are the seven key elements of a business plan?

Some of this is recap of what we’ve already discussed. A summary of the seven primary sections your business structure planning should include.

1. Executive Summary: A concise business plan overview. Keep it short, professionally written with a goal to draw in the reader so they want to know more. It should include the following:

  • Business name and location
  • Products, services offering
  • Company mission statement
  • The specific purpose of your business structure planning presentation

2. Company Description: Explain from a high-level view who you are, how your business operates and what the goals of the business. 

3. Products and Services: This should include a detail of what the business is selling or providing and how it benefits the customers. Details of the suppliers, cost of product or service, the expected net revenue and any diagrams or pictures. 

4. Market analysis: Showcase your industry knowledge and provide your conclusions from the research you’ve done for the specific market. Include an appendix that provide detailed findings from your research and studies.

5. Strategy and Implementing Plans: Create a summarization of the planned sales and marketing strategy, and how these will be implemented. 

 6. Your Team: List an outline of the organizational structure, identifying the owners, top management, and your  board of directors. An organizational chart that provides department descriptions key employees can be included as an appendix. 

7. Financial plans and projections: Your accountant or CPA should develop this section of your business structure planning, working with the market analysis you’ve created, and the company goals you have established 

What is a business cost structure?

In regard to your business structure planning, the cost structure is in reference to the proportion of fixed and variable costs of your company. It defines the types and relative proportions of fixed and variable expenses your business will incur. Business structure planning may have stated in whole then broken into smaller units like customer service, division, geographics, by-product, and the services or product line offered. 

business men making a plan

What is the most important part of your business plan?

With all of this said and done, the most important part of your business structure planning is the specific statement of what is going to take place. With the entire collection of everything we’ve mentioned here, these are the milestones for your business. Call (214) 382-2964 today for help with your business plan in Dallas, TX.

Does my business need to pay taxes?

smiling businesswoman

Keeping your business in the green with taxes

There is nothing American’s dislike more than paying taxes, especially business owners and those pesky, never ending business taxes. Have you ever heard a business owner celebrating a tax refund on their business taxes? Probably not and probably never will. A business without taxes is one that simply isn’t playing by the rules. 

Fortunately, business taxes in Texas aren’t near as bad and complicated as they are in other states. However, as a business owner, having a professional to help with the filing and tracking of when your business taxes are due is always recommended. A professional can give you advise and answer concerns and questions about your business taxes that you may otherwise go at blindly, hoping for the best. 

While these shouldn’t be used as the complete answer, we have a few common questions here with basic answers on business taxes. Still, taxes are serious, so seeking the advice of a professional tax consultant is recommended if you need more accurate information. 

How much money does a small business have to make to file taxes?

There isn’t a formula or set rate for small business taxes for an entrepreneur or business owner to determine how much income can be earn without being required pay taxes. There are many variables that impact business earnings and business taxes.

As an independent contractor or sole proprietor, anything you earn up to and over $400 is considered to be taxable small business income. On a 1040 form, your taxable income is the final amount of income. It is subject to business taxes after all deductions and exemptions.

Other than using a professional tax consultant, you can review each line of your 1040 form and omit the business income. This will provide you a reasonable estimate for each line item.  So, one example  would be ending up an estimated taxable income of a negative $10,000, you would have a $10,000 net profit and would not have any income tax due. 

How long can a business go without filing taxes?

The average length of time that a business can get away with not filing their IRS taxes is six years. Some businesses will get notified by the IRS sooner, some could go longer. The end result being that every business will get noticed at some point. 

Of course, the IRS and tax professionals will recommend any business owner to file as soon as possible, current, and back taxes. Address the issue before the IRS does won’t be as damaging and you’ll have a better opportunity of working out a reasonable payment plan with the IRS. 

How do business owners pay less taxes?

As a small business owner, you are “the” person for anything to do with your business. The keeper of all and the master of none, especially when it comes to business taxes. Taxes are stressful for all of us, but for a small business owner, they can be even more stressful. 

Sadly but thankfully, there are many strategies for saving on what you pay in business taxes, many of them you may not even realize are available. A few methods you should check into are: 

Hire a Family Member

A great tax reduction on small busines taxes is hiring a family member.  The IRS (Internal Revenue Service) allocates options that provide you an income tax shelter, even if you hire your kids.  

Implement a Retirement Plan

When you were employed, you may have had a 401(k) plan with your employer that they matched. Now, you’re a small business owner, that perk is gone, but you can remedy that fairly easy. 

There are options for retirement accounts that will allow you to maximize your retirement savings while you gain tax benefits as a business owner. The IRS website offers details on this, but some of those retirement plans to consider are: 

  • SEP (Simplified Employee Pension Plan)
  • An IRA 
  • A Roth IRA
  • 403(b) 

Healthcare Needs Savings

Your small business taxes can be reduced by placing money aside for possible future healthcare needs. One of the biggest and fasted increases today are medical costs, and by setting money aside now for those possible healthcare needs can help you with our small business taxes. One way to accomplish this is with a HSA (Health Savings Account) with an eligible health plan.

Your Business Structure

You lost your benefit of your employer paying part of your taxes when you became a small business owner. You may not have even realized they were paying part of them, and now you have to pick up that part of basic business taxes that include Medicare and Social Security taxes. 

