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BUSINESS PLAN FOR A FINANCIAL SERVICES COMPANY 1

Business Plan for a Financial Services Company

Rosanna Corchado

A Capstone Research Project

Submitted in partial fulfillment

of the requirements for the degree

Master in Business Administration

School of Business and Leadership

Nyack College

March 6, 2012

Capstone Committee:

Dr. Gerard Becker, MBA Director

Professor Anthony Wilson, Advisor

Professor Edward Eskew


Table of Contents

List of Tables ............................................................................................................................ 5

List of Figures ........................................................................................................................... 6

Executive Summary .................................................................................................................. 7

Industry and Proposed Company .............................................................................................. 8

The Company and the Concept ............................................................................................... 10

Mission and Vision Statement ............................................................................................ 11

Services ................................................................................................................................... 12

Financial Education Program .................................................................................................. 13

College Seminars ................................................................................................................ 13

Workplace Seminars ........................................................................................................... 15

Personalized Consultations ................................................................................................. 17

Tax Preparation ....................................................................................................................... 19

Accounting/Bookkeeping Services ......................................................................................... 20

Market Analysis ...................................................................................................................... 21

Customers ............................................................................................................................... 23

Competition............................................................................................................................. 25

Barriers to Entry .................................................................................................................. 25

Competitive Advantage ...................................................................................................... 26

Exit Strategy............................................................................................................................ 28

Economics of the Business ..................................................................................................... 29

Pricing ..................................................................................................................................... 30

Gross Margin .......................................................................................................................... 33


Break-Even ............................................................................................................................. 34

Service Guarantee ................................................................................................................... 35

Marketing Plan: Advertising and Promotion .......................................................................... 36

Marketing Tax Preparation Services ................................................................................... 36

Marketing Financial Education Services ............................................................................ 37

Public Relations .................................................................................................................. 38

Social Media ....................................................................................................................... 39

Design and Development Plans .............................................................................................. 40

New Products/Services ........................................................................................................... 40

Growth Strategy ...................................................................................................................... 41

Operations Plan ....................................................................................................................... 42

Geographical Location ............................................................................................................ 43

Legal and Regulations Issues .................................................................................................. 44

Management Team.................................................................................................................. 45

Organization ............................................................................................................................ 46

Sustainability and Impact ........................................................................................................ 48

Overall Schedule ..................................................................................................................... 49

Critical Risks, Problems, and Assumptions ............................................................................ 50

The Financial Plan .................................................................................................................. 51

Proposed Funding Requirements ............................................................................................ 54

References ............................................................................................................................... 55

Appendix A ............................................................................................................................. 59

Appendix B ............................................................................................................................. 63

Appendix C.............................................................................................................................. 63


List of Tables

Table I: Start-Up costs ...........................................................................................................28

Table II: Average cost for the services offered ......................................................................30

Table III: Units expected to be prepared during the first three years of operations ..............30

Table IV: Gross Margin .........................................................................................................32

Table V: Expected Compensation .........................................................................................45

Table VI: Milestone Dates and Cost ......................................................................................46

Table VII: Pro-forma Income Statement ...............................................................................51

Table VIII: Pro-forma Cash Flow ..........................................................................................51

Table IX: Pro-forma Balance Sheet .......................................................................................53


List of Figures

Figure I: Revenue expected during the first three years of operations ..................................30

Figure II: Break-even analysis for Year.................................................................................33

Figure III: Organizational Chart ............................................................................................45

Figure IV: Milestones ............................................................................................................48


Executive Summary

Fine Start is a financial services company that will be located in Queens, New York.

The services the company will offer include tax preparation, accounting/bookkeeping,

financial seminars, and personalized financial consultations. The company will differentiate

itself from its competitors by offering services with the goal of increasing the client’s level of

financial literacy.

Fine Start understands there is no one-size-fits-all financial education program. The

services offered will be effective because it will address the concerns of the targeted group.

Individuals who take advantage of the services offered will increase their level of financial

literacy. Those who increase in knowledge will be able to make better financial decisions.

Fine Start was created to respond to the current financial problem. There is mounting

evidence that the increasingly complex financial system in the United States has become a

burden for most Americans (Anthes, 2004). Those with low levels of financial literacy are

more likely to have higher levels of debt (Lusardi, Mitchell, & Curto, 2010). The debt loads

are causing anxiety and have a harmful effect on major decisions. Financial illiteracy has a

negative effect on achieving long-term goals such as going to college, owning a home, and

financing for retirement. Financial illiteracy also leads to an increase in bankruptcies and

debt (Anthes, 2004).

The company was incorporated on February 1, 2011 and is planning to begin active

business operations in 2012. Currently, Fine Start is in the planning stage and has not

conducted any active business operations. The company expects that providing unique

services, along with consumer demand, will result in gaining an ample share of the financial

planning market.


Industry and Proposed Company

Fine Start provides financial services with the goal to increase the client’s financial

literacy. Currently, there is an alarming financial illiteracy crisis. Most households do not

have a basic understanding of economic concepts in order to make beneficial investment and

savings decisions.

Financial education helps individuals create budgets, savings plans, and make

strategic investment decisions (Greenspan, 2002). Personal financial education is defined as

a process to improve an individual’s understanding of financial products and concepts. The

process involves the acquisition of information, instruction, or advice. One becomes more

aware of financial risks and opportunities, makes more informed choices, knows where to go

for help, and takes other effective actions to improve their financial well-being (Organization

of Economic Cooperation and Development [OECD], 2005).

Fine Start will provide financial education through seminars and personalized

consultations. The company will also offer individual tax preparation and accounting

services for small businesses. The goal is to assist individuals in making financially informed

decisions. As a result of the services offered, individuals will be able to take control of their

circumstances and build a more stable future.

The Industry

Interest to better educate Americans about financial literacy has become a growing

concern. To increase awareness, April was declared “Financial Literacy Month.”

Governments and nonprofit organizations created financial education materials and various

state bills about financial literacy have been introduced (Anthes, 2004). The Federal Reserve

participated in a national campaign to promote the value of personal financial education and

the variety of resources available (Bernanke, 2006).


Within the financial planning market, there is a segment that focuses on improving

financial literacy. This provides financial service professionals the opportunity to reach out

to those in need of basic financial knowledge and skills (Anthes, 2004). Accountants have

become involved in addressing the financial literacy problem. Accountants help to ensure

companies are operating in the most effective manner, accurately keeping their records, and

paying their taxes properly and timely (U.S. Department of Labor, 2011). Accountants are

also in the best position to offer clients financial education services (Anthes, 2004).

