New business in the east London area Essay
For this coursework you must produce a detailed business proposal for a new business in the east London area. Your business proposal, or (business plan), must show that you have researched the idea fully. You must conclude your proposal by evaluating whether your idea could be successful. For this piece of coursework I have been asked to produce a detailed business proposal for a new business in the east London area. My business proposal will include different types of research and if I have a successful business.
I have decided to investigate setting up a Bakery that will serve breakfast and lunch and different varieties of snacks such as cakes, doughnuts, sandwiches, chocolates, pastries, crisp also soft drinks, hot chocolate, tea and water. I want the future generations to not be obese or anorexic that’s why I will be selling healthy food. I think this will be successful because there aren’t many bakeries in east London there is a lot of unhealthy food shops so that’s why I think it will be a great idea. It would be successful because there is very little competition.
There are a lot of shops that sell junk food but I want to sell healthy food
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My long term objective is to expand and open maybe a few more branches. My business will be a partnership because I would have fewer responsibilities and fewer jobs to do. Also if our business were to become bankrupt we could share the responsibilities and work through it together. I will need to carry out research to find out what healthy foods people like eating, what areas haven’t got a bakery, what areas have less bakeries and the cost of staff wages. I will also need to research some health and safety laws.
I will do this by writing up a questionnaire that will answer all my questions. Legal Structure The Advantages of being a sole trader are that you don’t have to share profits and you can make decisions quickly because you don’t need to get permission or ask someone before you do something and finally its really easy to set you don’t need to fill out contracts or forms because there is only the one owner. There also Disadvantages of being a sole trader are it’s harder to keep up with a larger business in terms of prices.
Another Disadvantage is unlimited liability its when the owner is fully responsible for any debts the business has which also means that the owner would have to sell shares or his own personal properties to repay the debt. Another is the sole trader becomes ill it will effect the business. The Advantages of being a partnership are its easy to set up and the amount of capital needed to set up the business is often small and it’s easy to raise. Another advantage is partners could specialise in certain areas.
It’s less stressful and there are fewer responsibilities. There also disadvantages of being a partnership are the profit that the company makes has to be shared equally between the owners. Also some partners could have disagreements about the running of the business. One big disadvantage is if one of the partners dies or gets bankrupt, the partnership must be dissolved. My business will be a partnership this is because I feel that I will benefit from my colleagues advice. Also because I would have more finance than a sole trader and it would be less stressful.
I would find it comfortable to share the business responsibilities. Disagreements can lead to break up of the business for this reason I think that we should have a Deed of Partnership. Also I could take more holidays and won’t have to worry about anything because my partner could take care of everything while I am gone. Location It is important to choose the right location for my business because this could determine if the business becomes successful or not. I want to choose an area that will benefit my business the most.
The best location for my business I think is near a school/football ground or inside a shopping mall because that’s the areas that are mostly busy and that’s where there are more customers and more customers mean more money/profit. My business could either be in near East Ham high street or near Ilford exchange because both areas have a large population of different ethnic minorities and that would be great for my business because I’m selling multi cultured food. They also both have easy transport access e. g. train stations, buses and trams.
This is the idea that I have come up with: Marketing Businesses need to market their products and services because they need more customers they could advertise using e. g. leaflets or internet or any other forms of media. The marketing mix is made up of four parts they are Price, Product, Place and Promotion. It is important for me to make sure that the marketing is right for my business because if my prices are too low I won’t break even and if there too high I might drive away customers. I need to find a price appropriate for my business.
Promotion is a very important factor for a business because you need to advertise to bring the customers otherwise people might not know about the business and therefore you might loose out. I did a questionnaire and gave it to 20 random people in Ilford. I asked questions about age and gender to help me to find out which market segment would be most likely to buy my products Although I only asked a small sample of people, I found out that the customers who are most likely to buy my product would be adults.