If your business is set up as a LLC (Limited Liability Company), those business taxes are still required, however, there are some circumstances where you could possibly eliminate the employer-half, a smart switch for a small business owner. Visit the IRS website for more details or choose a tax professional that can walk you through this process. 

Travel Expense Deductions

If your small business requires you to travel a lot, your business taxes could be reduced. Your business travel expenses are fully deductible, and if you combine personal travel with your business travel, you get a bit of a bonus. 

calculating taxes

What can a business owner write off?

Tax deductions are a dream for anyone, individuals, or businesses. Below we have listed some common write-offs available for partnerships or LLC businesses and sole proprietors. Before you take these deductions, check the IRS website or with a tax professional that your business is eligible. When you can make the most of all tax deductions available to you, you can save a lot of money! 

  • Advertising and promotions
  • Bank Fees
  • Business insurance
  • Business interest 
  • Business meals and entertainment
  • Business use of your personal car
  • Contract Labor
  • Depreciation of business equipment
  • Education
  • Home office use
  • Interest on business credit cards and loans
  • Legal fees
  • Moving and relocation expenses
  • Rental expenses (building, equipment)
  • Salaries and employee benefits
  • Communication expenses (cell phone, office phone, internet) 
  • Travel expenses for business

Taxes are confusing and the process can be scary. If you don’t understand the verbiage on the IRS website, seek the assistance of a professional tax consultant.  So, maybe you’re considering sidestepping the process and not file your taxes. You’re asking yourself, “As a small business owner, can I go to jail for not filing taxes?”Yes, by not filing your federal tax return, personal or business, you could face up to one year for every year not filed. In addition, you will have fines and penalties, risk losing your business and home.  When it comes to business taxes vs personal taxes, the IRS has no mercy, and everyone is required to pay their share of taxes. Need help with your business in Dallas, TX? Call (214) 382-2964 today!

How Do You Grow a Business?

business man considering growth of company

What does a small business consultant do?

You would be hard pressed to find a business that doesn’t want to grow, right? While a business may grow organically, is a business growth consultant helpful or necessary? What is a growth consultant? Every business has different focuses within the business, and a professional business growth consultant helps with each of those focus.

A business growth consultant is an experienced professional that gives a business the focus needed to generate sustainable growth. There are several sections of business where progress can be a emphasis, and there are growth-consulting firms that work to help with all of these areas.

A small business consultant can help a company improve their effectiveness by means of analyzing their existing practices and finding the weaknesses to improve and the strengths to embrace and grow. This is done after they have taken time to assess and review the books and the day-to-day operations. There are business growth consultants that specialize in certain areas of business operations and some that specialize in the entire operation.

A team of trust is needed between Growth consultants and small businesses in order for the results to be of positive nature and the business to benefit from the experience and knowledge of a business growth consultant.

Why do companies hire consultants?

When a business is struggling, or not growing at the rate they desire, why would they hire an outside person to “fix” their problems? At first glance, that doesn’t make much sense, but  the benefits and reasons are almost endless once a company has accepted this may be their best option. Here are some of the reasons that a company will hire a business growth consultant:

  • An Outside View: Even in everyday life, there are times when we have issues and problems, having an outside opinion and view. Family, friends, or co-workers can provide an opinion that gives you a different perspective. The same is with a company that is struggling to grow. There are tough decisions to be made day-to-day in the operation and having an outside perspective on ways to approach and solve the problems faced. An outside business growth consultant can provide this outside view in a way that isn’t favored or excluded. Many of these professionals have been through these types of situations before themselves or with other companies and have an insight of value.
  • Extra Horsepower: Companies have important problems that need to be addressed and answered in order to save the company. However, it can often take manpower that a company doesn’t have to spare for focus. These are the times that a business growth consultant can help. While the company handles the day-to-day operations, the business growth consultant will review and then make suggestions on  reprioritizing employees’ job responsibilities, even eliminating some processes and responsibilities that aren’t of any value. This doesn’t always require hiring new staff or releasing current staff either, it can often be a matter of readjusting employees focuses and responsibilities.
  • Specialized Skills: Companies often know they need focused help and will hire a business growth consultants with a specialized skill set that they don’t have currently. Those set skills may vary within the company from customers and vendors to accounting issues and every area in between.
  • Safe Zone: When a company makes the decision they need help with challenging problems or a controversial matter, the decisions can be challenging. Company politics and personal emotions can take over and an outside business growth consultant can bring in that safe zone to make those decisions.

What are the different types of business consultants?

 When a business needs outside help, it can be in a number of areas. The business growth consultant options can include many areas, but the area that are most frequently hired as a business growth consultant are:

  • Compliances
  • Financial
  • Human Resources
  • IT/Technology
  • Legal
  • Marketing
  • Operation
  • Strategy
planning business moves

How do business consultants work?

With an outside perspective, a business growth consultant will provide your company assistance on a professional expertise, often in a specific market. They have gained a unique knowledge and built a skill set that allows them to identify problems and assist a company to initiate changes.

A business growth consultant will provide compliments and constructive criticism. They will teach and train employees, work with management and ownership with unpleasant tasks like layoffs and restructuring to eliminate the waste of staff that isn’t contributing to the business.