Tax preparation services will be in demand as the tax code becomes more complex.

About 60% of individual tax filers pay for their tax return preparation. Over 65 million low-

income individuals are a part of the tax system. Many are required to file in order to claim

credits and receive a refund (I.R.S., 2011).

The market is highly fragmented and consists of tens of thousands of paid tax return

preparers. One of the most important components of filing income tax returns is electronic

filing. During the 2010 tax season, 72% of United States tax returns were filed electronically.

Electronic filing is the beneficial way because it includes acknowledgment of receipt of the

filing, better accuracy and faster tax refund processing (Jackson Hewitt Tax Service Inc,

2010).

Employment in the bookkeeping and accounting industry is projected to grow by ten

percent during the 2008-2018 decade. A growing economy will increase the amount of

financial transactions. In turn, it will require additional accounting services. (U.S.

Department of Labor, 2011). This industry is growing about as fast as the average for all

occupations. This occupation is one of the largest growth occupations in the economy (U.S.

Department of Labor, 2011).


The Company and the Concept

The opportunity to create Fine Start arose because of the need for financial education.

The financial well-being of individuals and families are fundamental to national financial

stability (Lindsey-Taliefero, Kelly, Brent, & Price, 2011). Most adults in America believe it

is important to have a good understanding of economics. Usually, the most complex decision

an individual has to make concerns a financial issue (Bayer, Bernheim, & Scholz, 2009).

However, research indicates most people do not have enough of an understanding of

economics to make beneficial financial decisions (National Council on Economic Education

[NCEE], 2005).

In 2000, only 21% of youth ages 16-22 reported that they took a personal finance

course at school (Anthes, 2004). Despite the availability of material, many schools do not

teach the subject because the teachers themselves do not understand the material. Research

by Jump$tart Coalition for Personal Financial Literacy further indicates that most high school

students do not have basic knowledge about personal finances (Lusardi & Mitchell, 2007).

On February 1, 2011, Fine Start was incorporated. The company was developed to

provide financial education to individuals in the Queens, NY, area through the services

offered. The services will be promoted to companies who want to improve their employees’

financial decision-making skills and to colleges who want to improve their students’ financial

literacy. The company will also be distinct because it will provide tax preparation services

for individuals and accounting services for small businesses while focusing on improving

financial literacy.


Mission and Vision Statement

The mission statement for Fine Start is to be regionally recognized as a leading firm

in the financial industry that will provide financial services to individuals located in Queens,

New York, with the intent to improve their financial literacy. The vision is that individuals

will develop personal financial management skills through education and assistance provided

by the firm.

The objective of Fine Start is to provide financial and accounting services that exceed

the customer’s needs. The firm recognizes the need for financial education. With the skills

learned, individuals will be able to better manage their finances and be in a better financial

situation.


Services

Fine Start provides financial and accounting services to individuals and businesses in

the Queens, New York, area. The firm will be distinct because it will focus on improving the

financial literacy of their clients. Through the services offered by the firm, people will

realize their financial goals and improve their financial literacy.


Financial Education Program

Fine Start will focus on obtaining a competitive advantage. Unlike other programs,

the content of the courses offered will relate to goal obtainment. Mandell and Klein (2007)

suggest that financial literacy programs begin with an analysis of goals. Many programs

neither set clear and obtainable goals nor explain the importance of basic financial literacy.

The program will explain how the services offered will add significant value to the client’s

life.

Movements to improve financial literacy have failed in the past because individuals

have been considered one homogeneous group of consumers. The courses will be on a

variety of topics to better address preferences, savings needs, and financial knowledge. In

addition to personalized consultations, the company will offer college and workplace

seminars. Through these services, the participant’s level of financial literacy will increase.

College Seminars

Offering financial literacy courses to college students is very important. Some

colleges may not believe it is their responsibility to offer financial education seminars for

their students. However, a college student’s debt may be a factor in retention (Norvilitis et

al., 2006). More students leave a college due to financial problems than to academic failure

(Breitbard, 2003).

College can be the first time young adults make financial decisions on their own.

Most young adults learn spending and savings habits from their parents at a young age. A

parent’s influence on their child’s financial behavior supported the new credit card

requirement that an older adult should be directly involved when a young adult gets a credit


card. However, if a student’s parent lacks financial knowledge, the student is more likely to

engage in risky credit behavior (Xiao et al., 2011).

Studies show that those who go into debt might not understand the implication of

their financial behavior. However, most are self-aware that they do not have enough

financial knowledge to make beneficial decisions (Norvilitis, Merwin, Osberg, Roehling,

Young, & Kamas, 2006). Debt can cause an individual to worry about it frequently, put off or

not wish to further their education, and may take a job they would not have taken otherwise

(Lusardi, Mitchell, & Curto, 2010).

One of the main issues college students face is the rising cost to finance a college

education (Xiao et al., 2011). Although a college graduate earns more than a high school

graduate over their lifetime, a college student can incur a large amount of student loan debt to

pay for college. A financially literate student understands their responsibilities, is well

educated and is able to make the best financial decision regarding how they will finance their

college education.

In addition to accruing debt to pay for college, many students also accrue additional

debt due to credit card usage. College students constantly receive credit card offers. The

concern is that credit card usage has increasingly become more common among college

students. In 2009, 84% of undergraduate students surveyed had at least one credit card.

Half of those students possessed four or more. As a result of this risky behavior, 82% of the

students carried an average credit card balance of $3,173 (Sallie Mae, 2009).

One survey was conducted to identify factors related to credit card debt among

college students. The findings from the survey revealed that students in debt have several risk

factors. The strongest predictor of credit card debt is financial knowledge (Norvilitis et al.,


2006). Another reason that college students get into debt is because they are optimistic about

future earnings. Students expect they will to earn more and will be able to pay their debt off

faster once they graduate (Norvilitis et al., 2006).

Studies show that students retain little of what they learn in a personal finance class

because they do not find it to be relevant to their lives. According to Mandell and Klein

(2007), a successful program must show the relationship between understanding basic

financial literacy and the ability for a student to reach and potentially exceed their level of

aspiration. A future-oriented student is more interested in understanding the effect of their

decision on their future. The key is to help the student understand how they will benefit in

the future if they set up a savings plan and lower their debt in the present.

The college seminars proposed will discuss topics specific to the financial issues

young adults face. Fine Start will provide information to help students make better financial

decisions and use credit wisely. This will include information about available options to pay

for college and the benefits of investing in a college education. Students will also learn to

make decisions that will be beneficial throughout their life.

