Choose their business type.
My business idea that I have chosen is a unisex barber shop. The type of business this will be is sole trader. This means I am my own boss and I am responsible for the business operations on a day to day basis.
State their aims and objectives.
The aim for my business is to provide a service for my target market and to generate profit over each business year. My objectives for my business would be to have a minimum return of 80% by the end of the year. And also another objective for my business will be to break even within my 1st year, from this I can analyse what I’m doing right and what I am doing wrong so I make time for improvement.
A unique selling point I will use for my business is that, all booking and appointments will be made in advance via telephone so here I am showing that I wont fail to disappoint customers in terms of time consuming, also since my business will be unisex, I will be giving away vouchers for free beauty products for females and clippers for males when they spend a certain amount of money.
Identify the unique selling point and the competitive edge the business will have
A competitive edge that my business will have compared to my target market is that I will make sure my customers are comfortable while having their haircut or waiting, I will do this by providing entertainment such at flat screens to watch TV, magazines and also provide refreshments such as tea or coffee and soft drinks.
Show how their can establish the Potential demand for their new business.
The way I can establish potential demand for my business is to first identify my target market. For this I would have to market research. Here I can set up questionnaires about different types of people’s interests and what they expect from a salon shop and what they normally get from salons. I would also need 2 assess my competition. What are they doing well? How can I match that or go even better than them? Why are successful? Why aren’t they?
Demonstrate how their will balance their personal and business needs.
I will make sure that I am at the location where the business will be and making sure all day to day business operations and being run properly and to the best standard and talking to customers personally asking about the service given. Then after a certain period of time, e.g. 1 year I will then start to hire more staff so then I can take care of my personal needs such as family etc. while the other staff take care of my responsibilities, however at the end of each business day, I will come down to the business and find out how the day went and if there were any problems.
Estimated: potential profitability.
I will charge £10 for a male haircut and aim to have at least 120 male customers in the 1st month, which will give me £1,200, for females I will charge £20 and will aim to have 90 female customers within the 1st month as I am predicting more males than females. This will give me a total of £1,800 for female haircuts which will then give me an estimated total of £3,000 taking for my 1st business year.
Conduct a PESTLE analysis.
I will also be conducting a pestle analysis of my business so I identify aspects such as ethical issues and resources etc.
Develop their self-esteem through a business mentor - pick a mentor from Businesses Startup Seminars - link profile to your answer.
Self-esteem is a term used in psychology to reflect a person's overall evaluation or appraisal of his or her own worth.Self-esteem encompasses beliefs (for example, "I am competent-incompetent") and emotions (for example, triumph-despair, pride-shame). Behaviour may reflect self-esteem (for example, assertiveness-shyness, and confidence-caution).
Illustrate how business planning will help them to ensure their success.
Business planning will help me ensure success in my business because I will be being organised within my business proceedings and I will have step by step information of my progress which will also be consisted of positive points and anything I need to improve on.
My business plan will follow the following seven steps:
1) Type of business
2) Target market
3) Human resources
4) Legal and physical resources
5) Financial resources
6) Growth and development
7) Financial contingency
Thursday 25 February 2010
3 Human Resources
1) Skills required to run the business
Human Resource skills:
Human resources are a term used to describe the individuals who comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. The HR team are in charge of operations such as recruitment. This is a vital skill needed to run my business because this department has to ensure they abide by laws for example when they appoint new employees and also have the ability to communicate well with both employees and clients and to influence and lead groups effectively.
Marketing Skills
Marketing is also a very important department because it deals with finances and deals with the investment of money in order for example to pay for raw materials for new products. Also cash flow will be monitored closely as this will be the how much money will be going in and out of my business and break even where I can balance out my costs.
Financial Skills
Financial skills is where you balance out all different types of financial aspects such as sales forecasts, setting budgets, calculating profit and loss and dealing with sales revenue, which is all dealt with electronically due to the high advanced technology in today’s society.
Organisational skills
This is where I have to organise my resources such as my booking appointments and make sure I fit everyone in and they get their haircut on time which is why I will be introducing a booking in advanced so I don’t disappoint my customers. And also I can keep a note of all my customers on a database instead of writing it down verbally.
