Description of Business The name of the business to be established will be Beats; it will be located at Rodney Bay. This business will be a soletradeship, which will be owned and control by Deshawnte Philogene the manager/entrepreneur and will be serving up to the next five year. This business will need the following equipment in order to be established: sewing machine, cash register and computer. This business will be employing (3) three employees one accounting clerk, a receptionist and tailor in addition to the manager. The aim of this business is to provide meals of high quality on time of reasonable prices for the people in and around Rodney Bay. . Some objectives of this business are:
Providing food on time.
Providing employment for community members.
Making a profit.
1 Organization Chart
Deshawnte Philohene (Manager)
Beats will be owned and controlled by Deshawnte Philogene, the manager would be engaged in: Taking order from customers, planning the short and long term goal of the clothes store, for example, the source of capital for the business, the type of service offered and the number of workers to be employed, coordinating the workers to ensure that the day – to-day objectives are met. Reporting directly to Deshawnte are three heads, the receptionist who will be for responsible assisting customers and watching the store, accounting clerk who is responsible for ordering the materials for the business as well as doing all the accounting work for the business and the tailor is responsible for sewing the garment.
Justification of Location
This business to be established will be located at the Baywalk Mall in Rodney Bay. The business will be established in this area because:
1. The location of raw material:-
There will be no need to use high transportation cost in getting the material to the manufacturing plant because the materials are sold close by.
2. Availability of social amenities:-
The area is well developed, it has infrastructure such as light, water and good road networks. There are plenty of businesses, a health center for emergencies and a police station for safety in close proximity. 3.
Selection of appropriate labor
Beats will only employ three (3) persons. A receptionist, an accounting clerk and a tailor, the business will be small therefore does not require the labor of a lot of workers. The business will employ one (1) skilled worker (accounting clerk) and two (2) semi- skilled workers the receptionist and tailor. Worker must have attained CXC passes in the areas of Mathematics, English Language along with two (2) other business-related subjects or a certificate. The business will need a skilled worker to deal with the business transactions, by ensuring that mistakes are not made with customers. The semi-skilled worker is required to keep the store in sanitary conditions as well as assisting customers, making designs and sewing the garment.
Source of Capital
The capital of the business will be as a result of the personal savings/inheritance of the owner which amounted to $230,000. However a small business loan of $270,000 will be requested from Saint Lucia Development Bank making the capital a total of $500,000. Collaterals for the loan will be the equipment used in the business. The loan that will be acquired will be re-paid at an interest rate of 40% making the total $378000 as re-payment. This will be separated and spread equally over ten (10) years at $3150 per month. Some assets to be purchased are two (2) sewing machines, a Cash Register, a Computer and Fixtures. These will form the Fixed Assets as well as Capital of the business. Another Fixed Asset is the building to hold the operations. No lease or rent will be paid for the premises as it was inherited by the owner from her deceased grandparents. Working capital will be obtained from the sales one of the business which will be invested to ensure growth.
5 Roles of Entrepreneur
The role of the entrepreneur is important in the effective and efficient management of the business. There are many different roles an entrepreneur must carry out and among these is the bearing of risks. The entrepreneur must be willing to take risks in order to make profits. The manager will be engaged in planning the short term and long term goals of the business, coordinating the workers to ensure that the daily objectives are met, organizing the resources and the workers so that all the services provided will be offered as well as evaluating them, and making any necessary changes to ensure customer satisfaction, while at the same time keeping profit as a high priority. One obvious function of the entrepreneur at Beats is planning. This is the process of thinking ahead, making decisions and formulating policies around the goals of the business. It involves the entrepreneur finding out the effective methods to be used to achieve the main objective which is customer satisfaction and plan how these methods can be used to bring about productivity.
6 Types of production
The business will be involved in secondary Production by offering the product that is finished to customers. The business will engaging in making uniform, fashionable and trending clothes
casual clothes, formal clothes and also gowns for graduations to meet the demands of the consumers. This type of production is of high importance to the long term survival of the business since the goods offered will be the main source of income.
7 Levels of Production
The level of production that will be used is Domestic level of Production. This involves the production of our goods and services not only for the individual’s family or community but for
the local market. This business will be involved in this type of production because it was conceptualized to provide goods to citizens locally in and around the Rodney Bay area.
