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The business plan

Extracts from this document...

Introduction

1. Introduction This portfolio work will enable me to learn how to set up a business. And we have to do many things to set it up. And I want to set a tuck shop in the boarding house which is near the school and what I have to do is get the tuck shop started. I also have to write a business plan for it to make sure that I know what is I doing. A business plan will also allow me to minimize risks of failure; failure can be very costly to a business. I set it up because the boarders in the house always go to the supermarket in MP .If I haven't written a business plan it will be an increase in risks and decrease in success in rate. 2. My business In the school, the student will get pressure from their studies. so by having some food and drinks to let them relax.. that's why tuck shops are very popular in school even in boarding house. From the result of my questionnaires I got over 50% boarders from the boarding house said they strongly advise to open a tuck shop in the boarding house. So I become confident of the demand of the house. The man of my tuck shop called "Come On". This type of business will be sole trader. This business only owned by me and I need to face "Unlimited liability" which means I face all the business risk and has to find all the capital to start the business. ...read more.

Middle

Balance sheet displays the business assets (where money is spent) and liabilities (where the money has come from). The payment for business assets, such as the purchase of a new delivery vehicle or a new machine, are referred to as capital expenditure. There are two main ways of drawing up the balance sheet. 1. T-From Balance Sheet The balance sheet has all the assets in one column and all liabilities in another. (See Appendix 3) In this balance sheet the total value of the assets and the total value of the liabilities will be BALANCED. 2. Vertical Balance Sheet This balance sheet uses exactly the same figures as the T-form balance sheet, but organizes the data in a different way, which allows accountant s to assess the financial health of the company. (See Appendix 4) Profit And Loss Account---A profit and loss account shows all of a firm's revenues and costs over a period of time, usually one year. But I won't be sell ice cream in winter, so the profit will change. For my special case, I would like to produce a monthly profit and loss account which can be more accurate. (See Appendix 5). Breakeven Graph---It is important for any business to have a clear picture of how output and sales will affect profit or loss. In particular, it is significant to know the level of sales necessary to avoid any loss. This is called the breakeven point (the point that Turnover line cross Total Costs line) A breakeven chart is produced in a business because it shows the level of sales required to cover all the costs. ...read more.

Conclusion

3 Dislike 2 Phone Room 20 Common Room 7 Kitchen 3 Lowest price 19 High quality 4 Promotion 7 Place 0 More product type 0 APPENDIX 1 APPENDIX C Product No.of people product/week Demand Quantity Crisps 40 4 160 Drinks 40 3.5 140 Chocolate 40 3 120 Ice-cream 40 4 160 See Questionnaires Mark Product/week: the average demand quantity of this product for one person per week Demand Quantiy:the total demand of this product for the boarding house(40people) per week Product Total Quantity/week TQ/month Product types Product demand per type/month Crisps 160 640 6 107 Drinks 140 560 5 112 Chocolate 120 480 5 96 Ice-cream 160 640 3 213 APPENDIX 3 T-Form Balance Sheet � � � � Shareholder's Funds Assets: Share Captials 300 Fixed Assets Retained Profit 0 Premise 0 300 Machinery 429 429 Liabilities: Current Assets: Long term loans 500 Stock 638 Short term loans 500 Cash 233 1000 871 1300 1300 APPENDIX 4 Vertical Balance Sheet � � Assets: Fixed Assets: 429 Current Assets: Stock 638 Cash 233 871 Total Assets 1300 Liabilities: Current Liabilities: Short Term Loans 500 Working Capital 371 Total Assets Minus Current Liabilities 800 Long Term Liabilities Long Term Loans 500 Shareholders Funds: Share Capital 300 Retained Profit 0 Capital Employed 800 "Have a brake" Profit and Loss Account/Month � Turnover 977 Calculation Cost of sales (638) See Appendix A Gross Profit 339 Electricity �40/month Fixed Cost (80) Rent�1.25/day (See the copy of Email) Net Profit 259 Net Interest(payable)/receivable (100) (See the Loans interest rate table from HSBC) Profit before taxation 159 Tax (8) 5% per month Loss/Profit for final month 151 ...read more.

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