The main problem what the company will be focusing on is to provide the service of taxation for simp filers such as domestic students, international student, and young working professionals. Many of these filers are struggling with the simplification of filing of the Taxes especially the way it is supposed to be prepared in plain language or those that are to be presented in multiple languages. Various students do not know how to maneuver around the structures of taxation, and our company will be an ideal tax outsourcing this service that will help customers deal with the difficulties that they are facing with the tasks of taxation (Planning, and Levies, 2018). Apart from these, we will help with tax condensation as we prepare to improve the firm and help the firms and help them with their profitability. The services will have numerous economic benefits especially those companies that are struggling with their legalities of taxation and accounting. They will benefit from the services directly as most of their time that they could use to focus on complexities of taxation will be used to do other things in the businesses (Melkonyan, Gottschalk, and VP 2017). With the continuous concern of accountability and tax remitting procedures by the government, there is massive desirable customer demand for services that will help them file their taxes without any problem and at the same time provide options for easier accounting. This will solve the problem that many organizations especially the small organizations and new firms are facing.
Tax preparation industry in Canada has grown as expected because of the stable conditions that have been created by the microeconomic situation in the country. For the simple filers such as domestic students, international student, and young working professionals, it can help them avoid the complications created by the whole process of having to file these taxes. The industry is not that big as there are professionals that mainly assists businesses and customers in terms of completing and reviewing the tax returns after filing them (Morrell, 2017). The industry also operates more on reviewing financial information as well as nominating deductions and claims that are needed by the Canadian revenue agency. All the files and reviews are usually sent to the same agency as stated by the guidelines. The process of filing tax requires an animal update. Research also shows that more than 54% of the businesses in Canada sort taxation filing and advice services from other professionals from the Industries (Benzell, Kotlikoff, and LaGarda, 2017). The structure of this industry has changed over time, and because of the increased demands on tax filing companies, the industry has grown in size tremendously from the year 2014. Growth has been witnessed at a rate of 1.7% from the year 2014 and has been increasing ever since (Auerbach, and Holtz-Eakin, 2016, December). Anticipated that the industry will improve with a growth of 3% anticipated by the year 2020. Several factors affect the growth of the market in this industry. One of them is the introduction of the online taxation system that has been prominent over the past five years. There have also been an increased number of broadband connections with internet capabilities that can allow consumers to use softwares such ass Intuit’s, TurboTax and the CRA’s NETFILE to file their taxes. The primary market trends are the introduction of online services as well as other services that are accessed remotely from the server. These services also provide a competitive market for TaxBuddy, making it difficult to dominate the market. The competitive environment will also prove to be difficult as the company will have to adjust to the content of on-demand through conducting surveys and getting involved in other challenging projects. The new entrants into the market include emerging leaders such as tax prep, Profile, UFile, TurboTax and Quicken. This company presents a massive challenge to the buddy.
The main Technologies in the market tax Analytics software such as APIs that has led to increased use of the software for the simple taxation. These technologies are perceived to be helpful by various organizations and government (RadcliffeC., Stein, and Wilkinson, 2018). Carl, and Fedor, 2016). Other technologies that will help this simple organization include the online services that will be used in processing third party requirements. Safeguarding the data from a commercial perspective has also increased the concern for taxation making it necessary for companies to use online services that are trusted.
Customers: TaxBuddy includes simple tax filers such as domestic students, international student, and young working professionals who are continuously struggling with restrictions of taxes. Such people do not understand the legal procedures of taxation. Other potential customers include the individuals who want to improve the profitability of their firms through the use of accurate Financial Reporting in their working profession(Liao, 2018). The process of buying the service will involve filling in the inventory form, and the details for the firm before our customer promotion can attend to the client. We will then examine the details and other relevant data and classify all the items appropriately before preparing and processing the tax returns.
