Business plan. The business that I am going to produce is a personalised logo company specified in dance schools, in need of customised dance wear.

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Alice West                                                           Unit 2, theme A.

Unit 2, Theme A.

Investigating

Business.

Unit 2, theme A.

Investigating Business.

Introduction- 

The business that I am going to produce is a personalised logo company specified in dance schools, in need of customised dance wear. My company name is ‘PDW’ (Personalised Dance Wear). In order to satisfy my customers I will undertake each and every order from a customer and specifically create it to match their wishes of a design. If a customer is not satisfied with their product, I will acknowledge this issue and solve it until they are entirely happy.

The type of business that my business Is categorised in is a sole trader. A sole trader is a business which is owned by only one person, in which the owner is personally responsible for every aspect of the business, they have the freedom to make any decision they would like, for example you can decide on your own objectives e.g. making a large profit, achieving a target market share, expanding into other localities and products, although all profit gained from the company is kept by the owner, after tax is paid.

Potentially if my company has future success and expands it could become a private limited company (LTD) even so in the companies further life it may become successful enough to fall in the category of a  public limited company (PLC).

My idea of setting up a Personalised Dance Wear Company, came from the years of dancing I have been involved in. Dance has always had a huge impact on my life, and influenced me to take it a step further, for people to enjoy dance the way I did. I enjoyed having a personalised dance wear for the dance academy I danced for so I would like to promote my new business PDW too the population to give them a chance to get their own dance wear personalised. Also dance schools and academy’s may take interest of having their own logo to represent themselves, as did I with my dance school. I have also decided to create a website for my personalised dance wear company as it will be a quick and easy way for people to describe what it is they want personalised, with a picture maybe to show what the logo will look like. I am also using my website as a source of promotion, as the internet is a global system, this means the world population can access my website if in need of any personalised dance wear.

A sole trader is a independent business owned by one person only! The owner is personally responsible for every aspect of the business. I am starting off as a sole trader, as my business is only small, although I would like to form a partner ship in the near future, to gain a larger profit. Being a sole trader is the most simplest way to run a business, it does not involve paying any registration fees, keeping records and accounts is straightforward, and you get to keep all the profits. However, you are personally liable for any debts that your business runs up, which make this a risky option for businesses that need a lot of investment.

This is the dance logo for my company PDW’ I think that I may have to change a few slight things to make it unique and promising to all customers, this needs to be a stunning attraction to the population so that they are interested in my businesses service. However this logo idea I got from,  

Mission statements-

A mission statement is a formal, short written statement of the purpose of the company. The mission statement guides the actions of the business, provide a sense of direction, and look upon the company’s overall goal. A mission statement also sets out all aims and objectives of a business. An aim for a business is the overall direction in which the management wish it to develop over a period of time it expresses in general terms what the business sets out to do in the long term. A objective is a specific goal that a business wishes to achieve. An business will succeed in its aim through the achievement of a variety of objectives including profitability, growth, quality and social responsibility.

My mission statement-

‘PDW’ is committed to the art of dance. Our mission is to create a distinctive and unique design required for any dance company. For each new project that we undertake, we start by taking a fresh and innovative approach to the design assuring that it achieves your personal wants and needs.

I think that this is a suitable mission statement for PDW as people are going to want high quality products that makes their dance company slick and unique, I need to make sure that any potential customer  is fully aware that the products produced will only be made from the best quality, in order to assure them that their wants and need will be easily achieved leaving them highly satisfied with their clothing. My main aim is to assure that each and every design is made to the best possible standard, so that each dancer feels comfortable and freshly approachable when dancing. The connection between the customer and PDW will be distinguished as consumers have to speak up and make their exact specification of the design that they are in need of.

Section 1-

Business plan a business plan is a formal document that is used in order to raise the finance, it ids presented to the potential leader of the company/business. A business plan clarifies the objectives that a business has set, the reason why they are believed attainable and the plan for reaching those goals. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan is essiential for a business to have it should include various information of aims and objectives for the business this is vital in order for a business to suceed.  A business plan is different from business planning, it is vital to know the difference between these 2 things to ensure that the business covers all aims objcteives set. The difference between a plan and planning is a plan is completed to define all sections of the business, and where it will potentially lead to in the future. A business plan also represents all aspects of a business planning process.Whereas planning is a ongoing process which can be updated frequently and refered back to when in need. The planning process records all decisions on allocating its resources to persue its strategy. In order for my business to lead a succuessful future I will need to include a business plan to map the paths of the businesses success.

