unit 36 p5 d1 RESUB

UNIT 36 P5 D1

Prepare a proposal containing the essential information for the start up of a business

In this assignment I will be producing a detailed business proposal which addresses the essential information and relevant aspects I need to start-up a business. A business proposal is something that will give me an indication of how my business is going to do and it just focuses on the key points of the business. It will help me in order to allocate resources and to prepare myself for problems and opportunities that could be possible.

1. About The Business
Name of Business: KANDY

What would the main products of the business be: Make-up products which will be my own branded make-up. I will be purchasing these supplies from my own wholesalers which I have a close relationship with to create a good atmosphere and loyal customers.

Location of the business: 110 High Road, Bushey, WD23 1GE

Other locations for business: I will only be opening one store at the start because I want to see if it is going to be successful or not. Depending on how it goes, I will then reconsider opening a second store in a different location.

Type of business structure: I will be running my business as a  sole trader because this allows me to run the business alone and therefore it means I receive all of the profit alone. Also, the achievement at the end of it is great because it allows me to feel proud of myself at how far I have come. I think working as a sole trader is the best way to run the business I am introducing because it is a start-up business which means I want to keep all the profit made. The aim for my business is that I want to earn as much profit as I can to make a living, as well as getting brand recognition in order for my business to grow and be recognised by people. Another aim for the business is that, I need to increase the market share which can be challenging, however I am determined to do it. The target audience for my business are females aged between 10-50 because their are a wide range of products which are suitable for different people which is why the target audience has a large age range. The products will be priced at an affordable high street price to attract customers. However, they will not be priced too low as they fear the products represent the price.

The unique selling point for my business is that it is candy themed, therefore all the make-up and the store itself is going to be decorated as different types of candy and in the store there will be replicates of candy items such as a large lolly pop, cotton candy sofa etc. I feel my business will have a high demand as it is an unusual idea and it stands out for females because they are always competing with the best make-up they can get and who has the latest, most modern brands. This is where my business comes in because it is candy themed which ever girl likes and the packaging will be made to look extremely appealing to the target audience and to look like duplicates of the candy that each product replicates. Because of this I think there will be a high demand for my products because once people start getting them everyone will want them because when something trends it gets everyone involved and every girl wants it. I will be extremely organised and keep on top of important things in the business such as the finance. Break even, profit and sales targets will constantly be checked and maintained to ensure my business is stable enough to survive however, if I am not then I will provide information for the banks to aid with extra financial backing.

Aims for the business: I would like to expand my store or build another store in another location in the future and maybe eventually be able to get my products into department stores like John Lewis, Fenwick's etc. Additionally, I would like to hope I could get my products into supermarkets because this is a huge way of making profit and they have a massive customer base because they are established businesses and extremely well-known globally.  I hope to have started paying off my bank loans that I have borrowed to help start-up my business because this will be a big weight of my shoulder and allow me to pay less back in the future. 40% of start-up businesses fail within the first 3 years which is something I do not want to face, therefore I will identify problems in my business and overcome them instantly.

Market: I will be doing market research in order to gain information from the businesses target audience to find out specific things about the products I will be selling and the make-up industry overall. I will do some primary research, in which I will produce a questionnaire because this is an accurate, reliable type of research. Additionally, I will be getting a focus group together because this is a good way to show the products to potential customers and get their opinions and feedback on them before launching them in my store and to get an idea of what they would like to see. Also, I will be doing secondary research in which I will use the Internet to look at my competitors and other make-up products to see w hat's already out there.

2. Suppliers and Costs
Supplier one: Aulola
Location: R/O 53 Broughton Ln, Salford, Manchester, United Kingdom. ZIP: M8 9UE

Supplier two: Shure Cosmetics
Location: Unit 6 The I O Centre/Skeffington Street, Woolwich, London, SE18 6SR

Types of products within my business: 
Face-foundation 80p, primer 60p, concealer 60p, powder 50p, highlight 70p, bronzer 70p, blusher 40p, contour 85p
Eyes-eyeshadow 55p, brow pencils 55p, mascara 85p, eyeliner 70p, eye primer 70p
Lips- lipstick 80p, lip balm 60p, lip liner 65p, lip prep 65p
Accessories- face brushes 80p, eye brushes 60p, lip brushes 50p, brush cleaner 80p
Tools- sharpener 50p, makeup bags £1.25, makeup sponges 40p, eyelash curler 70p, tweezers 80p
As well as this stock, I will need equipment for the store floor, such as; stools, computers, desk, tills etc. They will cost around £2000 to have all of those pieces of equipment. Additionally, I will be using softwares on the tills and computers such as; Microsoft word, Microsoft publisher, Microsoft excel. All the softwares will cost roughly £3000 to install onto all the computers.