Market size and trends:
The market size for taxation is still small but is currently growing massively. However, being that this only involves the individual students and working people, the size is likely to be even smaller than those covered by professional accountants. This shows that the market is continuously being appreciated by many companies being involved in remitting taxes(Zeng, 2016). The customer demands can be seen by the increase in the rate of employment leading to many people and companies having to file their taxes for all the employees. This makes it easier for the companies also to track the progress of their services and whether they can succeed in longer projects or not.
Market shares by Taxbussy suddenly divided into market segments are other companies that have a common characteristic of what is a marketing purpose. Each segment in the taxation industry is separate depending on the services that they are based in. There are those who deal with online file Returns while others deal with manual transactions and Financial Reporting. All these segments compete in the same industry (Wang, and Hii, 2019). The company has the potential to grow and obtain various market shares from the sales that will be made as many professionals file taxes. The sales will also be formed as a company obtains from loyal customers.
There are several differences between what is already in the market and what we will offer. The company will offer annual examinations that are done for free on balance sheets. The company will also prepare and process tax returns and interpretation of the people who may have failed to file their taxes and the fines that they are supposed to pay. The primary use of these applications is to allow people to process the Taxes as required by the government. The product will have benefits such as fast delivery and accurate information and processing of data. The main drawback to the products and service is the competition that it will have to face from other established companies in the market hat also process the taxes( Ismailanji, 2018) The state of development of this product is at its complete stage, and the software necessary are already at full function. The time that will be required to introduce the product entirely will be three months while still testing the product on the other companies. The main advantage over the competitors is that the company offers both online and offline services which most companies do not concentrate on. The opportunity for expansion comes in the lineup competition where the company will expand to meet the demands of technologies that are introduced in the market. Opportunities for expansion comes in the form of continuous improvement in the company and the continuous need for taxation by the government another private company.
In every business opportunity, they are competitors that are also working with the same product or those that deal with different products but on the same niche. However, the main competitors in these line of work especially those that are from Canada include cyber businesses that also offer these services. This does not include larger companies such as Contax, Taxnic, Taxprep, Profile, UFile, TurboTax and Quicken that are often hired by organizations reducing the number of professionals. All these companies have their strengths and weaknesses.
The strength of the competitors includes the establishments that they have access to customers who come to cyber cafes. This means that the companies have already established a strong client base making it almost impossible for the new companies to get in and take the clients away from them. At the same time, the companies have been established in a way that they are continuously getting deals from successful individuals and simple filers. The future competitive environment is based on the new entries into the market and those companies that are dealing with online taxation. This market also has barriers for entries for the new companies. However, the inability of companies to access the clients is a massive barrier to entry for many of them.
This company will have a management team which is made up of my fellow students who understand how to file taxes. The other two members of the management team will be the two outsiders who will be in charge of running the main operations of the business. There will also be managers under the operation individuals who are below the management. This is a mall business and therefore a team if their people can manage it. The service development stages do not have cycles like most of the services will be delivered when the customers have applied for them. Customer acquisition procedures involve the processes of giving notices and using social media before they are assisted in the services ( Ismailanji, 2018). The figure below shows the process of customer acquisition before they are assisted with the services.
( Ismailanji, 2018)
The funding for the project will come from the members of the organization and the borrowed capital.
Below is the financial projection of the company. The total amount needed for the business is 500 dollars
|Accounts Receivable||– 100||–||–|
|Other Initial Costs||– 100||–||–|
|(Less Accumulated Depreciation)||$ –||$ –||$ –|
|Total Assets||$450 –||$ –||$ –|
|LIABILITIES & EQUITY|
|Accounts Payable||– 100||–||–|
|Commercial Loan Balance||– 50||–||–|
|The line of Credit Balance||– 350||–||–|
Several risks are faced in this project. The first one is the developmental or technical risks that can cause massive files of individuals in case of a mistake in the filing. Competitive risk is also the companies that can get into the market to provide competition making the firm to make less profit. Apart from this, the other risk is the financial risk that the company faces as it can lose its money throughout Performing these strategies.
