Last Updated 08 May 2020

Setting Up In Business

Category business
Essay type Research
Words 3125 (12 pages)
Views 625

I have decided to open a newsagent with a grocery and off licence in High Street South, because I can work flexibly and I don't like to work under someone. I have chosen this location because it is near to my home and I am already familiar with the place and it is highly populated area of minority race of Asians. There are also fewer competitors when compared to high street north.

The products I have decided to sell in my shop are chocolates such as Mars, Snickers and Milk Way etc, crisps such as Walkers, Mc Coy and Doritos etc, drinks such as Coco-Cola, Pepsi, Ribena and Rubicon etc and groceries items such as breads, eggs, baked beans, rice, fish, and Srilankan foods such as mixtures, cardiac, ginger, onion, pickles, sambal and potatoes etc, frozen foods such as fish, paratos, dosa, pori et. I will also sell newspapers such as News of World, the sun etc, and fresh vegetables such as bringal, carrot, cauliflower etc. In High Street South there are few shops.

The main activities of the business are to provide retail services I will need to purchase some stock from the cash and carry and the wholesaler. I need to have the shop fitted and I thought I would buy a shop and mortgage it and apply grants from the government. I may expand the business after one year by selling telephone cards, national lottery and travel cards. Task 1 b Unemployment I do not have a job at present so I think to set up my business so I can have a work of some kind so I think setting up a business will some kind of work and sometime let me to be successful in my working life. Help from the government

Haven’t found the relevant content? Hire a subject expert to help you with Setting Up In Business

$35.80 for a 2-page paper

Hire verified expert

I want to set up my own business because there is more incentives from the government or bank such as I can set up my own business by getting loans from the bank and mortgage the shop and I can apply grants from the government and I can expand the business easily. There is a gap between the markets I want to set up my own business because there is less competition and the people will not need to travel to High Street North in order to buy product and this can save them an average of 20 minutes. There is an opportunity for a better life and there is an opportunity to have control over my life. No need to work under someone

If I set up my own business I don't need to work under some one and I can work for myself and I can choose my own time to work. To be my own boss I can easily make decision because there is no one to consult. I can keep all the profit because I am the owner and I am responsible for all the debts of the shop. I can work flexibly and I can make my own decision, which can let me to be succeeded or let me down in my business. I think to set up my own business because I think I have the potential idea to be successful because I have good retail knowledge and I want to take risks in order to retire from my work early as possible in the future.

I think if I set up my own business I can control over my working life and I can retire early from working if my business become successful. Some people used to start up their own business because some of their family may already start their own business and may have succeeded and in my family no one started their own business so I want to start a business and control my financial circumstances so in future my family members start their own business leading me by an example.

Some people may set up their own business because they do not satisfied with their current employment and they believe they can earn higher income by working for oneself and start their own business. Task 2 Questionnaire I prepared a questionnaire for the person who is in business which sells same kinds of products that I like to sell. i foundout that KSP super food in High Street North opens at 8. 00 am - 11. 00 pm to provides services to their customers but they do not sell news paper and all the news agents in Newham opens at 7.

00 am and closes at 8. 00pm so using the advice and all the business says that they monitor their sales through invoices and all of them set up a business in order to make profit and to be their own boss. All of them got financial help from the bank in order to open their business. The business I interviewed says that it takes years to make profit and they need to introduce some offer for the products regularly. HSBC In order to set up my business I visited HSBC bank and got a start-up pack.

In order to maintain my finance and it clearly shows how much I can borrow at which interest rate and how to control my business and the start up pack clearly shows to maintain the finance of the shop such as seeing the sale revenue for the days and the sales revenues are paid my business accounts every Monday and expenses such as payment for the products and the loans and mortgage repayments, business rates, lighting, heating, water bill, electricity, telephone, transport, vat and tax are paid thorough bank I calculated the closing bank balance in the business account by subtracting from the opening balance every month in order to find out the net profit every month and the start up pack also explains how many days it takes to credit a cheque and how to monitor the balance of the accounts. Start-ups Co UK I visited www. startups. co.