Workplace Seminars

Companies in the area will be approached to consider offering financial education

seminars at their workplace. Many employers have shifted the responsibility for saving and

investing onto their employees. However, most employees are not equipped with basic tools

to make beneficial financial decisions (Lusardi et al., 2010). The workplace seminars offered

by Fine Start offer an opportunity for employers to obtain a competitive advantage. There

are many benefits of the program. The seminars are not only beneficial for the employees,

but it shows the employer cares about their workers.


Studies show that financial education increases employees’ productivity (Mandell &

Klein, 2007). Employees who are financially stressed are less satisfied, more likely to be

absent, and spend 26% more time at work sorting out their financial issues (Jenkins, 2005).

High levels of debt may prevent employees from taking advantage of employer-provided

pensions and tax-favored assets, contributing to a retirement account, and having a savings

account that they regularly put money into.

For an individual to have a comfortable retirement, they need much more that Social

Security. However, many individuals are not planning for retirement although employers

typically provide information for their employees (Bayer et al., 2009). Due to a lack of

planning, many people plan to work at least part-time in retirement (Moschis & Burkhalter,

2007). Economists determined the lack of retirement planning is related to financial

illiteracy (Lusardi & Mitchell, 2007). Many families do not consider it a priority

(Birkenmaier & Curley, 2009).

Employers who have hosted seminars in the past may have had mixed results. This is

because a one-time seminar will not have an affect on long-term planning (Lusardi &

Mitchell, 2008). Therefore, Fine Start has decided not to offer one-day only seminars.

Instead, the seminars will be an hour long, one day a week, for four weeks. The seminar

will be on a specific topic, in order to better suit the preference of those who attend.

This approach will be better than a seminar on multiple topics trying to engage various

preferences.

Fine Start will offer a variety of seminar topics in order to engage all participants.

The program will help individuals meet their current financial obligations. Once participants

believe they have a better handle on their present situation, they will be more interested in


planning for their future. Financial seminars have a positive effect on participants. After

receiving financial education, those with lower levels of financial knowledge have the

highest increases in levels of knowledge (Birkenmaier & Culey, 2009). Most feel they were

in better control and more confident in managing their money to achieve financial security

(Jenkins, 2005).

Personalized Consultations

Although seminars inform participants about financial management, those who attend

a one-time only seminar will not see much improvement in their financial literacy. A one-

size-fits-all program is not able to address the needs of everyone (Lusardi & Mitchell, 2008).

Each consumer has different needs. By offering personalized consultations, Fine Start will

be able to attract clients who want a customized plan to address their needs.

Personalized consultations will include developing a plan on how to handle their debt.

People will also learn basic skills about how to handle money, create a savings plan and how

to budget income and expenses. With the skills learned, individuals will be able to better

manage their finances and be in a better financial situation. Those who are financially

literate are able to manage personal finances and make beneficial financial decisions

(Redmon, 2010).

Fine Start realizes that clients from low-to-moderate income families struggle

financially on a daily basis. These clients will have more difficulty meeting financial goals

than those who are more financially secure (Lyons, Palmer, Jayaratne, & Scherpf, 2006).

Personalized consultations will better address the constraints the individual faces. The goal is

for the client to work at continuously improving their situation.


Fine Start expects the personalized consultations to be successful. Many employers

do not offer financial education programs (Lusardi & Mitchell, 2008). Instead individuals

are held responsible to learn about finances on their own. The services offered by Fine Start

will increase the individual’s financial literacy. Previous research shows that those with

higher levels of financial literacy are more likely to become successful planners (Redmon,

2010).


Tax Preparation

As the economy becomes more complex, the need for tax preparers increases.

The firm will be open year round, allowing it to be fully available to clients. By offering

personal tax preparation services, the firm will introduce the customers to the personalized

consultation services the firm provides. The ability to split a tax refund has also created an

opportunity for the firm to assist consumers in financial planning. Splitting the refund was

created to encourage low-income filers to put some of their refund into savings.

The software that will be used to prepare tax returns is Drake Software. The product

will cost $1,495 for an unlimited amount of tax returns. Drake software had impressive

reviews in a recent tax software survey. Ninety-four percent of Drake users plan to stay with

the software. Nearly half of the respondents surveyed considered the price the most

attractive point. Drake also scored highly in speed and accuracy. The software is easy to use

to run updates, installations, and file returns electronically (Bonner, 2011).


Accounting/Bookkeeping Services

The company will also provide a full-range of accounting and bookkeeping services

to small and mid-size businesses. The services are available for both businesses that are just

launching and those that are already established. Clients’ situations will be analyzed in order

to devise a plan that best meets their needs. The services offered will be attractive to these

businesses because it costs less to outsource the services than to hire in-house staff to

perform the functions. The firm will also be able to personally address any concerns the

customer may have while offering expertise accounting services.

The goal is to grow with the business. As the business grows, the business will

require additional accounting services. The services offered include accounts payable

management, accounts receivable management, bank reconciliations, inventory management,

and payroll. The firm will assist the business in managing their budget and increasing their

profit. The clients will also be eligible to receive discounts on financial seminars for their

employees.


Market Analysis

Fine Start used a combination of primary and secondary data to research the market.

The primary data consisted of a questionnaire. The secondary data included industry profiles,

annual reports and market trends of similar companies. The opportunity to develop a

company focused on improving financial literacy was recognized after conducting a study of

a potential market at a college located in New York.

The questionnaire (refer to Appendix A) was administered in the cafeteria of the main

campus on April 15, 2011. College students were selected because they represent a unique

group to survey. Most respondents were young with little income. College students often

carry large amounts of student loans or credit card debt (Lusardi et al., 2010). However, they

are future-oriented and expect to increase their income after graduating (Norvilitis et al.,

2006).

The questionnaire consisted of three parts and a total of nineteen questions. The first

part of the survey collected the demographic information of the respondents. The second

part gathered information regarding the opinions and attitudes of the respondents towards

financial literacy. The third part of the questionnaire consisted of four multiple-choice

questions to determine the financial knowledge of the respondents. The responses to the data

collected can be found in Appendix B.

The relationship between the demographic information and their opinion and attitudes

toward financial literacy was analyzed using chi-square. Significant relationships (p<0.05)

were found for two variables. The first was for the respondent’s gender and their ability to

pay their bills. The second was for the respondent’s major and their management of their

finances.


