1: Type of Business

My organization which I am starting is a Second hand mobile phone retailer which is sole owned and operated by myself.

1.     Business Type

The business type (legal entity) I have chosen is a sole trader is the simplest form of business organization. There are no legal requirements - you simply set up and get on with trading. Any income or profit that you earn is yours and yours alone and you pay income tax on that income. There are few legal constraints and you have what is called unlimited liability. This means that any debts are your debts and so if you stop trading with large debts, you will be personally responsible for these debts. Creditors will have a claim on your house, yacht or any other personal assets you may have.

2.     Aims and objectives

The overall aim of my firm is to be the market leader of online selling of mobile phones. I think this will be a very tricky aim however with good customer service and perseverance I can achieve this. To achieve this aim I will pursue the following objectives:

·         Turnover will be a key objective to make me market leader as the more the sales I make the more profit I am likely to gain.

·         Profit this one of the most important of my objectives; this will help me with the other objectives succeed. My customer service can be imported through training the employees however without sufficient profit I cannot do so. Therefore the profit needs to made in the worst case scenario breaking even is good for a firm which just to survive.

·         Customer Service - good and efficient customer service I can receive a good strong reputation which can gain me a foothold in the market. Furthermore it can allow me to gain trust and respect from the customers

·         Reputation is primary for my company in this market as it involves the gaining of the trust of the customers. If the company I am starting are giving the customer great services which the can appreciate they will give great word of mouth advertisement to people they come across regarding my firm.

3.     Unique Selling Point –edit

The organisation which I am establishing is a second hand mobile phone retailer, I intend to create a friendly, welcome and comfortable atmosphere which will encourage the customers to purchase from the website. My competition I will have will be from organisations such as UsedPhonesUK and Secondhand-Mobiles, what I have acknowledged from viewing their websites are that the simplicity is not a factor of their website. When a customer searches a website they want to know how to purchase the phone as simple as you can get. Therefore my unique selling point of my phone website will be as simple as phone using numbers and steps to show how easy it is to purchase the mobile phone. Due to my target market is the more working class families and lower class people of the population, I have to promote my product and service using the simplest method for them to comprehend which is unique in comparison to competitors.

4.      How their can establish the Potential demand for their new business.

I will examine the potential demand of my mobile phone firm I will conduct primary and secondary research to analyse the prospective customers I can receive.

5.      How their will balance their personal and business needs.

To balance my personal and business needs I will have to work partially and rest as well to allow a mental break. I cannot work constantly with little rest as this will strain on my body and mind which could lead to breakdown of my firm.

6.      Estimated: potential profitability.

Gross profit = (TSR) Total Sales Revenue – cost of sales

Assume: Total Sales Revenue = £110,000 per year

Cost of sales = 10% of Sales Revenue

Number of customers = TSR / Revenue per sale

Therefore: Gross profit = £110,000 - £60,000 = £50,000

Net profit = Gross profit – Expenses

Assume: Expenses = 50% of Gross profit

Therefore: Net profit = £50,000 - £25,000 = £25,000

7.      Identifiable business trends.

The business trends which I have spotted are the ever changing mobile phone industry which is developing constantly. This current technology includes the 4G which is the fourth generation of mobile phone technology which I have to keep updated with.

8.      PESTLE analysis

·   A political subject which may affect my firm is the Ecological/environmental issues which a new government may implement. Take for example the growing concern for global warming the government may place restrictions on electricity usage.

·         A social factor which may affect my operation is the growth of the unemployment rate. The unemployment rise has left people without jobs and being more careful with their expenses, therefore the consumers may opt for second hand mobiles which I sell.

·         Technology is ever changing in this world especially in the mobile phone market where the industry is constantly evolving. My company will have to acknowledge this change and keep up to date with the change. Current mobile phone generation is at 4G which are charged approximately at £200+ for a new handset. This has opened many opportunities for me as the 3G handsets have depreciated in value therefore my target market are more able to purchase to the lower technical mobile phones.

·         Economic factors which affect my company is the tax increase due to change of political power. The income tax has increased and the nations which are low earners are still affected. The current economic status is that we are recovering from a recession, however the mobile phone market is not affected as mobile phones are considered to be necessity therefore the market is constantly growing.

9.      Personal development self-esteem through a business mentor - picking a mentor from Businesses Startup seminars - linking profile to their answer.

My mentor for this business start-up is James Caan, his expertise and experience I believe can assist me to success.

