In this assignment I have been asked to produce a report on the development of a business idea that I have. The report should convince a provider of finance that you have business idea, in task 1 I have to describe my business idea giving the business information such as a name, the location i.e. a map, and I have to describe each service that I will be providing to my customers at the end of this task I will have to state the business ownership.
In task 2 I have to carry out a research which will be suitable for the target customers I am aiming at and for this to be accurate I am going to make a questionnaire which will provide me with the information about the prices and what prices will be suitable to sell my products at.
In task 3 I have been asked to describe my skills and what areas I need to develop in order for me to become a successful business woman .I have to state what type of staff I will like to employ and the skills needed for them to enter my business if help needed
Pass criteria 1
My business idea involves me running a hair and beauty salon called Zainab’s hair and beauty in Ilford on Belgrave Road. The products that I will be offering in my hair & beauty salon are things like: Shampoos, Conditioners, straighteners, Skin products, and Hair dyes.
The services that I will be providing are: Threading, Waxing, Hairdressing, Hair styling, Body piercing (ears, nose and belly button), and Spa treatments, Facials, Make up (bridal, evening, day), Nails (Manicures & Pedicures)
The services that I am offering to the customers are that I will be making sure that the customers are happy with the service, and I will make the customers look good, I will also make sure that the prices are affordable, & make sure that the staff approach the customers in a polite manner.
The skills I need to run a business are that I need to be able to solve any problems, you need to work as a team member, respecting other people decisions, I must good technical skills, practical skills such as working quickly and be very punctual. And I have to be confident.
The staff I would like to hire are those who have the qualifications for the salon for example have done the hairdressing course, the staff have to have good communication skills which are to be able to speak confidently to the customers and approach them in a polite manner and making sure that they are happy with the services they receive. If anybody in the staff has not got the right qualification for the salon then I will give them full training until they learn everything there is to know about the salon.
The areas that need development
The areas that I need more development are to be able to approach certain customers such as the product selling needs to grab the customers attention also the company has to understand the skills needed in order for the company to be successful I will also set targets for me and my staff to achieve by a certain amount of time.
Pass criteria 4
The legal requirements are to make sure that the building is insured or the building may closed down, the staffs have to be insured because if an accident occurs then the company will be sued for it. If the company is not registered then a lot of things can happen to the company. Also the company has to be registered because the government has to tax you. The company must meet all the health and safety system. National Insurance is needed so if I travel aboard I could get treated for free if I get injure or something.
Suitable sources of finance
The places where I can get money from are: Business angels, the prince’s trust and the bank. When starting up my business I am going to get money from the Princes trust, the right sources of finance would have to be taking loans from the banks and paying them back in monthly payments.
The total cost of finance would probably be ï¿½30,000 in the beginning as the business becomes more successful then my finance would rise up and I will have to increase the staffs pay as well as the Insurance of the company. On the next page are two examples of banks which are Halifax & Lloyds TSB it shows how much I am going to borrow, the interest rate and how much I have to pay back the bank monthly at the total.
Business Angels invest between ï¿½10,000 and ï¿½750,000. Where large amounts are invested in a business, this may be as part of a group organised through personal contacts or a Business Angel Network. The lead investor is sometimes referred to as the “archangel”.
Business Angels invest across most industry sectors.. Most prefer to invest in companies within 100 miles of where they live or work. Investors in technology companies tend to be more prepared to travel longer distances.
If I want to borrow money Halifax would probably be the best bank to take loans so therefore I would be borrowing ï¿½25000 and this is what the bank has calculated for me:
If I would like to borrow from Lloyds TSB this is how much I would have to pay back and the rate is as follows:
Monthly repayment: 525.30
Total amount payable: 31,518.00
Number of monthly repayments: 60
At the rate of APR: 9.9%
Analysis from information above
From these 2 results I can see that the best place to borrow money from would be Lloyds TSB.
Pass criteria 5
Proposal for starting up a new business
I want to open up my business because I want to experience what it would be like to run my own business also I would like to learn new skills to build up my knowledge on being a manager of a business and to be able to understand how to work my way up to being a successful businesswoman.
The new skills I would like to learn are learning how to run a business on my own, to be independent, and to become the most successful business woman. I would want to raise a lot of money for me to make the business more better for example make other branches in other towns, experiment new things, giving idea towards the business as well as getting ideas, also I want people to like the salon and come more often. As a manager I would like my business to become the most popular salon in the UK and if my business is successful I would bring it forward and make it a international business but first I would like to go through the 1st stages.
This is the Logo for my company
This is my business card
This is my advertisement that would go into a newspaper. In the advertisement I have explained what services I would provide and if there are any queries they can give us a phone call to the telephone number written above.
