Report on setting up of a coach company
For this reason and the lack of information obtained from the coach companies it made the task a little more difficult. Each web site was checked thoroughly but the detail was far too vague to gather any real conclusions and as a rule each site was very basic and contained little more than a contact number for booking. Therefore it was necessary to make a journey to a local bank that offered help in the way of advice for finance and problems that new businesses go through after starting up.
The information was quite vague and expanded across to all new businesses that would be starting up so was not as precise as one would have liked. Therefore the business studies textbooks and exercise books had to be used more extensively than the reference material gathered. The starting point for all business is that the first and most important aim is to survive. In the first year the vast majority of businesses run at a loss and it is only through financial support that they can continue and start to break even before thinking about profit maximisation.
For Mrs. Lowes the first aim is to build up a strong reputation and base on which to build before thinking about increasing profits and expanding. The main competitors will be companies offering the same kind of tours. As yet there is no local competition and as this business is first trying to appeal to those people locally that is a good thing. There may be some competition nationally from bigger businesses but as yet we are not in a position to compete with such companies.
They should not affect sales as people would most likely prefer to come to a local company rather than use a large scale one that is situated a long distance away. If Mrs. Lowes were to need a loan she would be best going for a loan that is enough to bring her business to a point where the main infrastructure of the business is paid for and one that offers a low interest rate. If the loan can be secured on the business that would also be better as she would then not lose any personal belongings if the business were to fail badly. However Mrs.
Lowes is in the position of having enough money from an inheritance to set up the business and perhaps leave enough money for other causes. Staff will be family members as the business is a new venture for the family to, eventually and hopefully, expand into something larger. A loan may be needed when dealing with specific items such as maintaining coaches and purchasing them from new. In this case the best loan would be a long term one with a low rate of interest so that there is not too much to pay for the business whilst it is still establishing itself.
The business then needs a market to use. Those mainly interested in battles and trips are at either end of the age range. There will be the ex-soldiers, the elderly and those that wish to expand on their cultural knowledge and also those in schools and colleges that are studying the subject and wish to learn more from a first hand experience. There is therefore a market for the cause and it can be used to maximum advantage. There are two main alternatives for Mrs. Lowes within the legal structure of the business. She could operate as either a sole trader or a partnership.
She wishes to be a partnership with her brother so that they can both make decisions as the money from their inheritance belongs to both of them. A partnership is quite like a sole proprietorship in that it is easy to set up and no solicitors or accountants are needed to help run the business. The disadvantages are that one member may not work as hard and would prefer to do something else. As this is a family venture both would want to work hard to make it work and by being close relatives it would be easy for them to talk over any suggestions for the business.
As being a partnership is what is wanted from them this has to be the option taken. To argue against being a limited company the main factor is that it wants to remain a family business and run on a good reputation and not worry about documentation that has to be done and try to produce as much profit as possible. They would also like to keep the business with them having the power to make decisions and not have a structure where there are managers and directors that would cost money to pay and may not fit in with their way of running things.
This table shows the advantages and disadvantages for being a sole trader, partnership and private limited company (ltd). By recruiting good staff that are friendly and have valid qualifications for going on European tours Mrs. Lowes hopes that her reputation would never come under any doubt. She also wishes to try and keep employers happy and content for working in what they believe in and not for money or for the sake of work. She also wishes to have the final say and keep the business running as she and her partner wish it to be run.
For the location of the business it is thought that their house can be used for a main office. This way there is no need to buy other properties, as the main aim of their office is to handle booking forms, advertising and giving help to customers. They can distribute leaflets to people with information about the tours and if needed could use an agent to distribute their leaflets. The main problem of location is to decide on where to keep the coaches that they wish to buy. They have to be kept under some sort of cover is they want to use their own coaches.
If they choose to use other coaches from a different company then they will have to rely on that company for being organised and efficient enough as to not let them down. If they decide to buy a building as an office and operate as an agent using the coach companies for their tours then they will have to look into buying a property that will be in a suitable location. Also if any problems arise they will have to take the blame and not the coach companies, as it is their tour. It would be better to buy the coaches and keep them in a warehouse on an industrial estate.
Perhaps then an office can be built within the premises so that all things can be handled from the same place. That would improve efficiency and relieve any worries about the reliability of the coaches. Also it would then be possible to advertise on the coaches, as they would be theirs and not belong to another company. The best option would be to buy a suitable amount of coaches, keep them stored in a warehouse and use a section of that warehouse for an office so the company is based closer to a town and has all aspects for the company built around the office.
To buy the coaches each one has to be of a certain specification. There are safety aspects needed and also as the journeys will be quite long they have to be luxury coaches. Therefore the coaches have to fulfil criteria. As do the guides that have to be used. To ensure a friendly, informative tour they have to be quite knowledgeable in the field they are dealing with. When interviewing staff and buying coaches the following points have to be considered. The drivers also have to be fully qualified.