Investigating Business Essay Example

Investigating Business Essay My name is Andrà ¯Ã‚ ¿Ã‚ ½ Gibbs, I am currently 18 years old and I live in South Norwood borough of Croydon. The name of my business will be Funky Catererz this name come from the love I have for funky music and different foods. My business will be a service based on catering for all types of occasions such as wedding, christenings, funeral and others. We will also cater in Caribbean food predominately Jamaican cuisine but also cater in all varieties of Caribbean. I will be running this business from home until expansion is need of my business. I feel that this would be the best business for me to start because I do not have to spend a lot to start up my business. I have a Business Communication GCSE qualification and A level qualification in business, ICT and English. For my business I have access to à ¯Ã‚ ¿Ã‚ ½20,000 as a limited amount to start off my business this is an advantage for my business because there are very low priced stores that sell cheaper goods.For a successful business it must have four very important sources which are known the four ps of business:* Place* Product* Price* PromotionProductI feel that my service would go far and make a profit because it comes with a range of fashion techniques not just customising also not many people have heard of services like mine in my location, this is what makes my service unique.My promotion is the way I will pass on information as a seller to change the attitudes and behaviour of my buyers. To make this work I must have a sales promotion to get the attention of potential buyers. This means I would have to advertise my business. I would have to advertise in cheap ways (television adverts are too expensive for me to afford) e.g. posters, leaflets, facebook, you tube and even one off stall in the market so people can sign up. Not only advertising is promotion but also using myself to show the quality of my service.PlaceMy business will be based in my house for a year customers will have to come to ord er but they can have their product mailed to them if they wish. My business will be at my house only for a year.Reasons why business will be placed in this locationBecause the rent is too expensive in South Norwood an average rent is à ¯Ã‚ ¿Ã‚ ½700-à ¯Ã‚ ¿Ã‚ ½900 a month.Me using my house will help me save enough to afford rent for the next year and other years 2. My location is in-between Lewisham council and Croydon council this shows that can get a large amount of customers. Nomis website shows thatAims1. Have a successful business so I can survive. If my business is not successful I would lose cash or have none at all. This can make me lose everything. My plan to survive is to continue advertising my product and showing samples so more people would know about my service. Another idea is to have a public fashion show so the public would see what my service provides.2. Break even my income has to at least be exactly the same as my expenses. This means I may not be making money but I also wont be losing money.3. Make sufficient profit so I can live properly- I have to have a target profit so I will be motivated. Im aiming to make a à ¯Ã‚ ¿Ã‚ ½1000 profit for myself a month.4. Ability to employ other people. I have to have this ability because the more people that come to my service the more workers I would need. If there are not enough workers clothing wouldnt be made in time then I customers are less likely to come.5. Expand in the future. I would love my business to expand into other locations so it can become a national service in the future and many people would know my brand.Objectives1. Expand business to 7 different locations by 3 years time, through family members and friends going into partnership. I would expand my business by saving money form my parents location, then when I move to my own in the Lewisham council (because its cheaper than Croydon) I would save enough money to buy a store in Croydon. Then Ill save money from both businesses to buy another store. I would continue this process until I have 7 or more locations in London.2. Increase number of customers by over 700 in 2 years. This will happen through using my promotion which is advertising and word of mouth. Hopefully I make it and get 700 in 2 years if so I would double the amount to over 1,400 in 4 years.3. To satisfy customers needs. To do this I would provide customer services so all customers can get their needs and wants. I believe customer services is really important with my business because its dealing with clothes and problems such as an outfit not fitting is a problem that customer services can deal with.4. To enjoy business. Not only that I have to be successful but I have to enjoy my business because if I dont how would my employees and customers enjoy it, its my motivation that would keep them all motivated. I would also like to get some financial security so I would have enough money for food, clothing etc especially so I wont be homeless.5. He lp family with business money and future employment. My business will help my family in many ways e.g. I can give them jobs when they are jobless, if they can make clothes and have qualifications, if they cant I could still help them e.g. to do delivery, advertising or working in customer service. It would also save my family from being bank erupted in the future.6. Be a good employer to employees. I want my employees to feel welcome and comfortable so we can also build trust and help each other when we are unable to do something.Entrepreneurial skillsEntrepreneur is someone who owns a successful business, to have a successful business you will need good skills, loyalty, being a good sails person, hard working person, energetic, prepared for risk taking and interpersonal skills. You will also need to focus on the important things for your target markets such as their age, income, race, sex and interest. TAIRITarget market its important to identify your target market because you can save a lot of money by knowing the type of market that would buy your product or use your