Business Plan for Alpha Talent Center
BUSINESS PLAN FOR ALPHA TALENT CENTER 11
BusinessPlan for Alpha Talent Center
Introductionto Business Plan
Turninga hobby into a business enterprise is one of the admirable things onecan ever do in life. Such business offers an opportunity to doingwhat one enjoys most and earning a smart living out of it. ALPHATALENT CENTER aims at creating an opportunity to young people in thecommunity to exploit their music talent. As a music fan and atalented instrumentalist, spending time teaching music to childrenhas been a hobby for long periods. Enjoyment comes from impartingmusic skills to children and developing their singing talents. Thebusiness would allow me sufficient time with music learners hencefulfilling the desire to cause a positive impact to youngergenerations in the society.
Thebusiness aims at providing music lessons to children of six years andabove. There would be various classes depending on individual area ofinterest. These include piano/keyboard class, vocal class, and aguitar class. Each class would provide lessons on particular areas ina progressive manner. There will be lessons for beginners andseparate sessions for advanced learners. Such division helps inaddressing various needs of different learners thus helping themrealize learning objective. ALPHA TALENT CENTER will utilize eveninghours, weekends, and holiday seasons to provide services to learners.
Eachclass will have two trainers who are able to handle children. Besidesbeing skilled in music, a trainer must have A passion and love forchildren. There will be one trainer for beginners’ class andanother one for advanced learners consecutively. The good thing withchildren is that they have a positive attitude towards learning hencequick learners. It is easier to impart a skill to children than whendealing with mature people who may have divided attention. Childrenare able to concentrate on learning and practice various skills theylearn. They are also creative, hence developing the talent in thembecomes easier for a trainer.
GeneralStaffing Plan for Alpha Talent Center
Foreffective talent development, each trainer will concentrate on oneclass throughout the course. If a trainer takes beginners’ class,he or she takes them through until they complete the course andprogress to advanced learners class. Trainers would be able to createa rapport with children and identify special abilities in variouslearners. In addition, there will be consistency in learning, whichis a vital aspect when handling children. With such policy, it willbe easier to accomplish learners’ objectives and realize trainingoutcome.
Thecenter will hire an administrator who will perform all administrativeduties including students’ admission, accounting functions andmaintain various administrative records. Business partners and threetrainers will concentrate in managing various lessons. Theadministrator will have significant impact in the business since heor she will facilitate smooth operations. He or she must have passionfor children since they are key target market for the business.
Formof Business and Its Benefits
ALPHATALENT CENTER is a partnership business. The ownership comprise of ateam of talented musicians and instrumentalists. They all enjoytransmitting knowledge and expertise to children who enjoy music.Besides being a hobby, music has become a profession and means ofearning a living. Having lived together and doing several charityworks as a team, these entrepreneurs have various things in common.They all have passion for children welfare and can play variousinstruments perfectly. In addition, they have a shared vision ofdeveloping music talent in the society. They identified children asagents of accomplishing this vision thus building an ideal businessidea.
Partnershiphas various merits over other forms of business. Availability ofcapital is a major concern for many people in the business. Withthree partners, it is easy to raise the required capital to startoperations (Hatten,2015).Lending institutions would prefer partnership due to confidence thanwhen dealing with sole proprietorship. Again, it would be easier tooperate due to handling possible challenges together. There is alsothe aspect of sharing business risks among partners. In addition,partnership businesses experience smooth operations since nointerruption due to the absence of one partner.
Chartof Accounts for Alpha Talent Center
Chartof accounts refers to the list of accounts applicable to specificbusiness. It is a tool used by the management to disclose details ofevery transaction in the business (Sánchez,& Spraakman, 2012).ALPHA TALENT CENTER chart of accounts include:
Balance sheet – contains list of assets available and liabilities
Income Statement – consists of business income and expenditure, profit and losses
Students’ ledgers – contains students’ invoice, payment details and balances
Cash Book – records all payments received from students and payments made to various creditors
Receipt Book – records all payments received from debtors
Petty Cash Ledger – record of all petty expenses within the office for smooth operations
Vocals class ledger – record of all students in both beginners’ and advanced learners’ class for vocals and expected income from them
Keyboard/Piano Class ledger – piano class students and expected revenue in both classes
Guitar class ledger – details of guitar learners in both classes and anticipated revenue
AccountingMethod for Alpha Talent Center
Thebusiness will utilize Generally Accepted Accounting Principles in itsreporting. The nature and size of the business does not involvetechnicalities that require International Financial ReportingStandards (Hatten,2015).IFRS method requires highly trained accountant and this kind ofbusiness may not afford to hire such professional. For a start-upbusiness, GAAP is an ideal reporting method that would work well forits operations and compliance. The business requires a person withdiploma qualifications in accounts discipline. Such person will nothave unreasonable cost of the business, especially before reaching abreak-even point.
