Business Plan, What Business New

Niall Bowes Ms Coppel Year 12 Business coursework

My business A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. The business goals being attempted may be for-profit or non-profit. For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals, although non-profits may also focus on maximizing profit. Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan having changes in perception and branding as its primary goals is called a marketing plan. This information was taken from ‘Wikipedia.org’ Three possible businesses which I will consider are a fruit & veg shop, sports supplement shop and selling DVD’s. I had considered a DVD shop as I know a lot about DVD’s and it would have a wide target audience due to the vast array of DVD’s available. I have decided not to use this potential business as there are too many different DVD’s available and it would be hard to keep track of them. I also feel that the current market is over-saturated with places to buy DVD’s and the business would not last long. I considered a sports supplement store as I feel there is a gap in the market for this type of shop and along with the nations growing concern over health, more people than ever are going to gyms. This would lead to high sales & a large income. There are many different type of supplement available from protein to creatine. This could be confusing for some people & it could lead to bad customer service if employees do not know enough about the products. If the customer service is bad, then the business may lose repeat customers. The products are quite expensive to purchase for stock so the sale prices would be high. I have decided against this business as I feel that we would not be able to provide the right customer service which would have a bad effect on the business. I have decided to start a fruit & veg shop as I know a good place to start the shop up. The products are cheap to get in or I could grow them myself which would be even cheaper. There will always be potential customers as the product is necessary to people’s diet. The shop will be called ‘Magic Mangos.’ I inherited £75,000 from my uncle Paulie after he died. I have used this along with a bank loan to fund the business. I have called the business Magic Mango’s partly in honour of my uncle. He was a professional boxer whose nickname was ‘The Magic Man’ so I have done a play on words involving fruit.

Niall Bowes Ms Coppel Year 12 Business coursework

Legal form There are several different types of ownership. These are • Sole Trader • Partnership • PLC • LTD • Franchise • A sole trader is one person owning the business and making all the decisions. Advantages: • Being able to make your own decisions, I can name my business what I would like ‘magic mango’s’ I can also decide on what fruit and veg to sell. • Keeping all of the profit – I will not need to share this with any partners and only use it to pay wages to my employees. • Choosing the business name – I was able to call the business Magic Mango’s in honour of my uncle Paulie who left me the money & made the business possible. • Deciding what to stock – I can make all decisions on what to stock and what services I can offer. Disadvantages: • Unlimited liability so I could lose my personal possessions to pay off the businesses debts. • It can be very hard to take time off as there might not be anyone to cover for my absence • It is also difficult to raise the required capital for the business in certain cases but in this one I have enough capital. A partnership is when 2-20 people come together to form a business. They sign a deed of partnership which A PLC is a public limited company. The shares are sold on the stock exchange and this is the main way to raise capital. There is limited liability so the owner can only lose what he or she has put into the business. Due to shares being sold on the stock exchange, the business could be subject to a hostile takeover. An LTD is a Private Limited Company, shares are not sold on the stock exchange & people are appointed to the board of directors. An LTD also has limited liability. A franchise is when someone pays for the rights to use an established brand name for their own shop. The franchisor grants the independent operator the right to distribute its products, techniques, and trademarks for a percentage of gross monthly sales and a royalty fee. The franchisee is the person who is buying the rights to use the name.

Niall Bowes Ms Coppel Year 12 Business coursework I had considered running the business as a partnership with 2-20 owners as this would allow more capital, it would be easier to take time off & people could specialise in certain areas of the business which would allow more efficient running of the business. I would have to draw a deed of partnership which states how many hours people must work, what they are responsible for and how much they are paid. I have decided to set Magic Mangos up as a sole trader as I would be able to keep all of the profit for myself. I would also like to make my own decisions on pricing & stock which is why I am setting up as a sole trader.

Niall Bowes Ms Coppel Year 12 Business coursework

Services to be offered Magic Mangos will offer a very wide variety of products. I will stock the usual items such as carrots & potatoes but I will also stock more exotic fruit such as star fruit which is not readily available in most stores. I will have a special selection of organic fruit & vegetables which will cost slightly more but will be of a higher quality & a premium product. I will employ people I know to offer an organic delivery service. Customers will pay a price for a box of organic fruit and vegetables which they order. The box will then be delivered to them by an employee. There will be different boxes available. Just fruit or just vegetables which will come in different sizes and have ascending costs of £10, £20 and £30. I will also offer a bigger box of both fruit and vegetables which will have costs of £15, £30 and £50 (recommended for schools or businesses.) I feel that this will set us apart from other shops and encourage people to shop with us. I think that the wide variety of stock will also help us attract a wide variety of customers which will increase the profit the shop makes. I will also have a smoothie bar where customers can choose from a set menu of drinks or they can choose what fruit from the shop they would like to go in the smoothie. I have also decided to sell fruit sorbet’s which will be a big seller in the summer. I will make these from the fruit which I sell.

Niall Bowes Ms Coppel Year 12 Business coursework

Stakeholders A stakeholder is someone who has an interest in the business or are affected by their actions. This can be in a variety of ways from financially to how they affect the local area through things such as noise pollution.

•

The main stakeholder of the business is me. This is because it is my financial investment and it could have a serious effect on my future.

