Starting a new business is always a great challenge for any entrepreneur – it involves the creation of a detailed business plan, the consideration of all accompanying opportunities and threats that await him or her in the future process of operation. Everything has to be planned carefully to achieve success; the business does not stand inconsistent, this is why all aspects of a future undertaking should be considered in a unified content of the prospective business plan.
I would like to establish an internet-based consulting firm that will deal with securities and will assist those wishing to become stockbrokers or dealers. I think this company should bear a reliable and respectable name – “Securities Consulting”. The reason for such a long name is that it should not be catchy, but should cause trust. People who deal with money and have decided to invest in have to be reassured that in my company they will receive valuable knowledge and precious advice that will help them to pursue their career in securities trading successfully.
As for the type of company structure I would like to have in my company, I would choose to create a sole proprietorship. The reason for this is that it is much easier for me to run a business on my own – I will share responsibilities with no one and on the one hand, it will be hard to conduct daily activities fully and successfully. But on the other hand, I will bear the overall responsibility for all activities, and both in case of success and failure I will be the only person to blame or to praise. It is much easier to work as a sole proprietor due to the higher cohesion and consistency of work.
The role of accounting is surely high in every company, and my future company is not an exception. Every company will fail to function correctly if it does not accomplish its main function, gaining profit for the owner. It is always hard to gain profit in the business market where all enterprises experience fierce competition. This is why the company that does not bring a good, the sustainable financial yield will fail in the market and will require liquidation. I do not want my company to fall into this category, so I recognize the necessity of keeping precise accounting records to be able to assess the profitability of the company in a timely and accurate manner. Accurate financial information is certain to give proper financial information that is used to evaluate the current financial position of the company, to make financial forecasts, and to design strategies to overcome the drawbacks of functioning and to raise more funds.
To accomplish all objectives enumerated above, it is of crucial importance to hire highly qualified accounting staff. As soon as I start doing this, I will look for professionals not only with prestigious credentials from financial higher educational establishments but for those also possessing knowledge of modern accounting principles and legislation, being able to work with the computer and to use the accounting software. I will also pay much attention to their personal qualities – I am sure that accountants have to be responsible, accurate, and punctual. All additional credentials will certainly be encouraged.
Speaking further about the qualification of my accountants, I would like them to have extensive knowledge about cash management (because of its key importance in allocating financial resources to achieve the highest level of their profitability and success of the enterprise), budgeting (especially wanted are skills in budgeting and accounting, budgeting and its interconnection with human behavior, budgeting and long-range planning, creation of a budgeted income statement and budgeted balance sheet) and internal controls (in this respect the accountant should be able to function in the role of a controller, as internal control is an efficient tool to ensure the safety of corporate assets and to create accurate financial reports).
It is also necessary to note that internal controls should be attributed particular attention due to their central role in the profitability of the enterprise and the accuracy of statements and reports produced by the accounting staff of the future firm. This is why I would like to establish such kinds of internal controls in my company as a detective, corrective and preventive – all of them are designed to sustain a certain aspect of stability and accountability in a company and to make internal financial operations easier and more precise.
Financial information is of key importance for any functioning enterprise, as it often helps establish a correct direction of development and improvement, aiding the further success of the undertaking. For this reason, managers of my company will extensively use financial information to assess both the current state of affairs and profitability of my company and the perspectives of its operation for the future. Judging from the financial statements, investment rates, etc. it is possible to understand whether the company experiences the downfall in operations or is growing and developing. Making proper conclusions from this information, the managing staff will be able to produce a set of solutions and generate strategies to achieve sustainable growth and development of my enterprise.