Control of the business
It is easy to set up there are not complicated procedures. Ms Moffat has unlimited liability. Gina is her own boss. She has full control of the business. Work load and decision making cannot be shared. Opening hours can be flexible. Success is dependant on the skills of the Ms Moffat. Quick decisions can be made as there is no one to consult. Long working hours may be necessary for the business to be a success. Bad debts can usually be avoids as customer normally knows owner. Illness and sickness can be checked up, and then the shop would have to close down therefore loss of sales.
All profits belong to Gina. May be difficult to raise funds. The only requirement that Blooming Scent really would have to do is register with the Inland Revenue (taxman). Also Ms Moffat does not have to submit her business accounts. In big businesses there are certain departments do certain functions, but as a sole trader Gina has to do most of the work such as advertising, recruitment and many more. But because the work load is so much for Gina she has to recruit someone to do the admin side of work.
Aims & Objectives All businesses have to set out aims and targets to achieve by a certain time for example for some businesses it would be to increase profit but for others it would be to satisfy customers and meet their needs. Blooming Scent’s main aim is to train young people. And her others are to expand her business and survive. To expand, survive and increase profits are aims and goals for most businesses. For example to make profit is the main aim in most businesses because if the business is making no profit at all then it is not progressing and the chances of the business failing increases.
Survival is also an important issue for most businesses, especially for sole traders because of the smaller amount of money compared to limited companies. If the business fails then it has lost all the money that has been put into it, this is the one of the worst things that could happen to a business that’s why it is a main aim. Some businesses only care about the money but in Blooming Scent it’s different. Being young and having gone through a lot of problems, even imprisonment.
Gina still carried on making her own business, for this reason she has made her main priority to get young people involved in these sorts of activities. One of the things she is involved with young people is the “Business Mentor Project” where students like me have to investigate small businesses, in this case we are investigating hers. This involves the students visiting her premises and her visiting the school and giving her professional advice.