•

The bank – The bank will take an interest in the business as they will want their loan paid back to them. If the business succeeds, they will get their money back. The bank I have decided to use is Barclays as their current interest rate at 7.4% is the lowest on a loan over 5 years. I have borrowed £15,000 from the bank to add on to the money left to me by my uncle Paulie.

•

The customer will be a stakeholder as they will want a high quality product for their money. They will also want a good deal on what they buy.

•

Another stakeholder will be the government. This is due to the various taxes which they impose on various businesses. These include business tax and income tax. If they put these up, then I will be affected and it would have an impact on my profits.

•

The local news paper will be a stakeholder as I could possibly use them for advertising. They will have an interest in the business as they will be receiving money from me for advertising.

•

My suppliers will take an interest in the business as if I am doing well and selling a lot of products, I will order more products from them, meaning they make more money.

•

Another stakeholder is other local businesses as my business could have an adverse affect on their profits.

Niall Bowes Ms Coppel Year 12 Business coursework

Aims & Objectives. An aim is what a business wants to achieve over a period of time. An objective is what the business works towards to reach this aim. The most common aim of a new business is to survive. This is common for businesses that are just starting up. If a business does not survive, then the owner loses the business and all the money which he has invested in the business. If the business is a sole trader then they will have unlimited liability. This mean he will lose personal possessions to pay off the debts. This can lead to a lot of personal troubles for the owner.

Another business aim is to grow. This is usually the second aim after surviving. This is achieved through selling more products and gaining greater market share. One objective which they work towards to achieve this aim is good customer service. If this is achieved then the business will gain repeat customers due to the customers being satisfied with their product.

Another aim is to gain a greater market share. This can be achieved through higher sales than your competitors by offering more competitive prices than your competitors or through offering greater customer satisfaction through good customer service.

To achieve the objectives using the aim, you have to first set out what aims you would like to achieve. This can be a variety of things like the ones I have mentioned above or several others. Once these are laid out, you can decide on what kind of objectives would help you to achieve these aims. You need to work towards the objectives which will help you achieve the aim. Some common objectives to work towards are ‘gaining greater market share’ and ‘providing better customer service. Achieving the objectives will help you to achieve the aim.

Niall Bowes Ms Coppel Year 12 Business coursework

The Market The market that I will be working in is the food market. The location of Magic Mangos will be in Highgate. I feel that this will be a good place to start up my shop as there is not a lot of competition in the local area. I also know many people there who are likely to use the business. I have a good knowledge of the local area and I feel that this will also help me in the setting up of my shop.

There are some competitors in the local area, however I feel that I can offer a better service than them and gain a greater market share. My competitors are: Tesco – the well known supermarket store which sells a small amount of fruit and veg. They only stock the basic items and these are quite a high price. They are also out of stock quite a lot. Covington florists - A small, local shop which stocks flowers and fruit and veg. They are an established business and the owner is well liked. The do not offer organic food and I feel that this will give me an advantage over them.

Niall Bowes Ms Coppel Year 12 Business coursework

Marketing & market research Market Research is generally either primary or secondary. Primary research is going out to the streets and asking people or handing out questionnaires to people in the public. Secondary research is gathering information which has already been obtained from a specialist research company. I am going to market my business through handing out leaflets to passing people. I feel that the main way the business will be promoted will be through leaving leaflets in public places such as libraries, schools and other places of interest. I feel that these will be eye catching and seen by many potential customers which will promote Magic Mangos and gain me many potential customers. I will also advertise in local newspapers. I feel that this will help my business as it will be seen by a large target audience of people in the local areas. This way of advertising is also cheap which will not affect my cash flow as much as other methods will.

Questionnaire 1) Are you male or female? Male (40) Female (60) 2) How old are you? Under 16 (4) 16-25 (23) 26-35 (38) 36-45 (10) 46-55(12) 55+ (13) 3) Do you think a fruit and veg shop will be welcome in the local area? Yes (94) No (6) 4) How many other local places sell fruit and veg in the local area? None (1) 1(7) 2 (88) 3+ (4) 5) How many pieces of fruit and veg do you eat in a day? None (2) 1 (11) 2 (28) 3 (30) 4 (8) 5 (20) 6+ (1) 6) Would you be interested in organic fruit and veg? Yes (94) No (6) 7) Would you be interested in buying juices from the shop? Yes (79) No (4) Maybe (17) 8) Is there a wide range of exotic fruit and veg available local to you? Yes (23) No (27) I don’t know (50)

Niall Bowes Ms Coppel Year 12 Business coursework

9) Would you be interested in purchasing these types of products? Yes (38) No (20) Depends on the price (42) 10) Would you be interested in doing a link-up with the local school to help promote healthy eating? Yes (28) No (72)

Gender of the person

Series1 Male Female Series1

This shows the gender of the people who took our survey. The chart is pretty even with 60 women and 40 men.

Age of the consumer

Under 16 16-25 26-35 36-45 46-55 55+

This is the pie chart which shows the age of the people we surveyed. As you can see, the 26-35 age range was very popular. This could be due to a variety of

Niall Bowes Ms Coppel Year 12 Business coursework reasons but I feel that this age is when people start to take more care of themselves and try to become healthier. Would a shop be welcome in the local area?

Yes No

This chart shows if a fruit and veg shop would be welcome in the local area. The results are very good as 94 % of people think it would be welcome. This could mean that these people are more likely to use the shop.

How many places in the local area sell fruit and veg?