The results of the chi-square are consistent with previous research. Studies show

females were generally less confident about their financial situation (Loibl & Hira, 2006). At

the collegiate level, Ford and Kent (2010) found that females have lower levels of financial

market knowledge than males. Females were more intimated, less interested, and less aware

of financial markets (Ford & Kent, 2010).

The lack of financial knowledge also has an affect on women later on in their life.

According to research conducted by Lusardi and Mitchell (2008), older American women do

not have a retirement plan and have low levels of financial literacy. This is of concern

because women have a larger burden of raising families, live longer, and earn less during

their careers than men.

The results also agreed with the researcher’s hypothesis that those who receive

financial education (business majors) are more knowledgeable than those who do not receive

financial education (non-business majors). Business majors at the college who were

administered the questionnaire, receive financial education because the students must take

accounting, economic, and finance courses.

The third part of the survey was graded to determine the scores the respondents

received. A score of 75% is considered passing. Only 20% of respondents scored at least a

75% on the multiple-choice questions. The results indicate that most respondents are not

financially knowledgeable. The results agree with previous research that showed Americans

do not have adequate knowledge of personal finances (Volpe, Chen, & Liu, 2006). The lack

of financial knowledge often results in poor financial decision-making (Mandell & Klein,

2007).


Customers

The financial education seminars offered by Fine Start will be promoted to local

colleges and businesses. The colleges selected will be those located in the five boroughs of

New York and Nassau County. Both public and private colleges will be encouraged to

consider offering the seminars. Nearby companies will also be encouraged to offer financial

education courses for their employees. The companies that will be approached will have

greater than 50 full-time employees.

The age range of customers targeted for personalized consultations will be from 25 to

40. The service will appeal to those who are supporting a family because they are most

likely to be in need of developing their financial management skills and believe it is valuable

information. This age group also has responsibilities not held by previous generations.

Many are expected to care for both their children and their parents (Moschis & Burkhalter,

2007). This may require paying for college education and in-home care or nursing home

living.

The income level targeted for personalized consultations will be less than $100,000 in

annual household wages. Fine Start has selected an income demographic that is usually not

targeted. There are few fee-based financial planning services available for low-to-middle-

income families.

For the accounting services, the potential customers will be a business with less than

20 employees. The ideal company will be a start-up. The goal is for Fine Start to grow with

the business. Fine Start will be able to provide additional services as the company needs it.

The target market for the tax preparation services are low-to-middle-income

individuals. This group does not have complex tax situations. However, they may not feel


knowledgeable or comfortable enough to prepare their own tax return. This demographic

also wants to receive their tax refund quickly.


Competition

Self-preparation tax software is the greatest competitor. This is due to an increase in

the availability and ease of free and at-home software products. Intuit Inc., the creator of

TurboTax, is a leading provider of tax preparation and filing. The TurboTax products and

services are designed to enable individuals and small business owners to prepare and file

their own federal and state personal and small business income tax returns (Intuit Inc, 2010).

The other competitors include other tax preparation companies, both corporately and

independently operated. H&R Block and Jackson Hewitt, for example, have national brand

recognition. H&R Block prepared 21.4 million tax returns in the U.S. during fiscal year

2011. This comprised of 16.4% of the Internal Revenue Service’s estimate of total individual

income tax returns filed during the fiscal year 2011 tax season (H&R Block Inc, 2011).

Jackson Hewitt is the second largest paid individual tax return preparer in the United

States based upon the number of individual tax returns prepared and filed with the IRS.

In 2010, Jackson Hewitt prepared approximately 3% of all tax returns prepared by a paid tax

return preparer (Jackson Hewitt Tax Service Inc, 2010).

The company will also have to compete with private businesses, nonprofit

organizations, and government agencies that offer financial education materials and tax

preparation. The Free File Alliance, a consortium of the IRS, and volunteer organizations

prepare tax returns at no cost for low-income taxpayers.

Barriers to Entry

Fine Start will face intense competition. Competition has increased over the past few

years and it is expected that this trend to continue. Some of the existing competitors have

more financial, technical and marketing resources than Fine Start. Many competitors are


offering free or low-priced entry-level products to attract customers. In addition, the

competitive landscape can shift rapidly as new companies enter the market. This is

particularly true for personalized financial consultation services where the barriers to entry

are low.

New regulations have made it harder for individuals to enter the tax preparation

industry. I.R.C. Code Section 6109 requires all compensated tax return preparers and those

who assist in preparing all or substantially all of a tax return after December 31, 2010 to pass

a tax preparer examination. Preparers also have to apply for a Personal Tax Identification

number (PTIN) and then register the PTIN with the IRS. The PTIN is to be used as the sole

identification number for any tax returns prepared by a tax return preparer (Jackson Hewitt

Tax Service Inc, 2010).

Preparers have to undergo a limited background check and receive a minimum of

15-hours of continuing professional education each year including ethics and current year tax

law update beginning in 2011. Attorneys, certified public accountants and enrolled agents

who are active and in good standing with their respective licensing agencies are exempt from

the competency test and CPE requirements. All tax return preparers will be required to renew

the registration of their PTIN every three years, be subject to a renewal fee, a tax compliance

check and must self-certify that they have completed the CPE requirements for the prior three

years (Jackson Hewitt Tax Service Inc, 2010).

Competitive Advantage

Fine Start will be forced to adjust and expand service offerings in order to remain

competitive in the tax preparation industry. There are people who are not comfortable self-

preparing their tax return who would rather have a tax professional handle the return.


Fine Start will be able to differentiate from other tax preparers because a CPA will prepare

tax returns. Recent regulations require paid preparers to register with the IRS, pass a

competency exam and meet continuing education requirements. CPAs are exempt from the

exam and the continuing education requirements (DeFelice, 2011). The knowledge,

experience and experience required to become a CPA gives Fine Start an advantage when

compared to local tax preparers.

The competitors that provide financial education mostly focus on adults and target

specific financial topics. For example, there are non-profit organizations that provide

financial education services when someone is about to purchase a house. The programs are

established to reduce the risk of default or delinquency (Bernanke, 2006). Many workplaces

offer education material or seminars on retirement planning (Hira & Loibl, 2005). While

these are important topics, Fine Start will focus on a variety of topics on financial education

in order to capture a greater audience.


Exit Strategy

As Fine Start grows, the company will open additional locations. If the business is

very successful, instead of selling the business, Fine Start will consider becoming a franchise.

The owner’s role will then be to train and support the franchises.

