My business objectives are:
- My business objectives are to achieve as much profit as possible.
- To create a word of mouth advertisment for my business
- To make enough money to set up a chain of shops.
- To create an indevidual business that will stand out.
Hopfully all of this together will make my business be successful and profitable.
A smart business objective
S=specififc
M=measurable
A=acheivable
R=realistic
T=timetable
Break Even Chart
Here is the Break-Even Chart for my business.
Break even is the point where it tells you how much money you need to make in your business to cover all the expenditures that you have to pay out for within your business.
Break Even Chart On Edexcel
Market Research
Every business needs to do market research as they say their main aim to satisfy its customers. This is easier then having to use hard sales techniques which can sometimes drive customers away. This way they can base their business on what is general people want so that they will bring in more customers. Market research means systematically gathering, recording and analysing data about the market for goods and services.
To find out what customers wants the businesses use a wide variety of market research techniques such as closed questionnaires, open questionnaires, statistics, surveys and interviews. For each business they find a different kind of market research most effective such as for a small company they might want to use small interviews with customers so they can get a more personal relationship with its customers.
Primary Research
This is the process of gathering new information about the market by going into the streets of door to door surveys. Primary research uses Questionnaires, Test marketing and consumer panels.
The good points about primary research are that:
- You get a more thorough answer.
- Can ask more direct questions.
- Can survey the more immediate area.
The bad points about market research are:
- People can feel bombarded if you come up to them in the street.
- Sometimes if you get a leaflet to fill in through your door they just throw it away.
- Can cost allot of time and money.
Secondary Research
Secondary research is using existing data and other sources to research the market.
The good points about secondary research are:
- You don’t have to spend any money and can just look it up on the internet etc.
- You can get information from all different kinds of business.
- Can be helpful if you are just starting up and don’t know how to approach market research.
The bad points about market research are:
- It can be out dated.
- Not useful to your type of business.
- Can be very difficult to get hold of.
Objectives for my Business
- To get the best information I can about my customers
- See how I can cater best for my business.
- See how I can draw in the customers I want.
The type of research that I am going to use is primary research. I am going to use this type of research as I want my business to be fresh and innovative. This will help me achieve this as I will be able to ask my customers what they want combine them together and make a individual business.
Recruitment & Selection
A man power plan will help me to decide on how many staff I need to employ in my business. I will follow the steps below:
- personnel specification
- Job description
- Job advertisement
- Interview
- Job offer
- Training
Personal Specification
A personnel specification is more than just a job description. It tells you in detail more about the physical and mental attributes that you need to have for the job. Below is what one may look like for my business:
Attributes Essential Desirable
Physical None To be
Healthy
Happy
Be able to
Lift things
Qualifications English, Maths Some
Knowledge
Of fashion
Experience People skills fashion
Knowledge
Once having made a personnel specification you will be able to use it to make sure a job advertisement specifies the person you want, enable you to check the candidate for the job has the right qualities and check from time to time if the person in the job is doing what is required of them.
Job Description
Before advertising a job you need to think about what you want from the staff you are going to employ. Once they have analysed what they are looking for they can make a Job Description. A job description is a particular statement setting out how an employee will fit in the business and what he/she will be doing. For example the job description for my business would be:
Shop assistant
The main purposes of the job will be to help the customer with their needs, to take money and cash in, bring and opinion into my business and to give general help within the shop.
The sorts of decisions you will have to make are where to put the clothes in the shop to make it look its best, having to help the customers with their questions and what hours you would be able to make.
- Your reasonability’s will be to make sure there is no hazards within the shop that will harm yourself or the customer.
- To take care of the money when you are on shift.
- To make sure there is no damage to the clothes when they are in your care
To lock up the shop on some shifts
Where I will advertise the shop
Advertising my shop in the right way is very important as it can bring in the customers or keep them away. If I want a certain type of customers coming to my shop than I will have to advertise in different places according to what it is that I want. There are many different forms of advertising some of these are the internet, Leaflets, going up to people in the street and putting advertisements in magazines.
Interview
An interview is very important as it is the start to get to know what candidates that you have selected for the job and are the able to pick the ones that you want for the job. In interview it is very important to ask essential questions that will let you know if that person is the right one for the job. Some questions that you might want to ask are ones to do with how they feel about this job, are they reliable, have they got any previous experience, what they would like to get from the job and what are their good and bad attributes.
Job offer
To offer the job you must have the right paper work such as contract as to how long they must stay etc. Also in the job offer you should then agree on hours and how much they should get paid.
