PRINBMF 1A - Unit 3 Activity-Portfolio - Business Regulations

Question

Total Points: 15

Materials: Online Curriculum
Message Board
Lesson Intro Pages

Supports: How To Videos, LiveLesson Recordings, Academic Help Room

Objectives: By the end of this activity you will be able to:
Identify the cost of starting a business in different states
Use a government website to gather information on specific elements needed to start a new business
Insert a table in a word processing program and add data to the table
Reflect on what you have learned and choose the state in which you would prefer to start a business
Part I: Business Regulations (10 Points)

Instructions from Lesson: For this assignment, you will think about what it will take to join the market economy for a business that will have a brick and mortar location. While the United States has fewer regulations than many countries, there are still rules and laws that govern businesses. For this activity, you will compare the regulations required to start a business in three different states.
Some types of business will have very little regulation, while others will require licenses, regular inspections, etc. Each state also has a slightly different process for registering a business, not to mention the tax rate that businesses will pay. You can find information about the cost of starting a business in each state on the Small Business Association website: www.sba.gov.
You should also consider costs such as rent. Choose a similar location in all three states; if you choose a large city in one make sure that you are comparing rent in a large city in the other state. To help you visualize a type of business, keep this in mind: A 1300-2000 square foot space could comfortably fit a small retail store, a personal services business like a hair salon or nail salon, a small fitness studio, a cozy cafe, a small office with a few employees, or a boutique clothing store, depending on the layout and specific needs of the business. You should also include the price of gas, which is a common business expense. Items to include in your table:
City and state of each
License or fees to start business
Sales tax rate
Minimum wage
Business rent (use 1300-2000 square feet for all 3 locations)
Cost of any necessary inspections, permits, special licenses, etc. (ex. building, health, environmental - just put 2)
Average cost of gasoline per gallon
Bonus!! (5 points)
Add this item to your table for all 3 cities:
Cost of electricity for a business (commercial) per Kilowatt hour (kWh)
How to find the information for your table >>
Because the SBA website is a bit hard to navigate, below are examples of how you can find information by state.
Examples: Using your favorite search engine - search for the keywords (located in quotes below)
Example #1: find the cost to obtain a business license in Dallas TX
- search for the keywords, “dallas cost for business license”
Example #2: find the cost for inspection permits in Los Angeles CA
- search for the keywords, “cost for inspection permits in los angeles”

[ See next page >>>> ]
Compile the information in a table similar to the example provided below. You do not need to include “items specific to business,” but can add electricity cost as the Bonus described above.

You will need to create your own table. HERE is a video describing the process in Microsoft Word - the process is very similar in Google Docs. You must create your table in a word processing program (ex. Word), not a spreadsheet program (ex. Excel).

IMPORTANT! Two of the three cities will be assigned to you. These are:
Dallas, TX
Los Angeles, CA
Your Choice

[See next page] >>
Part II - Reflection: Answer the 2 questions below in full and complete sentences. (5 Points)

Write a paragraph explaining which city you would choose to start your business in and why. How did regulation and other expenses help shape your decision?
Reference your data and make a comparison.

Your completed document should have:
The completed table with required information
The reflection paragraph at the bottom

As a reminder, you must upload the actual file (ex. .doc, .odt) to the Unit Dropbox. Do not submit picture files and do not submit PDFs because your table structure cannot be checked. Do not submit Google Doc share links. Use the File/Download command to save a file you can submit.

Answer 1

Here's a structured approach to help you complete your activity on business regulations and prepare your table and reflection in a word processing format.

Part I: Business Regulations Table

1. Select a Third City: Choose a third city for your comparison. For this example, let’s say you choose Chicago, IL.

2. Gather Information: Use the guidelines provided to find the necessary information for Dallas, Los Angeles, and Chicago. Below are fictional data entries for illustrative purposes. Please ensure you research and replace them with actual data for your assignment.

| Item | Dallas, TX | Los Angeles, CA | Chicago, IL | |---------------------------------------------|------------------------------------------|-----------------------------------------|-----------------------------------------| | City and State | Dallas, TX | Los Angeles, CA | Chicago, IL | | License or Fees to Start Business | $150 | $500 | $250 | | Sales Tax Rate | 8.25% | 10.25% | 10.25% | | Minimum Wage | $7.25/hr | $15/hr | $15/hr | | Business Rent (1300-2000 sq. ft.) | $2,500/month | $4,000/month | $3,000/month | | Cost of Inspections/Permits | $300 (Health) + $200 (Building) | $400 (Health) + $300 (Building) | $350 (Health) + $250 (Building) | | Average Cost of Gasoline per Gallon | $3.20 | $3.50 | $3.30 | | Cost of Electricity (kWh) | $0.12 | $0.20 | $0.15 |

Part II - Reflection

After you compile the data into a table, you will need to write a reflection paragraph. Here’s an example you can use as a template:

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Reflection Paragraph:

After analyzing the business regulations and costs associated with starting a business in Dallas, Los Angeles, and Chicago, I would choose to start my business in Dallas, TX. Despite Los Angeles having a larger potential clientele, the overall costs of starting and running a business in Dallas are significantly lower. The total cost of licenses and fees in Dallas is $150, compared to $500 in Los Angeles, and the average rent for a commercial space is $2,500, which is about $1,500 less than that in Los Angeles. Additionally, the sales tax rate in Dallas is more advantageous at 8.25% compared to 10.25% in Los Angeles and Chicago; this can provide a crucial edge in maintaining profitability. The lower expenses for electricity and minimum wage also contribute to a more favorable operating environment in Dallas. Therefore, the combination of lower initial costs and ongoing expenses, along with the regulatory environment, makes Dallas the ideal city for launching my business.

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Final Steps

1. Format Your Document: Make sure your table is neatly formatted, with clear headings and consistent data alignment.

2. Add Your Reflection Paragraph: Position the reflection paragraph below your table.

3. Save Your Document: Save your file in a format that meets the submission guidelines (e.g., .docx or .odt).

4. Upload the Document: Submit your completed document to the Unit Dropbox as instructed.

Note

Make sure to replace the sample data with the actual data you find through your research. Be diligent in ensuring that all figures are accurate and correspond to the sources utilized in your research.