Fine Start expects the business to be successful. However, if the company is unable to

create ample public interest, the business may fail and Fine Start may have to cease

operations. In the event the company is not successful and has surpassed the level of

acceptable losses, necessary measures will be implemented to exit the business with minimal

damage to the owner and investors. All equipment will be sold to cover any outstanding

debts. If there are remaining debts, it will be paid by the owner in monthly installments until

it is paid in full.


Economics of the Business

Fine Start is dedicated to make the company successful and profitable. The income

will come from four primary sources: tax preparation, bookkeeping services, financial

education seminars and personalized consultations. Fine Start expects to incur start-up costs

of $15,700. Table I shows the break down of the costs.

Table I: Start-Up Costs

Description Amount (in dollars)

Professional fees:

Legal fees 400

Technology costs:

Computer hardware 2,800

Computer software 2,000

Printers 300

Website development 300

Administrative costs:

Office supplies 300

Rent 2,000

Utilities 200

Furniture 1,000

Sales and marketing costs:

Marketing materials 1,500

Newspaper advertising 2,000

Public relations 400

Travel 200

Mailing lists 300

Wages and benefits:

Employee training 2,000

Total 15,700


Pricing

Fine Start researched the fees commonly charged to determine the pricing structure

for the services provided. The National Society of Accountants (2011) conducted a biennial

survey of approximately 8,000 tax preparers. The survey showed the average tax preparation

fee for an itemized Form 1040 with Schedule A and a state tax return was $233 for the 2011

tax season. A non-itemized Form 1040 and a state tax return was $128.

A typical practice had an annual gross income of $250,082 and a net income of

$85,247 in 2010. The typical practice derives 60% of gross income from the preparation of

federal and state tax returns. Forty-one percent of total expenses represent salaries and

benefits other than retirement. Ten percent represents expenses for technology needs, such

as hardware, software, licensing fees, and the Internet.

According to King (2012), the average hourly fee was $201 in 2011. The financial

planners on average provided services to 90 clients. Planners typically spend one to three

hours on the initial discovery meeting. Three to fourteen hours are then spent developing the

financial plan.

Many competitors are offering free or low-priced entry-level products to attract

customers. This was taken into account when designing the fee structure. Fine Start will

have a pricing structure that is less than the average fee charged. This approach will attract

the price sensitive customer. The cost of the tax return preparation varies depending on the

requirements. Table II shows the average cost for each service.

The company will not offer Refund Anticipation Loans, unlike other tax preparation

companies. This is a loan made by a third party financial institution to a customer and

secured by a customer’s anticipated federal tax refund. The loan amount consists of fees and


charges, including tax return preparation fees. Customers are attracted to this loan because it

is generally disbursed into their account approximately one day from the time the tax return

is electronically filed with the IRS (Jackson Hewitt Tax Service Inc, 2010). Fine Start will

not offer this loan because of the high percentage of fees that are taken out from the return.

Instead, the tax preparation services will have to be paid before the tax return is filed.

Customers will be encouraged to have their tax refund directly deposited into their account.

Table II: Average cost for the services offered

Type of Service Average Cost Tax Preparation – cost per return $150 Accounting/Bookkeeping – per hour $60 Financial Education Seminars/ 4-sessions,1-hour each $2,500 Personalized Consultation $30

Fine Start expects that the tax preparation and accounting/bookkeeping services will

generate a substantial amount of the total revenue expected in the first year of operations.

The company understands that the financial education services may not generate much

revenue in the beginning. However, the company expects that interest in the financial

education services will grow in the following years of operation. Table III shows the

expected number of services to be preformed in the first three years of business.

Figure I ( on next page) shows the amount of revenue expected from each service.

Table III: Units expected to be prepared during the first three years of operations

Units Year 1 Year 2 Year 3 Tax Preparation 300 400 500 Accounting/Bookkeeping 1,000 1,250 1,500 Financial Education Seminars 4 12 30 Personalized Consultation 1,000 1,200 1,500


Figure I: Revenue expected during the first three years of operations


Gross Margin

The gross margin for the first year of services is 57%. The calculation for the gross

margin over the first three years of operations can be found in Table IV. The direct costs

include stationary, printing, travel, marketing brochures and salaries.

Table IV: Gross Margin

Revenue Year 1 Year 2 Year 3

Tax Preparation $45,000 $60,000 $75,000

Accounting/Bookkeeping $60,000 $75,000 $90,000

Financial Education Seminars $10,000 $30,000 $75,000

Personalized Consultation $30,000 $36,000 $45,000

Total Revenue $145,000 $201,000 $285,000

Direct Costs $62,340 $71,060 $82,580

Gross Margin $82,660 $129,940 $202,420

Gross Margin % 57% 65% 71%


Break-Even

The break-even analysis can be found in Figure II. The monthly revenue break-even

is $5,815.79. This is assuming the average percent variable cost is 43% and the estimated

monthly fixed cost is $3,314.67. The monthly fixed cost includes payroll taxes, rent, utilities,

insurance, and marketing expenses.

Figure II: Break-even analysis for Year 1


Service Guarantee

Fine Start wants to build a reputation for outstanding customer service and attention

to customer satisfaction. However, because of the type of services offered, the measure of

success will not be the same for all programs or clients (Lyons et al., 2006). Outcomes and

indicators will vary depending on the individual’s financial situation. As a result, Fine Start

will not be able to guarantee a refund for fees charged if a client is not satisfied.

There will be a service guarantee for tax preparations. It will be similar to that of

Fine Start’s competitors. If the client did not receive the maximum refund they were entitled

to, the client will receive a refund on the preparation fees. Fine Start will be responsible for

the resulting penalties and interest if there is an error made on the return. In order to

guarantee the tax preparation, Fine Start will ask questions to accurately determine the

client’s tax liability and identify the deductions and credits the client is eligible for. Fine

Start recognizes that in order to remain competitive, the company will need to provide the

same guarantee as their competitors.


Marketing Plan

Fine Start realizes that the marketing plan is essential for the company to gain

business and remain successful. The marketing approach involves maintaining and

expanding the customer base in the target market. The marketing plan will focus on the

company’s commitment to improving financial literacy.

Advertising and Promotion

The goal is to build a sustainable company that will continue to increase the number

of clients served. Therefore, the company will work to attract new customers and maintain

current customers. Two main marketing strategies have been developed. The first is to

promote the tax preparation services. The second is to emphasize the financial education

programs the firm offers.

The company plans to open for business in November 2012. The promotional

strategies will focus on notifying people in the area that we will be opening. The approach

will create awareness and establish Fine Start as a trusted financial adviser in the community.

