Business start up with the help of the Prince's Trust.

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Unit 2 Investigating Business

HSBC

Key features and benefits for Flexi Loan

  • Borrow money up to your fixed borrowing limit at any time
  • You can borrow from £500 to £5,000, with flexible repayment periods.
  • Choose how much to pay back each month – from 4% to 10% of your limit.
  • You can make lump sum reductions at any time with no penalties.
  • Good interest rates.
  • If you don't use your Flexi Loan, you don't pay anything.
  • Our affordable Flexi Loan Protection Plan covers your repayments if you are unable to work in the event of accident, sickness or involuntary unemployment.
  •  If you were to die during the loan term, the outstanding amount would be repaid in full (less any arrears).

Flexi Loan APR 14.8%

Prince’s trust

With start-up support from The Prince's Trust, you could get:-

  • a low interest loan of up to £4,000 for a sole trader, or up to £5,000 for a partnership (the average loan is between £2,000 and £3,000 but varies regionally)
  • a grant of up to £1,500 in special circumstances
  • a test marketing grant of up to £250
  • Ongoing business support and specialist advice such as our free Legal Helpline.
  • Ongoing advice from a volunteer business mentor
  • Access to a , free or at discounts

Family and Friends

These people can help me with buy borrowing money and not charging any interest, if they like my idea we could form a partnership.

Own Savings

I could put most of my money into the business which I have saved up.

Which finance would help my business?

The choice of finance I would choose would be is prince’s trust and friends, family, and the money I have saved up. The loan from HSBC bank but I would try not to pick up a large amount I would rely on family because I have to pay interest and if I don’t pay the bank back they will take the business off me. If I borrow from friends or family I won’t pay interest but I would agree I fixed amount each month, I would do this because then they would know that I’ll pay them back. Also the princess trust loan I will have to pay money back put the interest rate wouldn’t be as much as HSBC loan and the princes trust will give me free advice so they’ll make the business better. I wouldn’t really won’t to put all of my own savings into the business because my own money could be used as a back just in case if business isn’t going well and I needed to put a few hundred into rent etc. because if I just used all the money of my own savings and I had to buy new equipment but I already had a loan the bank wouldn’t give me more money because they don’t often give loan’s to Sole Traders. But I would be expected to use a lot of my money because if I didn’t then over people wouldn’t want to risk their money for me.

Below is an application form for princess trust.

That is what a Princes trust application form looks like. If I want to choose this source of finance I will go on to their website

The role of quality control, quality assurance and total quality management

Quality can be defined as:

  • Continually meeting agreed customer needs
  • What is takes to satisfy the customer
  • Fitness for purpose

Quality control

Quality control is concerned with detecting and cutting out components or final products which fall below set standards. Quality control is carried out by Quality Control Inspectors. Inspection and testing are the most common methods of carrying out quality control.

        I could use this for my Car Wash by making sure every single car is washed to a high standard and that my workers don’t slack off.

Quality Assurance

Quality assurance is when you are trying to stop problems occurring. Quality assurance is the responsibility of the workforce, working in cells or teams, rather than an inspector.

Total Quality management (TQM)

This is concerned with creating a quality culture so every employee will seek to delight customers. The customer is at the centre of the production process.

I believe that TQM will seek to provide customers:

  • With what they want
  • When they want it
  • How they want it

Importance of monitoring and reviewing business performance

In order to monitor and review business performance it is necessary to have standards against which to judge this performance.

Standards such as:

  • The solvency of a business
  • Profitability
  • Complying with laws
  • Identifying areas for improvement

The solvency of a business

Solvency is concerned whether a business has access to enough cash to pay outstanding demands. A solvent business is one that can always meet demands for short term payments (wages). Cash flow forecasting is an important management tool for controlling solvency. Because I can predict how much goes in and out of a business.

Profitability

In order for a business to survive a business must make a profit, therefore managers will establish profit targets for coming periods. If profits fall short of expectation then managers might use appropriate control actions. This could mean cutting jobs.

Complying with laws

        Managers must make sure that employee’s follow certain laws e.g. health and Safety act.

Identifying areas for improvement

Managers have responsibility to identify areas where there is room for improvement in business performance.

The importance liquidity (solvency)

Financial and management accounting

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Financial accounting is concerned with the recording of financial transactions and the preparation of financial reports to communicate past financial performance. Subject to accounting regulations, financial accounting ensures:

  • That reports/statements follow a standard approach
  • A broad overview of the whole business using totals
  • Information to a particular date
  • General statements and reports
  • Information in monetary terms and values.

Management accounting

In management accounting is looking to the future using knowledge of past performance, where relevant, to aid the management of the business. In management accounting reports are only for internal use so no restrictions ...

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