Professional business growth consultant services can be a difficult decision to hire, but for a business that is struggling or isn’t growing as they would like, it can be one of the best decisions to make. Once the actions have taken place and the company can see the positive changes, the ownership, management, and employees will appreciate the investment made in hiring a business growth consultant. Call (214) 382-2964 today for your business growth and planning needs in Dallas, TX.

What Is a Cost Price Analysis?

A Businessperson Calculates Prices.

What is a cost price analysis?

Is your pricing affecting your profits? With a pricing analysis you compare your prices to others in the same marketplace with the same or similar goods to see how your product is performing. You might find your product is performing well or you might need to make changes in prices to improve your profit margins on that product. A cost analysis is different. It’s performed to evaluate the costs associated with a particular product or program. Both types of analyses can affect your profit and overall growth. If you’re wondering how your pricing is affecting your business and want expert advice from leaders in price and estimation analysis in Dallas, TX, look to the team at R Moon Consulting. We can guide you through the best pricing strategies that will help your business grow and meet its full potential. Get started with us today by calling (214) 382-2964.

How to do pricing analysis

A pricing analysis is a challenging but necessary task if you want to see your profits increase. You have to approach the analysis methodically using the following procedure:

  • Outline your pricing strategy to make sure it’s consistent with positioning, brand, and value. 
  • Match the price to profitability targets while considering your channel partners, brand, and positioning. You may determine that your desired price won’t be profitable and the price might have to be reduced or increased.
  • Evaluate your competitor’s prices as well as positioning in the marketplace to help determine your price.
  • Evaluate any competitor’s price changes to see if you need to change your prices.
  • If you have a single customer that consumes your goods regularly, you might want to calculate profitability and pricing on that customer.
  • Make projections on how customers are affected when you raise or lower your pricing.

Pricing analysis market research

Because pricing is so important to your business, you may want to do a pricing analysis based on market research. Market research can take many forms but it all requires you to talk to your customers in one way or another. Other common ways to conduct market research include email and direct mail surveys as well as telephone surveys or a combination of these forms.  

What are the 4 types of pricing strategies?

There are several different pricing analysis methods or strategies. When you are setting prices you are going to base your prices on cost, demand, and competition. The following methods or strategies can be used to determine the best prices for your products.

  • Price maximization: This strategy seeks to maximize profits while minimizing costs. This is a good strategy for startups where revenue growth is the chief concern.
  • Market penetration: With this strategy, you set your prices lower than competitors to generate a high volume of buyers. This can be a risky strategy for new businesses because income can drop significantly which can be hard to recover.
  • Price skimming: With this strategy, you introduce a product at a premium price, and then gradually lower the price after the product is released. This a good strategy when putting new products on the market.
  • Economy pricing is a strategy that is directed toward price-conscious consumers. In this case, you are trying to lower costs and sell at lower prices. It’s another risky strategy for a new business because it relies on a high volume of sales to generate a profit.    

What pricing strategy is best?

The pricing strategy that is best for you will depend on your particular situation and business. Newer businesses might want to stray from economy pricing, for instance, unless they feel certain they can get the high volume of sales needed to make a profit. Much will depend on what your profitability goals are. Actually, no one strategy will work all the time. Your pricing strategies will have to be flexible as the market and competition changes, and you’ll need to consistently make a pricing analysis to see which strategy will work best for your particular business at a given time. You do, however, want to develop a strategy from the beginning if yours is a new business.

What are pricing models?

Pricing models and strategies are similar and the terms are sometimes used interchangeably. Pricing models are set up to determine the best way to determine prices for your products or services. If you’re selling a specific product, for instance, you might set prices based on a cost-plus pricing model, which means you add a percentage of your costs to the price to maximize the profits. If you’re offering a service, on the other hand, you might choose an hourly pricing model in which you bill your customer for all expenses such as mileage, as well as all hours worked on the project.

What are five common discount pricing techniques?

When doing a pricing analysis, you’ll run into terms like “pricing method,” “pricing model,” “pricing strategy,” or “pricing technique”. These terms basically describe how you’re going to set prices for your products and services. At times you are going to want to lower prices or provide customers discounts for various reasons. We’ve highlighted methods like price maximization, price skimming, market penetration, and economy pricing. Another method to consider in your pricing toolbox is bundle pricing in which you put multiple products together and sell them together at a lower price than they would be sold individually. If you price lower value products with higher value ones, you can often profit on the lower value products in this way.   

A Person Looks Over a Receipt.

Pricing analysis services

If you need assistance trying to set the right prices for your business and need experts with pricing analysis in Dallas, TX, look to the professionals at R Moon Consulting. We can help you determine the right strategies for you so your profits will increase. Get started with one of our experienced consultants today by calling (214) 382-2964.

What Is the Role of a Human Resources Consultant?

A Job Candidate Gets Interviewed.

What is the role of a human resources consultant?

When you have a small business, or you’re starting a business, at some point you’re going to have to figure out what to do about staffing. This might require the assistance of a human resources consultant. What is human resources consulting? When you enlist the services of a human resources consultant, you’ll have a professional who understands all aspects of human resources from creating job descriptions and employee handbooks to developing benefits packages and establishing hiring procedures. Human resources consulting is often necessary for small businesses because they often don’t have the internal resources to manage these processes. For newer businesses, this may mean establishing policies and procedures and making sure these policies comply with laws and regulations.