I.C.T Skills
This is a very essential part of running my business as I will need to be fluent in ict etc. by running my own business website, I can give my customers an inside view of my business and what it does. ICT skills can also be essential. It also gives information on the type of haircuts I do and prices and any other additional information. I feel by doing this, I am using the knowledge I have to the fullest extent in order to make sure my customers feel privileged to come to my shop.
Skills Audit
Skills
Do I have them?
Examples
Human Resources:
NO
N/A
Skills Audit
Skills
Do I have them?
Examples
Human Resources:
NO
N/A
Organisational:Yes, I managed to complete my core units in my 1st then I would attempt the remaining
I.C.T :Yes,Fond user of I.E, Word, Excel etc
Management:Yes, I managed to complete my work for a certain deadline as well as other commitments such as captaining my Sunday cricket team where I delegate tasks to my team in order to win each time.
Leadership: Yes, Cause I captain my team, I show good leadership and control and boosted everyone’s morale no matter what the situation
Marketing:
No
n/a
No
n/a
Financial:Yes, When I was given certain amounts of money, I used it wisely and kept 70% of the amount in the bank or savings account.
Customer Service: Yes, Working for Phones 4u as Pre Pay manager, I had many customers in the shop that I had to deal with and talk to and make sales.
Personal Strengths
Personal Strengths
I feel my best strengths are my leadership skills and my customer service skills, I feel I have gained this from past experiences over the last 5 or so years, so with this being said, I am able to handle any situation given to me whether it be a pressure type situation or not. Also with being a good team leader I showed that I was a role model for the youth and I enjoyed that period of time.
Personal Weakness
My weaknesses are my marketing skills and my human resources skills which I haven’t yet developed or experienced, this is vital for a business because since I am a sole trader for now, I would have to do any market research or recruitment by myself so if I haven’t experienced or developed these skills than I will have trouble when it comes to certain issues regarding marketing and human resources.
In order for me to gain these skills, I believe that I should attend courses for me to gain these skills which will benefit me in a way where I would be saving money for hiring new staff with those qualifications.
Skills gap and Development needs
Marketing – I will hire staff who have marketing skills so I would save money on training while I do my course, so once that’s done then I would have to hire any more or other marketing specialist because then I will have the experience an knowledge to market my business.
When I attend my training, I aim to attend good courses in order to get the best training possible, I’ll also seek advice and help from professional marketing specialist to give me some info and some tips on best methods to use. I am to start this roughly 3-4 months before my business opens so I have enough time to get prepared and ready and then I will have all this skills required so I can officially open my shop.
Marketing – I will hire staff who have marketing skills so I would save money on training while I do my course, so once that’s done then I would have to hire any more or other marketing specialist because then I will have the experience an knowledge to market my business.
When I attend my training, I aim to attend good courses in order to get the best training possible, I’ll also seek advice and help from professional marketing specialist to give me some info and some tips on best methods to use. I am to start this roughly 3-4 months before my business opens so I have enough time to get prepared and ready and then I will have all this skills required so I can officially open my shop.
Human Resources - Again, I would need to undertake classes for me to gain this expertise, so when I choose to hire staff, I will know who to go for and what to look at for a candidate. This will help me because, it will save me from spending a lot in training for marketing because with my HR skills I can use that to find a suitable candidate for marketing .
4 Legal and Physcial Resources
Legal and physical aspects that will affect the start-up of my business venture
Legal Status
Legal status is when you start up your own business, that you become noticed by the community and your target market. You can do this by first stating what type of business you are opening. My business is a sole trader; this means I have all the responsibility and all financial aspects are kept private and only for my confidentiality.
Legal Liability
Since my business is a sole trader, then I will have unlimited liability and my assets can be used in a court of law in order to pay off debts. In order for me to control this, I must make sure that I do not make much mistakes when running my business and not go into too much debt for which I wont be able to afford to pay back.
Trading terms and conditions
Since my business is a barber shop, trading terms and conditions isn’t essential to an extent but however I must make sure that when customers ask for me to do a certain haircut, that they don’t change their mind halfway through the haircut, so in order for me to implement this idea, I will put up a notice in my shop floor, preferably on the shop window where customers can see it, or on my business card.
Trading standards
Trading standards protect consumers from unscrupulous business traders. For my barber shop, I should make sure the supplies that I buy are of good quality and I make sure I clean the trimmers after haircut for hygiene reasons and that goes for all equipment I have e.g. cutters, scissors etc.
