Types of organisation
As a team we had to decide what type of organisation we would create. We looked at a number of different types such as a sole trader, partnerships and a private limited company. Each of these types of organisation had there advantages and disadvantages we had to make sure we made the right choice for our business.
As there are a number of people within our group, who are putting time and effort into the business, we could not work as a sole trader or a partnership. We also could not bring shareholders into the company as we were only trading for a short period of time, therefore we might not be able to repay the shareholders as well as make a profit for our business. As a group we decided that a private limited company would work best for our business. As this would mean that all the money which was invested into the company is ours which would also help motivate our team to make more profit within the business.
Formal documents Now that we had decided on what type of business we were and the product we were going to produce, as well as what each persons role within the business would be, we needed to produce formal documents which would ensure the business was running to a professional standard. We put together the memorandum and articles of association, these documents were out together by our business managers who made sure each area which needed to be covered was covered within the documents and were at a high business level. (This documents ca be found in the appendix)
Use of resources Every business uses resources in its day to day running, these resources can be found in a number of different ways from physical, human and financial. Our business is no different to make our company a success we will need to make sure of a number of different resources.
Tables- as we were selling out products in a foyer we needed to have a table to set up to be our place of trading. This table would be placed in the same place each day so that our customers would know were to find out and would also pass us each day creating interest for the business. We decided to use a table which was found in the Foyer, this is useful for us as it is in an easy to access and leave back as the table is placed close to our point of sale.
Sample Hoodies- We knew from past experiences that the public like to see what they are buying before spending there money it is, therefore were able to arrange a selection of sized as a sample for our target market to look at and check which size would suit them best. Our supplier is allowing us to keep their samples until the order is made. Therefore our customers feel more confident in paying for our product.
Money box and receipt book- we needed these resources in order to keep control of our orders, and therefore help our company to run smoothly. The money box is to make sure that any money which belongs to the business is kept on the one place and is kept safe. This money box is kept in our class room in a safe place. The receipt book is a very useful and important part of our business as all the orders need to be kept on the one place so each of our customers gets the correct order and has paid the correct amount of money.
Hoodies- one of our major physical resources is the hoodies, although the hoodies will not be made until all the orders have been collected it is still the main part of our company. We need to make sure that each of the hoodies are made a high standard and each customer is happy with their finished product. Internet- As we had decided that as a company we would use the internet as our main way of communication this is because it is a quick and easy way of each employee to stay in contact and send information. This also gives us frequent use of the computers meaning we can get all the relative documents completed.
Permission- we needed to ask for permission from Mrs McHugh our school principle. Our team – this is the most important human resource that our business needs, we need to work together as a team to make a success of our business. Each member of our team needs to make sure they are equally contributing to the team. Each member of our team will have the same amount of time working on the stall of the business.
Finance This is a very important section of not only our business but of any business as money is a very important part and is the bases of any business. We needed to keep in total control of our finances. We needed to discuss the different ways of finance which were available to us and which would work best.
As our business did not have put together a large amount of up capital because we only had to pay money to the suppler when we had put the orders in for the hoodies therefore we would have collected all the money from our customers. This limited the places we could achieve this start up capital.
Loan It wouldn’t have been logical for our business to apply for a loan as our start-up capital is so low. We would have had to produce a professional business report and present it to the accountant within the school. This could have been very time consuming as we would have had to put the presentation together and then wait for a reply from the school. If the business did not work out as we had planned then we might not have enough money to pay the school back the loan. Therefore the option of a loan did not seem like the right idea for our business.
Shares The option of selling shares of our business to our friends and family was also talked about within our group. This would be an effective way of raising capital for the business as it would not have to be paid back if the business did not work. As a group we all felt people would not be interested in backing our business as it was it was a new company only running for a short period of time. Therefore we decided that the option of shares would not work for our business.
Private Finance As we have such a big team of people working within our business we decided as a group that we would all invest money ourselves within the business. This would have many advantages to not only the business but to the employees within the business. We decided that as we don’t need much start up capital we would sell the shares for ï¿½2 each and each member of the group bought a share of the business, therefore each person owned the same percentage of the business and felt like an equal part of the business making this method a excellent way of motivated employees. As each person put the same amount into the business each person will get the same amount of return from the business, which will give each employee the motivation to work harder to ensure the business to make a large profit. Therefore we felt this method of finance works best for our business and is the one we are going to use.
Aims and objectives of the company Each person within our business needed to be aware of what their own departments aim and objective is, along with the businesses overall aim. As a group we came up with our overall aim as we felt each person should have an input into the main aim of the business. Each department came up with there own individual aim so they felt a part of that department and fully understood the aim on all levels. These aims and objectives would be placed as benchmarks for the whole business and all also help to motivate employees and help our customers understand and be clear of what our aims and values are towards the business.
Legalities Each business needs to make sure they follow all the different laws that relate to them, this is no different for our business. Fair employment act 1989 As a group and a business we need to make sure we understand the fair employment act 1989. This law lays out all the different areas which effects employment today, this law makes sure that employees are treating there employees fairly and protects not only the employee but also the employer. The law covers area from the promotion of equality and opportunity to reviewing and recruitment of employees. Within our business we will need to make sure that we totally understand this law and what it means for our business.
Sale of goods act As out business is selling good directly to the public we need to ensure we look at all areas of this law and fully understand what it means to our business, and obey all the rules within this law. One of the main rules within the sale of goods act is that, the goods which we are selling to the public must be as described and fit for purpose and of satisfactory quality. We need to make sure we obey this run and only advertise what we know we can deliver on the hoodies for example when placing writing on the back of the hoodies we need to make sure each person is aware of what this is going to look like and we are not overselling or underselling the products to our customers.
If the products do not reach the standards which we advertised then the customer has a right to their money back after a short period of time, this is an important issue for us to cover as we are selling a clothes item and many people return clothes items for a number of different reasons. Companies Act 1989 This law refers to the account of the business making sure each business publishes and displays there account regarding there regulations. We need to make sure we are doing this.