Setting up a business Essay
I have got £100,000 to spend on setting up a business of my choice. I have done a survey that has made me decide that I will start up a business where I can sell sports branded clothes and other sorts of sports wear. The store will cater for all ages and both males and females. Also I know from personal experiences that Loughborough sometimes has a limited choice on clothing because all the stores work with seasonal clothing. So if I wanted to buy a nice pair of swimming shorts in the winter season I probably would have a very limited choose due to the fact that most people go on holiday in the summer, so usually the good stuff is only on the selves in the summer. Loughborough has a limited range of stores so it is an ideal business were profit can be made. I have decided to start the business in a partnership because it means that the business will be easy to set up and also will be more efficient.
The partners in the business are Veena Mistry Bhavini Patel and myself. The reason for going into partnership with these people was that know them very
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Because I am in partnership I have high funds to equip the store well with fancy selves and other nice things. Here is a list showing important items that will be needed to start up. Item Number needed Sub-total Logo (Light) 2 £6,000 Racks 15 £1,890 Selves 7 £678.00 Tills 3 £1,500 Bar code scanner 3 £1,200 CCTV 5 £4,500 Electric Shutter’s 2 £9,000 CCTV Monitor 3 £900,00 I decided to buy all these items because I think I need these things to start up my business. I chose the security things because the premise is in town and if there is adequate security there is less chance of a break-in. I started on a budget for the equipment and the budget was £30,000 and as you can from the table that I have reached the budget, which is good, because now I have more money to spend on other things. I have decided to spend a limited amount on stock.
The way in which I have controlled the amount spent on stock is by having a set amount to spend on each brand. This way I know that there is stock from each branded company and also it means that I will not have to set a budget to spend on each type of clothing because a full range will be set in the band. Also this way I know which brands tend to be a bit more expensive than another is so I can work out expenditure figures on this thought. Here is a table showing how much will be spent on each brand: – Brands Amount Spent (£) Nike £10,000 Adidas £10,000 Reebok £10,000 Umbro £5,000 Ellesse £8,500 Puma £4,000 Fred Perry £2,000 Timberland £7,000 This is the initial amount of stock that I am going to buy. I am not sure if that I will need more stock once I have started up but at the moment I think I will have enough. My supplier will be a company called “Designer Label & Co.” They are situated in Loughborough and their wholesale days are Sundays, Mondays, and Tuesdays. Here is a graph to show how much has been spent on the equipment and the stock.
The pie chart shows how that I have spent more money on the clothing than I have spent on equipment. – I spent £56,500 on the Sports wear. – I spent £25,768 on the shop equipment The amount that I have spent so far is £82,268 To make sure that my business would be successful in Loughborough I made up a survey and asked the shoppers in Loughborough town centre to fill it in. From this survey I got a good idea of what people thought of my new business and this would be the point that I would find out whether I had a successful choice of business. This survey is apart of my market research were I went into town and asked the public for their opinions. On the next page is a copy of my survey, which I have decided to tally instead if putting all ten of my surveys. SURVEY Age: Under 16 Gender: Male 16-20 Female 21-30 31-40 41-50 Over 51 Do you wear branded Clothes? Yes No What kind of shops are these sorts of clothes purchased from?
Intersports JJB Sports Gill Sports GT Sports JD Sports Kudu Sports Do you think that Loughborough has a wide Variety of sports stores? Yes No What brands do you like to wear the most? Nike Adidas Reebok Umbro Ellesse Puma Fred Perry Timberland Here are my results I produced from my public survey: – The ages of people who filled out the survey: This graph shows that more people under the age of 16 filled out my survey. It also shows that no one over 51 filled in my survey. The Gender of the people who filled out my survey: My pie chart shows that it was a majority of males rather than females that completed my survey it was a count of 8 males and 2 females. If the they wore branded clothes or not: The pie chart shows that the proportion of shoppers that I came across did wear branded sports clothing. It was the minority of 3 people who did not wear branded clothes the other 7 did. The variety of stores in Loughborough: I also found that 5 out of these 10 thoughts that Loughborough had a variety of sports stores. That’s half of the people I surveyed. The stores, which items of sports clothing, are purchased from: The store most people shop in is JJB Sports. People shopped the least in Intersports.
Brand names, which best suit Loughborough shoppers: The majority of people chose the brand Nike. This was 90% of my applicants. The other 10% said that they preferred Fred Perry. >From Looking at my results I can see that Loughborough has a wide audience of shoppers that mainly all have different tastes. This survey has helped me understand the public and it gives me a starting point to my business. It also tells me that not all of Loughborough’s shoppers are into sports wear and that the brand NIKE is very popular with shoppers in Loughborough. Therefore after producing this survey and analysing the results I feel that the business will be a success in Loughborough providing there is a lot of NIKE stock and also the next favourite FRED PERRY. I decided to interview someone who owned his or her own business. This person happened to be a friend of the family called Sam. I decided to interview him because he owns his own business and also it is in the clothing sector. My Questionnaire is on the next page as follows: – From this interview I have learnt a lot about the clothing industry. There are many things I could talk about including the good points and bad points about this type of business.
According to my interview the location of the business is very important. Sam decided to rent out this property because it was cheap and on a ring road which probably mean that shoppers and also suppliers could have hassle and congestion free access to the store. I also found that it cost him around £50 000 to set up his business, which in tern means less of a debt to pay back if you had a loan. Also it tells me that this type of business is not going to cost very much to get going. Another good point is that there are financial rewards for thriving businesses. Also there are other types of rewards like popularity. In this sector of the market a lot could be learnt. So business knowledge and know how increases. Also contacts with other companies are made, maybe even cheaper deals on the buying of stock if you have internal communications. Also the pleasure of doing this type of work. The bad points or disadvantages are: – Working hours that are to suit your business rather than yourself. Often having to work overtime to suppliment work missed out during the day.
The venerability of being in the wide world, Not knowing what’s around the corner, having to watch out for con artists. These are just a few of the issues about going into business I discussed when I was doing the interview. I decided that a town location was ideal for my business. This was because if I were to compete with other store I would need a well-situated location. After searching around the town area for a property I came across a shop almost in the heart of the town centre. This property, on Devonshire Lane is an ideal property for my business because it means that shoppers could pass through the store on the way to or from a car park, which is situated behind the premises. This store was previously is women’s clothes store that had closed down and as it was already a clothes store this makes it an ideal place to buy. With the partners I decided to buy this property. The reason for not just leasing out the premises we felt if we were going to spend around £26 000 on refurbishment and security it would be only wise to buy the property.
I decided to investigate on the property itself. I found out that the price of the property to buy stood at £45 000 because it needed slight modernisation so in fact we got the shop at a bargain price. The size of the premises were unavailable at the time I was investigating this was also the case for a picture of the shop. After having a brief tour around the premises we were satisfied with what we were getting for our money so this was going to be our new shop. After a long discussion between the partners we decided that we would call our new venture ‘BVB SPORTS’. The reason for this name was that it had incorporated in it all three of the partner’s first initials and also it sounded like a very catchy name. So now our businesses trading name is BVB SPORTS.
The total amount I spent on the business was all of my expenditures added together. Here I have drawn up a table on the things that I have spent Money on for the business: – Expense Amount spent (£) Property £45 000 Stock £56 500 Refurbishment £25 768 Total £127 268 This graph shows the total that I have spent on my business. In all I have spent £127 268 so therefore I have a lot of petty cash. In total we had £300 000 to spend. We spent just over half of this money and now I need to do something with the other half. As we had approximately £173,000 left we decided to put into an account where the three partners have joint access to the money. This bank account is with the Loughborough Building Society.