The aim of this assignment is to investigate setting up of a small business which provides a service to the local London Borough of Camden area only. For this unit, I will need to produce a business report

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Introduction

The aim of this assignment is to investigate setting up of a small business which provides a service to the local London Borough of Camden area only. For this unit, I will need to produce a business report covering the following areas:

•        2.1 - Section A - A business plan for my chosen business

•        2.2 - Section B - An explanation of how my business will manage its activities

•        2.3 - Section C - The financial management of my business                

•        2.4 - Section D - The software available to improve my business’s efficiency

Company names and checks

My business will be a cupcake shop situated at Hampstead High Street in the borough of Camden. For my business I have chosen the name ‘Des petits Gateaux’ for numerous reasons; Firstly, I have decided to locate my business in a well-known wealthy area in the borough of Camden, so I wanted a name that sounded sophisticated. Secondly, the name of my business is comparable to all the other businesses situated in this area. Finally, this area is bi-lingual which means that my target market/residents around the area speak more than one language and will be able familiarise the name.

The name ‘Des petits Gateaux’ has not been used by any other businesses according to startbiz.com. Here is a screenshot of the evidence from the website:

Although the website yell.com have found some results from my chosen name, none of them are actually linked to the name from my business and they have all given me separate businesses, which are in no relation to mine. Here is the evidence from the website:

Types of ownerships available for my business

Partnerships

Small businesses may choose to operate as partnerships. Partnerships are often formed by professionals who have specific skills. In an accountancy partnership each partner may specialise in a different sphere of accountancy, such as tax, trusts, insolvency or investments. The partners share the profits and the costs. However, they must share the work and the remuneration fairly as disagreement may lead to failure.

Public liability

A successful limited company may decide to sell or float shares on the stock exchange. This will mean the business changes its ownership to a public limited company or plc. An example of a PLC is Marks and Spencer.

The money generated from the sale of shares on the stock market can help to finance the growth of a business much more quickly than if the business had to rely on the profits from normal trading. However, the business must perform well in order to attract investors.

Franchising

Sometimes business sell their idea their corporate image to other interested partner, who run the business to a documented formula and give the original owners a percentage of the profits. This kind of business is known as a franchise.

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Sole trader

A sole trader is one person that runs a business; all financial risks are taken by that person and all that person’s assets are taken as risks. A sole trader is a person who trades by himself/herself without the use of a company structure or partners and bears alone full responsibility for the actions of the business.

I have personally decided to become a Sole trader due to the limited number of other options that being a partnership, a limited company and being self-employed. However becoming a sole trader minimizes decisions being made; only I will ...

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