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BTEC Double Business - staring a small Business Unit 36

By Greta Maneikaite (centre number 27102)

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P1 Present the initial business idea using relevant criteria
P2 Explain how to identify the target market
P3 Describe the skills needed to run the business successfully and what areas require further personal development
P4 Describe the legal and financial aspects that will affect the start-up of the business
P5 Produce a proposal containing the essential information for the start-up of a business.
M1 Explain methods used to identify the target market for the proposed business
M2 Analyse the personal development needed to run the business successfully
M3 Assess the implications of the legal and financial aspects that will affect the start-up of the business.
D1 Present a comprehensive business proposal that addresses all relevant aspects of business start-up.

Unit 36 – Setting up a Small Business

P1 Present the initial business idea using relevant criteria

Introduction to my business:
Golden tanning Salon will open in my local town Corby within Northamptonshire. The reason for opening a tanning salon is because there aren’t many tanning salons within the Corby area. Today’s world trend is for people to look fit and have a natural tan complexion especially in a country like this where we don’t get a lot of sun to develop a tan. I am going to be introducing my business plan which I am intending to set up. In order for me to develop my business plan I have to consider many points, in this case I have to make sure my business is successful so I have to take in account and follow these points to make certain decisions which will influence on my business.
My business name: Golden tanning Salon
I have decided to come up with a name for my business which is ‘Golden Tanning Salon’. The reason I chose to name my business ‘Golden Tanning Salon’ is because the colour ‘golden’ reflects the colour of a tan. In addition I think the name is memorable and catchy as it will leave an image in customer’s minds of what they would like their personal tan to look like. My business will offer services and the latest equipment that are not available in other tanning salons. These will include customised spray tanning, tanning beds and tanning treatments and other. Hopefully the name of my business will help me target a wider audience within the social media as well as my local town. Also now that I have got a name for my business it will help my progress further down the business industry.
Chosen business type: Sole trader
I chose to run my business as a sole trader because I would like to run the business on my own as I think this is the best decision for me. The reason for this is because these are my personal ideas that I have come up with myself. If I was to run my business as a partnership I wouldn’t have no one to trust or rely on also I think starting up a business as a sole trader is a lot easier rather than a partnership, that’s why I would like to run this business on my own and also in the end if my business reaches the point of success I will feel a huge success towards myself. Including other advantages of being a sole trader are: I will get to keep all the profit I make from my clients. I will have full control of my business and will be the owner which means I will make all the decisions myself for my business where as in a partnership I wouldn’t be able to decide for my own and may cause disagreements.
Business venture aims and objectives:
When starting a business, it’s essential to have a clear summary of what you want from the business, before even starting it’s important to have set your business aims and objectives. This is highly important because this is what will help your business lead to success. Aims and objectives are the goals and a set of targets which will help you develop and reach success of business. When deciding goals and targets, it’s important to keep them SMART. SMART objectives are detailed in order to make sure they are realistically enough to be achievable.
S – Specific
M – Measurable
A – Achievable
R – Realistic
T – Targets

It’s important to have SMART aims and objectives for a business when starting up, this way a business will be able to meet the overall aim which is what every businesses intentions are. Below are my aims and objectives for my tanning salon business:

My first aim is to provide a comfortable environment for my clients. I am going to do this by achieving 100% customer satisfaction in terms of comfortable environment within six months. I am going to achieve this by insuring a warm welcome for each client. I will do a survey for each one of my clients to take, by the end of the year I should have an overall percentage of how pleased my clients were. I will be expecting 100% which will be my target. Also my business will have a selection of the latest tanning equipment and supplies so my customers can relax knowing that their tanning session will be safe and effective and most importantly they will not be left disappointed. My tanning supplies such as tanning lotions and such will be resupplied each six months to brand new so I know that my supplies are not out of date and safe for clients to use.

