Student life does not generally afford a great deal of free time to pursue your personal interests;however, at one point, you may have considered turning a personal interest or hobby into anofficial enterprise. Today, you have finally decided to turn that hobby into a business but haverealized that you need start-up capital from a lender or investor.To obtain funding, you need to convince a lender / investor that your business is more than ahobby. You need to demonstrate that you have a firm grasp of your business, the accountingpractices that impact your business, the controls needed to safeguard assets, and whichaccounting system will produce accurate and relevant financial information.Write a six to eight (6-8) page business plan in which you:1. Describe the type of business you have created including:a. The product or service, and general staffing plan. Provide a rationale for yourplan.b. The form of your business and the benefits it offers your particular business,c. A chart of accounts specific to your business, including a rationale as to theselection of each account. (Note: The chart of accounts is a blueprint of yourbusiness for the lender/investor. It should report the expected resources that youwill consume in your business (assets), the sources of those resources (liabilitiesand equity), the sources of revenue, and expenditures that you expect to incur toearn those revenues. You may build a detailed chart that includes business units,divisions, product lines, etc.)2. Based on the form of your business, analyze whether or not you will be required to useGenerally Accepted Accounting Principles (GAAP) or International Financial ReportingStandards (IFRS) accounting methods and how the IFRS / GAAP convergence willimpact your business. Suggest how you will incorporate any changes into your books andrecords. (Note: You need to demonstrate to the lender/investor that you have recognizedpossible changes to GAAP that may impact the accounting and reporting of youraccounting events.)3. Prepare a pro forma balance sheet and income statement providing the assumptions madeand support the valuations assigned.4. Considering the value of assets (assigned per your balance sheet) used within yourbusiness, recommend two (2) specific internal controls that you will implement to protectyour company’s assets and resources, justifying how each will provide assurances tomanagement. (NOTE: Safeguarding assets and protecting personal data are paramount to ensuring the viability of a business. Demonstrate to the lender/investor that yourassets will be safeguarded and customer information (if applicable) will be protected.)5. Based on the internal control recommendations that you made, suggest how you willimplement each within your business environment, indicating how challenges orresistances will be overcome.Â6. Evaluate the impact of the regulatory environment, including the Sarbanes-Oxley Act andother regulatory requirements, on your business venture, giving considering to how youintend to comply with the requirements and the general impact to decision making withinyour business.