A website will be created to attract potential customers. Web marketing will include

purchasing key words from well-known search engine companies.

Marketing Tax Preparation Services

Since the opening date is near the beginning of tax season, marketing the tax

preparation services will be the primary objective. Fine Start wants to use effective marketing

strategies while keeping costs low. This will require the company to utilize creative

marketing approaches. Fine Start will buy ad space in a local newspaper in exchange for a

feature story on the business. Fine Start will also request to have a monthly column in the


newspaper. At the end of January, a coupon will also print with the advertisement in the

local newspaper. Promotional deals will be offered to increase word-of-mouth advertising.

Fine Start’s marketing strategy includes setting up partnerships with bookkeeping

clients. Personal income taxes will be prepared for the client’s employees at a discount.

This will help the company reach new customers. Fine Start will also obtain a mailing list of

the targeted customers in the area. Advertisements will be mailed to potential customers.

The company will also create a monthly newsletter that will be sent electronically. Each

issue will be primarily focused on a specific topic.

The company will also use the marketing toolkit the AICPA is offering free to its

members. This initiative provides tools to help members promote the value of CPA

providers of tax services and to distinguish them from their competitors. The kit includes

print ads, a radio spot, PowerPoint, brochures, and suggestions to use to pitch stories

presentations (DeFelice, 2011).

Marketing Financial Education Services

The company will approach potential colleges and businesses in the area. To promote

the college seminars, the marketing approach will focus on the benefits to the college. A

financially literate student is more likely to make better financial decisions. As a result, it

may reduce a college's loan default rate and increase a college’s retention rate.

An employer will not be willing to pay for a seminar if they do not understand the

value and importance of financial literacy. It is important for Fine Start to promote the

benefits of workplace seminars. According to Jenkins (2005), an analogy can be found in the

old proverb: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed

him for a lifetime.” This approach will be taken to encourage employers to provide financial


education seminars for their employees. These seminars will present helpful tools and

educate workers. The marketing approach will focus on the benefits of financially

knowledgeable employees. Financial education seminars improve retention, recruitment and

motivation of employees (Jenkins, 2005). One study found that employees who participated

in workplace financial education are more likely to be satisfied with and supportive of their

workplace (Hira & Loibl, 2005).

Public Relations

Obtaining a press release prior to the grand opening is of great importance for the

company. It will be helpful in gaining the attention of potential customers. Press releases

will be distributed to the local media focusing on the firm’s interest in increasing financial

literacy. If a local media offers to release the story, it will establish enough creditability to

approach a larger media outlet. The importance of increasing financial literacy is sure to gain

media interest. The goal is to get a featured story of Fine Start in the local papers and radio

stations. This will help the company gain recognition in the community.

Fine Start will generate new clients through workplace seminars and free seminars in

the office. The objective is to trigger a need for the services offered by the company.

Additionally, the free seminars will be a great way for the company to give back to the

community. These seminars will be promoted at networking events. The seminar will give

the company the opportunity to introduce individuals, who may not have previously

considered personalized consultations, to the services offered. At the completion of the

seminar, the presenter will offer attendants a special discount on personalized consultations.


Social Media

Retaining clients is critical in the tax preparation industry. Follow-up by

advertisements will be sent out to encourage clients to consider the other services offered by

the firm. Social media will also be used to stay in contact and keep the clients up to date with

what is happening with Fine Start. Making the clients awareness and directing traffic to our

Twitter, Facebook, and LinkedIn pages will encourages people remain engaged and

interested in the company. Providing multiple channels allows the client to choose the

channel they are most comfortable with and increases the likelihood that the customer will

remain in contact. Social media will also be used as a tool to generate discussion about

financial literacy. It will allow Fine Start to start conversations and raise awareness.


Design and Development Plans

In addition to the initial services offered, new products and services are being

developed. In order to remain competitive in the tax preparation industry, Fine Start will need

to continually adjust and expand service offerings.

New Products/Services

Fine Start is working on several new products to be launched after the company has

opened for business. One such product is a mobile phone application. It will include a

budgeting calculator for clients to use. It will also have information about improving

financial literacy.

Fine Start will also develop an income tax preparation course. The courses will be

offered to the public. Participants will lean how to prepare income taxes. There will be

different levels of learning, varying from a basic understanding to an advanced course. It

will help to create public awareness of the company. It can also give Fine Start the

opportunity to hire trained tax professionals.


Growth Strategy

As relationships are built with local and national retailers, Fine Start will look into

further expansions. After three years, the company expects to expand and open a second

location. The second location will be in the New York City area. The ideal location would

be with a retail-partner. A retail-partner location would be within another business, such as a

retail store or shopping mall. The partnership would be with a retailer with similar customer

and employee demographics as Fine Start’s target market. The partnership with the retailer

will allow Fine Start to set up a stand within the retail-partner’s location during the tax

season. This would be beneficial because it will only require Fine Start to pay rent during the

tax season and not have to commit to renting out a location for the entire year.


Operations Plan

Due to the seasonality of the tax preparation industry, expected revenue will vary

throughout the year. Therefore the tax preparation services will be the main concern during

December through April. From May through November the concentration will be on hosting

financial education seminars.


Geographical Location

Fine Start will be located in the northwestern part of Queens, New York. The ideal

location will be near a busy subway station and bus stop. It is also ideal for the location to

have high-visibility. Preliminary negotiations suggest the rent for such a location will be

$2,000 per month for a three-year lease for approximately 1,300 square feet.

This section of Queens was chosen because of its proximity to local colleges and

small businesses. There is also a large shopping mall and two shopping centers nearby. The

location was also chosen because the demographics of the area are similar to the target

market. According to the U.S. Census Bureau (2011), the population of Queens, New York,

was 2,230,722 in 2010. The median household income in 2009 was $54,671. A total of

236,900 firms were established in 2007.


Legal and Regulations Issues

Neither the company nor management is subject to any existing or threatened legal

issues. Nor are there any pending regulatory changes that are expected to have an affect on

the company. However, there are new regulations which have been enacted that are relevant

to Fine Start.

Regulations in the tax preparation industry have changed in recent times. As of

January 1, 2011, a tax return preparer must be a CPA, attorney, enrolled agent, or a registered

tax return preparer in order to receive a preparer tax identification number (PTIN). A PTIN

is required for a preparer who is compensated to prepare all or substantially all of a tax return

(Rosenberg, 2011). Fine Start will be at an advantage because a CPA will prepare the tax

returns. A CPA is not required to take the competency exam to receive a PTIN.

