Hui Kao will be CEO and Administrative Manager of the company. He will split sales clerk work at the first store with his son, Zhi Kao. Zhi Kao will be an administrative assistant, executing purchases of inventory, renovating and maintaining the location. Hui Kao will focus 50% of his time on administration and supervision in the second year and 75% on those management activities in the third year, reducing his work in the stores to 50% and then 25% of his time.
Hui Kao will handle accounts payable (payroll, suppliers, insurance, rent, utilities, etc.) and bookkeeping. Bank deposits will be made by Hui Kao or Zhi Kao. Deliveries will be distributed between the locations by Zhi Kao after they arrive at the first store.
Zhi Kao will be mentored as a manager-in-training throughout these first three years of operation and will be able to manage all business operations in the absence of Hui Kao by the second year. It is expected that within five more years, Zhi Kao will become CEO of the business when Hui retires.
Hui Kao owned and operated a small grocery store in China for fifteen years and sold periodicals as part of the business. His son, Zhi Kao, worked in the store for five years as a teenager and developed experience in sales and some management tasks.
The personnel will begin with one full-time equivalent employee. This will consist of Hui Kao and Zhi Kao both working part-time at the first store location. Administrative work will be performed by both Hui and Zhi Kao during this startup phase. In the second year and third years, additional employees will be added to staff the stores, usually consisting of two part-time workers for each store. Once the three stores are established, Hui Kao will spend part of his time moving between the three stores and providing centralized services. He will receive salary for this role in the third year.
Health insurance cannot be provided by the business upon launch. In the second year it can be provided for employees who work full-time and the cost of insurance is built into the personnel costs listed here. It is expected that three full-time employees will receive health insurance.
|Year 1||Year 2||Year 3|
|Store 1 Employees||$36,000||$41,400||$42,642|
|Store 2 Employees||$0||$41,400||$42,642|
|Store 3 Employees||$0||$0||$42,642|