None 1 2 3+

The chart clearly shows that there will be two competitors to my shop. These are likely to be the two I have mentioned earlier which are Tesco & Covington Florists.

Niall Bowes Ms Coppel Year 12 Business coursework

How much fruit and veg do you eat in a day?

None 1 2 3 4 5 6+

This shows that on average, people consume 3 pieces of fruit and veg in a week. This is 21 in a week. If we can persuade these people to come to the shop, then we should sell a high amount of our products which means more profit for me.

Would you be interested in organic fruit and veg?

Yes No

This shows me that there would be a high demand for organic fruit and veg, this however may be affected by the recent credit crunch so there is less expendable currency to spend on luxuries such as organic food so they may have changed their mind since then.

Niall Bowes Ms Coppel Year 12 Business coursework

Would you be interested in purchasing juices from the shop?

Yes No Maybe

This shows there would be a high demand for the juices which I am considering selling on the shop. There is just under a quarter of people who are undecided and this could be due to them not knowing information such as the prices of the ingredients.

Is there a wide rangeof fruit and veg available to you?

Yes No I don't know

This shows that 50% of people do not know if they have a wide range of exotic fruit available to them. This could be due to it not being displayed properly in the other store or them not knowing what to class as ‘exotic’

Niall Bowes Ms Coppel Year 12 Business coursework

Would you be interested in exotic fruit and veg?

Yes No Depends on the price

This shows that the demand for exotic fruit and veg would depend a lot on the price. If I can get them from the supplier for quite cheaply, then I feel I would succeed better in the sale of these goods as I would be able to sell them for quite a low price.

Would you be interested in linking up with the local school to promote healthy eating?

Yes No

This shows that people would not be interested in a link-up with the school. I feel this is likely to due to having time due to work constraints or due to not having kids. Overall, the questionnaire has been very successful. I have gathered the required information and I feel that this will help me greatly in the running of the business. I have gathered that a link up with the school would be unpopular which I am disappointed about as I feel that kids need help and encouragement with eating healthily. I can see that if I can obtain the exotic fruit for a cheap price then potential customers are likely to be interested in purchasing them. This will draw them into the shop and they are likely to but their other needed items from here rather than going elsewhere. I was pleased by the result of the juices question as I

Niall Bowes Ms Coppel Year 12 Business coursework feel this will offer my business a different dimension and gain me more profit and customers.

Niall Bowes Ms Coppel Year 12 Business coursework Human resources Human resources is the area of the business which controls the hiring, firing and training of employees. Human resource management serves these key functions: Selection Training and Development Performance Evaluation and Management Promotions Redundancy Industrial and Employee Relations Record keeping of all personal data. Compensation, pensions, bonuses etc in liaison with Payroll Confidential advice to internal 'customers' in relation to problems at work Career development The above is from Wikipedia.org The first thing I will need to consider is how many people to employ. I cannot afford to employ too many people. I think that employing a further two people is the right amount as we should be able to cover the workload but it will not take away too much money from the business. Another thing to consider is how to find my staff. I will be advertising in the local paper (The Camden New Journal). I will put leaflets in the local area and put posters in the shop window. I will need to draw up a person specification and a job description. A job description is a list of the general tasks, or functions, and responsibilities of a position. Typically, it also includes to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc. A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. (Wikipedia.org) A person specification details the essential and desirable qualities for the person who you are considering employing I will need to decide what wages to pay my employees. The current minimum wages are £3.53 for under 16’s £4.77 for 17-21 year olds £5.73 for over 22’s. I will pay my employees just over minimum wage. I will hire a 17-21 year old for the weekend as this will save money. For the weekdays, I will hire one or two people over the age of 22. There is likely to be seasonal change in demand for some of the products. Smoothies & sorbets are likely to sell better during the summer months whereas

Niall Bowes Ms Coppel Year 12 Business coursework there could be a rise in demand for ingredients of ‘comfort food’ such as casseroles in the autumn and Winter. Physical resources Physical resources are these are resources that are available to a business organisation in the form of buildings and other machineries needed for the day to day running of the organisation. For Magic Mango’s, these include the raw materials such as the fruit and veg. I will need to also buy a blender to mix the fruit for the smoothies, scales to weigh the fruit and veg, a till to keep the money in and many other products. The following items are from Argos Zyliss Essentials Multipeeler. £4.89 842/2659

50L Matt Black Touch Top Bin. £34.29 842/2958

Niall Bowes Ms Coppel Year 12 Business coursework

Hanson Electronic Chrome Effect Scale. £19.59 840/2040

Kenwood Chef Fixed Stand Mixer. £130.49 422/8785

Niall Bowes Ms Coppel Year 12 Business coursework

5 Piece Stainless Steel Knife Block Set. £12.19 842/0187

Fruity Glass Work Surface Protector. 842/2594

Niall Bowes Ms Coppel Year 12 Business coursework

Jamie Oliver Cheeky Apron Adult. X 3 028/7445

Shetland 6 Piece Hi Ball Glass Set x 5 801/0542 £6.84

Niall Bowes Ms Coppel Year 12 Business coursework

BT Freestyle 610 Digital Eco Cordless Telephone - Twin Pack. 552/4550 EPOS Systems > Geller RP-2000 £2,600.00