Licences
Many businesses need licences in order to operate, so for my barber shop, I would need to make sure I have the licence and it’s visible for inspectors to see before I open my business.
Record keeping
Cash Book- A cash book is a record of all the cash going in and out of the business. In contains finances such as transactions, cheques, deposits and payments. For my business I can choose whether to keep a cash book or to keep one via electronically – Microsoft Excel.
Wages and Petty cash books
This is where the company keeps record of wages or salaries paid to the employees. For my barber shop it will be done electronically so it’s easier access for me and I can make quick adjustments.
Accident Book
This is where the company keeps a track of any accidents the employees have suffered while in the firm’s premises. It has to be kept for a minimum of three years. For my business, again I will be keeping the track electronically.
Stock Records
A record is kept of all types of raw materials purchased by the firm; Orders can be made promptly so the company don’t run out of stock. For my business, since I won’t be having as much stock to sell, I will still keep a record of them.
Contracts of Employment
This is where the duties of the employee are stated within two months of starting work. Points include:
· Names of employer and employee
· Job title and job description
· Date employed, place of work and address of employer
· Hours of work
· Holiday pay entitlement
· Sick pay arrangements
· Pension arrangements
· Notice periods
For my business, I will be providing the employee with a copy of the contract of employment for them to keep and also I will keep a copy of it myself.
Health and Safety
All business owners are responsible for the safety of their employees and also the well being of their customers. For my business, I will put up all health and safety notices inside my shop so everyone can see it and also fire extinguisher in case of a fire.
Planning Permission
If I wish to extend the size of my premises as in to expand, then I would need to seek permission of my local authority such as government or council because it will involve noise pollution it could disturb the local community.
Cost of premises
The sources of finance will be coming from my own capital since I am the sole owner, if I feel the need to invest more money, then I will be taking out a loan from the bank and my first intensions would be to pay it back.
My cost of premises would be roughly between £20,000-£30,000, most of this will likely come from a loan from the bank, in order for me to get this, I would have to present to the bank an outline of my business and what my intensions are and what will I be using the money for. This can be constructed in break even charts and mathematical statistics.
Equipment
The equipment I would need to start my business is basic resources a barber shop requires they are:
· Clippers
· Razors
· Chairs
· Scissors
· Separate waxing room with own equipment
· Seating for customers
· Counter
· Lighting
· Heating
I will be looking to spend between £1,000-£2,000 on equipment because I feel it will cover all my basic needs and wants to open my business then as I grow into it, I can start thinking about expansion etc.
Suppliers
I will be doing my research on the Internet for appropriate suppliers for my raw materials or products which offer the best range in prices. This will be mainly for the most important equipment needed for my shop such as Clippers and Razors etc
Employing Staff
When employing staff, I should firstly consider paying them the right current minimum wage selection. In addition, I will need to make national insurance payments on behalf of my staff just to make sure everything is secure and copasetic.
Cash flow
I will be using a cash flow forecast when running my business basically to analyse the flow of my money i.e. money going in and out of the business. This will help me identify how much I am spending and on what areas and which areas am I spending too much and areas in which I have to cut down on spending.
I will also have to construct a profit and loss account. This is a document which shows the level of profit my business is making or the how much loss I am making. This is a good way for me as the owner to identify where is I making the profits and where am I making the loss so I can take a line of action in order to fix this.
Break Even
A break even chart is helpful for when starting a new business venture. It will indicate at early stages of my business how many sales I need to make in order to stay afloat (break even). The formula for how to find out the breakeven point is:
Sales Revenue
A breakdown of Break Even: Fixed costs are costs that do not change according to output such as, Rent, Cost of Premises. Variable costs are costs that do change according to output such as raw materials, Bills etc.
Sources of Finance
Own Savings – This is how I intend on starting my own business with most of the money or not all will come from my own savings which is an easy option for me as it will not cost me anything. Also this increases the chances of me getting a loan from the bank as well on top however it will not be as more as i have already put up for my business.
However if I feel that I am struggling for the finances, I can apply for the Prince’s Trust fund which is aimed at 14-30 year old wishing to open up their own business. They offer practical help in financial areas training and mentoring.
The trust offers new entrepreneurs:
· Low interest loans up to £5,000
· Grants up to £1,500
· Grant of £250 for test marketing
· Marketing supports and specialist advice.
· Regular business advice from a volunteer business mentors.
