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Business Plan
XXXXX
Axia College of University of Phoenix
The name of my business is MOB, LLC. It is going to be structured as a corporation
however a specialized corporation known as limited liability company, or LLC. The reason why
I chose that structure is because the company, MOB, will be acquiring, managing, and holding
rental properties. These properties will include: (1) apartment buildings, (2) office buildings, (3)
mall strips, (4) mobile home parks, (5) hotels, (6) motels, and (7) self storages. There are major
tax advantages when incorporating it as LLC because if it was a C-corporation, it will be double
taxed. Another reason why it is better as LLC is because MOB will have many business partners
involved however they will be given different percentages of profits on each property deal. Asset
protection is also another reason why incorporating the business is a smart choice. A sole
proprietorship or partnership will have very little asset protection. MOB sells the service of
managing properties as well as profiting from acquiring income producing properties. MOB will
be selective in which properties it requires as it will make sure they are profitable. Due diligence
is key as MOB recognizes the best rental markets and pursue mismanaged properties and quickly
turn it around to gain high returns for its capital investment. Finding out which areas have
consistent job growth and population are the best places MOB will research and build key
relationships to fulfill its goals. Income will be produced through rent, referral partnerships,
laundry, parking space, storage, and anything other income that can be produced from the
tenants. Accounting plays an important role in MOB’s mission to acquire and manage properties.
The start up of the company involves figuring the needed capital to pay for certain projects and
its components. Accounting will make sure it utilizes tax advantages as well allocation of capital
to its highest use. The characteristics needed to be a member of MOB is a detailed style of work
and a driven one. MOB only hires people that play to win, as in there must people who will make
sure they get the job done despite obstacles. The accounting staff must be highly educated and
experienced in the real estate industry especially in acquiring and managing properties. Being
able to find creative ways to reduce expenses and increase income will be beneficial for the
company as it will increase its bottom line. This part of the business involves the staff being
fluent in budgeting, cash management, and internal controls. The first rule of business is to never
lose money on any deal. Every deal must be profitable and engage in high returns of capital that
will satisfy all investors involved. The staff will make sure funds will not be misused or anything
that constitutes as fraud or deception. Systems will be placed to make sure that doesn’t happen
such as record keeping and dividing tasks. Internal auditors will be hired to make sure everything
runs smoothly and everyone is honest in their dealings. Examples of internal controls of business
are: (1) password protected systems, (2) limited access to certain records for employees and
management, (3) segregation of duties, and (4) external auditing for verification. Financial
managers need to be on top of its workers and make sure business is growing. They must
constantly study trends and other business factors that can affect outcomes of the bottom line.
Financial managers will be first to lead the company into success as it predicts what things will
need to change. For example, if a financial manager believes an apartment building is more
profitable as a condominium, then a financial manager should suggest to its team that the most
highest and profitable use of the property are condominiums. Financial managers must also learn
how to sell to outside investors as it begins to expand outside of nearby markets and do business
nationally as well as internationally. MOB supports creativity and sharp minds which all
members of the company must possess. Anyone who does not fulfill their duties must be fired as
MOB is in a competitive business that requires all effort and intelligence. Order is significant to
the company because it relies on experience of the leadership.