The credit card accountability, responsibility, and disclosure (CARD) act of 2009 has

helped to encourage financial education. There are several provisions within the act to

protect younger credit card consumers. For example, a person under the age of 21, who

wishes to apply for a credit card, will need to have an adult co-sign or show proof they are

able to repay the debt. Also, people under the age of 21, will not receive pre-screened credit

card offers unless they opt-in.


Management Team

Fine Start will be formed as a sole proprietorship owned and operated by Rosanna

Corchado. She has a Bachelors of Science in Accounting and is working on her Masters in

Business Administration with a Concentration in Accounting. She is currently working on

obtaining her CPA.

Rosanna was a supervisor at a large tax preparation company. She successfully ran a

new location, actively promoting the business and training new employees. Rosanna has also

worked at a college as a financial aid counselor. She educated students and their families

regarding financial aid and provided them with financial advice. With her previous

experience, Rosanna will be able to successfully lead Fine Start.


Organization

Fine Start intends to hire a financial planner and two tax interns. The Organizational

Chart which can be found in Figure III, illustrates the structure of the company. The financial

planner and tax interns will report to the owner. Table V shows the expected compensation

that will be paid for each position for the next three years. The compensation is comparable

to others of the same position in the area.

Figure III: Organizational Chart

Table V: Expected Compensation

Employee Year 1 Year 2 Year 3 President $0 $0 $0 Tax Intern # 1 $8,320 $8,840 $9,360 Tax Intern #2 $8,320 $8,840 $9,360 Financial Planner $31,200 $33,280 $35,360 Total $47,840 $50,960 $54,080

The owner’s responsibility is to prepare individual tax returns and provide accounting

services for the small business clients. The owner will also network with others in order to

promote the company. The responsibilities also include managing the budget, hiring and

payroll.


Tax interns will be individuals recruited from nearby colleges. The interns are to be

working on a Bachelor degree in accounting. The two interns will work part-time throughout

the year. The interns will have basic tax knowledge and will receive basic tax training.

The financial planner will be a full-time employee. The responsibilities include

providing personalized consultations and giving financial education seminars. The financial

planner should be able to provide satisfactory assistance and gather relevant information

from clients.

If needed, a receptionist will be hired part-time. The responsibilities include

managing the schedule, answering phone calls, and greeting clients as they enter the office.

It is not necessary to fill this position right away because it does not require a lot of training.


Sustainability and Impact

The company is interested in building a sustainable, socially responsible venture.

The main goal of Fine Start is to improve the financial literacy of the community

The company is also interested in going green and making environmentally healthy

choices. In response to this, the company has developed an online account for each client

that has their tax return prepared at Fine Start. The account will save the client’s tax return in

an online document. The client will be able to access their tax return at any time. An

electronic record will drastically reduce the amount of paper used.


Overall Schedule

Keeping the schedule and meeting deadlines is important, especially with the

seasonality of tax preparation. The new company cannot afford to miss out on potential

opportunities. Therefore, milestones have been established to keep the priorities in place.

Some of the key milestones are shown in Figure IV. Table VI shows the start and end dates

along with the expected cost for each milestone.

Milestone Description October 2012 November 2012 December 2012

Obtain Bank Loan

Develop Website

Interview potential employees

Train new employees

Advertise Coupon in Newspaper

Figure IV: Milestones

Table VI: Milestone Dates and Cost

Milestone Description Start Date End Date Cost

Obtain Bank Loan 10/1/12 10/31/12 $0

Develop Website 11/1/12 11/15/12 $300

Interview potential employees 11/15/12 11/30/12 $0

Train new employees 12/1/12 12/15/12 $2,000

Advertise Coupon in Newspaper 12/15/12 12/31/12 $200


Critical Risks, Problems, and Assumptions

In addition to competition from other companies, there are other factors that could

present a risk for Fine Start. The success of Fine Start will depend on the ability of the

company to create ample public interest. Due to the seasonality of tax preparation, Fine Start

will be at risk if the expected revenue from tax preparation is not earned. Most of the

revenue will be earned at the beginning of operations. Tax preparation services may not be

in demand if governments simplify tax return preparation. People reach out to tax return

preparers because of the level of complexity involved in preparing a tax return.

Businesses may be negatively affected by difficult economic conditions, especially if

unemployment levels remain high. As a result, it may negatively impact the company’s

ability to increase tax preparation clients. Higher unemployment levels may result in clients

no longer being required or electing not to file tax returns. Clients may also seek lower cost

preparation and filing alternatives. Furthermore, clients will not be interested in financial

education services if they are not currently working.


The Financial Plan

Fine Start expects business to continue to grow. Due to the seasonality of the tax

preparation industry, Fine Start realizes that the bulk of revenue from tax preparation will be

during the tax season, which is January through April. It is expected that the seasonality will

most likely continue in the future.

The two main filing behaviors within the tax preparation industry consist of those

who file during the early season, between January and February, and those who file during

the late season, between March and April. Those who file during the early season typically

file their tax returns shortly after their Form W-2s become available in order to receive their

tax refunds as quickly as possible. According to Jackson Hewitt Tax Service Inc (2010),

most of the early season tax returns have been filed by the end of February. A late season

filer tends to have higher income and a more complex tax return preparation needs.

Fine Start prepared pro-forma financial statements. The 3-year income statement is

shown in Table VII. Appendix C shows the monthly income statement for the first year of

operations. Table VIII shows the pro-forma cash flow statement and Table IX shows the

balance sheet.

The company expects to be profitable in the first year of operations. The owner is

aware that it may take up to three years to start turning a profit and that the business could

operate at a loss during that time. Adjustments may need to be made in order to keep the

business running with a positive cash flow. The business will be constantly monitored.