As your business grows, you’ll need more employees, and keeping track of human resources can be difficult without someone to guide you through it. Even if you have an established business with a human resources department, that department might need more training to adequately handle all staffing issues. Consultants may be needed for a variety of reasons. In larger corporations, for instance, they may be called in to advise management about more efficient ways to manage HR or organize it better.

Whether you’re starting up a business or you’re established but need help with human resources issues and want expert advice on employee, staff, and HR development in Dallas, TX, the experts to turn to are those at R Moon Consulting. We can help you with all aspects of developing a business, and you can learn more about all we offer by calling (214) 382-2964.

Human resources consultant processes

The processes a human resource consultant will apply will vary depending upon what’s required by the company that hires them. If you are a new company, for instance, the consultant is going to be primarily concerned with helping you establish policies and procedures. They’ll also be concerned with making sure you’re following employment laws and regulations. When working with a larger or more established company they’re often brought in to work through organizational issues, including reorganizing the human resources department to make it more efficient. Of course, larger corporations may also need assistance with establishing policies, procedures, or processes such as grievance mediation. 

What are HR techniques?

Human resources consulting often involves helping companies improve their HR management processes and techniques. Managing human resources is a complex task that involves several different processes. Along with staffing, HR professionals are tasked with everything from making sure employees are motivated to do their jobs and have the right training to do them so that performance isn’t hindered to making sure policies and procedures are followed to handling employee grievances and making sure employees are working in a safe environment.

What are the best HR strategies?

Because human resources management is so complex, it requires a variety of strategies for success. Good strategies can create a foundation for company operations and even how the outside world perceives the company. Professionals in human resources consulting have discovered the best strategies to develop a workplace that has engaged and productive as well as loyal staff.

Some of the top strategies include:

  • Competitive salaries and attractive benefits packages
  • Opportunities for promotion
  • Opportunities for staff development and training
  • Regular, open communications and open-door policies
  • Caring about employee well-being
  • Providing opportunities for employee autonomy and creativity

What are the 5 main areas of HR?

Although human resources can be quite complex, it tends to involve these five main functions:

  • Staffing: Staffing ranges from hiring new full- and part-time employees to hiring contractors to terminating employees.
  • Development: This includes everything from ensuring new employees are properly onboarded to providing continuing training opportunities for all employees.
  • Compensation: Human resources is responsible for establishing appropriate salaries and benefits for each role in a company. 
  • Safety and health: This role entails making sure safety and health laws and regulations are followed, keeping everyone informed of these regulations and practices, and staying updated as regulations change. 
  • Employee and labor relations: You’ll also act as mediator when employees and employers are in dispute, work with unions and dealing with labor relations.

What does HR do on a daily basis?

Human resources specialists will have many roles. In a small business, HR can fall to one or two people, whereas large corporations will have several specialists responsible for different tasks. Of course, a major role of HR is managing and keeping track of employee records, as well as managing employee hiring and onboarding responsibilities. HR has to explain various policies and regulations such as safety regulations and ensure those regulations are followed. If you’re starting a business or have a small business, you can get help with all aspects of human resources through human resources consulting.

Consultants Work Through a Strategy.

Human resources consulting near me

When it comes to human resources consulting for small businesses in Dallas, TX, if you want an expert team of consultants to advise you in all aspects of HR, you can always count on the professionals at R Moon Consulting. We offer a wide range of consulting services to help you get started on the road to success. Learn more about what we can do for you by calling (214) 382-2964.

How do you calculate profit loss?

business consulting on profit and loss

Understanding Profit, Loss, and More

This year, 2020 has been strange on so many levels for all of us. Almost like an episode of The Twilight Zone, and that couldn’t be more true for businesses. On a good side, all the chaos got everyone a 3 month extension on filing taxes. However, it only delayed getting the profit loss ledger updated. It’s all about profit and loss.

The average person thinks that a business is all about the sale and make that dollar, and that is true, but not the complete picture. The profit or loss from business can be what determines if a business keeps going or closes their doors. Just because the parking lot is always full, and a line is always in the store, doesn’t mean their profit and loss is where it needs to be to keep the doors open.

If you don’t understand profit and loss, you probably have profit loss basic questions, and we will answer some of those in this piece. If you are thinking about opening a new business, it would be beneficial to sit down and talk with a business consulting firm and get a basic profit and loss lesson for Dallas, TX businesses.

What is profit loss?

Two terms key in the business world are profit and loss, and they are what determines the financial returns a business owner realizes. To calculate the profit and loss of a business, we look at the activity of the business and get the total revenue, then subtract the expenses of operating that business. 

Total Revenue – Total Expenses = Profit and Loss 

If you get a negative number, that is how much the business lost. If you get a positive number, that is how much profit the business made.

profit and loss meeting

How is profit and loss account calculated?

There are a lot of numbers involved to calculate a business’ profit and loss statement, sometimes referred to as an income statement by accountants. Those numbers come from many references and sources, with the resulting profit and loss creating the picture of the business’ financial performance for the month, the quarter, the year, or any period needed. The information needed to create a profit and loss statement of a business include:

  • BANKING records: A business’ banking records are used in creating a profit and loss statement. These records need to include all transactions related to the bank accounts and credit card records that outlined any purchases made for business purpose and use.
  • CASH records: They need all cash purchases made for business purpose and uses to prepare the profit and loss statement. This includes all petty cash transactions that applies to the business.
  • INCOME sources: A profit and loss statement will require a record of all income sources. This includes cash, check, credit card, net billing, and online payments made by clients.

