This is the property I have decided to purchase for my shop, the reason I decided to purchase this residents is because it is in a busy area and is next to several different busy train stations. This premises is also walking distance away from apex corner which is used my thousands of motorists everyday this will be good for business because if someone drives past and sees something they like they might decide to come in the shop and have a look.
I have spoken to the current owner of the property and I have discussed all the little bits of detail about the local residents, he has also told me that for 2,000 he will leave all the security cameras connected and he will also cancel the cash machine which is to be install soon, as this is not necessary for my business. I think the security cameras are very important for my business because I will have quite expensive stock in my business which could be targeted by people. Therefore it is necessary to keep these installed. I used a program called “2D Design” to create a rough design of my shop floor. This program is used by product developers, it helps them to identify what a product looks like from different angles and also they can get the exact measurements which they are after.
All the size which are labels on the sides of the shop are calculated in CM’s. In the diagram below I have shown the different sections that are going to be in my premises. I am going to explain where everything is going to be kept. This will help me later on because I will need to know how much initial stock I require and if I have the dimensions and pre-planned where specific stock will go I will not be spending to much on stock which I will not require, especially on large items such as T. V’s. Finance is a major factor when opening a new organisation. All major factors need to be considered if an organisation is to be successful.
I will need to ensure that I have enough capitol when open my organisation mainly because I will spend a lot of money initially to ensure I have enough stock and have all the necessary fixtures and fittings completed in the shop premises before I begin trading. I am also going to need to ensure I have the relevant amount of employees so that I am prepared when I open my shop. I also need to ensure I do not spend too much money as I will need money to pay for new stock after the first few months of trading. I will go through all the different options which are available to me to get as much initial capital as possible at first.
I will need to look at the options which are available to be, I will look to see which loan companies are offering the best rates for my business. I will also go through the other aspects of finance which I will need to consider, for example I could get an investment opportunity from business angels if they feel that my business is well organised and has a good foundation to be successful. I will also look at the prince’s trust, as I am a young person who is looking to start up a new business and I may be eligible to get some investment from this source.
After I have gained the relevant methods for my initial income and calculated my starting cost, I will look to see what income and outflows I expect to go in and out of my organisation for the first year of trading. I will look at this in my cash flow forecast once I have looked at this I will conclude by creating a balance sheet and Profit ; Loss Account. Firstly I am going to calculate how much money I will require to get my business up and running. This will include the money to purchase the premises and the money I will need to purchase all the stock I will require so that everything is prepared for when I begin trading.
Below I have listed a few of the initial majors costs which I will need to get money for. These are the loan details for the money which I am going to borrow. From the information displayed it can be seen that the best rates was that of First Plus, and I have decided to go with this loan company, I will be paying the loan back over a period of 20 years, which means I will need to ensure that my organisation is performing well so that I can have opportunities for expansion in the future, From the information that I have displayed I have identified that I will be paying back 506.57 per month for my repayments.
I am also going to apply for a grant through the Prince’s Trust, although I am not going to rely on them for my initial income, as it will slow down the process of me getting my organisation up and running. As I am a young person who has come up with an idea and is planning to open up a new organisation so therefore they may decide that they will want to invest in my business as they will see it as an opportunity for them to provide some sort of financial benefits which will help me get everything up and running. In this cash flow forecast analysis.
I will look through all the different inflows which my business will incur and also all the outflows which is all the money going out of the business for every month. This will help me to identify what I am expected to earn over the next year of trading, and if there are any dangers of going overdrawn or bust. I will go through all of these and explain why I am receiving this amount for different particular months during the course of the year. I have separated the amount into two groups the inflows and the outflows and this will help me to identify what money is coming into the organisation and what money is going out of the organisation.