Niall Bowes Ms Coppel Year 12 Business coursework

http://www.tillrollshop.co.uk/showdetails.asp?id=1232

http://www.thepapercupcompany.co.uk/content_cold_cups.php MG-016 PET cup 500ml 1000 Smoothies, fruit juices, ice coffee, beer DL-095 Dome lid 95mm with hole 1000 Fits both MG-012 and MG-016

Bulk Order 10 Boxes of 80x60Thermal Till Rolls

http://www.tillrollshop.co.uk/ShowDetails.asp?id=1190 Tradelines.co.uk

Niall Bowes Ms Coppel Year 12 Business coursework

http://www.laytrad.co.uk/products_1_2_93_2845.htm

Coffee table base in beech (55x55mm legs). http://www.laytrad.co.uk/products_3_12_69_2102.htm

25mm thickness. http://www.laytrad.co.uk/products_3_14_72_2130.htm

Niall Bowes Ms Coppel Year 12 Business coursework TRUE T35 Fridge (+1/+4'C) - Our price £1430 Dims: 1004w x 750d x 2074h. Capacity - 990 litres • • • • • • • • •

Stainless steel exterior sides and door White aluminium interior with s/steel inner floor 3 year parts and labour warranty Fan assisted cooling Bottom mounted compressor - ideal for low ceilings 35'C ambient use Temperature display Adjustable shelves - 8 supplied Supplied with castors, door lock and interior light

•

Self closing doors

http://www.chefsrange.co.uk/re-up-uprightfridge-double.htm

TRUE freezer - T35F - Our price £1695 Dims: 1004w x 750d x 2074h. Capacity- 990 ltrs Features: • • • • • • • • •

Stainless steel door and sides White aluminium interior with s/steel inner floot 3 year warranty Fan assisted cooling with auto defrost Bottom mounted compressor - ideal for low ceilings 35'C ambient use Temperature display 8 shelves supplied Supplied with castors and lock

•

Self closing doors

http://www.chefsrange.co.uk/re-up-freezerupdouble.htm

Niall Bowes Ms Coppel Year 12 Business coursework Aristarco AP50.32 - £1195 Aristarco AP50.32P c/w drain pump - £1290 Dims: 600w x 600d x 818h. Power: 5.3kw (23 amp) 230v or 3kw (13amp) Features: • • • • • • • • • • • • •

24 months parts warranty Easy to use controls Hot rinse Fitted with inbuilt detergent and rinse aid pumps 2 minute wash cycle Basket size 500 x 500mm 25 pint glass capacity - max load height 310mm 30 baskets per hour output Counter balanced door - double skin door Supplied with 2 flat racks and 1 cutlery basket All stainless steel construction including wash arms Fitted with temperature displays Fitted with non return valve

Options: Inbuilt water softener - £95 Stand alone water softener - £65 Open Stand - £70 Stand with 2 basket storage holders - £150 http://www.chefsrange.co.uk/ww-glasswashers.htm

Artic - Sugar Line displays Features: •

Choice of finishes to suit your decor

Niall Bowes Ms Coppel Year 12 Business coursework • • •

Choice of displays; Ice cream , Chocolate, Ambient, Refrigerated (Static or fan assisted cooling)

This is where the sorbet section of the shop will be. http://www.chefsrange.co.uk/ca-fo-coffeeequip.htm

IV20 - Flykiller £28.00 x 3 Dims: 270w x 105d x 240h Features: • • •

Stainless steel body Supplied with mounting chain Radius efficiency 6 - 8 mtrs

•

2 x 10 watt tubes

http://www.chefsrange.co.uk/ca-fp-flykillers.htm

Product description Medium Food Display Box (SB45) Product code SL0100 Box quantity 500 Trays per pallet 15000 Order quantity 1 pallet Tray dimensions 160x115x45mm Tray gauge 300

Niall Bowes Ms Coppel Year 12 Business coursework

I will make my own display to store the fruit in as I will be able to make them to my own specification and design. http://www.4degreesc.com/products Is where I will get my fruit and veg from. They stock all types of fruit and veg including the exotic and organic fruit and veg. ASJK ASMB AUBB BEBRB CABRK CABSAB CARB CAUB CORCB COUB FENB LKB MARB MATB ONEB ONRB PARB PEGB PEMB PERB POKEB PORB SHALB SPIB SQBB SWEB CALB CARPURB CATK CHITRB CHIMK

ASPARAGUS JUMBO ASPARAGUS MEDIUM AUBERGINES BEETROOT BUNCH RAW CABBAGE RED CABBAGE SAVOY CARROTS CAULIFLOWERS CORN ON THE COB COURGETTES FENNEL LEEKS MARROWS MANGETOUT ONIONS ONIONS RED PARSNIPS PEPPERS GREEN PEPPERS MIXED PEPPERS RED POTATOES KING EDWARDS POTATOES RED SHALLOTS SPINACH SQUASH BUTTERNUT SWEDE CALALOO CARROTS PURPLE CATALOGNA CHILLI THAI (BIRDS EYE) CHILLIMIXED

Kg bx4.5kg bx5kg 8x500g Kg bx10 bag12kg bx12 bx24 bx5kg Box 5kg Bx5kg bx10 Box 1.8kg bag5kg bag10kg bx5kg BOX5KG 5kg 5kg Bag 25kg BAG25KG Box bx5kg bx10kg Bag12.5 3KG 12BUNCH Kg BOX2KG Kg