The planning cycle.

1.Set objectives: the target

 

2. Collect information: where are we now?

3.Make plans: how do we meet the objectives ?

4.Monitor progress: how successful are we?                                                    

                                                     

Why I need a business plan-

A business plan is needed as it provides specific information about your company, it structures the businesses life cycle and shows all of your business associates (bankers, lenders, parteners). A business plan will guide me to help manage a cash flow and to develop and communicate a course of action. By creating a business plan, I am easily able to map the future for business, where it potentially will lead to in later life. By undertaking my business plan I am able to monitor and review the businesses progress, analysing whether the company is it suceeding or not. It is highly imporant to have a business plan within my business otherwise i will not know in which direction I am moving ahead also where and when you need to stop. A business plan is a good communication tool through which your business can communicate the marketing, sales and oporation plans to the investors of the business. A business plan needs to be monitored regularly so which direction your business is going in.

My business plan is critical, it is vital to have a business plan in order for my business to succeed in the future. It will map out how I plan my business to grow throughout the market, gainer a larger profit if my company becomes successful. By following my business plan it will enable me to monitor and review my progress of PDW, analysing whether it is a succeeding business or not. By creating this plan it will set business goals and targets, which can be measured on a regular basis, this also increase employee motivation as they will know what is expected of them, giving them also a chance to achieve a goal they are working towards awarding them with a money bonus, or pay rise for example. This means that the business can be ran smoothly with no interruptions in order for PDW to meet and achieve every aim and objective they set out to accomplish.

Whilst creating my business plan it is vital that I include every action needed in order for my business to succeed. My business plan needs a list of the actions in order of what I need to complete them, below they are listed:

The elements of a business plan.

  • Cover sheet- This opening page is used to outline the content of the plan, including the business name, your name and brief information introducing the plan. This also is used in order to not loose the plan, so the file is easily found, when looking back you know the specific cover that you are looking for.

  • I will need to include a cover sheet to my business plan, so that I know the name of each section and I will easily be able to find the document that I am in need of quickly. It will also give me a brief content of what the document is about.

  • Statement of purpose- This statement is important to include in a plan, in order for you to refer back to the process of the business. This brief and focused statement is needed so that you know what aims and objective you have or are going to need to complete.

  •   This is vitally important to include into my plan, so that I know what I am aiming for within the business and how the on going process is working. I need to state my main aims and objectives within the statement of purpose so I have goals to work towards to improve my business and/or to keep it up to high quality standards.

  • Table of contents- This is a list of parts of the plan which are organised in order in which the certain parts appear within the plan. The contents usually include the titles or descriptions of the first level headers.

  •    I need to include a table of contents into my plan to assure every section is easily found, and completed progressively. I can use this also to check back to see which sections have been completed and which need to be done.

  • Descriptions of your business- This is needed in order to explain who you are and know the whole outlook of the business, if any complications or mix ups occur within the plan, this is used to refer back to. Also in the businesses future life, this short description about the businesses aspects may be useful to come back to if required within any situation.

  •   This is an important part of a business plan, it is needed to confirm the name of the business ‘PDW’ (personalised dance wear) and what service the business provides ( A personalised logo company specified in dance schools, in need of customised dance wear). If any issues occur within the businesses lifetime this can be used to look back on, to solve these problems.

  • Marketing plans- This is a list of actions that a business needs to complete throughout. Marketing plans are very useful, once a task is completed it may be removed or ticked off of the list.
  • This will be used as a guide line for all tasks that need to be undertaken and completed within the business, I can refer back to this marketing plan to see which task is needed to be taken aboard next. Once a action has been completed, it can either be removed or ticked off to ensure we know of what stage we are at throughout the businesses life.