10.  How a structured business planning would assist their success

Type if Business
Target Market
Legal and physical
Financial Resources
Growth and development
Financial Contingency

2: Target Market

Market Research

Market research is the gathering of data which is used to be analysed in order to reach a decision on a business idea, objective or aim. There are two types of data in market research it includes,

Primary, which is newly, conducted data which is fresh for analysis and exclusive for my company only. The company of mine which is Musa Mobiles ltd can conduct surveys and questionnaires to see the interest and trends of the market which I am targeting.

Secondary data is information which has already been conducted by another organisation; it can include data such as government statistics and public limited companies trading reports. This is beneficial for me as it allows me to access competitor’s data free of charge.

Sales forecasts

This is the turnover/ the average amount my customer spend, therefore in my case it will be:

Total Sales Revenue =                               £110,000 per year = £1833
Average amount customer will spend = £60

Strengths and weaknesses
My organisation is a second hand mobile phone retailer therefore I have several positives and negative.Strengths

·         My organisation offers well monitored products; I also offer diagnostic solutions free of charge if any issues arise.

·         My company also offer 24 hour customer service to attend to any queries via telephone and email

·         I also give warranty for all my mobile phones sold if any  of the part are sole in faulty

        Weakness

·         Our company is new to the second hand mobile phone market which could be an issue in comparison to the more established firms.

·         Also second hand mobile phones are not the most preferred mobile phone handset market

·          In addition to this peoples general assumption of second hand phones is that they are bad quality and worn out.

Market trends

4GS and 4G phones

With the introduction of the 4G & 4GS phones it has caved way for the breakthrough of 3G into the second hand mobile phone market. The old generation of mobiles have now penetrated into the market; this means that my target market can buy 3G phones for a less cheap price. When a new generation of mobile phone is released the old ones depreciate in price, also my market are the population of low income therefore this is ideal for them as the price has gone down.

Economic outlookThe current economy is not doing very well; we have just come out of a recession and are entering a growth stage which does not look very convincing. The growth in mobile phones is not being affected by the general economic trend in actual fact our market is one of few industries that buck up the growth rate; this is due to that the mobile phone market is considered to be a necessity in comparison to other markets such as the hotel industry.

The green agendaWe as a company are committed to protect the planet and reduce our carbon footprint. We believe that lowering our carbon dioxide emissions plays a key role in our daily operations. We use many alternatives to lower the waste such as using eco-safe light bulbs and solar battery chargers for the mobiles we sell. We also have a scheme as a company to recycle old mobile phones and in exchange we give you cash which is very effective as a frim.

Customer behaviour analysis 

3: Human Resources

Personal qualities/ Skills

1. Skills required running a business

Product KnowledgeFirstly this is the most important to my organisation MusaMobiles as we have to know and understand the field we operate in thoroughly. The customers approach us with a sense of trust in order for them to receive the best product and service; they want us to know the best products accessories and network service providers which will suit them. Therefore in order for us to do this we have to be updated with the ever changing mobile phone industry.

Human Resources

This part of my firm is very important sector of the firm as they ensure who comes in and out of the company. The companies HR department have to ensure that all the employees are being paid correctly and on time furthermore they have train employees to the right standard of understanding ranging from health and safety to fire training. The company has to keep its employees motivated and happy in the workplace in order to receive a quality output from the staff. Overall the company has to recruit the correct people who understand the mobile industry thoroughly.

Marketing Skills

The marketing department is equally important as they present the face or the image of the company to the general public. Musa mobile marketing department should be using effective marketing strategies and techniques to attract new customers; in addition to this they should also be aiming to please the current existing customers by sending them direct marketing mail and offers using their data on the system information. If the firm has executed the marketing strategies effectively then this often leads to better reputation, market share and overall profit increase.

Financial Skills

Finance department is also play a key role in the MusaMobiles, they have to ensure that the company’s inflows and outflows are being correctly monitored in order to have a healthy cash flow. The finance department have to ensure that the expenses are not more than the revenue or else this create a loss for the firm which is not an option. Lastly but not least the finance department have to plan for financial developments of the firm and offer advice and suggestions to lessen expenditure and increase revenue.

Operation skills

The operation skills of the company Includes the controlling of the overall operational activities of the company such as the stock control team, they have to ensure that the company are operating with enough stock and control the reorders.