service. It also lets you know what type of media would be suitable to use e.g. if selling a product to teenagers you are less likely to advertise it on the radio.Age age is very important when it comes to product and services to be a good entrepreneur you must notice age this helps with areas product or service could be e.g. if there are not enough children living in a certain location it would not be smart to toys in the area because it wouldnt be possible to make a high profit.Income knowing the income of target market helps with location, expensive products and services should be based in areas that people are getting well paid and have enough money to afford product or service, cheaper products and services should be in areas where working class people wouldnt expect to see so many expensive products.Race it is a stereotype to believe that same races are alike e.g. behaviour, Likes and dislikes etc but entrepreneurs must follow this to stay on the safe side e.g. if someone wants to sell hip hop and R;B music they are likely to sell it in areas where black people will be more such as Lewisham because they have researched that those areas are more successful when it comes to selling that type of music and more people have common taste.Interest knowing the interest of your target is very important e.g. you cant say you want to sell classic music to teenagers because they are most likely to have no interest at all in it, to be an entrepreneur you must research what your target markets main interest are questionnaires is a good way to find out.The legal structure of business and the alternativesI have the choice of three legal business structures which is a sole trader, partnership and private limited company.Sole trader is a business which is owned by only one individual because of this there are no rules the individual can include as many ideas as they want in the ir business and make as many changes without the permission of someone else. The individual pays all the taxes receives all the profit and losses too. A sole trader can also have their own name as their business. An advantage of being a sole trader is it is very easy to start your business and all the profit of the business belongs to the sole trader. The disadvantages are the sole trader owns a lot of responsibility e.g. having to make up for all the business funds, being responsible for debts and business can become unsuccessful.Partnership a partnership in business is when 2 owners put together a business and work as a team. They both receive all the profit and losses. Many people choose to do partnerships to corporate with money and taxes because its a hard enough job for one. In the UK a partnership normally has one or more people called general partners or one or more people who call them selves limited partners and their job is to sums of money but they are unable to receive their money back or become a part in the management of the business, basically they do not have power. When partnering with someone it means less money from your pocket will be spent and your business will be more flexible.Private limited company private limited companies are normally small businesses normally they are run by family or a small group of people. A majority of them would put in money. The more the money an individual puts in the more power they would have in the business. They can only receive debts by the company if they have signed a personal guarantee. Private limited companies have share holders and they do not do public exchanges.Which one is suitable for me and whyBeing a sole trader is the most suitable for me because I have come up with my own business and Ill like to have the profit to myself. I plan to be my own boss and make all the rules to my business. I also want to be able to make big decisions alone such as changing the name for my business without so meone to disagree with me. Although a lot of money issues will hit me at the start I have to keep strong and handle the money is reasonable ways.The legal background of business and the legislationWhenever a consumer buys goods they must have legislation laws that are designed to keep protection over them. The two most common ones are sales good action and the supply of goods and services.Sale of goods act- this allows customers to buy quality products and will fit their purpose. With sales good act you can buy goods then later realise that they dont fit your purpose or they are damaged you have the rights to a refund. But to get refunds you must complain to the shop or service in a certain amount of time normally stores have a rule of within 28 days. If the days have passed by the customer can still claim their product is damaged but they will have to fill a form of repair or replacement.Supply of Goods and Services- this is mainly for services like hairdressers, bike garages etc. theses services should have reasonable care and skill, their prices should be reasonable also complaints from customers should be made in a reasonable time.These are the ways that customers may complain:1. Return the goods to the person who owns the service2. Write a complaint and keep a copy it letter3. Call consumer direct service to get some consumer advice4. Exchange or refund my productCustomers have rights to:1. Ask for a receipt2. Ask to see prices3. Complain in writing, email or phone4. Compare prices between products5. Not pay cash in advance6. Not accept credit notes instead of refundsMy business will have supply of goods and services for reasons such as:1. Home Delivery2.3.4.5.Secondary research of my areaSecondary research of my areaI live in South Norwood which is the Croydon borough but if I was a couple of roads away I would in the borough of Lewisham meaning my house is in the border line of two different borough. This makes me very lucky because my service can apply to 2 councils and give me a wider range of customers. I went research area sites such as www.upmystreet.com and www.yell.com to find information on my neighbourhood.Description of my neighbourhoodMany people who live in my area are suburban privately