Legal Status
Legal status is when you start up your own business, that you become noticed by the community and your target market. You can do this by first stating what type of business you are opening. My business is a sole trader; this means I have all the responsibility and all financial aspects are kept private and only for my confidentiality.
Legal Liability
Since my business is a sole trader, then I will have unlimited liability and my assets can be used in a court of law in order to pay off debts. In order for me to control this, I must make sure that I do not make much mistakes when running my business and not go into too much debt for which I wont be able to afford to pay back.
Trading terms and conditions
Since my business is a barber shop, trading terms and conditions isn’t essential to an extent but however I must make sure that when customers ask for me to do a certain haircut, that they don’t change their mind halfway through the haircut, so in order for me to implement this idea, I will put up a notice in my shop floor, preferably on the shop window where customers can see it, or on my business card.
Trading standards
Trading standards protect consumers from unscrupulous business traders. For my barber shop, I should make sure the supplies that I buy are of good quality and I make sure I clean the trimmers after haircut for hygiene reasons and that goes for all equipment I have e.g. cutters, scissors etc.
Licences
Many businesses need licences in order to operate, so for my barber shop, I would need to make sure I have the licence and it’s visible for inspectors to see before I open my business.
Record keeping
Cash Book- A cash book is a record of all the cash going in and out of the business. In contains finances such as transactions, cheques, deposits and payments. For my business I can choose whether to keep a cash book or to keep one via electronically – Microsoft Excel.
Wages and Petty cash books
This is where the company keeps record of wages or salaries paid to the employees. For my barber shop it will be done electronically so it’s easier access for me and I can make quick adjustments.
Accident Book
This is where the company keeps a track of any accidents the employees have suffered while in the firm’s premises. It has to be kept for a minimum of three years. For my business, again I will be keeping the track electronically.
Stock Records
A record is kept of all types of raw materials purchased by the firm; Orders can be made promptly so the company don’t run out of stock. For my business, since I won’t be having as much stock to sell, I will still keep a record of them.
Contracts of Employment
This is where the duties of the employee are stated within two months of starting work. Points include:
· Names of employer and employee
· Job title and job description
· Date employed, place of work and address of employer
· Hours of work
· Holiday pay entitlement
· Sick pay arrangements
· Pension arrangements
· Notice periods
For my business, I will be providing the employee with a copy of the contract of employment for them to keep and also I will keep a copy of it myself.
Health and Safety
All business owners are responsible for the safety of their employees and also the well being of their customers. For my business, I will put up all health and safety notices inside my shop so everyone can see it and also fire extinguisher in case of a fire.
Planning Permission
If I wish to extend the size of my premises as in to expand, then I would need to seek permission of my local authority such as government or council because it will involve noise pollution it could disturb the local community.
Cost of premises
The sources of finance will be coming from my own capital since I am the sole owner, if I feel the need to invest more money, then I will be taking out a loan from the bank and my first intensions would be to pay it back.
My cost of premises would be roughly between £20,000-£30,000, most of this will likely come from a loan from the bank, in order for me to get this, I would have to present to the bank an outline of my business and what my intensions are and what will I be using the money for. This can be constructed in break even charts and mathematical statistics.
Equipment
The equipment I would need to start my business is basic resources a barber shop requires they are:
· Clippers
· Razors
· Chairs
· Scissors
· Separate waxing room with own equipment
· Seating for customers
· Counter
· Lighting
· Heating
I will be looking to spend between £1,000-£2,000 on equipment because I feel it will cover all my basic needs and wants to open my business then as I grow into it, I can start thinking about expansion etc.
Suppliers
I will be doing my research on the Internet for appropriate suppliers for my raw materials or products which offer the best range in prices. This will be mainly for the most important equipment needed for my shop such as Clippers and Razors etc
Employing Staff
When employing staff, I should firstly consider paying them the right current minimum wage selection. In addition, I will need to make national insurance payments on behalf of my staff just to make sure everything is secure and copasetic.
Cash flow
I will be using a cash flow forecast when running my business basically to analyse the flow of my money i.e. money going in and out of the business. This will help me identify how much I am spending and on what areas and which areas am I spending too much and areas in which I have to cut down on spending.
I will also have to construct a profit and loss account. This is a document which shows the level of profit my business is making or the how much loss I am making. This is a good way for me as the owner to identify where is I making the profits and where am I making the loss so I can take a line of action in order to fix this.