ICT skills

ICT can be considered the core of my firm; ICT is ever changing in over the yeas especially with the introduction of internet. Musa Mobiles is an online mobile phone second hand distributor consequently  my company’s IT department have to acquire the relevant software and hardware in order to compete with other competition. They also need to keep updated with the ever changing technology with the mobile phone stock as the upcoming generation mobile phones is 4G however in this year the 5G is being released into the market.

2.    

Skills	Do I have them?
English Language	GCSE B grade
ICT	GCSE A grade
Marketing, Finance and Human Resources	BTEC Level 3
Maths	GCSE C grade
Communication	BTEC grade Merit
Team Working	Supervisor at workplace
Confidence	Sports team Captain
Interpersonal	Very Social and outgoing

My personal strengths	My personal weaknesses	Skills and abilities I do not have
Motivated, problem solving, good interpersonal skills, management skills, and punctual	impatient, lack of life experience	Patience, Experience of running a business

   

3. Skills and Gap development needs

Objective	Short Term	Long Term
Marketing	Hire a MBA level 7 to set up a short term strategy and plan to increase profit and awareness	Send an employee 1 day a week over a 2 year period on a DMS post graduate scheme http://www.staffs.ac.uk/courses_and_study/courses/management-studies-dms-tcm4214159.jsp
Accounting	Hire a part time Accountant from an external firm to help on my short term finances	Send another employee to a AAT course in order for them to become a qualified accountanthttp://www.aat.org.uk/
ICT	it would be pointless to keep training employees as ICT is ever changing ,therefore I would externally hire an IT consultant	Hire an external IT consultant with the skills required to handle software and hardware

4: Legal and Physical Resources

Legal Aspects

§  Legal status
My organisation Musa Mobiles is a sole trader, in other words I am my own boss. I own, operate and manage my company with the assistance of few people. However I do have a various laws which apply to me and running my organisation. First and foremost I can benefit from the profits not being shared between shareholders as I am the main shareholder of the firm, in addition to this the legal paperwork to start up is limited therefore it can be easy. Financial information is also kept personal which means my data is private and competitors cannot scrutinise.

§  Legal Liability
The fact that my company is a Sole trader this means that I will have a main issue of liability of the company. If the company is not doing so well and it goes into bankruptcy and I still have to pay my debts off to my creditors. If I do not manage to then this can lead to my personal belongings being at risk of being seized and taken to pay off debt.

§  Trading terms & conditions
Before my company operates we have to establish the foundation before any sales are accumulated and ensure that customers cannot make any unfair claims. The terms and conditions are imputed to protect my firm MusaMobiles as we sell mobile phones online we have to have the terms and conditions link on the homepage in writing to outline the points which we are liable and unaccountable for. Take for example once a customer purchases off the company we can use their details for a set period of time in order to contact them and tell them about new and existing offers.

§  Trading standards
These are government agencies which have been introduced to protect the consumer and to ensure that my company are doing our job correct, the main ones which apply to my firm include Safety standards and ensuring that my goods are safe to use, the mobile phones which I sell are second hand therefore have to go through further testing before I sell them on.

Legal aspects 2

§  Record keeping
the holding of records is key to my organisation; by law the government have ordained businesses to keep some financial data for several years just for the sake of tracking the firm’s inflows and outflows. MusaMobiles have to abide legally such as when a customer purchases a phone from me I have to keep their data according to the Data protection Act, I have to gain the data legally and use it only for reasonable purposes furthermore   customer information has to be kept for no longer than necessary. In addition to this MusaMobiles have to ensure that they preserve the VAT data, this is for the government as it shows them whether or not I am paying taxes.

National/local laws & Insurance

§  Due to my company being newly established there is a number of legal obligations which I have to understand and practice.

-       Employers Liability
This where the employees are protected if they sustain any injury whilst at the workplace, if I am protected from this then I can be protected from any unfair claims made by the staff. Although my company is a sole trader firm I may employ some family relatives to operate the website whilst I am unavailable.

-       Product Liability

My company handles second hand mobile phones therefore I have to send the phone to various tests in order to ensure that they are safe to operate and to use by the customers. If they do not meet safety requirements I can get into legal trouble and claims can be made against me.

-       Contents Insurance
This is the insurance of the goods which my company sells, in this case mobile phones. This insurance protects me from any damage and theft of the stock. In the recent up rise in crime in London it is important for my company to insure their assets and guard the materia