A2 Applied Business Unit 8 Business Planning Planning to set up your own, local business Producing documents that would need to in real life

Four areas of business Food on the go Nails / hair Bike / computer repairs T shirt printing

Task 1 – Which business idea? Note these Your knowledge and interests How much competition in the area? How easy to set up ? Expensive to set up? Trend in the business area – growth? Likely profits to be made Future expansion possible?

Making a decision You could devise a rating system to look at different ideas – you could score them 1-5, 1-10 on different aspects to help make a decision You could produce a SWOT table or table of advantages and disadvantages

Task 2 – Activities and Target Market – Additional information Explain the main products / services you plan to offer – you could use CORE, TANGIBLE and AUGMENTED Identify your target market – age, sex, income group, area, lifestyle etc

Task 3 - Location Diss or Eye Look at the sample properties on the Business A2 Subject area. Think about customer numbers, competition, population of area etc

Task 4 – aims and obectives SMART OBJECTIVES Specific Measurable Achievable Realistic Time Related

Nutty’s Nachos SMART OBJECTIVES? 1. To make a profit of at least £2,000 by the end of the first year of trading 2. To sell more than 50 portions of Nachos in a typical week of trading 3. To have at least 30 regular customers who would buy nachos at least once a month 4. To develop awareness of the business in the Diss area 5. To ensure excellent standards of snack food 6. To develop a loyal customer base 7. To be the best snack food provider in the Diss area

Comments on previous slide One two and three are examples of OBJECTIVES – no1 is the best example of a SMART objective 4 to 7 are longer term aims which do not fit the SMART CRITERIA

Task 5 – Legal Status Think about liability Funding Share of workload and decision making Distribution of profits Control of decision making and direction of the business Ease and speed of set up of the business

Sole trader or partnership or Private Limited Company Look at the case study. What does this suggest? If partnership need to consider Deed of Partnership Sole trader if want full control and all profit but financing might be difficult Extra paperwork for Ltd company – but limited liability

Task 6 – Key Personnel What people will work in the business? What will their roles (main jobs) be? Be careful – the more staff the higher the wages and less likely to make a profit. You might want part time workers at busier times. Otherwise could you manage with just yourself and partners?