3. Personnel

Role
Manager

Employee

Responsibilities
Dealing with client complaints, enquiries and problems within the business, day to day basic running of the business, making sure the health and safety practises are followed out, managing the businesses budgets, maintaining temperature level of the store, recruiting new staff and supervising staff.

Day to day basic duties, cleaning the store, serving customers, helping customers with enquires and complaints, operating the tills, giving their advice, performing make-up on the customers, record payment transactions, being punctual and professional, liaze appropriately with customers and other employees.

Salary
£30,000

£10,000

4. About the product's
I will be selling my own branded make-up because I have a strong passion, determination and knowledge to be able to make it successful. It will enable me to work on improving a range of skills which will help me in the future for a various number of things. I will be selling products that I enjoy selling which is a positive for my business because it will have an enthusiastic happy vibe to it. Each product will be a different piece of candy as my business has a candy theme as its unique selling point.

5. Skills audit

SKILLS AUDIT- PUT INTO TABLE

Skill
IT Skills

Organisational skills

Problem solving skills

Own contribution skills

Management skills

Personal selling

Team working skills

Rating (1-10)
8

8

7

8

8

8

Evidence
I have developed these skills due to being able to use computers and technology appropriately and this allowed me to develop my software skills. I can use a range of different softwares which will help me to run to my business which I developed through my school education.

I keep a 'to do' list which helps me to organise my my work and allows me to prioritise my jobs. From having this, I am able to make deadlines to make sure I get all my jobs done in an effective and efficient way.

Because of my previous experience, I am able to solve problems in an effective way because I am able to handle my time appropriately. I come up with appropriate solutions to problems quickly. I have seen multiple situations where problems have occurred and I have been able to handle them.

Due to my exceeding skills in computing, I will be able to work the tills appropriately as well as being able to train and help other employees with the tills and computers. This will allow me to be able to input data onto the computer. Also, my organisational skills will allow me to be able to write lists of what duties I need to do.

I managed my own business from home which means I have plenty of experience. I managed to control employees in my own business, therefore I am able to manage employees appropriately Also I am able to build good relationships with people which is essential when having a business because it brings repeat purchases.

I am able to communicate and liaze with people appropriately and enthusiastically as well as having previous experience which means I know how to interact with people and entice them into the business. I am a easy going yet professional person, therefore my employees will be able to have a good relationship with me and this will create a positive working atmosphere.

When I ran my business, I was able to work with my employees all together in a team because we all communicated properly. Working as a team means I will bring ideas to the room in order to help the business and be able to listen other employees to hear their ideas.

Further Development
In order to develop my IT skills further, I will be attend training sessions in order to learn how the till works properly. I will also need to know where all the products are within the till which will just take practise and memory. 

In order to improve my organisation skills, I will make sure I have a tidied area in which all the data and documents are safely stored in a neat form, although easily accessible. I will make 'to do' lists regularly with time schedules to motivate me to get the duties done because time is not my strong point.

In order to work on my problem solving skills, I will attend day sessions in which I will get taught how to approach problems and situations and how to handle them better. I will also organise meetings on a regular basis for all the staff to come together r and discuss any problems they are having and work out solutions to them.

In order to work on my own contribution towards the business, I will take on the role of recruiting the new staff for the business therefore I will be able to meet the staff before on an interview basis and get to know them a bit better before they start. I will be able to spot their vibe and see if it is right my business atmosphere. I know what skills I have and which aren't my strong ones and this is good because I can employ staff that are good at my weak points.

6. Revenue and costs

7. Cash flow forecast

8. PESTLE Analysis 
Political
KANDY need to ensure that we meet all the local, national and international laws and regulations otherwise there could be sever consequences. I may hire staff from abroad, therefore I need to make sure I, and all my staff are aware of all the appropriate laws.

