Chapter 13

Management, Leadership and Ethics

This chapter discusses managerial style. Since I will not be managing anyone, these wont apply to my business. I will pay myself by commission, the money that I receive from customers will be mine to pay for the product, and needs of the company. The excess will be my personal profit. The chapter also talks about growing your team. Adding more employees to Savvys' Nails To Go, will happen. But not in my current business plan, i am going to start off at the bare minimum.

Chapter 12

Operating for Success

The Production-Distribution Chain has 3 different variations.

Savvys' Nails To Go, would be Factory Direct. A factory direct chain starts with the retailer or manufacturer and goes straight to the consumer. Because my company is more of a service then a product, this is why I would use this variation.

Chapter 11

Addressing Legal Issues and Managing Risk

One thing that I must determine is my business legal structure. Starting my business off, I will mostly be a sole proprietorship. I am going to be the only person doing the pedicures and manicures, so unless my business expands there is no reason to bring anyone else in to the ownership. If my business does well I receive all the profits. The negative of this, is that if the same business does poorly, i will suffer all of the losses. Sole proprietorships are easy to start, it is relatively inexpensive and does not require the paperwork a lot of other partnerships and corporations would.

Chapter 10

Financing Strategy: Debt, Equity or Both?

The story of Anita Roddick who founded the Body Shop was very interesting to me. Within a few months of opening her first store she was ready to open another. No bank would loan her the money and she did not want to be in dept by borrowing. So she sold half of the business to a friend, and used the money to open a second store. Her friends share is now worth $240 million dollars.

This is an inspiring story because I do not really have aspirations to be an entrepreneur but helping with an idea someone else has sounds brilliant to me.

Chapter 9

Cash Flow and Taxes

The income statement does NOT show how much cash you really have. That headline stood out to me, I would think they were one in the same. But as I went on to read, when starting a business you will sometimes notice that even when the income statement says you are making a profit, you have no money. There is often a time lag between making a sale and getting paid.

I found this information extremely important, I am sure new entrepreneurs often mistake money in their income statement as their profit that they might not truly have.

Chapter 8

Using Financial Statements to Guide a Business

This chapter covers what your financial statements show about your business. Income statements, cash flow statement and the balance sheet are the main focus. As an entrepreneur this is one of the areas I would struggle with. Income statements, and managing money around my business would not be one of my strengths. That is why I choosy to start Savvys' Nails To Go which is a very low maintenance company, that would not have as much financial responsibilities as most companies.

Chapter 7

Understanding and Managing Start-Up, Fixed and Variable Costs

This chapter focused a lot of the cost of starting your business.

• The start up cost, which is a one-time expense for my company would include purchasing the nail polishes and supplies, getting licencing and business information.
• The cost of goods sold
• Operating Costs, which would involve me maintaining my supplies, purchasing new products and paying for things a vehicle needs to reach my customers.
• utilities
• salaries
• advertising
• insurance
• interest
• rent
• depreciation

Not all of these factors would need to be evaluated for my business.