A five-year plan for the business
1. Terms Of Reference: In the assignment, the target is to set up and consider all measures involved with a new web site design company, which offers good quality services and products. A five-year plan for the business has to be organised as well. All finance issues should be considered to help decide where to start.
2. Procedure: For financial figures, HSBC offered help for people enquiring in starting a new business. They provided an information pack detailing many topics needed to be considered when starting a business. The Internet also offers some vital information to help with new businesses.
3. Findings 3.1. Finance: Initially, the business will be run from home as the only two employees at first live in the house. This saves having to use vital capital at the beginning of the business when there is little money coming in. The funding for the computer hardware and software and also extra furniture is coming from existing capital. Other options for capital would be to seek a bank loan or grant from the local council. For example, HSBC offer a small business loan starting at ï¿½1000 up to ï¿½25000 with interest rates as low as 9.1% repayable at a maximum of 10 years. See
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3.2. Insurance: All of the business possessions will be covered by HSBC business insurance. HSBC offered good prices however a detailed list of possessions needed to be covered by insurance has to be provided to HSBC. Insurance can be paid in a variety of arranged instalments. 3.3. Location & Premises: The premises have already been chosen above as the house, which is located in the central part of Peterborough near the larger businesses so to advertise the company to businesses nearby and to their customers.
3.4. Staffing: To begin with there will only be two employees who are also the partnership in ownership in the business. There will be no dress code, as the business does not work directly with its customers. Wages will be based upon the business income so long as there are just the two employees. If there were extra employees, who had no share of the business, a fixed wage would have to be organised.
3.5. Marketing: The house, as it is near many other businesses and customers will have adverts and signs around it to obviously show what the business is about. The businesses will also advertise in local papers and also send letters to local companies offering the web design service. The company may also have to offer a market research service themselves to show to customers how effective web advertising and selling could be for them.
3.6. 5 year plan: 1st Year: the hardest year as the business is only just starting. This year is simply for finding customers and making money to cover what has been spent. 2nd Year: Again, another year to repay the costs. By the end of the year at least, a profitable margin should have been reached where all costs have been accounted for. 3rd Year: this year will be used to plan to expand depending on the current custom level. All year, money will be saved for expansion. 4th Year: If all is going well, a new store will be set up in a new town or city offering the same web design service and computer software and hardware for sale.
5th Year: Start to regain capital spent on new store. 3.7. Business Image The business should hopefully show a professional look. Adverts will be reposted after a few customers have left feedback to show the general public opinion of the service. Also, examples of some of the websites already created by the company will be posted. 4. Conclusion: The business should be able survive without financial backing from an outer source but HSBC is always on hand if the situation changes. The business can expand to wider areas with a good image and with the online adverts.
5. Recommendations: As the premises are already owned in a good location, it would be ideal to buy affordable but appropriate hardware and software for the business to start. Any unexpected loans needed should be from a bank offering a reliable service with good repayment rates like HSBC.