  • Describe the competition- Other similar companies may be a huge threat to your own. Both companies acting independently within their own business, competing to over rule each other. Competition occurs naturally, each business will do so, in order to make their company the best. Most businesses are in competition with at least 1 firm over the same group of customers.
  • I Need to be aware of other companies that are similar to my own, as they could become a huge threat to ‘PDW’, I need to plan out tactics and idea to overtake other companies, and strive for the goal that both businesses wish to achieve.

  • Operating procedures- This is a written document detailing all steps and activities of a process or procedure. This would be an advantage to include into a businesses plan as every action needed in a business plan will be noted down in a operating procedure. This will be helpful to look back to, to see if the required steps have been completed.
  • I will need to include operating procedures into my business plan, as it will map out every step and activity of the procedure. Every action that ‘PDW’ will undertake will be noted down onto a operating procedure this will be a huge advantage to look back on if needed, to see if the tasks required have been completed.

  • Personnel- A personnel is required to be included into a business plan as it gives the name, phone number, and further details of employees of the business. These individuals who comprise under the workforce of a organisation or business.

  • This isn’t relevant as much to me and my business at the moment as I am starting as a sole trader, so I only need to note down my personal details, although in the businesses future life if I decide to form a partnership or anything bigger, I will need to take personnel’s into consideration.

  • Business insurance- If any accident occurred involving a employee or customer, a business should have a set insurance which will cover the payments of the accident. Usually it is purchased on a group basis which is used by a firm to cover their own employees. Covered groups or individuals pay a fee, or tax to help protect themselves from health care expenses.

  •  This must be included in a business plan, in case of any accident that occurred involving either a customer or employee. This will help protect people against health care expenses. This is vital to include, I must have this within my business!

  • Financial data- The financial data is usually undertaken by an accountant, in which they sort out all of the money sections of the business. This part of the business plan includes the incomes and outcomes. This is the tax, wages, profit and insurance.

  •  This is important to include within my business plan, as this is the successful outcome that a business achieves. This data will be collected and given to an accountant to sort out, this will include the incomes and outcomes (tax, wages, profit and insurance).

Section 2-    

The ownership of my business is a sole trader a sole trader is a business owned and run by one individual with no legal distinction between the owner and the business. The owner receives all profit,, after the tax price is paid. There are many advantages of being a sole trader : They are usually small businesses, so less money is required to set them up, decisions can be made without having to consult others, The owner gets to keep all of the profits; they don't have to be shared with others, Financial information can be kept private. I am hoping that starting off as a sole trader will benefit my business as I’ve had the freedom to establish all of the aims and objectives for my company on my own, therefore I can build up the business in my hands, the way I see it to work, although having a partner will benefit me in many ways I think starting the ‘PDW’ as a sole trader is the best way forward. They have unlimited responsibility for all losses and debts. I am currently running my business by myself, as it is a new small organisation, although in the businesses further life I may wish to intend of creating a partnership. I am starting off independently as a sole trader only as I have only just began my business, I have many ideas to put towards the business, as I have had years of experience of dance and have been influenced by every aspect of it. I think it is important to build the business up with independence, until the business is properly up and running.

The job variety may become a problem within a business of a sole trader, you can end up doing everything from managing sales, marketing, doing the banking to making the tea so in the future life of the business the option to take on a partner to help along with the business so the roles are shared may be a great idea. A partnership is where 2 people conjoin together to share decisions within a business or start to work together as joint owners of a business. Having the involvement or a partnership will have great advantages- As there is more than one owner their will be a higher amount of money to invest into the business, new partners can bring new skills and experiences that may help the business create more profit, responsibilities can be shared out by both partners this means that not only on person is responsible for the whole of the business. As of this there are also disadvantages of starting a partnership- The profit must be shared equally among the partners, you do not have as much control over a business all partners will want to have a say in all important decisions, There can be disagreements between the partners. This can cause major difficulties as partners are bound by any commitments made by a single partner, even if they did not agree to it. The legal implications that a sole trader needs is to pay income tax on profit.

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LTDs.

If my business is highly successful and grows a lot larger, in the future I may think about expanding my business into a Private Limited Company (Ltd). A Ltd is often a family business with shares held by family members, private companies can not offer shares for sale to the public at large, so their ability to raise money may be limited. A limited company is a business owned by shareholders which is run by directors and set up as a body which is separate from its owners (the shareholders). ...

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