• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analyse the guidance available to a potential business to ensure a successful start up and nancial support

Extracts from this document...

Introduction

Transfer-Encoding: chunked I am working for the Hounslow Chamber of Commerce as a trainee manager. The Hounslow Chamber of Commerce provides advice to existing businesses and to entrepreneurs seeking to set up their own businesses. In this guide, I will analyse the guidance, advice and support available and what action a potential business should take to ensure successful start-up and financial support. I will analyse why the actions are necessary, what they facilitate and what problems might arise if the stages were ignored. The first important stage when setting up a business, is to decide what type of ownership you want to be. Do you want to be a sole trader, partnership, private or public limited company or a franchise? It?s also important for the owner to understand that each separate ownership has different disadvantages; these arise when the owner is unaware of the disadvantages beforehand as they didn?t do prior research. Problems can arise for sole traders and partnerships when they get into financial debt, for example being unable to pay their accounts. In a result they have unlimited liability and the owners personal assets will be sold to fund the debt. In addition, obtaining finance to start up a sole trader or partnership may be difficult. The reason for this is because you are a new business and do not have a history of success. ...read more.

Middle

Furthermore, it?s important to have a contingency plan. If a problem arises and there isn?t a plan you won?t have reserves for problems that may occur. For instance, if machinery breaks down and there is not a contingency plan or reserve fund, the business may not be able to operate as they won?t have the funds to repair or replace the machinery. Lastly, it?s important for the business to consider online operations. The majority of people prefer to shop online as it is easier and more convenient. Therefore, if the business doesn?t provide an online service for customers to buy their products they will be loses a lot of sales as customers will go to their competitors who do sell online. If you move markets, for example, local to a global market it may lead to problems. If a business is operating in a different country, there may be different laws and regulations that you need to follow. Therefore, it may cause issues as you will have to abide by the laws in order to operate. Also operating in different markets may lead to problems if research is not done effiecently. Therefore, if research on products and customers isn?t done well it may lead to less customers as products may not be suitable for the particular area. ...read more.

Conclusion

There are many ways in which a business can gain initial finance. The business owner has a range of different sources of finance. However, some of the methods they may use to gain the finance contain an element of risk and some may be risk free. If the business owner uses a mortgage to gain a property you will have to pay interest. This interest can vary; you can have fixed or variable interest or interest only, or interest and repayment mortgages. If you don?t pay, your property can be repossessed. Also, if loans and overdrafts are used as ways to gain finance the business will now have to pay lots of interest which reduces the amount of money on other things such as raw materials. Furthermore, credit cards may be used and also have high amounts of interests which could put the business in more debt. Moreover, the business may make use of angels, dragons or venture capitalists and they now own a certain percentage of the business which means you will have to share your profits with them. In addition, if you don?t meet the criteria for investment, nobody will want to invest in your company for instance, when obtaining a loan, overdraft or being invested by venture capitalists. There are many steps needed to happen when starting up a business. If these steps are not completed efficiently the business won?t be able to operate successfully. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Business Plan window cleaning

    for Right Choice, sole trader who set up a window cleaning service. The services are include window cleaning, conservatory cleaning and both window and conservatory cleaning. The start-up costs were about �620. A number of assets were purchased such as equipment - e.g.

  2. Unit 9: Marketing Strategy

    Instead, I simply had to assume that respondents who identified themselves as living in Sutton-on-Sea and not using a local bakery because they do not have access to one would want to use Fabulous Frostings, this information would not be accurate enough when making the decision as to whether to open the business.

  1. Social implications of business ethics. The main areas I will be highlighting are ...

    it is down to what extent is it ok for a member of staff to be watched and monitored. In many businesses employees don't feel comfortable or safe when the management are looking at all their calls, texts and emails.

  2. Small Business Strategies - identifying the target market, necessary skills, plans for development and ...

    that the business offers and help them to avoid the markets that are not viable for the business. This also helps to ensure that resources are not wasted futilely on the wrong target segment. The information gained from segmentation can help the business to improve the products in order to meet the needs of the customer.

  1. The Impact of Migration on the Reduction of Poverty

    This would have perpetuated the cycle of poverty resulting in an overall deterioration in the economic standards, which could cause social strife. The results also bring out the sharp variance in poverty elasticities of remittances from the migrants. The higher the migration the greater the impact on the reduction of

  2. PEST is a planning tool which is used by a business to evaluate and ...

    If new laws are being talked about by the government about environmental issues such as recycling a business can plan for this so that they can make sure that when the law comes into place that their business has all the essentials that they need to comply with the law.

  1. The main purpose of this research is to know and analyze whether the Olympic ...

    In the world itself it is the highest giant wheel that is present on the south bank. From this giant wheel the 25 miles of the area can be covered or viewed by the people. In addition to all these the coming attraction for the London is the London Olympics 2011.

  2. NETFLIX CUSTOMERS SATISFACTION

    richer theory incorpor?ting the str?t? ?s v?ri?bles. This paper present methods for ?ddressing these issues. The methods ?re ?pplied to multiunit d?t? from two different industries. We illustr?te how these methods could be useful to ? m?rketing m?n?ger of ? p?rticul?r comp?ny ?nd how they c?n be used to study "gener?l truths" in m?rketing.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work