The shares can be bought and sold through a bank or a firm which deals in shares. My current price would be quoted on the stock exchange. The nominal, or original, price of the share when it was issued by the company may be 1. However, the price of the shares will rise or fall according to how well or how badly my company would be performing. Control of plc’s: The majority of shares in practically all companies are owned by institutional investors. Their huge blocks of shares give them great influence over companies, policies and the way in which they are run. The institutions votes at company annual general meetings (AGMs).
Franchising is a form of co-operation, often between a big firm and a sole proprietor. The firm has a product known by people with its own name, such as macdonalds and in return for an initial fee and continuing royalty payments, the franchiser allows the franchisee to set up his or her own business and to use the firm’s own name. Advantages: Franchisee’s have many advantages and have a much greater chance of success than smaller businesses as the product has to be tested and has a secure place in the market. Disadvantages: I would have less independence than other sole traders. I will not be able to sell the business without the franchisers agreement. I would not always have the right to renew the franchise automatically. I would have to make continually royalty payments to the franchiser. I would sometimes have to pay a mark-up, or percentage of the price, on supplies from the franchiser.
For my business shop I will need to decide on a type of ownership I will be for my business and for it to hopefully be as most successful as it can possibly be. I have looked at each type of ownership and each of there advantages and disadvantages, therefore I have concluded to be a sole trader as I think that this would be the best type of ownership for me to expand easily and sell my products with that in mind of me making money.
Also more of the advantages that I would have is that I am able to make all of the decisions and to be able to keep all of the profits and go away whenever I like, such as away on holiday without having to worry what anybody else would be doing to my company. Although I have unlimited liability and there could always be the chance of me going bust and losing everything, I feel that this would not happen as my questionnaire shows how much people are interested in my shop. As my business is only going to be small I do not feel that it has to be expanded too quickly but in time I could then go into a partnership with maybe someone of my close friends who knows a lot about the shop or maybe someone such as my father who could just be a silent partner and keep quiet but invest money into the business.
I decided not to be a franchise as I do not always make the choices and I am not allowed to use my own name so therefore I would not be individual instead I would have to use the name of a chain of shops and business. In order for me to make sure everything goes the way that I wanted I could not have been in a partnership as I would not be able to make all the choices and therefore not be able to have everything go the way that I wanted and market my products to my demands. I also decided not to be a public limited company as I would not collect all of the profits, also because there is a control of policies and that the majority of shares in practically all companies are owned by institutional investors. Their huge blocks of shares give them great influence over companies, policies and the way in which they are run.
In order for me to be a private limited company I would have to take a loan out from the bank and it would be a lot more expensive for me to set up my business, as a cause of this if the company didn’t have very good business I would not be able to pay off my debt to the bank. I do not think that this would be a very good property for my shop as it is in the middle of everything and rent rates would be a lot more and unaffordable for me to run, although it is a good size and in a good location I do not think I would benefit from having my shop at this location.
I have concluded that I am choosing my first location as I feel this is the most suitable and appropriate for the size of my shop and location, I would be able to stock all of my products and is easily attracted by people in the front street as it is close by other shops and is in the middle of the street so you have to pass it to get to anywhere at the top or bottom of the front street. I chose not to have my shop at location two as it is at the top of the front street out of the way of everything and is only a small shop for my business, therefore I would not be able to stock everything that I want and would disappoint my customers.
Location three, although being in a very good location and near by good shops it was too small and I would not be able to hold many products up on display, this could result in my shop not selling because I would not have a very large range of goods for my customers, causing me to eventually become bankrupt. My final location was not a very good place for me to set up my shop as it would be too expensive for me to rent and buy, although it is a good size I felt that my first location was better.
My business would have to borrow money for varying lengths of time. Some of that money would be needed for long term expenses such as permanent assets for machinery or land. I might also require money for more short term periods such as paying rent or wages for my staff. This also may be needed for if I was buying a small vehicle or office equipment. Bank overdrafts would be a very good way of me being able to buy equipment or small goods that I may require as this is a very cheap way of borrowing and allowing me to pay back the money that I would have borrowed without it collecting too much interest. Factoring is another way of me obtaining short-term finance for my shop as I could sell my debt to a larger firm who are also in debt and I would not lose any money as I would not have to employ to earn the money back.
Long term finance would commonly be needed for a variety of purposes, including buying property for larger shops, more like a large chain of stores where they are able to pay there debt back for longer periods of time, such as 20 years. In my evaluation I will be talking about all the things that I have concluded and all of the decisions that I have made, I will say why I chose these and how I thought they would be better for my business.
The first thing I had to find out was whether or not there was a demand for my shop and when I was finding this data out I took into account that there is always new houses being built and more people choosing to move into Chester-le-street therefore I assumed that there would more and more people shopping in Chester-le-street and there would be more of a chance of anyone being interested in my products. I felt that if there was more people living in the town of Chester-le-street then I would get more business and earn more income.
The second task I took on was to find whether or not people are interested in any of the sports and to find out if they would buy products at my shop, when looking at my questionnaire or graphs you can clearly see that people would be interested in what I would sell. I then had to decide on what ownership would be best for my shop and location which would help to attract more customers, I chose the best ownership that I felt would be good for me and help me to keep my business running whilst earning more income and my location was chose on where it would be in the front street and what it is near, how much the rent would be and how big the shop was to stock my products.