renting professionals, only 1.09% of the UK population live in my neighbourhoodPeople who live in South Norwood are normally found in outer London areas such as Richmond, Sutton and Croydon.Many are middle classed, in their 20s- 30s and well educated. They have developing ideas in professional and managerial jobs.They have high interest in leisure activities, they are comfortable using the internet, CDs, books, and going on holiday to places like USA and Canada. They read Broadsheet papers.People who live in South Norwood are likely to have a high family income, their education and degree level is very high, the numbers of couples with children are quite low.Schools information in my areaPrimary schools get great results in maths Engli sh, maths and scienceSecondary schools get 50% good results except for South Norwood high and Harris academy which are private.There are many secondary schools and primary schools in South Norwood which shows that there are a number of children living in South Norwood borough.This is relevant because I now know that there are many schools around where my business is set which can attract lots of children and teenagers. I could also visit some schools to advertise my business. This is a good idea because young children and teenagers love to have their own individual style and getting their clothes customised is a way of doing that.Crime figures-Population- 301,00-House holds- 131,000-Violence against a person- 18.5%Sexual offences and burglary offences are lower than the average ratethis is relevant because now I know that there is a number of people and households in my area to my business has a chance of having a lot of customers. The percentage of violence against a person is quit e low in my area so I now also know that people feel save and welcome coming to South Norwood this is an advantage for my service.HousesHouses in South Norwood are quite expensive average prices are around à ¯Ã‚ ¿Ã‚ ½850 per month. Because of this I would do my first year of business as home and delivery, and then save enough to move out and pay for my own apartment to continue my business in.Doing research on the prices of houses in South Norwood is relevant because I will know how much to save for when Im ready to buy my own shop. But because its a shop service and not internet service it will take me longer to save.People in South Norwood are likely to go clubbing, they love keeping fit e.g. swimming, gym and yoga centre. They love buying clothes, especially the women. I know this because there are more female clothing stores than males. There are not many charity stores which show people are able to afford first hand clothes. Research is really good for business because I now k now that what sort of market ill be targeting my potential productsBorough of Croydon qualifications from Jan 2008- Dec 2008 (From: www.nomisweb.co.uk) This show that in Croydon havingLewisham council qualifications from Jan 2008 Dec 2008 (From: www.nomisweb.co.uk) This showCalculation of Croydon council and Lewisham councilAmount of males living in Croydon 144.3 (in thousands)Amount of females living in Croydon 156.4 (in thousands)Amount of male living in Lewisham- 128.4 (in thousands)Amount of females living in Lewisham- 130.1 (in thousands)Croydon councilAmount of 5-15 year olds females in Croydon- 19.8 (in thousands)Amount of 16-29 year olds females in Croydon- 23.8 (in thousands)Total Croydon females (5-29)- 43.6 (in thousands)Amount of 5-15 year olds males in Croydon- 20.8 (in thousands)Amount of 16-29 year olds males in Croydon- 23.6 (in thousands)Total Croydon males (5-29)- 43.6 (in thousands)Total males and females in Croydon- 88.0 (in thousands)Lewisham council Amount o f 5-15 year olds females in Lewisham- 15.7 (in thousands)Amount of 16-29 year olds females in Lewisham- 27.8 (in thousands)Total Lewisham females (5-29)- 43.5 (in thousands)Amount of 5-15 year olds males in Lewisham- 15.1 (in thousands)Amount of 16-29 year olds males in Lewisham- 20.0 (in thousands)Total Lewisham males (5-29)- 35.1 (in thousands)Total males and females in Lewisham- 78.6 (in thousands)Overall total of 15-29 years Croydon and Lewisham council-166.6 (in thousands)How I will fit into the market?My competitorsTheir strengths and weaknesses(Look for other customising stores in Lewisham and Croydon council)Yell.com and up my streetResearch on Catering(Mintel oxygen and BBC)QuestionnaireI done a questionnaire for 10 people in the age category between 11-29. these people out of random sample so that the results will not be biased, this is an open ended questionnaire meaning that the respondents can give answers according to their own opinion in length.1. Are you interested i n different2. Would you mind getting your clothes customised or designed3. What garment would you like to get customised and how much would you pay for it?4. What components would you use for your clothes?5. What occasions are you most likely to get your clothes customised or designed for?6. If there was a special occasion would you get your clothes customised, designed or just buy it and why?7. Would you recommend friends to get their clothes customised and designed where you do?8. Would you go to a home and delivery service to get your clothes customised or shops?The results and analysis of the results of questionnaire1.Are you interested in fashion9 people said yes for reasons such as they find it important when it comes to buying clothes and their looks.1 person said no because he just buys clothes to have something on he doesnt care what it is.Here I discovered that more people take fashion take fashion and the way they prevent themselves really important.2. Would you mind gett ing your clothes customised or designed3 people said yes that they would mind because they prefer buying new clothes, they have enough money to afford new clothes or they would rather give it away to charity shops instead.7 people said no they wont mind for reasons such as it would look better customised, it would suit their taste, to make their older clothes have a modern look, it would make