My second aim is to attract loyal base of customers. I need to make sure 80% of my customers are who return to my business and the 20% are my new clients within the next two years. I am going to achieve this by referrals. This is where my clients will refer to their friends by letting them know letting them know about my business which will encourage them to come and use my service. This way I will gain loyal clients because they will trust their friend’s recommendation to use my business. Also I am going to make my own website to promote my business. Within this website I will be able to communicate with my potential customers by presenting useful information such as what my business has in to offer and assurance to come and visit my tanning salon offers new products and offers each day. This will show my potential customers that business is in great progress.

My third aim is to make profit. I am going to do this by increasing my customer base by 10% each year. Therefor I will be monitoring my financial status such as my income and revenue every month to see how much profit or loss I am making. The more customers I have the more profit I will earn so the 10% each year is very important for me to attract new clients. I will also develop excellent client loyalty by placing strong emphasis and outstanding customer service. If I can attract loyal customers to use my tanning salon regularly I will earn profit twice as much as my loyal clients will use my service approximately three times a week to keep on developing their tan.

Unique selling point and the competitive edge the business venture will have:

The unique selling point for my business is that I will be including a body massage for each client before their tanning session. This makes my business individual as I have done my re-search on other tanning salons around Corby, in my re-search I have found out that no tanning salons include a body massage before their tan. This leads my business in the higher rank as other tanning salons will try to compete with me. Also this will attract the customers to come to my tanning salon as my business will stand out from the rest and the customers will be willing to try out something new and decide for themselves if they think my business offers better facilities and qualities as this is what every customer will be looking for.
Potential demand for the new business:

Business location: 2a Harrogate Court, Corby, NN18OPD
My tanning salon will be located within ½ a mile from where I live which is useful for me as I can walk there easily and back without having to spend money on transport. The property I am going to rent a healthcare facility which I will be converting into a tanning salon. The property area has a reception room, an admin room; it has four treatment rooms which will be converted into four separate tanning rooms. It also includes three offices and it has two kitchens which will also be converted as part of my tanning salon. The biggest advantage of this property is that it comes with a parking lot which will be comfortable for my clients to park their car by my business rather than somewhere random round the corner. This property is also close to local amenities.

How the learner will balance their personal and business needs:
In order for me to balance my personal and business needs I am going to consider of employing one or two employees to help me run my business. This way I can have some time for my personal needs at home. My business will start operating from 10:00am to 19:00pm six days a week, on a Sunday my business will operate from 8:00am till 3:00pm. Every day I will open my business in the morning myself so I can start of my day by answering any important emails or checking the financial status and such, the reason I will open my business first is because an employee wouldn’t be able to deal with my personal business emails or financial status. Throughout the day I will swap shifts with one of my employees and they will run the business until it’s time to shut. This way I will be able to balance my personal and business needs with a help from an employee.
Potential profitability:

Business trends:
PESTLE analysis.
Develop self-esteem.
How business planning will help the learner to ensure their success.

P2 Explain how to identify the target market 1. A description of their idea 2. A justification of their plan using criteria discussed so far in this unit 3. The steps their will take to identify their target market.

P3 Describe the skills needed to run the business successfully and what areas require further personal development (a) Skills required to re-run the business venture * Identify the specific skills required to operate the business successfully (b) Personal skills contribution. * Conduct a personal skills audit.
(c ) Skills gap and development needs * Identify the gap between the skills you have to contribute and the skills needed to run the business successfully. * Outline the short-term and long-term develop needs – human resources requirements – of the business. * Produce an action plan to action these develop requirements.

P4 Describe the legal and financial aspects that will affect the start-up of the business
P5 Produce a proposal containing the essential information for the start-up of a business.
M1 Explain methods used to identify the target market for the proposed business
M2 Analyse the personal development needed to run the business successfully * Explain in detail why it is necessary to the success of their chosen business * Explain and justify the timescales they have set for addressing this skill need * Explain clearly how the action plan they have drawn up will address this gap * Outline how gaining this skill will improve the performance of their business * State how they would check to ensure that the skills gap has been successfully filled.

M3 Assess the implications of the legal and financial aspects that will affect the start-up of the business.
D1 Present a comprehensive business proposal that addresses all relevant aspects of business start-up.