Business Studies(Setting up your own business)

Authors Avatar


TO:                        Business Studies Department

FROM:                Bradley Jones

DATE:                16/04/2008

SUBJECT:        Setting up my own business

This report is about setting up my own business in Werrington. I will be demonstrating my business studies knowledge throughout and applying this to setting up my Café business, “Brad’s Café”. I will collect research and show how this affects the development of a marketing strategy for my business.

Section 1 - Introduction to my business

1.1 Type of business

I would like to set up a café. This would be a successful business because it would give people of all ages a place to hang out relax, and sip a nice cup of coffee. It would also be successful because there is no immediate competition in the area, only in nearby towns such as Hanley or Bucknall. A final reason my business would be successful is because I would not only serve tea, coffee and hot chocolate. I would also have a selection of sandwiches, snacks such as chips, jacket potatoes and desserts such as dairy ice cream, tempting donuts or even delicious Belgian waffles.

My business would help to support the local community because it would give them somewhere to sit in peace. It would also be a place where people could meet friends and catch up with old times or just have a random chat as good friends do.  Another thing that I would do to help the community is give it disabled access and large gangways so wheelchairs would have no problem whatsoever. This would be expensive but it is the law. It would give teenagers a place to go and this would drag them off the street. Meaning that kids would be safe and all elderly people would have no reason to feel unsafe in and around their own homes.

The immediate competition in Werrington is very low. This is because I wouldn't be challenged for serving drinks and snacks but I would be concerned by the chip shop and the red onion because they are established food services that people may prefer to my café food. Although I shouldn’t have a problem with immediate competition, the competition from Hanley (a neighbouring town) would be a threat to my business. Hanley has popular cafés such as Starbucks, Costa Coffee, Café Nero and La Pasteria and with it only being a ten minute drive away people may decide to go there instead of coming to a little café in Werrington.

Positioning of my business is very important. I would like to set up my business next to the post office. I would like to place it on this location because it is on a main road in the town centre and anyone driving past might just stop by for a break. I would also locate here because it would boost my reputation and my sales with the nearby shops being so popular already.

My café would provide hot drinks, soft drinks and still drinks such as orange juice. It will be an alcohol free zone. I would offer a variety of snacks rising from a packet of crisps and biscuits to a delicious homemade dessert. Finally I would give the public well cooked and fresh hot food such as sausage rolls, chips, burgers etc. Anything that I do not provide what the public want, I will try my utmost to start serving what they desire.

The name of my business will be Brad’s Café. This is because it is simple, straight to the point and people can tell exactly what it is. Another reason I would call it this is because “café” is the type of business it is and it is my name used in the business’ name.

1.2 Ownership

Two different types of ownership are as partnership and a sole trader. A sole trader business is a business that is owned by one person. A partnership is a business with unlimited liability, which means that the owners are responsible for all debts etc. and it has two or more owners.

Advantages of a Sole Trader are:

  • There are few legal requirements
  • The owner works for himself
  • The owner has full control of the business and keeps all of the profits

Disadvantages of a Sole Trader are:

  • There are few sources of finance
  • This usually involves hard work and long hours
  • Unlimited liability for the owner.

Advantages of a Partnership are:

  • If one partner is absent then the remaining partners can cover for them
  • Have more access to funds because there are more owners to contribute capital
  • Individual partners can specialise in an area of the business in which they have special skills

Disadvantages of a Partnership are:

  • A lack of finance means there would be limited opportunity for growth
  • Unlimited liability means that partners are liable for all debts
  • Disagreements between partners may arise, leading to the end of a partnership

For all of the above information I have used – GCSE Business Studies, Chris J. Nuttall, pages 81-91 

I would prefer to set up a sole trader business because I would have full control over the business meaning that I would keep all of the profits and the business would not collapse because no disagreements could occur. I also have enough capital to keep the business running and therefore I do not need any help with money. The final reason I would do this is because I would not have to complete many legal requirements.

1.3 Sector of Industry

There are three types of industry in today’s world. The primary sector, secondary sector and the tertiary sector.

Primary Sector      – This is the sector of industry that produces unrefined raw materials.

                    Example – Farming

Secondary Sector – This is the sector of industry that produces finished or part-finished goods.

                    Example – The Butchers

Tertiary Sector      – This sector of industry is the one that provides a service.

                    Example – Petrol Station

My business would be operating in the tertiary sector of industry. I would be in this sector because my business would provide a service. It would not be in the other two sectors because I wouldn’t plant my own coffee beans, for example, and I would not make my own bread. This means everything is done for me all I have to do is serve it to the customer.

1.4 Location

The factors you must consider when locating a business are:

  • Infrastructure – the transport systems that link to my business
  • Cost – how much it will cost to locate in that position
  • Customers – how many customers you would get when locating in that area to see if you make enough money
  • Suppliers – the possible suppliers that would be able to serve the business
  • History and Tradition – the history and tradition of the place where you are locating
  • Competition – any rival business that would give you cause for concern
  • The Environment – will I damage the environment and will pressure groups hassle me
  • Legalisation – the legal documents that may stop you gaining planning permission and/ or where you locate the business
  • Available Workforce – the workers that would be available for hire

This map of Werrington was searched on . The smiley circle is the place where I would like to like to locate my business. I would like to set up my business in the town centre. This is because I would get a lot of custom all of the time as the town centre is always very busy. Infrastructure is good meaning that suppliers and customers alike could easily get to my café. Another reason the infrastructure has to be good is because my workers, if any are hired, would have to have an easy access route to get to my business otherwise they may want more money to pay for the travel costs and that is something that I cannot afford to be doing. The legalisation should not be a problem as there is plenty of room for building, I am a sole trader and there are already many established legal businesses around me.

1.5 Target Market

Target Market is the specific group of customers that a company aims to capture. They have been identified as people with needs or wants that can be met with the products or services from this company.                                          (Source -  )


Segmenting the Market – This is when you split the market up into an identifiable selection that consists of customers with similar characteristics.

Join now!

Business Segment their market in many different ways. Three of these are:

  1. Age – this is when something is aimed at a certain range.
  2. Gender – When males, females or both are targeted.
  3. Income – When you target people that own a specific amount of money.

I think that my customers will be of all ages. This is because I serve a bit of everything. I will target people who live locally because I want to be just a local café. I would mainly cater for the older generation ...

This is a preview of the whole essay