Burpies Business Plan
By Cara Raske
Welcome to Burpies, a company created by moms for moms. Burpies is a company that understands what one less step means in a busy mom’s day; a few more minutes for her family. The main goal at Burpies is to provide quality products that not at an affordable price. Our family here at Burpies invites you to invest in a company with tried and true values.
For starters let’s explore the basic background of Burpies. The company is founded by me, Cara Raske and Tina Moore. We are not only mothers but business women as well. We have decided to start this business together and thus, have formed a partnership. The advantages of forming a partnership are ...view middle of the document...
We know how much that will be and that will be an average of $.65 per item per unit. Now we are ready to set out to hire employees.
When we thought about who we would like to handle the accounting side of the business we took into consideration a few important things. We want our employees to have experience in working in a small business, understand the needs that come with that and have a background in accounts payable, accounts receivable and bookkeeping. We know that these employees must be motivated and have the ability to work with deadlines and goals.
There are three areas as to which we paid the closest attention to: budget preparation, internal controls, and cash management. Being able to understand and prepare a budget is essential to having a successful business. Not only are we going to hire personnel that can handle this task we ourselves will read and understand fully what the budgets say and represent.
The first task of our budget is to nail down the cost of what a unit is going to cost to make. Earlier we told you the average of all our items from that we can tell you the unit price per item: burp cloth, $.44; bib, $.23; towel $.98; wash cloth, $.37; crib sheets, $.86; and lastly blankets, $1.04. From these numbers we can now determine how much we will need to charge in order to make a profit. We still have to figure into the unit price the payroll numbers. This number will come as we determine how many staff we will house.
To have a successful accounting department we must also have in place internal controls. Internal controls allow our company to have a safety net for our assets and help to ensure the accuracy of the numbers and records. We have a plan for these controls and have applied the basic principles of internal controls to this plan.
We will establish responsibilities for employees and keep those separate from one another. So we have divided each accounting task or function. Selling orders to customers will be handled by the sales team. They will take the orders and input them into the computer. Then our billing person will send out the invoice to the customer. All invoices that come into the company will be entered by a separate billing employee. All invoices will then need to be approved by the manager. Once this happens the bookkeeper will then write a check to pay them. All checks require two...