Split Bulk Bulk Bulk Split Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Bulk Split Bulk Split

Niall Bowes Ms Coppel Year 12 Business coursework CSBB CHOWB CKB

CHILLI SCOTCH BONNET 4.5kg Bulk CHOW CHOW Box 7kg Bulk CURLY KALE box5kg Bulk CODE PRODUCT DESCRIPTION ARTJB ARTICHOKES JERUSALEM 5kg ARTJK ARTICHOKES JERUSALEM Kg ASPENGB ASPARAGUS ENGLISH bx5.5kg ASPPB ASPARAGUS PURPLE 5KG ASPPE ASPARAGUS PURPLE Each ASPPK ASPARAGUS PURPLE Kg 10 ASPSPRUEB ASPARAGUS SPRUE ENGLISH BUNCHES ASPSPRUEE ASPARAGUS SPRUE ENGLISH BUNCH ASTB ASPARAGUS THAI 20 ASTE ASPARAGUS THAI pkt ASTK ASPARAGUS THAI Kg ASPWATB ASPARAGUS WATER 20X150G ASPWATE ASPARAGUS WATER Each ASPWATK ASPARAGUS WATER Kg AUBGB AUBERGINES GRAFFITI BX 5KG AUBGE AUBERGINES GRAFFITI Each AUBGK AUBERGINES GRAFFITI Kg AUBRIB AUBERGINES RND ITALIAN-STYLE Box 5KG AUBRIE AUBERGINES RND ITALIAN-STYLE Each AUBRIK AUBERGINES RND ITALIAN-STYLE Kg AUBWB AUBERGINES WHITE 5KG AUBWE AUBERGINES WHITE Each AUBWK AUBERGINES WHITE Kg ARTBB BABY ARTICHOKES Box ARTBE BABY ARTICHOKES Each BARB BARBERA (SPAGHETTI WEED) 4KG BARK BARBERA (SPAGHETTI WEED) Kg BEANBORB BEANS BORLOTTI 4KG BEANBORK BEANS BORLOTTI Kg BEANBRB BEANS BROAD bx7kg BEANBRK BEANS BROAD Kg BFTTB BEANS FINE READY TOP & TAILED BOX BFTTK BEANS FINE READY TOP & TAILED Kg BFYB BEANS FINE YELLOW bx4kg BEANSNAKEB BEANS SNAKE Box BEANSNAKEK BEANS SNAKE Kg BERBUE BEETROOT BUNCHED BUNCH BECHB BEETROOT CHOGGIA 5KG BECHK BEETROOT CHOGGIA Kg BEGB BEETROOT GOLDEN 5KG BEGK BEETROOT GOLDEN Kg BEWB BEETROOT WHITE 5KG BEWK BEETROOT WHITE Kg BRUSTICKE BRUSSELS ON STICKS STICK SHALBUNB BUNCHED SHALLOTS each CABJANB CABBAGE JANUARY KING box12

PACK SIZE Bulk Split Bulk Bulk Split Split Bulk Split Bulk Split Split Bulk Split Split Bulk Split Split Bulk Split Split Bulk Split Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Bulk Split Split Bulk Split Bulk Split Bulk Split Split Bulk Bulk

Niall Bowes Ms Coppel Year 12 Business coursework CABJANE CALB CARCHB CARCHK CARPURB CARPURE CARRAINB CARRAINE CASB CASK CATB CATE CATK CAUOB CAUOE CAUPB CAUPE CELLB CELLE CHARBB CHARBK CHASRB CHASREDB CHASREDK CHASYB CHITRB CHITRK CHIGB CHIGE CHIGK CHJB CHJK CHIMK CHRB CHRE CHRK CHTRB CHTRK CSBB CSBK CHIYB CHIYK BROCCHB BROCCHK LCHB LCHE CHOIB CHOIK CHOWB CHOWE CHOWK

CABBAGE JANUARY KING CALALOO CARROTS CHANTENAY (BABY) CARROTS CHANTENAY (BABY) CARROTS PURPLE CARROTS PURPLE CARROTS RAINBOW CARROTS RAINBOW CASAVA CASAVA CATALOGNA CATALOGNA CATALOGNA CAULIFLOWERS ORANGE CAULIFLOWERS ORANGE CAULIFLOWERS PURPLE CAULIFLOWERS PURPLE CELERY LEAF CELERY LEAF CHARD BABY RED CHARD BABY RED CHARD SWISS RAINBOW CHARD SWISS RED LARGE CHARD SWISS RED LARGE CHARD SWISS YELLOWI CHILLI THAI (BIRDS EYE) CHILLI THAI (BIRDS EYE) CHILLI GREEN CHILLI GREEN CHILLI GREEN CHILLI JALAPENO CHILLI JALAPENO CHILLIMIXED CHILLI RED CHILLI RED CHILLI RED CHILLI RED THAI CHILLI RED THAI CHILLI SCOTCH BONNET CHILLI SCOTCH BONNET CHILLI YELLOW CHILLI YELLOW CHINESE BROCOLI CHINESE BROCOLI CHINESE LEAVES CHINESE LEAVES CHOI SUM CHOI SUM CHOW CHOW CHOW CHOW CHOW CHOW

