Datax Tutoring Service exists in its legal form as a legal proprietorship in the form of the business's ownership with mingling of rights of the owner as well as liability and responsibility in combination with business rights. In this case Matt Thomas exists as the owner of the business as well as in legal representation with the responsibility of transaction and management of the activities of the business. There is no legal distinction between the Matt Thomas as the owner and his tutoring business. In addition he is the recipient of allow profits that are subjected to certain taxation in regard to the business type as well as responsibility that is unlimited in any losses and debt incurred (Mullen, et al. 2009).
Matt Thomas is the sole operator of the business as he is engaged in the operation and full ownership with no separation as a legal entity unlike other business forms such as partnerships or corporations with absence of legal formalities as a need in the creation of his business. Legal requirements and documentation are only identified in license needs so as to operate the business as well registration of the business in accordance to legal regulations required of companies in the region. Furthermore, since the business has no legal separation as an entity there is not taxation within the only need being the reporting of income and expenses generated by the business or personalized income tax returns;
The main concern of Matt Thomas is the organization of his business with limitation of the scope to which his personal assets which have no relation with the business itself are subjected to any claims that may arise from any business creditors with minimal protection since his personal liability is not limited to a great extent. In this case the assets of the business as well as the personal assets of Matt Thomas as the proprietor are subjected to claims of any of his creditors. This is in addition to liabilities that may exist which cannot be dissolved if the company is sold or ends their operations. Unlike management in a corporation or partnership business structure Matt Thomas possesses flexibility in his management and control of the business with his business expenses and level of formalization as a sole proprietorship limited. However, Datax Tutoring Services being a sole proprietorship has no legal separation as an entity as it is terminated when there is disablement of the sole proprietor either through his retirement or death (Grachevn & Alexei, 2003).
As such we can understand that Datax Tutoring Services in its legal structure as a sole proprietorship lacks business continuity. As such the working capital of the business is generally restricted to the individual funds of Matt Thomas as well as loans and contributions as extra capital. Sole proprietorship is the eased formation as the process of setup has reduced complications than other formal business in addition to being cheaper. The other benefits are related to taxation with the owner of the business not requiring separation in filing of their taxation reports but rather listing the business information and associated figures in the individual tax returns which saves added costs in accounting and filing of taxes whereby the business is taxed in accordance with applied rates in personal income and not the rates as a corporate entity. Employment is another added benefit of choosing sole proprietorship as the legal structure of the company as is can lead to increased job creation associations for instance tax breaks though liability in this case is the responsibility of the individual.
The organizational structure that is initially needed to get the business operational
The company plans to use a rented office which will cost $5,000 per month in rent expenses with the online tutoring platform requiring approximately $25,000 with $5000 catering for expenses for the office, the hire of additional tutors as well as expenses in development and marketing. So as to gain customers the company will embark on a rigorous marketing strategy which will be imitated by contacting schools within the local area and offering the services that will be provided in addition to engaging in networking at PTA meetings with parents.
The company will also advertise in local print media as well as purchasing ad-space on websites that are oriented towards educational needs as part of the strategy to market the company's services. The potential income for the business provides an indication of the tutoring service operating on a charges of $20 to $30 per hour as well as individual charges costing $30 and $60. Private tutor sessions will normally be charged between $40 and $50 on an hourly basis that will run on 10 hours per week within the school guy. Another aspect of the company's strategy to initiate operations will be implementation of human resource skills in addition to skills of instruction which will be essential for the success of the business with expectations of the students in seeing improvement in their performance which will require added pressure in managing their effectiveness. This is because it was observed that in the effective management of the tutoring of the students they will be able to achieve a positive word-of-mouth advertising.
The business will need about 100 students to being operations this is in regard to financial projections that show with the number 100 students the company will be able to sustain operations for a period of two months. In the same context about 10 instructors will be needed to handle the tutoring of students with the Rota arrangement structured according to two hours per session with classes for each instructor operating twice a week so as to not burden the teachers with a heavy workload. Instructors will be organized with an operations manager as head of tutoring sessions with a head instructor as the deputy of operations.
