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

Is there Scope for a new Business in the Newbury Area?

Extracts from this document...

Introduction

Business Studies Coursework Is there Scope for a new Business in the Newbury Area? Finance Before I start this section of work, I need to make a note. Halfords, one of my competitors, have just expanded their bike section of the shop, selling a huge range of bikes, and providing a full time servicing service. This will affect my decision of starting this business tremendously. To be able to start up my business, I need capital. Cash, in other words. It is virtually impossible to run a business without capital, as well as a constant cash flow. This means for my particular business, that I will need enough money to start my business (enough stock to start with, decoration, enough equipment to help me service bicycles etc.) Then, I also need to have a constant cash flow, where money comes into then business, and then goes out. Hopefully, I will be able to have more money coming in than I have going out; resulting in a profit. Start-up Costs The things I will need to start up my business are: 1. Decorating a) Flooring b) Painting 2. Stock to start up with a) Sufficient Bicycles b) Enough Components 3. Till 4. Desk 5. Equipment 6. Business Cards 7. Accounting System (Either computerised, or on a manual system) 8. Telephone System 9. Sign outside the door 10. Shelving 11. Alarm System I have written to 4 shop fitting companies, and none of them have replied to me. ...read more.

Middle

* Decorating �45.69 * Stock to start up with GT �2040.00 Giant �2930.00 Marin �3600.00 Specialized �3600.00 * Enough Components �580.00 * Till �255.50 * Desk �450.00 * Equipment �90.87 * Business Cards �70.00 * Telephone System �99.74 * Sign outside the door �400.00 * Shelving �100.00 * Alarm System �500.00 Subtotal �14761.80 Rent �19950.00 TOTAL �34711.00 How to get the Money I need Looking at these prices, I feel that I can financially set up my business. I have savings of approximately 16000, but I feel that it would be un-wise to use up all my savings. I would like to keep at least �5000 spare, for in case the business is unsuccessful. Therefore, I will use �11000 of my savings. That means that I will need to raise �24000. To get the money, I feel that a bank loan will be the best way to borrow money. I have spoken to an Accountant, (Derek Turner) about the issue, and he has assured my that between The Halifax, NatWest, Royal Bank of Scotland, and Loyds TSB, that NatWest will provide me with the best loan at the best interest rates. These are the interest rates that NatWest offer. Amount of Loan Rate Fees �1000 - �2900 20.9% APR No Fee �3000 - �4900 15.9% APR No fee �5,000 - �9,900 12.9% APR No fee �10,000 - �14,900 10.9% APR No fee *�15,000 plus 9.9% APR No fee *I will be borrowing at these rates. ...read more.

Conclusion

I only need to sell one or two very expensive bikes (up to �4000) to earn most of the months revenue. * Around here, cyclists ride all year round, there are very good tracks for cross country and downhilling. * Seasons. Even though I just said that people wont be bothered by seasons, They will definitely spend more around summer. That's because people are out, jumping their bikes, breaking them and needing spares. Therefore they will be buying more. I will also have to have an after season sale, just like the Cycle Shop, to be competitive. Christmas will also be a good time for me, as children may like bikes for their Christmas. * Bikes that most people buy, average out on about �600, so if I only sell 10 each month, I will definitely make enough each month. * My first month will not be as good as the following ones, seeing as I will not be as well known in the area. I have spoken to the manager of The Cycle Shop, and he said that I can expect to earn about �4500 on average each month as a new business Therefore, I feel that I will earn roughly the following amounts each month. Month Revenue January �2700 February �3300 March �3900 April �4600 May �5600 June �5600 July �5500 August �5300 September �5200 October �4700 November �4800 December �5200 I feel that, financially, I can start this business, but I must now take into consideration, the fact that Halfords have just expanded. ...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 ICT in Business 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 ICT in Business essays

  1. Marked by a teacher

    Unit 4 Business Studies

    4 star(s)

    with the help of a number the customer are able to get further details of the cars they wish to purchase so if they don't understand something that is displayed they can phone up and ask the sales staff about the car.

  2. I have selected a nursery because there is high demand in the UK as ...

    80% of the candidates said they would prefer a day nursery than a nanny to look after their children. Once again I can use this to my benefit because the majority would use my service instead of a nanny. 85% of the candidates said they could recommend a friend or

  1. In this coursework I need to produce a detailed business report on one medium-sized ...

    * Are encouraged to take risks, give support and do not blame others. * Are rewarded for creating value for customers. * Are talked and listened to: and their knowledge is shared, so that it can be used. * Have fun, celebrate success and learn from failure.

  2. 'Is the Business Cycle obsolete

    This has been in the form of progressive taxation to counter cyclical expenditure measures such as unemployment, and to moderate fluctuations in consumption spending. As Burns discovers, the U.S. government post-war period increased borrowing to smooth fluctuations in the business cycle.

  1. For my GCSE coursework, I have decided to look at opening a new business ...

    It is important to find out the majority and minority of opinions of the people in this area to help me make decisions on my business. For example, asking people the times they visit Main Street will help me choose my key opening times.

  2. Rolls Royce is a global company providing power for land, sea and air. It ...

    In its annual press release it mentions that the company invests in technology and capability that can be exploited in each of these sectors to create a competitive range of products. This is clearly an objective of the Rolls Royce chairman who wrote the article.

  1. Introduction for Currys:

    That is why all retailers will offer competitive service offers including suitable delivery and after sales. No retailer will want to risk for too long a competitor being able to offer a new service recognized. As yet the leaving of take-back has had incomplete things on sales; however one of

  2. Investigating Business at RS Components in Corby For my work experience I went to ...

    a file for every person that worked in RS and I had to put all of them in aliphatic order. * Shopping- the customer contact centre does a prize give away every month and I had to carry all the shopping for them.

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