Starting Up a business selling computer systems
For my coursework project I am going to start up a business selling computer systems I am going to look at planning a business, financial factors of a business, internal and external factors that influence a business, and factors of running a business. I am intending to start up a business selling computer systems and repairing old ones. I will locate the shop in Rainham High Street. I am going to sell the computers at a low price and try to compete with the large companies. All of the computers will be built with high specification budget parts.
This will give the computer a high specification but keep costs low. I have chosen to do this project because of the demand nowadays for high specification computer, Computers are being used more and more for everyday activities from looking up a phone number to creating a birthday card. I will have special deals for businesses, which will include 5 – 10 computer workstations a server and a complete network kit. If my business is going to be successful I will need a good plot on the high street.
I will need to do out the shop and I will need to purchase tools and initial stock, I will have to consider security of the shop, insurance, and determine whether I will need any staff to help me. I think that advertising in the local paper will be a good way to promote my products and attract business. Using my own funds is a good idea as I don’t have to pay any interest and it doesn’t have to be paid back because its already mine. A family is an interest free option but family loans can cause disputes within the family, which isn’t a good thing.
A bank load is the most expensive option as it has high interest rates attached to it, but it doesn’t cause any disputes and can be for as much or a little as required. There are problems with this type of finance; if the repayments cannot be kept the bank will take assets of the business or even your house. A re-mortgage is similar to a bank load in that if repayment are not kept your will lose your house but this finance option has a lower interest rate than a bank loan.
My business will be VAT registered which will give me an advantage over other small businesses that aren’t. This means I don’t pay VAT on products I purchase from other VAT registered businesses. So being VAT registered other businesses are more likely to buy from me rather that the businesses who aren’t VAT registered because they can claim the VAT back which would make my products 17. 5% cheaper if the standard price was the same.