Economic
As we will be importing some of our stock, I need to ensure I know all the exchange rates and are familiar with them because I will regularly be doing orders from abroad. I will need to work on my relationships with international suppliers to make sure they are familiar with what I want and to ensure they are professional.

Social
The opening of a new store in a local town, will open up new jobs for the locals which is a positive thing for the community. Also, advertising is needed in order to get the word across about the new store. This could be done by using social media because this is an extremely effective, modern and popular way of advertising. KANDY will use social media to stay up to date with the latest makeup trends and products that are in the market at the moment with their competitors.

Technological
Technology within KANDY will be up to date to ensure customers know the business is new, modern and with the latest trends. By being up to date with the latest technology, KANDY will stand out from their competitors which will entice customers to them. The tills at KANDY will be electronic, with touch screens because this makes it easier for staff and is a lot faster. Also, the computers will be uploaded with the latest softwares, although I will not be getting Apple Mac computers because they are extremely expensive and unnecessary for the business I am running.

Environmental
To be environmental friendly, I will shred all my papers that I do not need anymore regularly and recycle them in order to help the environment. Additionally, all the bags that we give to customers will be recycled bags. In hot weathers customers will not want to shop, therefore this could make customers feel better by having fans in store to cool them down.

Legal
I will ensure all my staff and I abide by all the appropriate laws and regulations that apply for my business. I will ensure that we are all aware of the changes in the legislation and make sure they are enforced asap. I will provide meetings in which we will all discuss the laws regularly to ensure everyone is familiar with them.

9.SWOT Analysis
Strengths
-My products are affordable
-Great location because there is a primary and secondary school near by and plenty of bus stops near too.
-Car park located opposite the store which customers can park in
-The unique selling point of my products will entice customers because it is a gap in the market
-I am knowledgable in running my own business along with being extremely knowledgable and passionate about the products I will be selling
-Convenient opening and closing hours

Weaknesses
-Small shop because I am just starting up
-Only based in one location, Bushey
-Pricing may be difficult as they are new products and its a new business, therefore I will take control or this and manage it
-High competition within the make-up, beauty market

Opportunities
-There is room to grow and expand on the business in the location it is in
-Could get my products into supermarkets and other retailer stores such as John Lewis
-Offer discounts to special customers
-My products have a huge unique selling point which could be a huge success because it fits a gap in the market that hasn't been done before that customers really want to have

Threats
-Strong competition within the make-up, beauty market which could be hard to always ensure KANDY is on top of their competitors
-Pricing strategies could cause KANDY to become unsuccessful because the pricing is all wrong and turning customers away.
-Advertising on a big scale can be too expensive to do on various occasions

10. Sources of finance
Not requiring creditors- owners individual savings, government grants, eu convergence region funding, The Princes Trust etc.
From creditors- overdraft, mortgages, venture capital, borrowing friends and family, sponsorship, leasing, credit cards, trade credit, bank loans etc.

The sources of finance I will receive for KANDY, is my own personal savings. Also, I will be getting a lease for the property I am having my store in. The reason for me choosing to use my own personal savings is because I do not want to have bank loans to have to pay back over a long period of time. The impact of using my own personal savings will allow me to make the business as successful as I can because I will be more determined to make it successful because its my own money going into it. Also, any profit made will instantly go to me and I will not have to put it aside to pay back a loan. The amount of personal savings I will be using is £10,000 because this is a suitable amount of money to start up my business the way I need to set it up in order to be successful with all the materials and equipment I need.

11. Market Research
Questionnaire 

1. 1. What gender are you?
   -Female
   -Male
   -Other
   1. How old are you?
   -Under 10
   -10-20
   -20-30
   -30-40
   -40-50
   1. How often do you wear make-up?
   
   
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   1. How often do you buy new make-up?
   -More than once a week
   -Once a week
   -About two or three times a month
   -Every month
   -Every year
   1. What is the furthest you would travel to attend this store?
   -0-5 miles
   -6-10 miles
   -11-15 miles
   -16-20 miles
   -21-25miles
   -More than 25 miles
   1. Do you think the unique selling point is unique enough to be successful?
   -Yes
   -No
   -Other 
   
   
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   7. What area do you live in (e.g. Barnet)
   
   
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