Each 3KG bx5kg Kg 12BUNCH BNCH 12 BNCH BNCH Box 18kg Kg 5KG Each Kg BX12 Each 8 Each Box 12 Each Box 1kg Kg BOX4KG 4KG Kg BOX4KG BOX2KG Kg bx3kg Each Kg Box 1.5kg Kg Kg bx3kg Each Kg 2kg Kg 4.5kg kg 2kg Kg box4kg Kg bx8 Each 7kg Kg Box 7kg Each Kg

Split Bulk Bulk Split Bulk Split Bulk Split Bulk Split Bulk Split Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Bulk Split Bulk Bulk Split Bulk Split Split Bulk Split Split Bulk Split Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Split Bulk Split Split

Niall Bowes Ms Coppel Year 12 Business coursework COUROB COURGETTES ROUND bx8kg Bulk COUROE COURGETTES ROUND Each Split COUROK COURGETTES ROUND Kg Split COUWB COURGETTES WHITE 5kg Bulk COUYB COURGETTES YELLOW 5kg Bulk COUYE COURGETTES YELLOW Each Split COUYK COURGETTES YELLOW Kg Split CROB CROSNES (JAPANESE ARTICHOKES) Box 3KG Bulk CROK CROSNES (JAPANESE ARTICHOKES) Kg Split CKB CURLY KALE box5kg Bulk CKE CURLY KALE 250g Split CKK CURLY KALE Kg Split FHFB FIDDLE-HEAD FERNS Box 3KG Bulk PEAB FRESH PEAS BAG Bulk PEAK FRESH PEAS Kg Split YFPPUMPB FROZEN PUMPKIN PUREE bx6 Bulk YFPPUMPE FROZEN PUMPKIN PUREE Each Split YFPPUMPK FROZEN PUMPKIN PUREE Kg Split GSOLOB GARLIC SOLO 20X100G Bulk GSOLOE GARLIC SOLO 100G Split GSOLOK GARLIC SOLO Kg Split KPIGPB KALE PIGEON PURPLE Box Bulk KALEUB KALE UNUSUAL BOX Bulk RAPEB RAPE (RAPA) ITALIAN Box 5KG Bulk APCB APPLE COX bx13kg Bulk APRGB APPLES ROYAL GALA bx13kg BANB BANANAS BOX Bulk BANFTB BANANAS FAIRTRADE 18KG Bulk BLAB BLACKBERRIES bx12 Bulk CLEMK CLEMENTINES Kg Split COCOB COCONUTS 25 Bulk GRAPB GRAPEFRUIT 35 Bulk GRWSB GRAPES GREEN SEEDLESS bx4.5kg Bulk GRBSB GRAPES BLACK SEEDLESS bx4.5 Bulk KIB KIWI bx25 Bulk LEMB LEMONS bx75 Bulk LIMB LIMES bx63 Bulk LYCB LYCHEES THAI 2kg Bulk MABRB MANGOES Box Bulk MELCANE MELONS CANTALOUPE Each Split NECCOTB NECTARCOTS bx5kg Bulk ORJB ORANGES JUICING VALENCIA 10kg Bulk ORMB ORANGES MEDIUM bx88 Bulk PEACHB PEACHES BX26 Bulk PEARB PEARS bx8kg Bulk PINXSB PINEAPPLES EXTRA SWEET bx6 Bulk PLURB PLUMS RED bx5kg Bulk PLUYB PLUMS YELLOW/GOLDEN bx5kg Bulk SATK SATSUMAS Kg Split STRK STRAWBERRIES Kg Split CRANB CRANBERRIES bx24 Bulk

Niall Bowes Ms Coppel Year 12 Business coursework CRB DRAB FEB GINPUB GRWMB KUBOB LOGANB PASK PAWB PEARNB PITRK POMB QUINB SNAKEB STARB UGB

CURRANTS RED DRAGON'S EYES FEIJOA GINGER PUREE GRAPES WHITE MUSCAT KUBO LOGANBERRIES PASSION FRUIT PAW PAW PEAR NASHI PITAHAYA RED ( DRAGON FRUIT) POMEGRANATES QUINCE SNAKEFRUIT STARFRUIT UGLI FRUIT

12x125gms 3kg bx 20 bx12kg 7kg bx23 bx16 Kg bx9 bx22 Kg bx22 BOX5KG 25 20 Box 40

Bulk Bulk Bulk Bulk Bulk Bulk Bulk Split Bulk Bulk Split Bulk Bulk Bulk Bulk Bulk

Smoothie prices will be calculated on how much & what kind of fruit you put into the business. There will be a base price of £1 and it will increase based on what you want in it but at slightly less than the sale price. Sorbets will cost £2.20. All fruits sold under the ‘exotic’ banner will cost £1 per half a kilo. All other fruit and veg will be sold at £1 per kilo. After looking at the prices of my local competitors, I have decided that these prices will be a fair cost as they are slightly less than my competitors but will still make me a decent profit on my sales.

Financial resources A financial resource is the money used by a business to fund the starting up of the business. This could be through a bank loan, overdraft, government grant or mortgages. The main source of start up capital will be from the money left to me by my uncle, this is £120,000. If I need further income, I will take out a bank loan of £15,000 from Barclays as they are the best bank with a low interest rate of 7.4%. There are several different ways of purchasing the items which I need. These include •

Leasing - a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductable payments. (Wikipedia.org)

Niall Bowes Ms Coppel Year 12 Business coursework

•

Hire Purchase - In cases where a buyer cannot afford to pay the asked price for an item of property as a lump sum but can afford to pay a percentage as a deposit, a hire-purchase contract allows the buyer to hire the goods for a monthly rent. When a sum equal to the original full price plus interest has been paid in equal installments, the buyer may then exercise an option to buy the goods at a predetermined price (usually a nominal sum) or return the goods to the owner.