Table VII: Pro-forma Income Statement

Year 1 Year 2 Year 3 Revenue Tax Preparation 45,000 60,000 75,000 Accounting/Bookkeeping 60,000 75,000 90,000 Financial Education Seminars 10,000 30,000 75,000 Personalized Consultation 30,000 36,000 45,000 Total Revenue 145,000 201,000 285,000 Direct Costs 62,340 71,060 82,580 Gross Margin 82,660 129,940 202,420 Expenses Payroll Taxes 7,176 7,644 8,112 Rent 24,000 24,000 24,000 Utilities 2,400 2,400 2,400 Insurance 4,200 4,200 4,200 Marketing 2,000 2,000 2,000 Start-Up Expenses 15,700 0 0 Total Expenses 55,476 40,244 40,712 Profit Before Taxes 27,184 89,696 161,708 Taxes 8,155 26,909 48,512 Net Profit 19,029 62,787 113,196

Table VIII: Pro-forma Cash Flow

Year 1 Year 2 Year 3 Cash Receipts Tax Preparation 45,000 60,000 75,000 Accounting/Bookkeeping 60,000 75,000 90,000 Financial Education Seminars 10,000 30,000 75,000 Personalized Consultation 30,000 36,000 45,000 Total Cash Receipts 145,000 201,000 285,000 Cash Payments Direct Costs 62,340 71,060 82,580 Total Expenses 55,476 40,244 40,712 Total Cash Payments 117,816 111,304 123,292 Net Cash Flow 27,184 89,696 161,708 Cash Balance 27,184 116,880 278,588


Table IX: Pro-forma Balance Sheet

Year 1 Year 2 Year 3 Assets Current Assets Cash 27,184 116,880 278,588 Accounts Receivable 350 390 430 Total Current Assets 27,534 117,270 279,018

Fixed Assets Equipment 600 700 800 Furniture & fixtures 200 280 350 Total Net Fixed Assets 800 980 1,150 Total Assets 28,334 118,250 280,168 Liabilities Accounts payable 2,000 3,000 3,500 Total Long-term Liabilities 2,000 3,000 3,500

Shareholders' Equity Retained earnings 26,334 115,250 276,668 Total Shareholders' Equity 26,334 115,250 276,668 Total Liabilities & Equity 28,334 118,250 280,168


Proposed Funding Requirements

Fine Start is a developing business. There are no immediate sources of revenue.

The company is seeking a small business loan for $50,000 to use for start-up operations.

The loan will also be used to cover expenses for the first year of operations.


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Appendix A

Personal Financial Literacy Survey Questionnaire

Informed Consent Form

This study is part of a Capstone research proposal. The purpose of this survey is to

examine students’ personal financial literacy and the impact financial literacy has on decision

making. There are 6 demographic questions and 13 questions regarding financial literacy in

this survey. It will take you about 15 minutes to complete.

You must be 18 and over to participate in this survey. The survey is completely

anonymous and your participation is voluntary. Please do not write your name on this

survey.

I consent. I have read this form and agree to the conditions of the survey.

Agree … Disagree …

Part I

1. What is your gender?

o Male

o Female

2. What is your age?

o 18-22

o 23-29

o 30-39

o 40-59

o 60 and over


3. What is your major?

o Business

o Education

o Music

o Interdisciplinary Studies

o Other

4. What is your race/ethnicity? (OPTIONAL)

o African American

o Asian

o Caucasian

o Hispanic

o Native American/Pacific Islander

o Multiracial

o Other

5. What is your annual household income? (If you are a dependent student, include your

parents’ income.)

o $0-19,999

o $20,000-39,999

o $40,000-59,999

o $60,000-79,999

o $80,000 and over


6. How much do you estimate you owe in debt? (Include credit cards, student loans, and

other debts.)

o $0

o $1 - 4,999

o $5,000 - 9,999

o $10,000 - 19,999

o $20,000 and over

Part II

Respond to each statement according to the scale below:

Strongly

Disagree Disagree

Neither Agree

Nor Disagree Agree

Strongly

Agree

1 2 3 4 5

7. The current economy has affected my spending. 1 2 3 4 5

8. I pay the full amount due for my bills each month. 1 2 3 4 5

9. I use credit cards to pay for purchases I cannot afford. 1 2 3 4 5

10. I am knowledgeable about personal finances. 1 2 3 4 5

11. I can benefit from a financial education program. 1 2 3 4 5

12. I can manage my own finances. 1 2 3 4 5

13. It is important to contribute to a savings plan. 1 2 3 4 5

14. It is important to begin saving for retirement at a young age. 1 2 3 4 5

15. I need help to create a budget and track my spending. 1 2 3 4 5


Part III

16. Which of the following does NOT define what a credit report is?

a. Determines your creditworthiness

b. Record of your credit activities

c. Your credit line

d. Can affect your ability to get a job, a mortgage or other types of loans

17. Negative financial information (excluding bankruptcy) can stay on your credit report for

a. 6 months

b. 1 year

c. 7 years

d. 10 years

18. Suppose you have $100 in a savings account earning 2 percent interest a year. After five

years, what would you have?

a. Less than $100

b. $100

c. $102

d. More than $102

19. You have a credit card with a balance of $1,000 that has an APR of 18%. You only pay

the minimum payment each month is $25 and do not make any additional purchases. About

how long will it take to pay off the balance?

a. 1 year

b. 5 years

c. 13 years

d. 25 years


Appendix B

Response Question (N=63) What is your gender?

o Male o Female

43 20

What is your age? o 18-22 o 23-29 o 30-39 o 40-59 o 60 and over

54 9 0 0 0

What is your major? o Business o Education o Music o Interdisciplinary Studies o Other

20 8

08 27

What is your race/ethnicity? (OPTIONAL) o African American o Asian o Caucasian o Hispanic o Native American/Pacific Islander o Multiracial o Other

19 1

12 19 1 3 8

What is your annual household income? (If you are a dependent student, include your parents’ income.)

o $0-19,999 o $20,000-39,999 o $40,000-59,999 o $60,000-79,999 o $80,000 and over

11 23 15 7 7

How much do you estimate you owe in debt? (Include credit cards, student loans, and other debts.)

o $0 o $1-4,999 o $5,000-9,999 o $10,000-19,999 o $20,000 and over

13 11 11 9

19


Response Question (N=63) The current economy has affected my spending.

o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

5 7

10 20 21

I pay the full amount due for my bills each month. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

9 8

12 14 20

I use credit cards to pay for purchases I cannot afford. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

36 8 7 6 6

I am knowledgeable about personal finances. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

2 5

14 18 24

I can benefit from a financial education program. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

0 3 6

24 30

I can manage my own finances. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

5 5

19 19 15

It is important to contribute to a savings plan. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

0 1 8

18 36


Response Question (N=63) It is important to begin saving for retirement at a young age.

o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

1 1

11 18 32

I need help to create a budget and track my spending. o Strongly Disagree o Disagree o Neither Agree Nor Disagree o Agree o Strongly Agree

4 4 9

19 27

Score on Multiple Choice Questions o 0% o 25% o 50% o 75% o 100%

6

17 27 12 1


Appendix C

business plan for a financial services company · business plan for a financial services ... one of...

Documents