Proposition of methodical approaches to the encouragement of employees to work together to build an effective brand
In the motivation of employees to achieve effective brand prominence there is need to approach this issue in the context of factors of work as these factors attain the baseline needs (Senge, 2006). This comprises of the conditions of working for instance the size of the class, conditions for discipline as well as availed teaching material with regard for the supervision of the company director and basic requirements in a psychological context for instance finance as well as security. Overall these contextual factors pave the path that hinder effective teaching of the instructors as adequate provision of these aspects deter any dissatisfaction as the most intrinsic motivated instructor tends to be discouraged.
The first factor in motivation of instructors in the creation of a working environment that is pleasant as instructors will spend a substantial portion of their life at work which calls for making the work environment appealing. This will make the instructors engaged and satisfied as well as being committed which will be reflected in their positive emotional attachment to their job with profound influence in their acceptance to perform their work duties. Engagement is vital as motivation of employees in an organization in areas such as personal growth motivates them to work to a common objective as well as participating in the wide process instead of simple focus on the extrinsic aspects such as wage payment structures and work benefits.
Another factor is assigning the instructors with responsibility which is obtained from the observation of the need for managers to implement micromanagement which is increasingly unproductive as the efforts placed in micromanagement in unproductive will reduced effectiveness as a strategic approach requires letting individuals mundane their issues (Mullen, et al. 2009). This enhances self discovery with maximization of satisfaction of employees with emphasis on individuality which will create authenticity of the employees that will enhance the company's image.
The third factor is to provide feedback to the employees as it is constructive to complement employees so as to motivate them in improvement and quality of their work. Inadequate qualities will neccessitate an explanation as to why and provide clarity in the terms to rectify the issue with speed. In addition the feedback should not be negative with positive feedback being crucial such that feedback structuring in verbal or oral form will ensure motivation towards improvement which will enhance the brand of the company as it will be associated with productivity.
Examination of ways to satisfy stakeholders in the business
In the satisfaction of students tutored in fields such as quantitative subjects such marketing, international management and organizational economic and behavior among others with courses entailed in study programs will undertake traditional demand comparisons. This will provide review of their quantitative studies and the company will therefore be able to enhance its tutoring methods of quantitative courses while applying concepts to segments of students so as to see if they are applicable (Grachevn & Alexei, 2003).
In the satisfaction of investors two factors will be put into consideration which includes the performance of the business in which case is the company with the other factor being the services which is the tutoring services. The company will strive to deliver superior performance in the investment with occasional performance that is consistent although the proposition may sometimes experience challenges. So as to deliver consistency and excellence in its service clientele within the realm of financial concepts the company will address aspects related to its client services with focus on resolution of problems as well as the response to the concerns of the client and their inquiries (Senge, 2006). The company will operate on the findings of studies that have shown an indication of general client satisfaction can be attained with close correlation with financial advice as the investors will show dissatisfaction if they feel they are being ignored.
Community satisfaction will be achieved through varied target markets that have been identified forehand with variation in categories as the basis for pursuit with the largest category as business students. Datax Tutoring Services plans to utilize the pre-existing relations with several professors in business programs in major colleges and universities. This will allow the company to provide customized and specific course material while receiving referrals from community educational institutions in which case are the professors. Datax Tutoring Services will also provide services to undergraduate students in the several universities and colleges that surround the area of location to boost their academic performance.
Analysis of the amount of funding from debt or equity
Matt Thomas as the sole proprietor of Datax Tutoring Services will seek financial funding from debt with a $100,000 bank loan as the business is based on the assumption of a 3 year loan received with interest fixed at 9 percent. The expectation of sales forecasts shows a solid growth rate with initial operations over the period of three years. At this point the tutoring services require $50,000 of funding from debt. In regards to equity from investors Matt Thomas is searching for third party investment with equity management standing at 100 percent with ownership of Matt Thomas as the sole proprietor.
Mullen,R. Budeva,D. Doney,P. (2009). Critically reviewing recommendations. Journal of Small Business Management.47, 287-307.
Grachev,M. Alexei,I. (2003).Development of a culture of business in new market economies. Journal of East - West Business, 9, 7-28.
Senge,P. (2006).Leverage as a principle. The Fifth Discipline, The Art and Practice of the Learning Organization.1, 114-126.