GAAPis likely to undergo several changes that have significant impact onthe financial records of the business. However, any change in thismethod does not affect the classification of items. It only affectsthe presentation of records during the financial reporting. For astart-up business with few entries, it would be easier to accommodatepossible changes to GAAP method. Any change seeks to improve accuracyin presentation and reporting.
Proforma Balance Sheet and Income Statement for Alpha Talent Center
Proforma balance sheet is a document that provides disclosure onenterprise assets, liabilities, and equity at a particular time i.e.at the end of financial year or after every quarter. Note thatbusinesses apply pro forma balance sheet for projection purposes(Hatten,2015).The following document is the pro forma balance sheet for AlphaTalent Center.
Item $ Item $
CurrentAssets Owners’ Equity 3200
Cashin hand 74000 Capital 7400
BankBalance 128000 Bank Loan 216226
6Yamaha PSR 4500
4Electric Guitar 1200
12Box Guitars 1536
100Plastic Seats 600
Total 226,826 Total 226,826
Incomestatement is a document showing financial performance of the businessorganization. It discloses earnings and expenses of the company hencedemonstrating performance within a certain period. The followingdocument indicates income statement for Alpha Talent Center.
IncomeStatement for the month
LessCost of Sales 3500
NetIncome before Tax 27,850
InternalControl Measures for Alpha Talent Center
Internalcontrol plays a vital role in ensuring smooth operations andefficient realization of company’s objective. Control measuressafeguard assets of the company and ensure reliability and safety offinancial information. The management has responsibility of creatingsound environment for effective control (Chen,et al 2014).It includes setting integrity standards to employees, diligence inassigning various tasks and designing work systems. Some of controlmeasures that Alpha Talent Center will employ include riskassessment, strict monitoring and consistent review, and installingaccurate information and communication system. These measures wouldfacilitate operational efficiency and accountability among staffmembers.
Riskassessment identifies areas vulnerable to risks and requiresmanagement attention. In Alpha Talent Center, the management wouldensure equipment such as sound system Yamaha keyboards and othersare safe. The store will have strong locks and the management willensure equipment and other assets are safe from theft among othereventualities. The Insurance premium is one of the measures thatensure safety of assets within the office premises. Parents paythrough either banker’s check or direct to the account. Themanagement discourages cash payment to ensure finances are safe fromtheft. The management only allows administrators to handle cash fromdaily sales and he would be banking the money on a daily basis. Theparent obtains a receipt as an indication of payment and responsibledirector goes through financial records every day to ensuretransparency and accountability.
Toimplement these measures, the management would ensure customers areaware of payment mode before enrollment begins. It would alsoconsider insurance policy for equipment with reputable insurancecompany. The administrator would report daily transactions to therespective director after close of the business. It would also trackevery petty expense to curb wastage of financial resources. Use ofeffective accounting system within the organization would ensureefficiency and transparency. The system would also counter thechallenge of workload to the administrator since it would generatereports automatically.
AlphaTalent Center would comply with regulatory requirement, includingSarbanes- Oxley Act, which demands transparency in financialreporting and management actions. Hiring of external and independentauditor would ensure that the company complies with all applicableregulations. It would also ensure that the company adheres toaccurate financial reporting that affects tax payment to the relevantauthorities. By implementing internal control, it is a clearindication that the business is committed to fraud prevention (Dah,et al 2014).It also demonstrates its willingness to produce reliable financialinformation to regulatory authorities in a timely manner. Witheffective internal controls, compliance to regulatory requirementswould not be a challenge for the business (Chen,et al 2014).
Sarbanes-OxleyAct aims at reforming accounting, reporting system, hence bringingcorporate accountability. It protects investors and the public frommalpractices of the management hence contributing to businesssustainability in the United States of America (Dah,et al 2014).It puts particular emphasis on accuracy of financial information andtransparency. By complying with Sarbanes-Oxley Act, Alpha TalentCenter would be able secure the interest of lenders and shareholders.The management would have commitment towards ethical behavior,especially in financial matters. Prospective lenders would be sure ofgetting their money back and investors would be optimistic of gettingreturns. Most businesses fail due to mismanagement and unethicalfinancial reporting within the organization. The law holds everystaff, especially those working in finance department to account.Alpha Talent Center is likely to adopt strict measures to regulatestaff conduct in the course of duty especially the administrator.
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Dah,M. A., Frye, M. B., & Hurst, M. (2014). Board changes and CEOturnover: The unanticipated effects of the Sarbanes–Oxley Act.Journalof Banking & Finance,41,97-108.
Hatten,T. S. (2015). Smallbusiness management: Entrepreneurship and beyond.Cengage Learning.
Sánchez-Rodríguez,C., & Spraakman, G. (2012). ERP systems and managementaccounting: A multiple case study. QualitativeResearch in Accounting & Management,9(4),398-414.