Structuring a Business Transcript It has always been your dream to have your own business.

Structuring a Business Transcript
It has always been your dream to have your own business. You and your childhood friend Ravi have developed a product called Sunburst that could be used by the growing solar energy industry Tanya, a friend you met through an alumni group, has experience in marketing. The three of you agreed to form the startup team for Sunburst and you gather together one weekday morning to discuss the legal form and organizational structure your business should take.
We’re going to need additional investors and expertise to get this business off the ground, Ravi says. We should develop a business plan that will be attractive to potential investors and partners. They’re going to have concerns about joining a new startup, Tanya says. We should work to address these from the start.
Ravi looks to you. Can you give PowerPoint presentation for potential investors? Let them know what legal form the business is going to take and explain why it works for our company. You should include your analysis on personal liability, taxes, interests of contributing parties, and management of the business. We want them to know we’ve done our homework.
Tanya interrupts, the other thing is we have to decide what organization structure would best serve our goals. That’s right, Ravi says. We’ve already identified innovation and timely customer service as our top priorities for Sunburst. We know we need staff to handle product development, production, finance and accounting, and marketing and sales.
We’re definitely going to need human resources functions, Tanya says. Outsourcing is one option we should look into. We need to do some research before we make a decision. Ravi looks to you again. I think we need to develop a clear mission statement and an organization chart and explain the rationale for our decisions in a short paper.
Step 1: Determine the Legal Structure of Your Business: Gather and Analyze Information
You go to your office to begin the task at hand—the preparation of a narrated PowerPoint presentation to potential investors that will address all of the issues involved in making this decision. For critical background information, see Creating Sunburst: Legal and Organizational Considerations. You will need this information to make the best legal and organizational decisions for your business.
Since one of the investors will not be able to attend a presentation in person, you need to give and record a narrated PowerPoint, so she can listen at her convenience. In order to go through this task, you realize that you must do some research to address the legal and strategic implications if your business is to get off the ground.
What types of business organizations are available to entrepreneurs?
What are the advantages and disadvantages of each alternative?
What are the two best choices and why?
How would you explain your choices to your investors?
Be sure to discuss the following information in your plan (refer to Legal Forms of Business







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