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For my business to be able to run safely and legally I need to look into all legal and financial aspects of my business and ensure they are bought into action in the running of the business. I also need to have a good understanding of all the legislations

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Introduction

For my business to be able to run safely and legally I need to look into all legal and financial aspects of my business and ensure they are bought into action in the running of the business. I also need to have a good understanding of all the legislations that need to be in place so I can understand why I need to put them into action and what may happen if these are not put in place. Some of the legal aspects I will need to consider while running my business will be: The Landlord and Tenant Act 1954 This piece of legislation gives the tenant security of tenure which means that you cannot be forced from the premises you are leasing unless the landlord can show a justified reason. If the landlord wishes to remove you to sell the premises you will be entitles to compensation. The Impact this act will have on my business This act will give me the peace of mind of knowing that I cannot be forced from the premises my business will be set up in also if the property owner wishes to sell the property while I am running the business I must be compensated for having to close/relocate my business. This also protects me from being removed from the premises without a valid reason. Electricity at Work Regulations Act 1990 This piece of legislation states that all pieces of electrical equipment in the workplace should be checked annually by a qualified electrician. ...read more.

Middle

Cash Flow Forecasts The purpose of a cash flow forecast is to provide calculated figures to show the survivability of a company (this is usually done over 12 months). Cash flows in the business through sales and out through expenses. The Impact this will have on my business As this document records the money that may/does come in and go out of my business over a 12 month period it will give me an idea of when I will be making a profit and how much this profit will be and also if I am making a loss when I will be making a loss and how much it will be, this will give me time to try and take action to prevent this from happening. Personal Survival Budgets A personal budget is a financial plan that allocates future personal income towards things such as expenses, savings and debt repayment. Previous year's spending and personal debts are taken into consideration when creating a personal survival budget. The Impact this will have on my business This is important to my business as it will mean that I will have money set aside encase my business goes through periods of financial difficulty. Having a personal survival budget could keep my business out of debt Sole Trader As I will be setting up my business as a sole trader I need to be aware of the implications that come with being a sole trader. ...read more.

Conclusion

This is done to ensure a profit is made on products and services and also that a reasonable price that customers are willing to pay is set for products. * Break-Even - This is the point where total revenue is equal to total expenses therefore there is no profit and also no loss. These documents are produced so a business is aware of how much money is needed before the business is at a safe survival level or a level that it can make a profit. Also if a loss is to be made then actions can be taken to try to prevent a loss from being made. * Cash Flow Forecast - This is a financial document that shows cash requirements for the future (usually over one year). The document looks at accounts payable and future purchases so business owners are aware or cash requirements or shortfalls. If there will be any areas where more financial help is needed then business owners will be aware to seek more support before the problem occurs. * Profit and Loss Account - This document compares sales to expenses to measure profitability of a business. It takes into account all money that comes into and goes out of the business. * Balance Sheet - This is a financial document that reports a business's assets and liabilities to a certain date. This document is important to my business as it keeps regular report on the performance of my business. ?? ?? ?? ?? Isha Butt UNIT 37: Starting A New Business Task1 & 2 ...read more.

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