N100 Business and Management :Entrepreneurship and Small Firms

Answer:

Introduction:

The new business idea in my mind is the personal and beauty industry. I intend to start a state of the art barber parlor specifically for gentlemen in my neighborhood. It will have also a nail spa, tattoo section as well as body piercing section. My main aim is to offer all high-class grooming and services in one shop in a favorable gentleman’s atmosphere that will be masculine and therapeutic for the convenience of menfolk in my neighborhood. In addition, we will have a mobile barber unit whose aim will be to meet needs and wants of our customers at the comfort of their homes, hotel rooms or offices in the neighborhood. The proposed name for the business shall be ‘STYLES STUDIO’. I came up with the name after inviting my family and friends at a naming tea party. It is a unique name that means exactly the kind products and services that my business will offer that will be specific and personal to the customer, stylish and latest trends and technology that will be a notch higher than all in my neighborhood that men and small boys will enjoy.

The Styles studio parlor will offer new, stylish and trendy haircuts that will also have hot lather neck shave with a shoulder massage, hair coloring, highlights, and corrective toner as well as hair and scalp treatments. It will also offer the traditional straight razor shaves, hot towels, and balm treatments. It will also have a nail spa where manicure and pedicure section, in addition to the new state of the art tattoo and body piercing spot. The business will be a sole proprietorship (Wisdom J 1997). This type of ownership will be of much benefit as it will offer me the following:

Sole and complete control and decision making of the business with no outside interference of how the business is being run
It will bring me higher profits as there is no sharing of the profits
It is simple to start as it requires little paperwork thus minimum legal costs
It has few formal business requirements
Information regarding this kind of business can be kept private, different from that of a limited company that has to be public upon registration of the business.

Most important advantage of a sole proprietorship is the ease and speed of making decisions while meeting the needs and wants of the customers. Being a new business venture it will receive its share of competition and rejection from other existing businesses.

Task 1 (P3 & M2) (Factsheet or Table)

Skills that is required to run and develop my business

Being the sole owner of the business means I will be working with a variety and product manufacturers and daily dealing with customers as well as staff. I will be required to have a range of skill some of which I have whilst lacking in some other areas that will need further development (Jacobe, D 2006). Skills required for effectively running and developing my business include:

Customer service:this skill is crucial and will help me to interact and deal with people. Great customer skills will enable me to convince my customers to buy my services as well as get feedback from them.
Marketing:it consists of data and information to the potential customers. Since my business is a service shop, I can use social media platforms, leaflets, and posters for promoting my business.
Financial:This skill will help me contribute to the business growth and profitability to sustain the stability of the business. It will help me in contributing to profit and business growth that will bring about financial awareness.it will aid me in making forecasts and results that are reliable to my business like understanding the balance sheets,
Administration:this refers to the daily running of the business. Keeping accurate customers files, sales file, cash flow files, suppliers’ files among others will contribute to the effective running of my business.
Management:this is dealing with people. Being the sole owner of the business, it will be my role to manage my business. I need to be good in critical thinking to be able to solve any problems that may arise and make whatsoever decision timely and appropriately.

Personals skills contributions: The below-listed skills are very important in the daily running of my business:

Skills	Do I possess the skill?
Customer service and interpersonal skills	Yes
Planning and organizing skills	Yes
Flexibility	Yes
Administrative Skills	Yes
Managerial Skills	Yes

My personal strengths:I am a very hard working and will give my all in any task to be done individually or as a team. Am persistent and love learning new skills. I believe that skills I have are very important in running the business/
My personal weakness:I love doing things to perfection this thus spending so much time than necessary to accomplish a task
Skills and abilities I lack:I lack the skills to run a business as this is my first time doing so but have worked in other businesses in a team
Compensating my weaknesses:I will use the skills that I possess in customer service and improve on them. I will complete the Business course I am currently pursuing, this will enable be good at running the business
What I intend doing on the missing skills:I will use the skills and abilities I possess to run my business efficiently to ensure it is I will work hard to be able to gain those skills and abilities that are a need and I lack them.

My training plan strategy

In order to address the skills gap, I have come up with in plan in training between Part 1 and Part 2 which involves outsourcing by hiring individuals or consultancies or by acquiring competencies.

Gap in Skills development of business core competencies

Needed Skills	Plan(short term)	Plan(long term)
Artist/designer/ Barber/Beautician	Hire artists/barber/beautician	Hire experienced tattoo artist/barber /beautician
IT skills	Hire someone with IT skills	Do 1-year course in ICT
Marketing skills	Hire someone to do marketing	Do a marketing course
Finance	Hire accountant	Work closely with accounts to gain financial skills for handling the business in the future

Task 2 (LO3) (P4, M3) (Factsheet)

Legal and financial aspects that will affect my business start-up

Legal Liability:

As a sole owner of the business, there are few legal restrictions of forming it. All the financial information, profits, and decisions are made by me. I may have to take risk of my business as I lack unlimited liability of my business. If my business fails money owed to the creditors would be recovered from my personal assets through the courts. As the owner of the business, I will have the following legal responsibilities:

Health and safety:the working environment must be safe for the workers as well as the customers
Regulations:some of the regulations that will affect my business is fire and sanitation regulations of which I must make my workers aware of and adhere to them
Regulatory bodies:there are independent regulatory bodies that observe the standards of a company of which I have toe a signatory to.
Contract responsibility and duties:employers must have contracts and be aware of what they are entitled
National/local laws:there are a number of laws that will affect my business of which I must be aware of and the consequences of breaking them. This includes working time regulation, national minimum wage, discrimination and protection of personal data.
Trading Termsand Conditions: it is important to set out clear terms and conditions like prices, payment terms, and ways of payment whether cash or credit and the return of the product or complains of services not being a good period to protect the business from unreasonable customers and avoid facing legal complications like court matters.
Trading standards:it comprises of consumer rights, fair trading among others to protect consumers. It is required by law to provide to the customers with satisfactory products and services

Financial Aspects:

Record keeping:

Spreadsheets/cash books: the records shows the cash flow in and out of the business

Petty cash and wages book: it helps me keep a record of how cash is spending within the business.

Requirements for start-up

Expense for start-up

License (Legal) £2,500

Office Stationery £500

Design, Logo and Brochures £1,000

Consultants- £4,000

Insurance £3,000

Rent £12,000

Equipment £17,000

Other £10,000

Total Expenses for start- up £50,000

Assets for start-up

Cash Needed £40,500

Inventory for start-up £5,000

Current Assets (other) £1,500

Assets (Long term) £0

Assets (Total) £46,500

Total needs £96,500

Start-up Funding

Total Funding Required £96,500

Total Assets& Liabilities £96,500

Total capital £96,500

Profit and loss sheet

Revenue statement for Styles Studio business for period ending 31st December 2017

Revenue

Service Delivered

EXPENDITURES

Wages and Salaries

Telephone &Internet Services

Electricity& Water Consumption

Rent

Insurance

Adverts

Fuel

Stationary

Tax

Bank charges

Miscellaneous

NET PROFIT

Budgeted

150,000

40,000

7,000

20,000

12,000

9,000

3,000

5,000

500

3,000

5,000

500

45,000

Actual

146,300

40,000

7,500

21,000

12,000

9,000

5,000

6,000

300

5,000

5,600

600

34,300

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