them look exclusive and they can have any design they want with it.Here I discovered that people still treasure their clothing and love to look like individuals from others, this is a positive thing because customising does this job.3. What garment would you like to get customised and how much would you pay for it?2 people said skirts3 said jackets1 said footwear3 said trousers1 said a shirtWhen it came to pricing the lowest price someone said they would pay to get their garment customised was à ¯Ã‚ ¿Ã‚ ½10 which is good because buy prices are mostly around ten poundsThe most someone said they would pay is à ¯Ã‚ ¿Ã‚ ½200 because they had high expectations of customised pricing, the price made me very surprised.Here I discovered that people are willing to pay a good amount of money to get their clothes done and because my service provides it cheap i know that i may have a huge number of customers coming to my service.4. What components would you use for your clothes?Beads, buttons, patches, chains, netting, patterns, broche and glitter on got 1 responseRibbons got 2Sequences, studs and spray paint got three responsesPrinting was the most popular with 5This shows that i would have to have more printing facilities and a range of sequences, studs and spray paints.5. What occasions are you most likely to get your clothes customised or designed for?Evening outing 1Birthday 5Summer carnival 1Wedding 2Party 2Here shows birthdays are the most popular occasions people want to get their clothes customised or designed for. This makes me lucky because birthdays come every month of t he year.6. If there was a special occasion would you get your clothes customised, designed or just buy it and why?Designed 6Buy it 4Many people said designed for reasons such as they want to look different from everyone, its for a special occasion so its worth getting their clothes designedMany said they would buy it because getting it designed takes time and it cheaper but what they didnt know is most of my pricing is probably half the price they expect it to be.Unfortunately people would rather buy their clothes than get it customised because they think customising cost more and it takes more time.7. Would you recommend friends to get their clothes customised and designed where you do?Yes 8No 2Most of the people said that they would recommend it to their friends if they chose to have their clothes looking unique, if they are able to afford it, they might have their own good ideas, so they can also be original, they might want to have the same designs as them and only if the servic e is good2 said no because they wouldnt want to be copied and they could be looking good without people knowing where they get their clothing madeThis is good because i know that the majority of people that come to get their clothes customised will spread the word which will rise the amount of customers that I have.8. Would you go to a home and delivery service to get your clothes customised or shops?Yes 5No 5Here It shows some people are not comfortable with going the home business services and would rather go to a known customising store, but many people wont mind getting their clothes from a home delivery service as long as they get their needs and wants.ConclusionIn conclusion it shows that my hypothesis is correct. A majority of people will love to get their clothes customised or designed this is evidence in my results in question 6, that is an advantage.However some people say that they will prefer to buy their clothes or give their old ones to charity this is the disadvantage .Business plan and who may need to provide it to(Read notes) (Go on tutor 2 you).starter planMarketing planFinancial planCash flow forecastForecast profit and loss accountBalance sheetProvide it to potential investors and bank managersWhich regulations I have to followWhy is it important to plan?Overview of the economic situation in its current state and how it is effect businessesHow it may affect my businessWho I will employ:* Students with the same level experience and qualifications as me* Business, ICT or any subject GCSE grade A*-C and A level grade* Over the age of 16 or older* Male or female and any race* Have at least one work experience with the catering or cooking services* Able to accept payShort term:* First I will hire 4 people because of the percentage I have to pay out, this will help me save money to establish my business* The pay will be lower at first (20% of what is made by the company)* I will first give the jobs to friends and family members that I know who hav e good experience of cooking and catering.Long term:* I will hire more people to work full time services once the business starts to make profits* the pay will rise up 30% of what the business makes* I will be able to hire those who are not family, as long as they can show me their CV and qualifications. Also I will interview them and give them trial runs to see if they are good enough for the job.* Someone to be my financial manager so they can deal with the money in the business.What responsibilities that is ahead:* me and the workers are responsible for all customers equipments* I am must make sure that my employees are comfortable in their position in my business* I am responsible for the money that goes in and out of business as I am the owner and I want the business to succeed so money control is importantWhat complications that may occur in the company:* the business will first be based in my parents home it may be a bit to hard to work in because of the people coming in and out of the house causing distributions* theyre may be many arguments because people have different ways of cooking or different styles of cooking* there may not be enough cooking equipment at first so people will have to do different things while one member of the business is using it that piece of equipment* It may be hard to attend to all customers need at once because of the volume of staff we will have at first but we must try to attend to all customers as so as possible so they will have positive feedback to other customer about business.