Requirements of my customers
The business that I am going to set up is a Book Shop. I have decided to open a bookshop, as there is a high demand of books in my local area. My bookshop will be selling books that meet the requirements of my customers. My book shop will be providing books of all sorts e.g. fiction, non fiction, comedy, drama, thriller etc. My two main competitors are WH Smith and Waterstones. They are based in the middle of Leicester. I am targeting at the age group of 16-20 years old, as there is a high demand of books in this particular age group.
I will not be selling second hand books as from my research I have found out that my audience like to buy books that are up to date and new. I will be expecting 100 customers per week, which is approximately 400 customers per month. My bookshop will open 6 days a week and will employ 2 part time workers and one full time. The working days will be normal so, the product is available for my customers on time.
I am going to set up my business as a Sole Trader; it is in the private sector. A sole trader is a business, which is owned by just one person. The owner can employ any number of people he/she wants to. Some types of businesses need to obtain a special permission before trading:- Once turnover reaches a certain level sole trader must register for VAT – They must pay Income Tax & National Insurance contributions – Some business activity need a licence such as sale of alcohol – Planning permission is needed in certain location – A sole trader must comply with legislation aimed at business practice e.g. Health & Safety conditions for their employees.
The two case studies show why businesses change their ownerships from Private Ltd to PLC or form PLC to Private Limited. Case study one was ‘The Virgin Management Buy Out’, it shows in 1988 Richard Branson bought back Virgin Group (VG). He had started his record group in 1970 which grew rapidly. He also opened his new Virgin Atlantic Airlines. As Branson wanted to expand his airline service by buying Thorn EMI, he changed Virgin Group’s ownership from Ltd to PLC in 1986 to collect additional capital. This is one of the main reasons why businesses change to PLC to take advantage of wider market and to get more shareholders. In 1987 the stock market crashed and brought VG market share down from 140p to 83p. Being a PLC Branson did not have full control over VG so, with the aid of ï¿½182 syndicated loan Branson bought back VG and changed it again to Private Limited Company.
Being a Private Limited Company no outsider can interfere in anyone’s business so, this could be one of the reasons why businesses change their ownerships. Once businesses change their ownership from LTD to PLC it changes everything. They loose control of the business and when the original owners want back control of it, they have to face many complications. Either the price gets too high or other shareholders may not agree to sell their shares. Same thing happened to Branson as he had to get a loan to get VG back.
The second case study is ‘Saga family is bid to go private’. This article is about saga PLC which operates tours over sixties. This company is also thinking about changing ownership back to Ltd. It is a successful company owned by The De Haan Family. The founder of Saga decided its ownership to PLC in order to collect some extra capital as well. They also were afraid of not having enough money to keep saga running for long time.
The De Haan Family owns 63% of Saga and they need ï¿½20m to but it back. The shares have increases from 66p to 293p. As mentioned above in PLC companies no one has full control over the business. External shareholders can affect the way company runs. The Haan Family have enough capital to change back to Ltd so they can run the business in their own way. The above two case studies show that being a PLC helps to collect extra for businesses but at the same they lose overall control of the business, which is a down side as they don’t have full control of the business they created. This is probable the reason why some businesses change back to Ltd.
CRIMINAL OFFENCES: In criminal offences appeal can be made against sentence. It can be safe on basis of question of law. A fit case for appeal based on the leave of the court or the judges can also be shown. The important case in 1993 Crown against Clinton shows that prosecution has no right in appeal against acquittal on indictment. The attorney general made refer to the court of appeal regarding point of law.