uk in order to find out about the small business in 2004 and I know there is more chance to be successful because the economic pictures and new figures have revealed that in the year ahead and The Institute of Chartered Accountants (ICA) revealed that their confidence index stood at a balance of plus 16. 9 this quarter, up from plus 3. 6 last autumn and plus 3. 1 in the summer and many small firms already expects great profit with a 7. 2 per cent increase in turnover anticipated over the next year and the businesses in London were more optimistic about 2004 than their counterparts in the rest of the UK, with capital-based firms predicting a turnover increase of 6. 4 per cent and a profits rise of 6. 7 per cent over the coming year. Mintel

I visited Mintel website in order to know about the marketing search of my local area and I could get the research because it work such as we need to order it. We will get by becoming a commercial user and we need to pay for it. I visited public library in order to know where to get to start and develop a business and I come to know that council provide council grant 15% of the capital to start a business to provide employment to the people and Newham council expects by 2010 more families to some to Newham for jobs and settles here this encourages retail business like my business and it provides various kind of address such as newspaper whole distributors, market researchers address and where to get advice to develop a business after starting the business etc. Task 3

In order to set up my business I handed out the questionnaires to the public (refer to appendices 1) to know about the questionnaire and appendices 2 show the results in graph and I asked them to fill it for me and I ask 50 people to fill it for me in that 23 people are between age of 16 and 18, 10 people are between age of 19 and 35, 8 people are between age of 35 and 50 and 9 of them are above 50 19 people in High Street South spend between i?? 1and 5 on cool drinks in a week, 9 people spend between i?? 6 and 10 on cool drinks in a week, 20 people spend more than i?? 10 on cool drinks in a week while 2 people do not spend any thing on cool drinks.

From this I know that there is a demand for drinks in the local area if I am going to sell them at a reasonable prices and this will bring confidence to me to start up a business. 18 people in High Street South spend between  1and 5 on newspapers in a week, 9 people spend between i?? 6 and 10 on newspaper in a week, 3 people spend more than  10 on newspaper in a week while 20 people do not spend any thing on newspaper. 35 people in High Street South are interested in having their newspaper delivered to their home while 15 people are not interested in delivering the newspaper to their home so from my questionnaires I preferred to arrange to deliver the newspaper directly to the customers home.

11 people in High Street South preferred the Sun as their favourite newspaper, 9 people preferred Mail as their favourite newspaper, 8 people preferred Independent as their favourite newspaper, 2 people preferred Sports as their favourite newspaper while 15 of them preferred Newham Recorder as their favourite newspaper 3 people preferred Mirror as their favourite and 2 people preferred Jang as their favourite newspaper. 18 people in High Street South use Internet for shopping while other 32 people are not using Internet for shopping. 21 people in High Street South purchases their products from Sainsburys, 10 people purchases their product from Tesco, 8 people purchases their product from Asda, 2 people purchases their product from Londis, 2 people purchases their product from Kwik Save, 3people purchases their product from Lidl, 4 people purchases from Seelan Enterprises.

Supermarkets like Asda and Tesco are open 24 hours and they affect my business because they have high purchasing to sell their products cheaply compared to any supermarkets in Europe and customers travel nearly half a mile to buy their products cheaply and there is an advantage that if I am going sell at the competitors prices so they may intent to buy from me in order to cut the travelling time. From my questionnaire I came to know there will be demand for my product if I want to open the shop from 7 am till 11 pm because I am going to sell travel cards and newspaper which has demand in the morning and the alcohols is used to sell at nights rather in the morning. Some of my competitors like Tesco and Asda are open 24 hours and if I want to keep up with the competition I need to open maximum of 14 hours a day and I visited the local area and there is many families and there is Eastham college is near to it so the students may buy drink, chips or Cigarettes.

In order to set up my business I use the advice of HSBC bank plc how to borrow money from the bank at cheap interest rates For example if I want to buy a premises I can mortgage it for 30 years at a cheap interest rates rather than getting a loan and I can borrow loan in order to set up a business at a cheap interest rates in order to cover the start up cost of a business and I decided to act on their advice and to create a database in my home computer by entering the daily sales and expenses and to calculate the net profit as they advised me. I used the advice of the people who are already in business for the opening times of the stores and I thought to open my shop at 7. 00 am and close at 11 pm because my shop is an off licence and newsagent.

