An analysis on starting up a specific small business

• Main Author: Gomez, Juan Leonardo
• Format: Others
• Language: English
• Published: 2011
• Subjects: Small Businesses; Net present value; Profitability index; Business plan; Management
• Online Access: http://hdl.handle.net/2152/ETD-UT-2010-12-2364

A unique business opportunity has been presented to me. I have been invited to create a small business that would initially offer mechanical design services to two main customer segments: automotive and biomedical device companies. My main responsibility is to help frame the small business and act as an investor partner. I will act as a silent partner once the day to day operations begin. My main focus of this paper is to provide practical information to answer many specific questions about starting this small business. A Net Present Value (NPV) and Profitability Index (PI) analysis will help me determine whether the required initial investment capital will be a good investment for all the parties involved. The legal aspect of managing people in a small business with less than 15 employees will be also reviewed. The conclusions from the Human Capital Framework and the main components of a business plan will be used in the future development of an operating procedure. A business structure will be selected as part of this analysis. Finally, the business values and strategic goals that are most important to all participating parties will be mentioned. === text