Is loss of profit a direct loss?

Within the profit and loss of operating a business, there are direct losses and indirect losses. For the non-accounting person, this can confuse. Most business owners aren’t 100% clear on this topic either.

No, a direct loss or an indirect loss can be the starting point for a profit loss, and this is determined on the facts, case by case. A direct loss comes about naturally through the course of things when all parties entered the contract and a breach of that contract is in question. A direct loss and the breach of contract is considered foreseeable and recoverable.

An indirect loss arises from special circumstances. For instance, if one party of a contract is a breach of the contract and have an awareness of any special circumstances, the other parties in the contract may recover their losses.

What is the difference between direct loss and indirect or consequential loss? 

A direct loss is one where a business catches on fire and loses everything, or most of what is in their building.  There is nothing left to recover from the fire.  Whereas with an indirect loss, are also referred as “consequential loss” within the insurance industry and the policies that are issued. This type of loss isn’t from the fire and smoke damage itself, but the consequences of the business a company will lose when they aren’t able to operate as usual. 

Can it be that simple? Absolutely not! That is why there are courts and lawyers. They keep things interesting.  As we mentioned, even business owners are confused when it comes to consequential or indirect loss. The courts now have different approaches to the clauses that seek to exclude or include consequential or indirect loss from damages sustained. Sometimes, we may regard a consequential loss a direct loss. 

What does direct loss and indirect loss have to do with profit and loss for a business? If your business suffers from a fire or a storm that renders your place unusable, you will lose revenue. So, instead of having sales that go towards your profit, you’ll have losses to report, especially anything that the insurance will not cover. 

Which loss is an example of a direct loss? 

  • Some examples of direct profit loss would be: 
  • Fire and smoke damage to place of business
  • Theft from place of business
  • Car crashing into place of business
  • Storm damage to place of business 

While each of these is a direct profit loss for a business, they each can create an indirect loss too. Fire and smoke damage, storm damage (i.e., the roof is gone), or vehicle crashing in to building can leave the business unable to produce their goods or serve their customers. Those customer’s take their business elsewhere, creating an indirect loss. 

employees going over profit and loss

In Closing 

You have a dream of opening your own business come true. You know what you want to produce or provide the public or a specific industry. You get it all rolling along, even hire an employee or two. Then comes the tax man and you don’t have any idea how to handle filing the various types of taxes. Profit and loss to you isn’t what the tax man is interested in, so what do you do? 

The best advice is to find a business consultant, one that specializes in small business. They will talk to you about their services and how your company will benefit. They will discuss the profit to loss ratio that your business has currently and how to improve those numbers. A business consultant is up-to-date on tax laws and will make sure you are filing what taxes you need to file on time. Connect with our team today about profit and loss in Dallas, TX today!

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Are Small Businesses on the Rise?

When you start a business of any size, it’s absolutely reasonable for you to want to see it grow. However, with current events it may seem like that is an impossibility. We at R Moon Consulting firmly believe that your small business in Dallas, TX and the surrounding areas can still grow. While it may be difficult to believe that, small businesses last year had a 19.2 rate of growth for gross annual income. Most notably, small business growth in industries like construction, accounting, and retail were consistent for the past few years. Even now, with state orders and a general negative climate, small businesses have the capacity to grow. 

Unfortunately, 40% of all small business growth is considered profitable while only 30% just cuts even with an even amount having to take out loans or are just scraping by. However, upon looking at these current statistics there are reasons for this percentage that can actually be prevented. Some examples being:

  • 36% of small businesses do not have a website
  • ¼ of small businesses do not start out with financing 
  • Most small businesses (82%) fail because of cash flow problems

In 2017, the Census Bureau stated that there were stated there was 30.2 million small businesses in the United States which made up for 47.5% of the American workforce. More often than not, small businesses that do not see small business growth often have several reasons for such a negative impact. Much of the time, it tends to be missed opportunities or mismanagement among a few other reasons that can be negated with appropriate steps like competent management being taken. Here at R Moon Consulting in Dallas, TX, we can help you with small business growth through our positive business growth service. When you want to start seeing growth in your business, talk to one of our advisors by calling (214) 382-2964 today.

What are the Five Stages of Small Business Growth?

When you want to see your small business improve, you tend to start looking at your profit margin first. While this is apart of the like of thinking you should have, it is not entirely the only thing that should be focused on. Unfortunately for a small business, 10% is the average profit margin for most small businesses. While that may be alright for some, as seen in the statistics it is not necessarily what a person should be aiming for. To increase that, there are five steps that can be taken that will grow your company when followed accordingly:

  • Establish the Business: Stage one focuses on proper management and sending the message to the local population that this business fills a purpose they need. At this point, the owner tends to be doing a lot of work and advertising
  • Steady the Business: At this point, the business is established and has customers, but has shifted towards figuring out how to finance growth. In this stage, employees of the owner have responsibilities but are not for the most part independent. 
  • Make Goals: At this point, a company will be setting goals for growth and managing it accordingly. The income, thanks to a more diverse list of products, has allowed the owner to expand and need managers to better take on the brunt of the workload. 
  • Grow and Branchout: At this stage, the company should be making enough income to branch out and be capable of taking risks. On some occasions, there can be an expansion added like a sister location. 
  • Retain Success: At this point, a company is focused on keeping their revenue stream running and having enough to facilitate expansion. Upon each move, the employer can look back at the previous steps and make sure that each decision is based on sound and steady footing. 