In this assignment I have learnt how hard it is to run a business and what skills and qualifications’ you need for each business and I’ve learn why you need to register your business and what the legal requirements are and also about bank loans and how the loans system works.
Task 1 was pretty easy all I had to do was write what my business idea is and give a name, location for my business and say what services I will provide the customers with. Task 4 was the hardest as I didn’t know what the legal requirements’ are and why a business has to be registered.
In this assignment I have been asked to produce a report on the development of a business idea that I have. The report should convince the provider of finance that I have a realistic business idea and I have researched it thoroughly.
I also have to identify a business idea that I have an interest in and I would consider it to be a practical business proposition. I have to discuss this business idea with my teacher before I carry out any task. In M1 I have to analyze my data and present it using graphs and then I have to explain and give a good reason for the methods that I have used to identify my target market for the projected business.
In M2 I have to analyze the developments of me and my staff will need to run the business that I have chosen .In M3 I have to assess the implication of legal and financial aspects that will affect the start of my business, I have to produce and explain my financial projections (cash flow) and how variations will be planned for.
I handed out a questionnaire, I was asked to carry this questionnaire with a variety of charts including pie charts, bar graphs, line graphs etc which is shown in the Pass Criteria Task 2 (pages 6-13).The questionnaire that I used was very helpful for me to because it helped me a lot when it came to plotting my graphs and gathering information for my target market there were other methods that were available for me to use.
I could have conducted separate interviews which could give more detailed answers and be more helpful than just yes and no answers are but the interview would be sustained and more difficult to carry out instead of handing out a 2 sheets of paper which is not very time consuming. Secondly I could do an online survey. This would be a good method because it would not involve me doing any work physically e.g. approaching people to complete the survey. Although this type of research would be quick, easy and simple to organise it would not be accurate because the people who fill it in may not be from the area that you are setting up the business in and therefore will not be your target market. Thirdly I could organise a group discussion in which I ask people what types of product they would like to buy. This would be good because I could get a lot of information from various people which could give a good range of ideas for my stock.
The Credit crunch going on less people can afford to buy merchandise for themselves and are struggling to survive. The Credit Crunch which is a sudden reduction in the general availability of loans or a sudden increase in the cost of taking a loan from the bank. This can be a change in bank interest rates. There are a number of reasons why banks may suddenly increase the interests’ of borrowing or make borrowing more difficult.
The skills that I need to run a business are that I need to be able to solve any problems that occur in the salon, I need to work as a team member, respecting other people decisions, and I must have good technical skills, practical skills such as working quickly and be very punctual. And I have to be confident and the most important is that I have to have completed the hairdressing and the make up course.
The staff that I would like to hire are those people who have the qualifications for the salon for example the people who have done the hairdressing course, the staff have to have good communication skills which are to be able to speak confidently to the customers and approach them in a polite manner and making sure that they are happy with the services they receive. If anybody in the staff has not got the right qualification for the salon then they will have to get the full training to be able to work in the salon.
Training for Staff
If me or my staff don’t have the following skills then we will have to get training and there could be a huge problem as there will be no one to run my business and then my business will close down, or if I hire people to run my business when me & my staff have gone for training I will not be getting any profit I will be getting losses as I would not be earning anything.
Different types of training
1. On the job training takes place in a normal working envisionment using actual salon tools,documents that the trainees will use when they are fully trained.
2. Off the job training has the advantage that it allows people to get away from work and get the training.This type of training is more effective as people just concetrate on the training and not work.
There are many different types of insurance available when starting your business. In general, damage caused intentionally and contractual liability is not covered under liability insurance policies. It is good if you have insurance because if something’s happens you can get compensation.
The types of business insurance you will need will depend on what activities you will engage in. One type of business insurance is product business liability insurance. If you will sell products, you will want to purchase this type of insurance to protect you and your business against any business liability resulting from non-performance of any of the products you will sell. Likewise, if you will provide services to other people, you will also want business liability insurance to protect both you and the clients receiving your services. That way, if a customer claims to have suffered damages through your own qualified procedures, this type of insurance will protect personal possessions and pay for your protection against the claim. It also insures that a client who has suffered damages will be sufficiently rewarded.
Another type of business insurance is replacement. This protects you against theft, and insures replacement of the stolen items. When purchasing replacement insurance, it is important to check whether or not it is partial or full replacement. Full is always preferable, since replacing items can become quite expensive.
If you don’t have liablitlty insurance your company its not illegal but the Health and Safety Executive will ask to see your certificate of insurance and any other relevant policies, when they inspect your premises. You can be fined up to ï¿½2500 for any day. Failure to display the certificate to inspectors can lead to a ï¿½1000 fine.