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In order to have the best possible Business Plan I had to take various steps. These may have included: Primary and Secondary research or even an analysis of the competition I'd be facing.

Extracts from this document...

Introduction

In order to have the best possible Business Plan I had to take various steps. These may have included: Primary and Secondary research or even an analysis of the competition I'd be facing. Deciding on what we were going to sell was easy, as the business is situated on the college premises and it's for the student body selling stationery was the perfect idea. When the final decision was made it seemed in our best interest to check out who our competitors are and what type of items they sold, and at what prices. Our competitors consist of; WH Smith (main competitor), Woolworths, Rymans, and Stationery Box. Going to these stores and seeing what they sell and at what prices was quick and simple to do. Being in the same field as we are we only had to look at the products that we were going to sell. Within the college we had to see if students as well as teachers would purchase from us. To do this we created a questionnaire with various questions. From the response of the questionnaires it showed that students would buy from us, and they were happy that we would be setting up a stationery stall to provide items for them at reasonable prices. With exams coming up and the possibility that students would run out of stationery or forget certain things, the perfect times to sell the stationery would be at break time or period 3 (just after break). For this to work in the best of our advantage we had to analyse our potential customers. This was successful as our customers are the students of St. Charles aged between 16 and 19. The research taken place here is Primary research. Secondary research consisted of who our suppliers would be, and whether or not we could buy in bulk. Our suppliers are GLS and Consortium. These are companies that supply schools with stationery; this has enabled us to be able to buy certain items in bulk. ...read more.

Middle

It outlines the primary and secondary research needed to fully identify what our business needs to look for from competitors and what they need to ask their target market. Special tools like the PESTEL analysis should be used to make sure that Stationery on Tap have acknowledged constraints that could affect their business, certain things that they may think is irrelevant others may think that it is the one thing that they don't do therefore they will not purchase from us. The amount of money needed to make sure that we are financially constant throughout the first few weeks is very important. This need careful consideration and does require to be looked at with the utmost highest regard as this is imperative. Our shareholders are entitled to know when they would be able to get their returns. The ROCE (Returns on Capital Employed) equation compares the net profit of Stationery on Tap with the owner's capital. It basically shows the owner how long it would be before they can get their capital back. ROCE: 248.50 *100 = 123.94% 200.50 The Net profit percentage compares the net profit to sales. This equation is taken from the profit and loss account and turned into a percent. Net profit percentage: 248.50 *100 = 56.16% 442.50 The Gross profit percentage is also taken from the profit and loss account. This measures the gross profit compared to sales. Gross profit percentage: 265.50 *100 = 60% 442.50 There is some debate about whether or not it is advisable to have a large profit. If you are a small company like Stationery on Tap then we don't have the resources that would cover a larger company (eg) WH Smith. Having a large profit could make your tax quite high meaning that you would noticeably have to pay more. Since this is our first year we have nothing to compare these figures to. ...read more.

Conclusion

Alternative Financial Strategy In the beginning we sold shares to those of the two AVCE classes and to others around the college. At the moment we are considered to be a limited company, this means that we only sell our shares to friends and family. If we change this and become a plc then we could sell our shares all the time. (eg) on the stock exchange. If we were to sell shares on a regular basis (eg) every few months, then we would have a financial stability that would help with expanding the business. To predict before hand how the business could develop in the future we could use a break-even chart which will show us just at what point we will be making more money than we're spending. This is a good way to have a clearer depiction of what may happen in the future. Also this could be used to give us an outlook on what prices we should sell our products. Hopefully by this we would have an idea on whether or not we would make a lot of money or even a standard amount. The break-even charts would show us (a) where we would break-even and (b) how many products it would take to sell for our total costs to equal our total revenue. Another financial strategy would be to lend money from the bank. In the real world this would be considered unrealistic but we would only be lending a small amount. However even though this is a small sum of money (eg) �100, the bank would want to see financial records for the business. Now if Stationery on Tap were not able to show these records then we would not get any money. With a good business plan which will reflect how well the business would do the banks will see no reason to not lend us the money. Lorraine Charles Mr. Graham ...read more.

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