•

Bank loan - The borrower initially does receive an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender

•

Government grant – Government grants are lump sums of money given to a new business to help them fund the running & start of the business.

The main source of constant income will be through the sales of my fruit, veg & smoothies. This will be added to the money from my uncle Paulie and from the bank loan. The expenditure will be on renting the premises, paying out on staff wages, paying electricity bills. If these bills are paid on time, there will be higher interest rates to pay which will have a negative effect on my profit.

Quality control Quality assurance covers all activities from design, development, production, installation, servicing and documentation. This introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes. This information was taken from Wikipedia.org. It is based on the principle that if everyone understands the reason for & is involved in the quality management then the product is likely to be of a high standard.

It is vital to ensure that your prodcuts are of a high quality as this will ensure that you will gain repeat customers which will help you to maximise profits.

Niall Bowes Ms Coppel Year 12 Business coursework Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes. TQM has been widely used in manufacturing, education, call centers, government, and service industries. Different employees are responsible for different areas of quality management. One person could be responsible for checking the fruit is not out of date while another could be checking that the blender or chopping board is clean. This information was adapted from Wikipedia.org

To ensure full satisfaction, the employee must put a lot of time and effort into their area of quality management. This could be making sure the area is clean or making sure that there is nothing wrong with the fruit. It would help if the employee appriciates how much time and effort has gone into growing the fruit by the farmers.

The quality of the fruit and veg coming from the supplier must be high. This will need to be checked by the employees as they unpack it and put it on the shelves. If the quality of the product is high, the customers are more likely to come back to Magic Mango’s for their future fruit and veg purchases. This will give us a better revenue income which could be used in the future to expand the business.

The commitment of the workforce has a big part to play in Total Quality Management. It is vital that they are fully committed & motivated towards maintaining our high standards at Magic Mango’s. It is necessary that they follow all health and safety guidelines which include wearing rubber gloves, hear nets and hats. The staff will need to understand why it is important to follow these guidelines so I will hold a meeting with the staff before the opening of Magic Mango’s to instill this into them.

Niall Bowes Ms Coppel Year 12 Business coursework

Monitoring and reviewing business performance In order to ensure that a business is managing it’s activities effectivly, it must review its performance. This will ensure it’s objectives are met, avoid future problems and identify necessary changes. There are 3 areas that need to be reviewed. These are Solvnecy, profitabillity and legal compliance. •

In finance, solvency is the ability of an entity to pay its debts with available cash. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth. The better a company's solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing bankruptcy. (Wikipedia.org)

•

Profitabillity generally is the making of gain in business activity for the benefit of the owners of the business (Wikipedia.org)

Niall Bowes Ms Coppel Year 12 Business coursework

•

Legal compliance is the process or procedure to ensure that the organization is following relevant laws (http://www.nmsbvi.k12.nm.us/Records/records_def.htm#L)

To monitor the performance of the business, I will keep track of our financial income and outgoings using profit and loss accounts. This will allow me to keep track of how profitable the business is and if it is likely to survive. I will also review the staff performance, to do this, I will occasionally ask a ‘secret shopper’ to come into the store and act like a normal shopper. After they have finished, I will ask them to rate the staff on several different categories such as politeness, clenliness and quality of products. I will hold regualr meetings, probably once a month where I will outline the monthly targets for the business, these will be sales and income based. I will offer staff incentives should we reach this target. I feel that this will motivate them to work had to achieve the targets laid out. During the meeting, I will ask staff for feedback on our products, ideas and customer reaction to our products. I will ask staff if they have any good ideas for new products or services which we could offer to customers. If the staff see their ideas in practice, it could motivate them & increase sales and profit.

Finance Profitabillity is a series of measures that show how profitable a company is, to include gross profit, operating and net profit. The most commonly used measure is profit before interest and tax. All of these can be converted into a percentage of sales. (http://www.helpwithsage.co.uk/index.php? option=com_content&task=view&id=25&Itemid=30) Liquidity is a business, economics or investment term that refers to an asset's ability to be easily converted through an act of buying or selling without causing a significant movement in the price and with minimum loss of value. Money, or cash on hand, is the most liquid asset. An act of exchange of a less liquid asset with a more liquid asset is called liquidation. Liquidity also refers both to that quality of a business which enables it to meet its payment obligations, in terms of possessing sufficient liquid assets; and to such assets themselves. (wikipedia.org) It is vital to have cash in the tills. This is so customers can be given change when they purchase their products. It is also needed incase someone asks for a refund on a

Niall Bowes Ms Coppel Year 12 Business coursework product, this could be due to a piece of fruit being mouldy. If a member of staff needs to buy something for the staff room or which is needed for the business such as drinks or cleaning items.