8 Quality Control Measure
In order for the business to perform effectively and efficiently, the manager will have to take a few quality control measures and ensure that the workers are performing their tasks to the best of their ability.
One quality control measure is the evaluation of work of the employees to see if the tasks are done correctly. This will be done by the manager who will observe each worker and give a report to them of his evaluation as well as how they can improve the quality of their work for future tasks to be done properly. Ensuring proper sanitation and safety of the working conditions is another quality control measure that will be undertaken by the manager. This will be done by implementing instructions and regulations for employees to follow which in most cases will get daily objectives of the business done with ease.
Use of Technology The manager will need to purchase simple as well as complex technologies such as sewing machine, internet access, point of sales system, a cash register and a computer.
The cash register will be used to keep the money paid to the business by customers, produce receipts and to calculate so that accurate transactions are made. This will help in ensuring that customers leave with high satisfaction.
Beats will be involving in the backward linkage. The business will be linked to a fabric industry for the raw material for the production of the goods. Material such as jeans, cotton, wool, linen and silk are some of the material that will be purchase from the fabric store and used as input. The fabric industry will assist my business as their raw material will be requested from my business, the fabric will be used to make long lasting and fashionable custom built brand clothes.
Potential for Growth
The business has tremendous potential impact for growth, as the services are demanded by the workers and the people in and around Rodney Bay. The firm has the potential to expand the clothes store and to change the structure of the business. The business could grow to private limited company where capital can be obtained from shareholders, thus reducing debt from financial institutions. The manager will also expand the business by building two other branches in Castries town and Vieux Fort town and these areas were chosen due to their high population densities and clustering of business activities of each area making them suitable markets to offer our goods
All business should adhere to certain government regulations. First, the manager will register the business with the Registrar of Companies in order to show that it is a legal operating entity. This will enhance the image of the business in that customers can feel safe while conducting business with Beats as it will not be an illegal entity. Secondly, the business will obtain a Tax Registration Number (TRN), in order to pay taxes on time and in the correct proportion as it is stipulated by the government that all legal operating entity in the country should pay taxes. In doing this, the business will have a good reputation both in the eyes of the government and its customers. The managers also need to obtain a license in order to offer the goods it has conceptualized. Failure to abide these regulations will result in the business facing serious penalties and or business law suits against customers due to damage or defects of their clothes.
There are a lot of issues a business can encounter when dealing with workers and consumers. These issues usually involve the ethical code for ‘behavior’. The major ethical issue to be faced is showing respect to workers and customers. Lacking respect will lead to loss of customers and grievances among workers. This will be a great disadvantage to the business since the customers are its source of income and the workers provide the goods. This will be ensured by holding relations seminars to teach workers to communicate or relate with each other and customers in order to satisfy demands. This will therefore boost the reputation of the business thus raising the volume of sales. Another ethical issue that the business will cover is that customers will choose their design and take their measurement. This will be ensured because if not, customers will complain about the fitting of their clothes or that the product does not match their request.
Table of content Title
iii Main Topic
Description of Business 1 Organization chart 2 Justification of location 3 Selection of Appropriate labour
Sources of Fixed & Working Capital
Role of Entrepreneur 6 Types of Production 7 Level of Production 8 Quality Control Measures Use of Technology 10 Linkages 11 Potential of Growth 12 Government Regulations 13
Ethical Issue 14 References 15 Bibliography 16
Introduction This School Based Assessment titled “Establishing a Business” aims at conveying the different aspects and steps in establishing a business in this economy. These aspects include; describing the business, justifying the location, selecting the appropriate labour, stating the sources of working and fixed capital, the role of the entrepreneur, stating the type and level of production, showing quality control measures, the uses of technology, linkages, the potential for growth, the government regulations and ethical issues faced by the business. The business to be established in my project will be called “Beats”. The business will aim at providing custom built, fashionable and trending clothes at a low price to consumers in proximity of the organization. The business will be owned and operated by its manager who hopes the business will be wellknown and supported in order to obtain high profit margins to reinvest in its activities.
First and foremost I would like to thank God for life strength, understanding and wisdom so this SBA could be a success. I would also like to thank my mother for assisting me with the basic necessities that I needed to complete this SBA. I would also like to give my gratitude to my teacher for guiding me through this SBA. Last but not least I would like to thank my good friend for been there for me through the time and giving me the confidence to move every step of the way.