Newspapers and groceries are sold early in the morning and the alcohols is used to sell more in the evening from the conclusion of the business people and they says it takes them more than year to make profit so I think to concrete on the sales than the profit for the first six months and I think to introduce offers regularly in order to satisfy the customers. One of my friend advised me to put a private cash machine so the customers can uses it for urgent purposes and I will be paid commission for it by some private company so I think to allow a private company to put a cash machine on my shop and he advice me to offer 5% on the sales of the product for the first three month in order to get customers.

I think my idea to set up a business will be successful because there is a gap in the market sales because the customers in the modern world want to cut the travelling hours ad expect a high quality services and to be served quickly and I think I have the talents and skills to do it. I received information from the HSBC Bank including the information and the steps, which I need to start up my own business. They informed me that in order for me to start up my business I must have a well structured business plan containing the product that I would be selling and at what price. I must also know who my potential customers are and where I am planning to locate my business. I must also identify whom my competitors are and what I can do to out run them. Distinction

Task 3c Benefits of setting up a business There is a gap between the market in the local area and the local people need to travel 1 mile to buy the products cheaply and there is a benefit of setting up a business because the local people preferred to buy from me in order to cut the travelling time. If I set up my own business I can have a control over my life style and there is a chance to become successful in working lifestyle and I can make my own decision which let me to successful in my life and I can keep all the profit after all the expenditures. From my questionnaires I came to know that a family in east ham are spending an average of i??

100 per week on groceries, buss pass, lotto, cool drinks, cigarettes and alcohol and I am the only shop providing all kind of services at one shop and the customers in east ham may intent to buy products from me in order to cut the travelling time and their shopping time. According to Newham Council there will be more families in Newham by 2010, which means there will be more peoples in areas so I will have more customers and sales in the future. Many supermarkets used to provide free delivery on products when they purchase over i?? 50 so I think it's a good idea to provide free delivery to the customers because this attracts more customers and more sales. If I set up my business there is a chance to become successful and expand business at higher level and earn higher income and I can work for myself.

The place I choose to set up my business is located near to the east ham campus the students who used to study in Eastham campus will buy my product like cool drinks, chips and Cigratees if I sell them at reasonable prices because 23 people I interviewed are aged between 16 and 18 who are generally are students who tent to buy snack foods. There is an advantage of me locating near east ham campus because students may buy bus passes and e-top up or buy vouchers for their mobile phones which can bring good sales for my shop of locating near to an college. Risks of setting up a business I will be left will be left will a lot of responsibilities when I set up a business.

I will need to work long hours and I will need to monitor all the products and to ensure that the store does not run out products and I need to be careful with fraudulent cards and I need to check the expiry dates and I need to ensure that I work within the law. I need to purchase my product from cash and carry and before I purchase them I have to ensure that I check the expiry dates so that I know that the products that I will be selling to my customers are in good condition. This is because I have to follow the health and safety law and to work within law. I have to be aware of my competitors and to monitor their offers and sales on their products.

Some competitors of my business like tesco and Asda etc are open 24 hours and they can sell their products cheaply because they have high purchasing power and they can bring a revolution in local areas in terms of sales due to their prices and they are expanding all over the country and they can attract my potential customers with good offers and they can make my business unsuccessful. My competitors such as Sainsburys, Tesco and Asda have good control in the markets of East Ham they sell their products at reduced prices at higher quality and they have high purchasing power so they can sell the products at cheaper prices. I also need to pay back my loans and credit card repayments on time every month if my business is not successful then this may indirectly affect my business in terms of tensions and lack of confidence in business.

Many people like to buy the products from supermarkets because they think the products of the supermarkets have high quality opposed to those sold in small local shops. Supermarkets sell reduced prices and customers trust their products under their label and this may affect my business. Supermarkets provide free delivery on the products if they buy for more than  50 this may affect business like mine because the customers of my business expect this kind of service from my business and this can increases my expenses. Supermarkets like Asda, Tesco and Sainsbury used to advertise their products thorough leaflets, television and newspaper because they have the high purchasing power if I want to promote my products like supermarkets the sales revenue I receive is not enough for the promotion method.

Haven’t found the relevant content? Hire a subject expert to help you with Setting Up In Business

$35.80 for a 2-page paper

Hire verified expert

Cite this page

Setting Up In Business. (2018, Aug 07). Retrieved from https://phdessay.com/setting-up-in-business/

Not Finding What You Need?

Search for essay samples now

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire verified expert