Written by CAPA-JRC reporter Sophie Huang
The second event, which took place on August 11, had speaker Nina Wang, an entrepreneur, introduce to participants how to write a competent business plan to successfully help their businesses. Wang split her lecture into three sections: Business Formation, Business Management, and Financial Operations.
In the Business Formation section, Wang mainly focused on problems that may happen when starting your company and how to solve them. One problem was how to name and trademark your company without copyright problems. You would usually solve this by finding new names and trademarks, avoiding similar names in your company’s field, or, if you had enough money, buying the other company. Another problem was which state to start your company in. Before deciding on a location, you should research that state’s laws. When you do make your decision, you should then register your business through the state website, open bank accounts, and make sure your company is securely established in that state.
Wang speaking at the second event.
A third problem is how to structure your business. When considering different structures, you should check up on both business considerations and tax considerations. For example, a small business might choose an LLC structure because there would be personal asset protection, additional credibility and name protection, permanent existence, tax flexibility, and deductible expenses.
In the Business Management section, Wang talked about how to effectively manage your business and make it work for you. When you build your team--the people who work the closest with you--you would want to consider both the structure and the people to make sure that your business is running efficiently. However, in order for your company to run more efficiently, you should also consider your employees. For example, you may want to simplify your payroll and make sure the employees have the benefits that they want so they actually like working for you.
Lastly, in the Financial Operations section, Wang spoke mostly about what to expect with your money when you start your business. At the beginning, your business would likely go into debt. Later on, when you finally break even, it usually means that your revenue would get greater and greater and gain more offers and ways to further expand your business. She also talked about how you use both bookkeeping and accounting to manage your money, with bookkeeping meaning recording your financial data and accounting, interpreting it. Finally, she talked about financial statements, such as an income statement and a balance sheet.
At the end of the session, Wang held a Q&A section for the audience.
This article was provided by Chinese American Parents Association Junior Reporter Club (CAPA JRC) with members who interviewed, audio recorded, wrote, translated, and video recorded. CAPA JRC has 26 Montgomery County middle to high school students. They have created a bilingual platform delivering news and serving the community.