I have decided to start up video rental and buy shop. The business idea is to sell and rent video, games and DVD's to make a profit. The shop will be held in Tottenham, London because of the environment. There are a lot of teenagers in Tottenham and they are very interested in video games and DVD's these are one my target audience. Most adults in the environment are more interested in the DVD's and videos and they to be my target audience.
I am going to research information from the public in the district of where my shop will be located by assembling a questionnaire for the public to get the information on the views of the customers. I will also have to research the location of where my business will be held, I will do this by going around the location to find a suitable property to locate my business. While doing this I will consider how many people would be interested in using the video rental and buy shop. I will also locate any other existing video shops to compete against.
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I will research different types of advertising such as in the local newspaper, and on the local radio, I will also consider putting up posters around my location to inform people of the new business. I will do this by phoning up the local radio and newspaper to find out the cost of advertising. I will carry out research to find out about supplies and suppliers. I will do this by phoning up different warehouses who supply videos and DVDs and finding out the costs and the ranges of DVDs and videos they sell.
I will have to choose what kind of company I am going to be there are a different types company I can be and that is Sole Trader, Private Limited Company or a Public Limited Company. Private Limited Company This is a business which is owned by shareholders, there are protected by limited liability. This means shareholders have liability for the debts of the company are limited to the amount they originally invested. Here are the advantages and Disadvantages of a LTD. The main benefit of having a LTD is that they have Limited liability which means if there in debt they cant take your private property for example your car.
The main disadvantage of having a LTD is that it is expensive to setup and the company have to be registered to the business registrations office and to do this you must have a solicitor which will cost between i?? 100- i?? 200. Public Limited Company It's not appropriate if I was a Public Limited Company because the company has just started and it is far too small. Sole trader These are main advantage with a sole trader is that its not very expensive however you must tell income tax authorities and the department of social security or you will be taxed under schedule d and will pay self-employed national insurance contributions.
Another advantage is that all your profit is kept and the flexibility is very useful for example the owner can quickly switch to something else. I am going to chose being a Private limited company because the main advantage is that you have limited liability which I like the idea of. Business Objectives As a new business my short term objective is to break even in a year and to get a reputation for the company for being the shop with the widest range of the DVD, Videos and Games and also to have best offers to deals to the consumers. Another short term objective is to have a 33% in turnover in the second half of the year.
My long term objective to the business is to expand and grow or to start up a franchise. The long term objective should b about four or five years. My company needs to make a profit, making profit is very important to the business because then it will not survive. I have chosen to be limited company and if I don't make a profit I will fail to pay the wages, pay the suppliers, pay interest in charges, pay a dividend to its shareholders and invest money to allow it to grow and expand. Another I need to always have a product development so the customer will always come and my turnover and market share will increase.
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