Training
Once you have employed someone you will have to give them the correct training for what they will be doing. In my shop I will need to train them in customer care , how to use the tills, give the m some idea as to the clothes that we are going to be getting in. T raining is very important to a business as it gives you the opportunity to make the best you can of your staff and ensure they know the correct procedures.
Where will I advertise my job?
I will advertise my shop in many different places I want to this so that I can get the best possible range of offers for my shop. This will benefit me as I will be able to get the best that there is. In order to achieve this I will advertise in magazines, the newspaper, websites and I will put leaflets through people’s doors. Although I want a wide variety of people will only advertise in the surrounding area as I want people who are fairly local so then there won’t be a chance for them to be late to work.
Terms and Conditions of Employment
T he terms and conditions of the employment of my staff will each be the same to each person to create equal opportunities within the work place. I want to create terms and conditions so that I can refer to them when there is a problem within the workplace with my employee’s. I want the terms and conditions to be specific, equal and fair.
The terms of my employment of the staff will be:
- All staff will have to ask me if there is going to be any change in the hours that they are going to work so that I can negotiate with them to benefit me and them.
- They will each be paid with a starting amount of £6.50 an hour which can be thought about and maybe changed every 3 months.
- They will not discriminate against any other members of staff or customers to do with their racial background, gender, age or sexuality.
- Each member of staff will have a responsibility to provide the best help and care for the others safety whilst they are working in my shop..
- Each member of staff will have an entitlement to at least 3 weeks holiday each year and you will also be entitled to 2 weeks worth of paid sick leave.
- The hours you have to work will be decided at the beginning of every month.
Cash Flow Forecast for my business
Balance Sheet
A balance sheet is an idea of what a business owns and owes on a particular date. A balance sheet is a clear statement of the assets that a business has it shows the capital and liabilities at a particular moment in time normally at the end of an accounting period.
Fixed assets
Fixed assets tend to have a longer life span then normal assets they normally have a lifespan of over one year.
Examples of fixed assets are; premises, computers, tills and motor vehicles.
Current assets
Current assets are assets that are constantly changing they are sometimes known as ‘circulating assets’.
Current Liabilities
Current liabilities are debts which the business or owner needs to pay back within a short amount of time (normally a year)
Current liabilities include trade creditors which have given them stock etc on short term credit.
Cash flow for my business
Motivation
Motivation is something that causes people to act or do something in a certain way. If you look at someone’s behaviour and how they work you can get an understanding of what motivates them to do better or what demoralises them. If a manager looks at what the employee does they can look at how the can alter or how to make their job more fulfilling. Employers can offer incentives in many different forms such as money, raises, verbal praises and promotion.
Businesses need to motivate their employee’s to make sure that their staff produces good quality work so that people will keep reinvesting their money in the business if they like their work. In the end the quality of the work can affect the sales by the customers so sales figures can fluctuate or deflate.
The staff will not want to take days off work sick and will try their hardest in and out of work. This will make working environment more enjoyable as you can rely on each other and will make you feel happy to go to work which will be demonstrated to the customers.
The efficiency of the team and management will be effected by the atmosphere and the sales figures will reflect this but they can also effect how this business works so they can counterbalance each other as iff the figures are good people will be motivated but if not they will be demoralised.
Theories of Motivation
There are many theories of motivation but the one that I choose to use in my work place is Maslow’s Theory of motivation (hierarchy of needs). He based his theory on the fact that if your staff are motivated they will work harder and that managers must satisfy the needs of the staff. He puts the needs into a hierarchy order with the most important being at the top and the least being at the bottom
However there is another theory of motivation which is F.W Taylor (scientific management) this says that humans are mainly motivated by materialistic things such as money of prizes. He then thinks that managers should pay the staff a good wage in order to get the best performance out of their team.
From my knowledge of motivation I will motivate my staff by paying them a good wage this will help as they will feel that they are achieving something by working harder then the next person.
Providing good working conditions will help motivate your staff as it will make work a nice place to come to so you will have fewer people calling in sick as they are dreading going to the dirty working conditions. Providing them the opportunity to develop themselves is good way to motivate the staff as the will feel like they are not only getting material factors out of their jobs but they are getting something emotionally and spiritually.
Treating them well and treating them as important to the business is important as they will feel like they contribute to the work place and that they are not just there to fill in the numbers.
I think that my business will benefit from motivating the staff as I will feel better from knowing that I have a happy staff and they will also perform better which will in turn make my profit and sales go up.