Break Even
A break even chart is helpful for when starting a new business venture. It will indicate at early stages of my business how many sales I need to make in order to stay afloat (break even). The formula for how to find out the breakeven point is:
Sales Revenue
A breakdown of Break Even: Fixed costs are costs that do not change according to output such as, Rent, Cost of Premises. Variable costs are costs that do change according to output such as raw materials, Bills etc.
Sources of Finance
Own Savings – This is how I intend on starting my own business with most of the money or not all will come from my own savings which is an easy option for me as it will not cost me anything. Also this increases the chances of me getting a loan from the bank as well on top however it will not be as more as i have already put up for my business.
However if I feel that I am struggling for the finances, I can apply for the Prince’s Trust fund which is aimed at 14-30 year old wishing to open up their own business. They offer practical help in financial areas training and mentoring.
The trust offers new entrepreneurs:
· Low interest loans up to £5,000
· Grants up to £1,500
· Grant of £250 for test marketing
· Marketing supports and specialist advice.
· Regular business advice from a volunteer business mentors.
6 Growth and Development
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My aim for growth and development is to expand my business and set up new businesses in the near future. With this I will be entering a new market with a more diverse culture which means that it will increase the variety of customers I attract. With the financial state my business is currently in at the moment, I am capable that this new idea of mine to expand and enter a new market for the first time will be a success.
This will enable my business to gain experience in going into different fields and also see if my marketing methods can come into effect when communicating with my target audience. With the growth and development in my business, It can lead to me inventing new ideas for my buiness venture and also my methods will lead me to making a big net profit and I can use these finances effectively for the sake of my business.
Financial Statistics:
1st year = £76,720
2nd year = £76,270 + £10,000 = £86,270
3rd year = £86,270 + £5,000 = £91,270
Total = £91,270
7. Financial Contingency
The first financial aspect that I will be discussing that will affect the start-up of my business venture is budget. This is important for my business because I will need to know if my business is able to produce enough income to guarantee that I am in credit. Without this method I will not know how well my business is performing and if my business is financially stable or it is on the verge of bankruptcy.
The second financial aspect that I will be discussing is cost of premises. This affects the opening of my business due to the fact that I will have to check if the premises are near to my target market and is their competition nearby. If the premises is close to target customers and there are fairly no competition around then my business will be able to engender income because it is sited in an area where there is no competition.
The third financial aspect that I will be discussing is equipment and suppliers. These are important because I will need to know what equipment is needed for my business and from which suppliers I am able to purchase them from. By choosing a supplier who offers the equipment required on low and affordable prices then costs will be low and this will be beneficial for my first cash flow because costs will be at a minimum.
Another aspect that I will discuss which affects the opening of my business is loans and borrowing. This resource of income is given to businesses on a reciprocal contract that it will be repaid with interest and in a long period of time. This helps the business because it will be able to fund for the businesses costs and also to promote on the facilities that the business requires to improve on.
One last financial aspect that I will discuss which affects the opening of my business is record keeping. This is vital because by keeping financial records of my business then I will be able to see if my business is performing well. And HM Revenue and Customs (a leading tax company) must be shown taxes paid for profits which are earned by my business administration.
The second financial aspect that I will be discussing is cost of premises. This affects the opening of my business due to the fact that I will have to check if the premises are near to my target market and is their competition nearby. If the premises is close to target customers and there are fairly no competition around then my business will be able to engender income because it is sited in an area where there is no competition.
The third financial aspect that I will be discussing is equipment and suppliers. These are important because I will need to know what equipment is needed for my business and from which suppliers I am able to purchase them from. By choosing a supplier who offers the equipment required on low and affordable prices then costs will be low and this will be beneficial for my first cash flow because costs will be at a minimum.
Another aspect that I will discuss which affects the opening of my business is loans and borrowing. This resource of income is given to businesses on a reciprocal contract that it will be repaid with interest and in a long period of time. This helps the business because it will be able to fund for the businesses costs and also to promote on the facilities that the business requires to improve on.
One last financial aspect that I will discuss which affects the opening of my business is record keeping. This is vital because by keeping financial records of my business then I will be able to see if my business is performing well. And HM Revenue and Customs (a leading tax company) must be shown taxes paid for profits which are earned by my business administration.
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