Bank overdrafts 

In order to meet customer's needs, I will sell products they want at a price they are willing to pay making them available in the right place, using promotion to make them aware. To keep them I will do deals and special offers and keep up to date with latest equipment and pricing. Marketing information I will need I will need to know what sports are popular in the area, what ages and genders to stock for and how much to stock.

How I will do market research I will survey a variety of people in the area on their favourite sports and what sports they do/would like to do. (Survey on next page) Basic information on competitors Some competition I will have in area will be mainly from Sports World and JJB. They have reasonable prices and are only a short drive from my target area. They sell equipment for football, tennis, golf and more. They are very successful for their sales of football equipment. 2b) Planning Stage How you will analyse and meet customer needs I will do this by taking customer surveys when they are shopping in store and changing things around the store using the results.

How you will build customer relationships so that they make repeat purchases I will start a Deluxe group customers can join so that the more they spend in store the bigger discount they will receive on their next buy. Like Tesco's club card system. Ideas for customer care Hiring people to offer professional advice on the equipment to buy and to point them in the right direction. The costing of your products or services I will look at a variety of different suppliers and find a balance between quality and price. I want cheap but good quality products/services.

The proposed selling price I will look at how much the product/service cost me from the supplier and then look at competitors to find how much everything should cost. 2c) Implementation Stage How you will promote your products or services I will advertise with posters, leaflets, at the local sports clubs and on the council's notice board, community notice boards. At the local youth clubs and around the village.

Your unique selling points I will offer unique prices and specific things that no other sports shops nearby can offer. I will have specialised people giving advice that you can't get from other shops. Your selling technique I will be persuasive and offer my own opinions from experiences. I will give them advice that staff at stores such as Sports World can't give. How you will deal with environmental issues I will use bio degradable bags and have recycling bins for boxes, packaging. I will install solar panels after a few months to make my own energy.

Could they give me a one-off lump sum of money, or equipment or resources? Could they help with the running costs whilst the business is being established Advantages Disadvantages Own Savings Yes Yes You wouldn't have to pay yourself back. No interest. Available quickly. If the business goes into debt then you will. Big risk. Reducing your own savings. No gain for owner as no interest is paid. Entering into a partnership Yes Yes Two sets of savings to be used with no interest or extra payment. Less stress to run the business. Profits have to be shared amongst partners. Decision making may be longer due to more people having a say. Bank overdrafts Solves short term cash flow problems. No payment plan.

Have to pay interest when you pay it back. Banks require information about the business beforehand. Limited funds Bank loans  Repayments are monthly, instead of all at once. Easy to apply for. Same payment each month. Have to pay interest when you pay it back. Have to provide security when applying for a loan. Has to be paid by profits. No need to be paid back. Can be used to purchase assets. No interest or extra charging. Time consuming to apply. Can take time getting a decision. No guarantee for full amount. The most suitable source of money for my business would be a bank overdraft as the interest would be lower if I made an agreement with the bank and the money could help with running costs for a few months before I broke even.

b) Start-up costs: Businesses need money to get them started. There are two basic costs associated with starting a new business, capital costs and start-up working capital. Start-up costs for my business would be: premises, furnishings (shelving), equipment (till), security/safety equipment (fire extinguishers and burglar alarms). c) Importance of a good cash-flow: A good cash-flow is important so that you know how much money you will spend in advance. Having one means you can plan any extra expenses and avoid getting into debt months before it would happen. If it is a wrong and invalid cash-flow then it could lead you to think that you have excess money when you don't. This could lead you to spend more and you can get into debt.

d) Importance of organizing and controlling expenses and income: Controlling expenses and income is important otherwise your business would be chaos. Without controlling and organizing your income, money could go missing, you could be making mistakes or errors, or you might be a victim of fraud, without even knowing it. Not controlling and organizing you expenses could result in you spending more money than necessary, being in debt without knowing it, or you might be charging people a price way below the price you purchased it for originally. 

e) The role of HM revenue and customs: It is a department of the Government responsible for collecting taxes and payment of some forms of support. It is responsible for direct taxes, including income and corporation, capital taxes, such as inheritance tax, and environmental taxes, such as air passenger duty. Other responsibilities are national insurance contribution, child benefit, and other forms of support. f) How you can measure the financial success of a business: The most common way is financial worth. The more a business or person is worth; the more successful they are considered to be. Financial success is measured by using the company's profits for the year. Future growth and profits are also used sometimes to help create a better result.

g) The financial risks you would face by starting your own business: Some risks you may encounter when starting a business are; Losing Money – Businesses require an investment. If the business fails this and more can be lost. Security of Income – Employed people have the security of a wage every month. Running your own business means that you don't have this safety. Your income is based of how good the business is going and profits. It is unlikely you'll get a holiday or time off without losing money. Other Financial Charges – Starting a business means that personal planning becomes difficult. For example; banks often like proof of a safe, guaranteed income when applying for a mortgage.