When it comes to growing your business, R Moon Consulting can easily help with our professional services. Call today to learn more.

How can I make my small business Grow Faster?

Growing a business is like working with stocks, there is no sure-fire way of knowing how to grow it until an ample of research is done and implemented. The best way however for many businesses is to know your market and your customers. When building relationships with your clients and understanding the needs of the community, you can discover niches that need filling. While not exactly an answer, a complicated problem does not earn a simple solution. Ways you can learn of how to get better small business growth is to throw events or attend networking events. Creating a website helps immensely with this process.

Managing a small business can be difficult, we can help

What Makes a Small Business a Small Business?

To put it by the numbers, the United States counts companies with $35. 5 million in sales and a population of 1,500 employees as a small business. While most small businesses tend to be a third of that, a general feature of a smell business reveals itself as a company that is based in a specific community or city. When you want to see your small business growth in Dallas, TX call R Moon Consulting. We’ll make an appointment when you reach out to (214) 382-2964 for a consultation about small business growth.

Why is a Marketing Plan Important?

Marketing Research Being Reviewed.

Why is a marketing plan important?

For whatever reason, some business leaders devote very little time to market planning. This is unfortunate. Whether you’re a one-person operation or a large corporation having a marketing plan in place is essential for your business. It’s marketing that drives sales, and if you aren’t selling enough, you’re not going to stay in business for long. A marketing plan helps you decide who to sell your products to. While ideally, everyone should want to buy your products. Realistically, though you know only a certain part of the population will buy it, and putting a plan together helps you focus on your target market. With a plan in place, you’ll find it easier to make sales.

If you want to improve your sales but don’t have a marketing plan in place, R Moon Consulting can help you with all your advertising and marketing planning in Dallas, TX efforts. We are experienced professionals and can get you on the right track for success. Learn more about how we can help by calling (214) 382-2964.

How do you create a marketing plan?

When creating a marketing plan for small business you’ll want to follow these steps:

  • Write a mission statement that succinctly describes your business, the services offered, and the markets that it serves.
  • Make a list of target niche markets, the people you know your product will appeal to.
  • Write down a description of your services.
  • Work out all your key marketing and promotional strategies. This will require research into your market’s needs, problems, and industry trends.
  • Identify and learn about the competition.
  • Establish quantifiable marketing goals like how many clients you want to acquire or the amount of income you want to generate.
  • Keep track of your results to see which strategies are working.

What can a marketing plan help with

While your overall objective in creating a marketing plan is to generate more sales, the plan helps your business on many levels. As you create the plan, you’ll begin to focus and think more clearly about exactly who your customers are and what your products are and how you’re going to get products to those customers. Moreover, with a plan in place, you have measurable goals in place for your business. A plan will also provide motivation to reach goals. If at any point you decide to go to investors, you will have to have a marketing plan, otherwise, you will not be taken seriously. Speaking of money, with a plan in place, you’ll tend to use your money more wisely. You’ll have a better grasp of what to spend your money on.

When to create marketing plan

A marketing plan should be one of the earliest things you should do when you start a business. Along with the overall business plan, the marketing plan serves as the guidepost to move your business in the right direction to generate sales. It’s especially essential to have before you make a pitch to investors. 

Who reads a marketing plan?

A marketing plan will have different audiences depending on the type of business you have. Anybody from marketing team members to upper management or board members will read the marketing plan. It’s also very likely if you are pitching your business to investors, they will be reading the plan. As part of the business plan, a marketing plan is essential when it comes to attracting investors’ attention. The marketing plan could make or break a deal.

Marketing plan vs marketing strategy

Marketing plans and marketing strategies are different parts of a whole. The marketing plan is an overview of how you are going to go about marketing your products. In the plan, you’ll develop goals and set a budget, whereas, in a marketing strategy, you’ll drill down deeper into the specifics of the plan. In it, you’ll develop ways to reach your target audience and how to lure them away from your competitors. In the marketing strategy, you’ll determine what makes your products attractive, or their value proposition, as well as key brand messaging. It will include information such as data on customer demographics.

What are the four basic marketing strategies?

Marketing strategies are much more specific than marketing plans, but, in general, there are four basic considerations when developing a marketing strategy. These are product, price, place, and promotion. When developing a strategy, you’ll have to consider all four components of the strategy for it to be effective.

A Group Draws up a Marketing Plan.

How do startups find customers?

There are many ways for a startup to find customers. But, one of the best ways to find customers is through developing a marketing plan and marketing strategies. The plan will help you determine who your customers are exactly, and help you figure out strategies to promote your products. If you need help finding customers and developing a marketing plan in Dallas, TX get help from the experienced professionals at R Moon Consulting. Learn more about how we can help you by calling (214) 382-2964.

What is Corporate Filing?

Filing corporation articles

What is a corporate filing?

