Business plan for a new shop
The business idea I am going to be presenting is a clothes shop called “Raiinbow”. My shop will be aimed at clothes for 13-25 year olds. My shop will also sell accessories and shoes. It will a classy, bright, fashionable shop, that will range in all sizes and lengths for people who have trouble finding clothes they like or clothes that can’t fit. Everything will range from high street brands to well-known name brands that will be sold there as well. We will also personally design t-shirts and other garments for a small price.
We also have a small discussion box to talk to young people to ask what they like and would like to see inside the shop to develop it and bring in more customers. I want to start this business because I want to reach out to all young people and be able to offer them something that they can wear and enjoy. I want to be able to see the smiles and happiness on people’s faces as they find something they like without worrying about high prices and having to put it back. It would make them more confident in themselves and me because that I can make them happy.
This enjoyment and passion for my business should also enable me to live a reasonable quality life. In terms of income I will be making. The competitors in the market place will likely to be: Primark, Topshop, H&M, Next, New Look. These shops also appeal to young ages as my shop does. My shop would be on the corner of the high street but easy to find and easy access for all customers. It will be small and easy to manage to begin with as I will be running it by myself to start with.
my customer profile would be customers from all ethnicity and certain ages that never feel comfortable in buying clothes because they either can’t find the size or something they like. They would most probably like all colours as well. The ownership of my business is a sole trader which will be run be one person who is liable for everything to do with the business. The advantages of being a sole trader is that its is a small business so less money is required, quick decisions can be made without having to consult others, all profits are kept to one person and financial information can be kept private.
The disadvantages of being a sole trader can be If the owner becomes ill or goes on holiday the business may suffer as they are not there to control the business, they may have work very long hours, prices are often higher than larger organisations, money may be difficult to raise as many banks and other lending institutions are reluctant to lend to sole traders because they have a higher rate of bankruptcy and they have complete responsibility for all the debts of the business. This is called unlimited liability.
This means the owner might lose all of their personal possessions if they cannot pay the debts of the business. There are two different types of laws that every business must abide by and follow all rules within it. My business must operate within the law as it acts as a constraint. Criminal law is the first one that is enforced by the government. All individuals and businesses can be prosecuted. The second one is Civil law which allows an individual or business to sue another individual or business to gain compensation.
All businesses in the EU must operate within the same framework. If the laws in each country were not the same it may give another business a bigger advantage. EU law overrides the law of individual nation states. The Voluntary Codes of practice are regulations that businesses or organisations have drawn up between them. The advertising industry has a voluntary code of practice policed by the Advertising Standards Authority ASA for example. The Health and Safety Act 1974 means that the business must have certain regulations to be able to obey the law.
Some of the provisions of this act are; employers must prepare a general policy on health and safety in written form, which should be put on display, employees have a legal obligation to comply with health and safety procedures, the business must give training information, instruction and supervision to employees on health and safety issues, trade unions which appoint safety representatives can inspect premises and investigate the cause of accidents and businesses must provide safety equipment and clothing to employees free of charge.
There is also Employment law which is separated into two categories; Collective labour law and Individual labour law. Collective labour law deals with trade unions and industrial relations, and Individual labour law deals with the rights and obligations of individual employees. This could include employment rights, rights of workers, contract of employment and dismissal. The next law is the Data Protection Act. This law allows employees’ information to be protected and only they can access this information.
The Equal Pay Act says that workers were entitled to the same pay rates and conditions as other workers in a place of employment doing the same or similar work. The Sex Discrimination Act is a law that makes it unlawful to discriminate on grounds of gender or marital status. The Equal Opportunities Act was based off this Act and contains the Race Relations Act 1976, The Disability Discriminations Act 1995, and The Minimum Wage Act 1998.
There is also the Consumer Protection Act which has 5 major consumer legislation acts in criminal law; Weights and Measures Acts 1985, Trade Description Act 1968, Consumer Credit Act 1974, Consumer Safety Act 1978, Food Safety Act 1990. There is also the Competitor Law which also has 5 major consumer legislation acts; Monopolies Commission, Market Shares, Office of Fair Trading 1973, Competition Act 1998, Regulatory watchdogs.
Price is the amount of money a company charge for a product, which is not necessarily the retail price. Companies have to be very careful about the price they pick for certain products to make sure it fits in with the marketing range. E. g. if a product has a high quality packaging but its price is so low, customers might not believe it is a quality product.