Business idea

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The short-term aims of my business are to survive and to break even. I also simply wish for the business to be set up and to get it known. Long Term The long-term aim of my business is to make a profit and to expand. It is also an aim to try to keep regular customers or even to attract people from outside of the village to shop there. Objectives. To achieve my business aims I am going to have do some certain things. My short-term aims were to break even and to just survive.

To do this I am going to have make it known that I am starting up the shop. The people in Acol will find out about the shop through simple word of mouth but to make sure that everybody knows about it in the village I will advertise in the local newsletter that the village has. Once people have been told about the shop I will have to make it inviting for them. I could do this by making the inside of the shop village like. (e.g. not to modern).

My long-term business aims were to make a profit and to expand, as well as to try and get customers from outside of the village to shop there. To do this I will advertise in more wide spread newspapers, like the ‘Adscene’ or ‘Thanet Gazette’. Once people know about the shop then they will hopefully come to use it because they like the idea of a local shop or maybe even just because they were passing by. To keep regular customers I can perhaps open accounts for those who regularly use the shop and who live in the village. They could then perhaps pay off what they owe once every week or fortnight. This would involve a degree of trust so would only probably be used for those who use the shop a lot.

Business Management

I have to decide what type of business my shop should be, should it be a sole trader or a partnership. There are advantages and disadvantages for each one that I have to consider before I can decide which one to be. Sole traders have the advantage of being easy to set up, allowing the shop to be set up quickly and to start getting customers in this is the same as a partnership which also has this advantage of being easy to set up. Sole traders are also easy to run because you do not have to get the permission of anyone else to change something, which is unlike a partnership because you have to get the permission of the other partner.

There are also tax advantages to being a sole trader due to them being taxed in a different way to other businesses. National Insurance Contributions (NIC’s) are a tax on a worker’s earnings. If you are a sole trader then you can save yourself a lot of money by setting up as a business because you are able to keep all of the profits for your self, this is different to a partnership because in a partnership you have to share all of the profit with one or more other people. There us also the upside of not having privacy about your business, the only people that you have to tell is the Inland Revenue and Customs and Excise.

On the other hand there are disadvantages to being a sole trader that a partnership does not have. For, instance in a partnership it may be easier to raise capital to start the business off. This can be different with a partnership because the money cane be raised by more people and sometimes there a people called sleeping partners who just supply the partnership with initial money and then don’t do any work. In a sole proprietorship you also have to work long hours to keep the business afloat, where as in a partnership there are several people to spread the workload across and this will decrease the amount of stress and work for each person.

The problem of lack of continuity and illness are also a big factor in sole proprietorships with the sole trader becoming ill or dying therefore not allowing the business to continue to run. You are less likely to come across this in a partnership because if one of the partners becomes ill then there are always others to make sure that the business continues to function. Now that I have looked at all of the arguments that I can look at to try and make up my mind as to whether I am going to be a sole trader or become a partnership, I have decided to be a sole trader.

There are a number of different things that influence my business and how it should operate. One of these things is competitors and how I will compete with them. In my situation there are no actual competitors that I have to contend with due to there being no other shop in Acol, but there are competitors that are situated in Birchington and Minster. In these two places there are quite big shops that offer a wide range of goods for the consumer making them quite a good place to go if you have any small shopping needs. Although this may produce a slight problem, I don not think that it will be a particularly big one, because my assumption is that people would prefer to go to a small local shop for their basic supplies, than to go to all the way into a another town to do the same thing.

Due to the position of the shop I will also have to consider my pricing because prices often vary according to the area that you are in. For instance, if you were in a garage just outside of Ramsgate and you were to buy a chocolate bar and were to buy one later that day in a service station on the motor way then you would expect to pay more. This is due to the service station being the only place in the area at which you could buy a chocolate bar meaning that they can put the prices slightly up if they wish to.

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