So, what is meant by corporate filing? When you own a company, there is paperwork involved. A lot of paperwork. A corporate filing is some of that paperwork, and it provides vital information to a corporation. Among that information are the company name and address, the company’s representative information, and the purpose of the corporation that has been formed.

Regardless of what state your business is located in and where it has become incorporated, it is mandatory to file the articles of incorporation. This is referring to forms that are required by the SEC (Securities & Exchange Commission) that states a company’s financial condition and material changes of the organization. Does every company have to file these forms?

No, only companies that are going to be a publicly-traded company, meaning a company that will be on the NYSE.  You know that 30 seconds on the news every night where a small group of people is standing around a podium banging a gavel?  Those are representatives (usually the original owner is in that group) announcing to the world their company is no longer a private company, but publicly traded on the NYSE. They have completed the required corporate filing of paperwork.

That paperwork is drawn up by business consultants, people that have a financial and legal background and knowledge of the protocol, laws, and requirements of the SEC.  Do you need such a company to do your corporate filing paper for you? No, it isn’t a law or requirement, but corporate paperwork, legal or tax paperwork, is complicated, confusing, difficult, and overwhelming.  and difficult.

Just as with your taxes, if your corporate filing paperwork is not done correctly, there could be repercussions costing you money. By hiring a small business consultant, you can have peace of mind knowing that they know what they are doing. They know and understand everything for corporate filing that will prevent possible consequences for your company.

If you are considering going public with your business, losing the sole proprietorship status, if you don’t already have a small business consultant, google “corporate filing services near me” and begin the search for such a company. You want experienced, knowledgeable people on your side for this next step.

How do you find if a company is registered?

The Internet is a wonderful tool. It can be used to find contractors for anything you need to be done, including a small business consultant. Information on anything, find out certain laws, dates of events, and recipes. It is also a tool to find out the status if a company has registered and when they submit their corporate filing. Every state in the country has a link to this information.  It will tell you the date the company registered, under what name, their ID and the company’s current standing.

Who is the owner of a business?

The person responsible for all aspects and facets of a business, the person who receives all the business profits, is the legal owner. The owner is the business. They file income tax listing their expenses, losses, and profit on individual tax forms like the Federal 1040 form annually. This information in their corporate filing along with the financial condition of the company and any material changes within the organization, all done through the corporate filing and dissemination system.

How do I find the owner of a corporation?

Every state has a website that provides a complimentary database with business registration is entered with the corporation’s name and registration number. This will also provide the business owner’s name and address and the registered agent’s name.

corporate office and businessmen

What happens if you don’t file your annual report?

For a company to be in good standing and acknowledged as a registered entity, its annual corporate filing report on time. There are repercussions for filing late or not at all, such as late fees and the company being administratively dissolved as a legal entity.

Corporate filing is just as important for a business to maintain good standing as it is to meet corporate tax filing deadlines and other items of this nature.  Here is a summarization of 8 things that you should expect to get from a small business consultant:

  • Experience and Knowledge of Your Industry.
  • Experience and Knowledge of Your Business.
  • Passion about Your Business.
  • Accentuate Your Leadership Skills.
  • Develop a Strategic Plan.
  • Provide Effective Training.
  • Hold You Accountable to Commitments and Responsibilities.
  • Produce Measurable Results for the Goals You Both Set for Your Business.

If you aren’t getting these things from your current business consultant, request a meeting and review what you perceive and understand to be their part in your business and what you expect. Just as you review your electrical service, auto, business, home, and life insurance policies, your internet, and phone service contracts, regularly, review what your business consultant is providing you. They are a team member and having clear and open communication is important for your business’s success. Dial (214) 382-2964 today for your corporate filing in Dallas, TX.

How do incentive programs work?

team working together on project

Improve morale with incentives

There are times the job market is the employer’s market and at other times, it is the job seeker’s market. Meaning, when the jobs are few, employers have the upper hand and when the jobs are plentiful, the employed and the job seekers have the upper hand in demands and expectations. When it is in the job seekers with the upper hand, employee incentive programs can do a lot in hiring and keeping good employees. 

Some employee incentive program examples are sign-on bonuses and retention bonuses, more sick days and vacation days, quarterly incentive bonuses, etc. Companies may design an incentive program based on the industry, such as accident-free bonuses for an industry that is prone to accidents or reaching a goal of error-free shipping. There isn’t a box of employee incentive programs, as they can be customized to fit the company’s overall goal or to fit a specific department within the company.

A company should choose employee incentive programs that work to make the employee incentive program benefits appealing to the masses or to the type of employee they desire to attract and retain. The employee incentive programs for small businesses are typically different than those of a larger company or corporations, and employees and job seekers can and should need to choose their employment aspirations accordingly.

What is an example of an incentive?

An incentive is something that gives a person the motivation to accomplish something or work harder toward a goal. One example of employee incentive programs in the workplace is to be paid extra money for working additional time on a project. The ultimate goal for the employer may be to get an order out on a time, reach a number in sales and profit, reduce the employee accident rate, boost morale, or any number of things that a company needs to achieve.