The main service strategy is the promotion of the company through the internet and other social media platforms. The form will be involved in conducting sales promotions including spreading of catalogs to the various students who need taxation services and filing.
Marketing philosophy will follow modern marketing techniques such as the use of social media and catalogs. The chains of distribution in the market will not imply in this case because there will be services instead of goods. The main go-to-market are the new companies that do not have a financial system that can be trusted.
The pricing policies will be cheaper as compared to the major competitors to allow us to get into the market quickly ( Ismailanji, 2018). The profit margin will depend on the costs as compared to the revenue that has been acquired. Competitive pricing strategy will be used to allow the company to get into the market by using aggressive reduction of prices. There will be no channels of distribution because most of these services are different from the products. The internal sales force structure includes sales to students and businesses. External self-employed companies that are also involved in the marketing of products. There will be no warranties apart from the social media campaigns that will be done by a company.
Technology will be critical to the success of our company as most of the services will be done online. Tax buddy will provide procedures for filing taxes to people. At the same time, there will be different implementation strategies in case new technology have been implemented. Several advantages that will be realized by technology in intellectual property right and trademark right. Infringement of licenses and the privacy concerns have to be a massive issue for the people who will be copying Taxbuddy will remain one of the biggest tax processing companies in Canada.
The main product improvements that will be done on the product will depend on how long it will be used and how it suits customers. In case there are improvements, it is designed and developed as time goes by at different stages. The main requirements for such cases are mainly capital (Wang, and Hii, 2019).
It is assumed that the company will make a profit and the financial performance will be held. Revenues will come from the clients who buy the services to improve the profit margin and cash flow. The current projections are also showing the possibility of having the astable Project with the requirements of future financial needs.
They are the case these initiatives by the company not working, and the company is running at a loss, it will be able to exit the market effectively. It will also participate in return investment as this is the most likely for strategy. The exit strategy will also depend on the success of the competitors. The substitute services that the company can get involved in include online services and remote accounting services.
Auerbach, A. J., & Holtz-Eakin, D. (2016, December). The role of border adjustments in international taxation. In American Action Forum, available at https://www. American action forum. Org/research/14344.
Benzell, S. G., Kotlikoff, L. J., & LaGarda, G. (2017). Simulating business cash flow taxation: An illustration based on the “Better Way” corporate tax reform (No. w23675). National Bureau of Economic Research.
Carl, J., & Fedor, D. (2016). Tracking global carbon revenues: A survey of carbon taxes versus cap-and-trade in the real world. Energy Policy, 96, 50-77.
Ismailanji, M. (2018). Tax Preparation Services in Canada. IBISWorld Industry Report 54121dCA
TaxBuddy. (2019). Powerpoint on Your simple tax, done in a simple way
Liao, T. S. (2018). Addressing Fairness Issues in the Carbon Tax Law: The Case of British Columbia, Canada. VNU Journal of Science: Legal Studies, 34(2).
Melkonyan, A., Gottschalk, D., & VP, V. K. (2017). Sustainability assessments and their implementation possibilities within the business models of companies. Sustainable Production and Consumption, 12, 1-15.
Morrell, J. (2017). How to Forecast: A Guide for Business: A Guide for Business. Routledge.
Radcliffe, V. S., Spence, C., Stein, M., & Wilkinson, B. (2018). Professional repositioning during times of institutional change: The case of tax practitioners and changing moral boundaries. Accounting, Organizations and Society, 66, 45-59.
TaxBuddy. (2019). Powerpoint on Your simple tax, done in a simple way.
Wang, S., & Hii, R. (2019). Influence of Immigration Policies on Supply of Ethnic Business Entrepreneurs in Canada.
Weisbach, D. A. (2017). A Guide to the GOP Tax Plan-The Way to a Better Way. Colum. J. Tax L., 8, 171.
Zeng, T. (2016). Corporate social responsibility, tax aggressiveness, and firm market value. Accounting Perspectives, 15(1), 7-30.