Assets and liabillities In business and accounting, assets are everything of value that is owned by a person or company. (wikipedia.org) These can be divided into ‘Fixed’ assets and ‘current assets’. Fixed assets are what a business owns and will last a long time. In the case of ‘Magic Mangos’ this would be things such as shop fittings. Current assets are items which are owned by the business but can readily be changed into cash. For ‘Magic Mangos’ this would be items such as the fruit and veg stock and possibly the kitchen equipment such as blenders and utensils. Liabilities are things which the business owes to other places or people. These can be divided into two sections, ‘Current’ and ‘long term’

Niall Bowes Ms Coppel Year 12 Business coursework

Current liabilitiesare money which is a fixed sum of money that the business owes to people. For ‘Magic Mangos’ this would be the money which is paid to the suppliesrs for our fruit and veg stock. This amount will be fixed as long as we do not change the quantity of our stock or the kind of products which we get in. Long term liabilities means the money the business owes over an extended period of time, usually over a period longer than 12 months. In the Case of my business, ‘Magic Mangos’ an example of this would be the bank loan which I took out to help fund the business.

Expenses and revenue Expenses are the overheads of the business, such as rent, electricity and rates. Details of expenses are summarised in the profit and loss account. The expenses for my business will be: •

The wages paid to my employees

•

The rent paid for the shop premises

•

Money paid out on heat and lighting bills

•

The insurance bills

•

Bank charges

Niall Bowes Ms Coppel Year 12 Business coursework •

Cost of raw materials, in this case, fruit and veg

•

Other overheads.

Revenue is the money that my business would receive from selling its product, in this case, fruit and veg. This is also shown in the profit and loss account and is worked out using the formula ‘Price x quantity’

Profit and loss accounts

Magic Mango’s profit and loss account for year ending 31.12.2008 £ Turnover Cost of sales

75,000 30,000 ______ 45,000

Gross profit Less expenses Wages Rent

£

10,000 11,500

Niall Bowes Ms Coppel Year 12 Business coursework Heat and light Motor expenses Insurance Bank charges Other overheads

1300 3200 700 300 2000 ______ 29,000 ______

Net profit

16000

As you can see, the table shows that in the first year of business, ‘Magic Mangos’ has made a considerable profit of £16000. This is fantastic for a business in the first year of business as most do not even survive, let alone make a profit. A gross profit of £45,000 is a very high amount for a new business. The expenses in the first year were £29,000. I feel that this is a reasonable amount for a new business starting up & I am happy that it has not caused me to make a loss in the first year. Next year, to further improve on the net profit which I have made, I have several choices. One of these would be to increase the prices on our products. This however could have a negative effect on the net profit as it may push customers to our competitors. I could increase advertising and this could entice more people into my business. I will advertise in newspapers a bit further outside of the local area. I have had to pay extra wages in the peak summer months due to being open for longer periods of time. Turnover is the revenue which is generated by the business. The figure does not include VAT. This is because VAT does not belong to the business, it is sent to the government. I need to work out the average cost of my products. I have looked at the cost of sales and the amount which I have sold & the average cost per purchase is £1.20

Cost of sales is the cost associated with production. In this case it is likely to be the cost of buying fruit and veg and other stock which is resold. For a manufacturer it could include the direct costs of labour, materials and other costs such as machinery maintainence. Gross Profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments To work out the gross profit, you need to find out the turnover, and take it away from the cost of sales.

Niall Bowes Ms Coppel Year 12 Business coursework

This is my balance sheet for 6 months ending 31/6/2008. As you can see, in the 6 months I have made a total profit of £6765. This is a healthy sum for a new business and will be a good base to help me carry on my business.

This account is the worst case scenario account. I have looked at the bleakest outcome and tried to predict what would happen if this situation were to arise. In the 6 months I would have made a loss of £15425. This is an awful loss & hopefully this will not occour, if it does, I would have to seriously consider closing down the business.

This is the best case scenario for ‘Magic Mango’s’ This shows what would happen if everything went very well for the business. I have made a profit £16042

Niall Bowes Ms Coppel Year 12 Business coursework

Sales/cost

Break even analysis £5,000.00 £4,500.00 £4,000.00 £3,500.00 £3,000.00 £2,500.00 £2,000.00 £1,500.00 £1,000.00 £500.00 £0.00

Fixed costs Total costs Sales revenue

1

2

3

4

5

6

7

8

9 10

Output

This is the break even chart. It shows that my output would need to be around 770 sales to break even.

The use of software in business When used in my business, ‘Magic Mango’s’ software had lead to improved efficiency. The main way that it has helped is by allowing me to make spreadsheets in Excel software, I have used this to form my accounts and spreadsheets. This has saved me a lot of time and effort as I do not have to draw up the account myself. If I make any mistakes in entering data, I can easily remove it without making a mess or having to start over.

Spreadsheets I have used spreadsheets to keep track of my financial records. This allows me to access them easily, erase mistakes, and make any changes to them easily without having to change everything like I would if it was on paper. When entering data, I can use formulas to add, subtract, multiply or divide. This means that if I change one figure, the rest of them which will be affected, will automatically change and I will not have to change them manually.

Niall Bowes Ms Coppel Year 12 Business coursework The formulae used is Total costs (E7 to E16) minus Sales revenue (F7 to F16). This works out the total cost, an example of the formula used would be =E11 – F11, written in the total costs column.

For the profit and loss account, I used word processing software. I decided to use this instead of Spreadsheet software as the figures were not as complex and I could work them out myself.