The difference can be huge with the right employee incentive programs. Studies have found that a properly structured incentive program can increase the performance of a company’s employees by 40% or more. Some examples of incentives are: 

  • Financial: Money may not everything, but it doesn’t hurt to have more either. A financial reward is commonly always one of the most well-received employee incentive programs and gives the employees that motivation an employer is trying to generate. This financial reward can be in the way of a prepaid card or an open-loop prepaid card that can be used for ongoing motivation. Paycheck bonuses and raises are always a plus too!
  • Networking Social Events: After work, most of us just want to go home and relax, but the occasional work gathering can be fun and give employees the desired incentive to know there is a free “party” waiting for them at the end of a period.  These events are useful for team building among the employees and create camaraderie between employees while strengthening the relationship between the boss and the employees.
  • Points System: A workplace points system as employee incentive programs have proven to be successful. It would reward employees for reaching assigned goals or achieving specific behavior. They can redeem the points for a variety of things like gift cards, merchandise, or time off with pay, like a half day.
  • Learning Chances: Every business is more successful with educated and informed employees, so these types of employee incentive programs are a win-win. Offer educational and training programs that give employees the opportunity to improve on their skillset and expand their knowledge that could lead to paying raises and job advancement.
  • Simply Saying Thank You: Simply saying “thank you” or acknowledging a good job from the boss or management team will make a big difference for an employee. A little bit of one-on-one recognition does a lot for the ego and morale, and best of all, it’s free.

How do you recognize employees for good work?

Nobody wants to fee underappreciated, especially at work. The days of getting a paycheck aren’t enough anymore. Being recognized in the workplace does a lot for morale and encouraging us to keep going at it another day. Sadly, only 1 in 3 workers receive praise or recognition in a week according to a Gallop poll and when an employee doesn’t feel they are appreciated, they are two times as likely to leave an employer within 12 months.

Here is a list of employee incentive programs that won’t cost the company a quarter’s worth of profit.

  1. Give a shout-out from time to time
  2. Offer opportunities for personal development that expand into professional development
  3. Offer fun projects
  4. Take employees to lunch for achieving a goal, like getting a huge order out on time, under budget
  5. Loosen the management reins
  6. Create a fun competition between departments
  7. Throw an appreciation party or plan a potluck lunch
  8. Encourage peers to recognize their fellow associate’s accomplishments

How do I incentivize my employees without money?

As we mentioned earlier, money isn’t everything, but it is something. However, looking beyond to find employee incentive programs that won’t cost the company is helpful too. We’ve mentioned a simply “thank you” can do a lot for motivation and feeling appreciated. Here are some intrinsic motivators that won’t break the budget while getting your employees motivated. 

Independence, mastery, and purpose

Experts say there are three things that motivate humans:

  • Independence: We all want to be independent thinkers and have control over what we do in life, including at work. Don’t be a “helicopter boss” that hoovers over your employees. Give them the opportunity to make decisions.
  • Mastery: We all want to be better at what we do, by providing your employees the opportunity to show off their achievements and progress allows them to show they have mastered something. Provide them constructive feedback and performance metrics so they can achieve that mastery with development plans individually designed for each one.
  • Purpose: Everyone likes to be a part of something that is larger than they are, and by seeing how their contribution benefits the whole business does that. It shows them their work is of value to the whole picture.

Offer praise

You can’t praise an employee too much praise or recognition, even if only a thank you. A shout-out during a team meeting does wonders and can give other employees the push to do strive harder for more too. Make the acknowledging praise and recognition for tangible accomplishments. 

Community development

Your employees need to feel connected to the company and each other. y building a sense of community your employees feel connected to each other – and not just to the business. Have each department go to lunch together, put old fashion games in the breakroom, even a jigsaw puzzle that everyone can work on together. Company picnics that include the employee’s families are excellent for “out of the workplace” togetherness.

Get to know the person

Learn your employee’s hobbies, interests, family situation. Do their kids play ball or take dance? Do they raise a certain breed of cats or dogs? This personal connection will let you know what motivates them.

Volunteering as a team

Of all the employee incentive programs there are, this one helps others too. Get a group of volunteers to work at a food bank or soup kitchen. Find a non-profit to support and encourage the employees to reach out for donations. This brings everyone together for a single goal and it can only help publicity for the company.

What are some employee incentives?

We’ve covered and offered several ideas and suggestions, but there are so many more things that you can do for successful employee incentive programs. Some more ideas to consider are:

  • Make sure your employees have the equipment, materials, and tools they need to do their job well.
  • Create a special, unassigned office for a day when a goal is reached by an employee
  • Give away an outside service like a massage, house cleaning service, sizeable discount for fitness equipment for the home
  • Make a game out of finding small gifts around the workplace
  • Create a funny award
  • Let an employee that wins a contest or achieves a goal pass on a project or switch a client with another employee
  • Draw attention to an employee’s outside accomplishment or interests
  • Shake things up by having management serve lunch to the crew
happy team shaking hands

What are the three types of incentives?

Research and studies have found that when a company provides a variety of incentives, it motivates the employees to do their best consistently. Three popular and well-received employee incentive programs are:

  • Profit-Sharing Plans
  • Cash Bonuses – paid in cash, not by check where IRS gets a piece of it
  • Retention Bonuses – and not just for newcomers, but 5-year, 10-year, 20-year, etc.   

Employee incentive programs are essential to a company’s longevity and success. Happy employees are satisfied employees and those are productive employees. The effort, money, and time you put into this endeavor could have a long-lasting ROI. Call (214) 382-2964 today to discuss employee incentive programs in Dallas, TX.