Salon section
- Hair dryer (8) £800
- Hair straighter (10) £650
- Combs £50
- Brushes £40
- Scissors £30
- Curlers £35
- Mirrors (8) £80 each
- Chairs (10) £95 each
- Tongs £45
- Rollers £35
- Hair clip £20
- Towels £60
- Aprons £40
Health care centre
- Tables (15) £35 each
- Chairs (30) £25 each
Task 7
Obsession is a private limited company what this means is that the company is owned by individuals and not by the government but tax has to be paid depending on the success of the company.
Having a private limited company gives the owner’s a stronger financial security which means that if the owner’s are under debt they aren’t personally liable for their debt, instead their liability is limited to the amount of their investment having this ownership provide business a better image to their custmer’s.
BENEFITS FOR THE OWNER’S
- With a private limited ownership companies can stay small if they want which means few shareholders
- Owner’s or shareholder’s will work in the business every day and will want success to come to the company
- The shareholders are usually the direct and they are usually responsible for running the business.
- It’s quite easy to set up a private limited company and doesn’t require to much in some cases £100 or £200
- If companies have a good financial track record it’s likely the bank will give you a loan
DRAWBACK FOR THE OWNER
- It not possible for the owner to sell shares the general public
- Private limited companies have to follow more regulations compared to sole trader and partnership such as having the company registered.
- Limited companies have to be careful when choosing a name for their company, making sure that they don’t trade under the name of another company, which can confuse suppliers and customers.
IMPORTANT FACT
Some fact, which enterprises must follow set procedure to become a limited company.
Which include: -
- Drawing up a memorandum of association and adopting articles of association
- Due to the fact that limited companies have a separate legal identity.
- So if there was an accident in the business premise the company will be sued not the owner
- A certificate of incorporation is issued to the company
- Corporation tax has to be paid
I will be the owner of the company the reason for this is that I feel that I will put 100% effort into the company to make it a success. I ruled out the idea to employee someone because I don’t feel that they will put as much as effort in to the business as in will.
As the company is going to be owned by me so all the profit will also go to me.
Task 8
- Before the business can start trading they must first register the company and have their accounts audited
- They have to make sure that there companies name is not the same as any other company.
- A set procedure has to be followed which includes a memorandum of association and articles of association, which relates to the structure of the company and how it will be run.
- Get the certificate of incorporation issued
- Has to pay their incorporation tax for there net
- Licences needed under local regulation
- Employers liability insurance to protect you from damages form employees in employment and a certificate has to be displayed.
- Public liability insurance to protect you from damages from customers in building and a certificate has to be displayed.
Why these regulations are necessary in my company
-
Licences is needed due to the fact that a salon is being run in my company
- and it is important that I get a licences for I run the salon
- Employers liability insurance is needed too in my business to protect me in case an employee is injured in the workplace during employment. The certificates must be put in a place where everyone can see it.
- Public liability this is needed in case something goes wrong in my business with either the products or service and the customers faces damages this insurance can help us
- The company has to be first registered this is because you are not allowed to start trading if it’s not registered
- So that there is no confusion between other companies I will have to make sure that no other companies have the same name.
- I will have to go through with the set procedure because all limited company has to draw up a memorandum of association and adopt to articles of association
- Certificate on incorporation will be needed this is needed to state that the company is an individual and not connected to the manager so if some one gets hurt the company get sued not the manager
Task 9
To get help with finance there are a lot of places where people looking for capital to start there business and most of them give advice to them but to be able to get the loan you must first of all try to persuade the loaner that your company will be successful by showing them your cash flow forecast.
Below are some of the places where you can get advice from: -
- Banks
- Building societies
- Accountants
- Solicitors
- Business links
- People already running there own business
- Government and regional interactivities
- The princes trust
Below are places you can get loans from: -
- Savings
- From partner or investor through shares sales
- Credit purchases
- Leasing
- Banks or other financial institute
- Government funds such as location and loans guarantee scheme
- Venture and capitalist
- Eu funds
- Business angels
- Certain business
- DTI
- Regional enterprise grants
Amount money to burrow £ 10,000 and pay it in 12 months
Task 9
The money that I will be burrowing is £10,000 and the money will go towards the purchase of all the equipments that is needed to run the salon and the cosmetic department like the shelves and the check out tills etc…
Some of the money will go towards the fixtures in the buildings like the fittings and the lightings.
Form the sources of finances I think that the best one that I think I might choose is nationwide because there APR% is not that high and at the end of paying the loan there interest would not have gone up as much as it would if I choose one of the others available
Task 6
The personal requirements for the business
For the company to be able to run smoothly will have to employ people.
I will need a managing director who will try to keep the company as a whole
I will then need from managers for 4 different departments which is the finance who will take care of the money matters, the sales and marketing who will sell the products and market researching.
Then there the human resources manager who takes care of recruitment and training the employees and the last department is the administration.
Under is of the different department there is the sales people who will be selling the products and supplying the service to the customers, there the cleaners who will keep the premises clean the security to make sure the surrounding is safe.
Back up suppliers