Aims and Objectives:
Short Term Aims:
- To achieve break even
- To build up a good reputation for my shop.
Long Term Aims:
- To pay back the bank loan.
- To compete within the newsagent market.
Opening Hours
I have decided that the shop will be open 7 Days a week. The opening hours will be as follows:
- Monday to Friday: 7am – 1pm then 2pm – 4pm
- Saturday: 7am – 1pm then 2pm – 3pm
- Sunday: 7am – 1:30pm
I have decided these hours based on other newsagents in the area. On Sunday people only normally buy papers, so opening all day seems wasteful. I may change these hours if we make more money and do a questionnaire once the shop is up and running to see what people buy and when.
Staff
At first my business partner and me can handle the customer flow. But if the customer flow increases we may need to expand the shop and therefore hire another person. When we start making money and the reputation is up we will employ paper boy/girls to deliver papers to nearby residents.
Questionnaire
This questionnaire has been given to you because I am doing a piece of Business Studies GCSE coursework where I have to set-up a business. I am setting up my business on Wood Lane shops where the old newsagents used to be. Please may you fill in this questionnaire.
What is your gender?
What age group are you in?
- Under 11
- 12 – 16
- 17 – 21
- 22 – 31
- 32 – 50
- Over 50
Do you read the Newspaper?
- If yes, how often.
- Daily
- Every Other Day
- Twice a Week
- Weekly
- Less
- If yes, would you buy them?
Do you think a newsagent on Wood Lane would be useful?
- Very
- Quite
- Not Sure
- No
- Definitely Not
How often would you visit the newsagents?
- More than once a day
- Daily
- Every other Day
- Once a week
- Less than once a week
What would you buy?
____________________________________________________________________________________________________________________________________________________________
How much would you spend there a week?
Source of finance
A bank loan will be initially available to the business. This provides a lump sum that is repayable with monthly instalments, which would make setting up easier in the first two years. A fixed interest rate will be supplied making the repayments more costly in the long-term, but provides capital for start up costs and will help with the initial losses. HSBC would offer a loan of £8,000 at 11.9% APR over a period of 36 months at £265.33 a month. Total repayment would be £9,551.88 meaning a long-term loss of £1,551.88. This is quite substantial, but allows for the business to be able to set up and market adequately. Security would have to be provided against the stock, so a security camera will need to be setup.
Personal savings would also be available for this business. This shows the bank that I am willing to invest in the idea, increasing chances of loans. I would be able to provide £1,500 and my business partner could supply £1,000.
A £500 overdraft would be available from HSBC. This is a short-term form of finance, but it costs a lot due to high interest charges until the amount is paid back. The amount for overdraft may be negotiable in the future.
We have a total amount of £8,000 from the loan. £500 overdraft limit and £2,500 internally, this adds up to £11,000, This will be enough to set-up the business and stop us going bankrupt.
Questionnaire Results
Question 1
What is your gender?
This question was chosen to tell us what gender would be visiting the newsagents more.
This shows us males and females are quite balanced in the shops but with more females coming in the shop.
Question 2
What age group are you in?
This question was chosen to tell us how old people in the area are.
Most people that’ll come to the shop will be Over 50.
Question 3
Do you read the newspaper?
This question was chosen to tell us if we needed newspapers in the shop.
Most people read the newspaper. So we need to sell newspapers.
Question 3a
If yes, how often?
This question was chosen so we know how many newspapers we need.
Most people read the newspaper daily.
Question 3b
If yes, would you buy them?
This question was chosen so we know how many newspapers we could sell.
Most people will want to buy a paper. The demand for this product is high.
Question 4
Do you think a newsagent on Wood Lane would be useful?
This can be used to make a prediction of the amount of customers there will be.
A lot of people would find this newsagents useful.
Question 5
How often would you visit the newsagent?
This can be used to make a prediction of the amount of customers there will be.
A lot of people would visit frequently.
Question 6
What would you buy?
This can be used to estimate the stock needed.
Chocolate and Crisps sell well.
Question 7
How much would you spend there in a week?
This can be used to calculate sales revenue.
The average is: £13.66 a week
