My Business Idea Unit 10 Starting a Small

My Business Idea Unit 10 Starting a Small Business Your task is to prepare a business plan for a small business of your choice

Local Business Starter Activity • Think about your local area, what businesses already exist? • List as many business as you can and include what they do • Are all the businesses successful?

Activity 1

Business Ideas • • Paper shop Nail bar Sweet shop Games shop Music Shop Computer shop Hair dressers • • • Clothes shop Shoe shop Toy shop Cake shop Florists Ink cartridge refilling • Sandwich shop

Business Ideas! You need to pick an idea for the business you are going to start up. But before you do this there a few things you need to think about. • • Will your idea work? Is it realistic? Is the business needed in the area? Will you get customers? Will you have competition from similar businesses? (Mc. Donalds and Brighouse Burger Bar!) Will you buy an existing business are start a new business? What is the name of your shop? – A good name can attract lots of customers

Activity 2

Your Idea! Now you have decided on a business and name…. 1. What will you sell or offer? – Be clear and detailed on what you will sell and offer – Try to keep your idea simple! It will help you later – Do you have a Unique Selling Point (USP)? – Are there any alternatives to what you will sell (Laptop/Computer) 2. What did you have to considered before you came up with the final decision? – Competition, Business Name, and Alternatives

Unique Selling Point This is what makes your business different from the competition – what makes you better than the rest – – – – Loyalty card Free chocolate Young and trendy Champaign whilst you wait The cheapest Best quality Customer service etc

New or old New ü Don’t have bad reputation ü Make it your own ü Simple ü Don’t have to find old business ü Don’t have to pay extra for buying someone else’s business Old ü Already established ü Already have equipment ü Have customers × Might have bad reputation × Might be hard to find × Might have to pay extra × Have to buy all equipment Will you buy a new business or an old × Have to do lots of advertisingbusiness? × Find new customers 1. Explain three advantages and disadvantages for both Old and New? 2. What will your business go for and why?

Activity 3

Ownership Now you have to decide what type of ownership you want. You have a few options: – – Sole Trader Partnership Private Limited Company (LTD) Public Limited Company (PLC) Use the fact sheet on the common drive to find out about the different types of ownership and decide what is best for you. Think about…. • • • Will you run the business on your own Will you have a partner What will unlimited liability mean for your business

Ownership • Can’t be a limited company because you are new and don’t have enough money! • Will have to be either sole trader of Partnership • Partnership – can share jobs, more money to put in (2), can have holidays, more expertise BUT share profits, could argue, can’t make own decisions, you are equally responsible for each others mistakes • Sole Trader – can be own boss, make own decisions, keep all profits, freedom to do what you want with business BUT only one lot of money in, difficult to take holidays, only your ideas • BOTH have unlimited liability – so if your business fails and cannot pay the debts it owes your personal possessions can be taken to pay the debts of the business – your car, house etc

Activity 4

Location Where will you locate your business? Location is important because you need to be accessible by your customers and you want people to see your shop to attract new customers. Being too close to competitors can be bad but it could also have its advantages if you are the better business. Think of three different locations for your business and compare them briefly? – Brighouse, Halifax, Huddersfield etc… – Town centres, small village, busy main road etc… – Are any near competitors, similar shops or parking – What are the advantages and disadvantages of each – Is it on a main road or near a busy location like a bus or train station Which location will you pick and why is it best?

Activity 5

Target Market This is who you will be aiming to attract to your shop: – – – Men, Women or Children Young people – like modern things Parents (middle age people) – lots of these about OAP – lots of spare time Young professionals – lots of money Remember it must be suitable for your shop – don’t be a nail bar and target men

Target Market Who will your business target? (Describe the type of person) Why will these people be interested in your business?

Objectives are what a business set and want to achieve. Without a clear objective a business would not develop. Objectives help a business to focus on what they want. Most business want to: – – – Survive Sell or provide good and services Beat competition Make a profit Long Term Expand Short Term

Objectives All business must have targets and objectives. You need to briefly explain why? >>>> This is especially true of a new business. My main long term objective will be to? >>>>>> As well as this I will have the short term objective(s) to make sure my business >>>>>>>>>>>

External Influences • Competition – the more competition the harder it will be for you to succeed – must be different – better quality, cheaper, unique • The economy – we are in a recession which means that people are spending less because they are losing their jobs – negative • Social Trends – Fashions change and you have little or no control over this • Seasonal Factors – will the weather affect your business? What external influences might affect your business? And why?