My business venture and the reason for choice
My business venture and the reason for choice Essay Sample
The business I chose for this unit is a baby clothes shop. I chose this kind of business venture because I love little kids and would like to open a shop with unique designs of baby clothes. The clothes will be for newborn kids till kids aged 2 years. My business is going to be located near the dappermarkt. I chose to set up my shop there because the dappermarkt attract people from throughout whole the Netherlands. This way it is easy to get my target group to buy at my shop. The people that live in this neighbourhood are actually the main target because I aim for people with an average income.
Aims: My aim is to be a well known shop and make a lot profit. In the future I want to expand the business with a few more shops on other locations. In order to achieve my goals me and my business partner need to make good decisions relating advertisement and other decisions we have to make to make as much money as possible for the aims to be achieved.
Target group: As stated above my target group is people with an average income that want to have fashionable clothes for their babies for a low price.
My personal attributes
The skills I posses and are needed for my business venture:
Finance and book-keeping skills
Marketing and selling skills
Human resources skills
Customer service skills
Leadership and decision-making skills
Swot Analysis for my business
Strengths: My shop will be the only one in the area in which u can get fashionable and unique baby clothes for a reasonable price. The baby clothes that will be sold at my shop are unique and
Weaknesses: As a new shop we have to show and proof ourselves to the customers. Other weakness could be that the customers decide that they want to buy the clothes on the market. That’s why we have to have reasonable prices and good quality clothes.
Opportunities: if the business goes well I can open more shops on different kinds of places and maybe in the future even expand abroad
Threats: it can be that people prefer to shop in a shop that is well known than in mine. Another possibility is that people would prefer buying the clothes in the market than in my shop. That’s why I need to let people know what I sell and that it is not really expensive.
The legal structure I chose for my business is Partnership. The reason why I chose this business structure is because the losses are covered equally and we have to take equal responsibility for the business’s activities.
– a partner can introduce additional capital to the firm
– a partner can increase the level of expertise available to the firm
– the decision-making process can be shared
– it is still possible to offer a personal service
– there is someone available to cover for sickness and holidays
– growth is still restricted to the amount of capital the partners can raise
– if the partners disagree or fall out this can cause problems
– if one partner decides to leave, the partnership has to be dissolved
– partners still have unlimited liability. Often they will each have joint and several liability, meaning that all partners are liable for all of the debts.
– Profit has to be shared
Sources of finance
Sources of finance for a partnership company are:
– Personal capital – Leasing
– Retained profit – Bank loan
– Bank overdraft – Mortgage loan
– Credit cards – Hire purchase
– Sales of assets – Trade credit
I will make use of my own money and money of my parents to finance a part of the company. Other sources of finance will be a bank loan, a mortgage loan and when the business gets started after a while I want to have retained profit as a source of finance in times that the sales don’t go too well.