The business will be set up and ran as a four-way partnership although this will mean less money generated individually for each partner it also increases the amount of money the business has to spend on the property and the fixtures and fittings. Each of the four partners has invested 15,000 into the business, totalling 60,000. Therefore, a large amount of money will come from the owner's capital. The business will also take out a loan for 25,000, which will be paid back over a 24-month basis.
The business will be required to pay 1,108. 36 a month, so the total amount paid when the loan has been paid off is, 26,601, this is down to a 6. 2% APR rate. The bank, which is offering me this loan, is called Northern Rock. As you can see I searched for loans from various different companies, I went with the bank offering the lowest APR rate, as this means I will have to pay back less than say if I went with UCC which was offering a 17. 9% rate which was not very good as I would end up paying an extra 3,000 altogether.
The property I will get on a lease, as I currently do not have enough money to buy the property outright. After a few, years when the business is making a lot of money I will consider buying the property. There are a two different companies I am going to look at to use for my business bank account these are the Bank of Scotland & HSBC. After comparing things like transaction charges and other charges such as debit and cheque etc, I have chosen to use the HSBC bank as this offers the best rates, and offers 18 months free banking to new businesses that are starting up.
By using the above services and sources of money for the business it will help to achieve the aim of creating a business, which provides a sports orientated atmosphere as I have chosen the things that will give me the most money, which will therefore be put towards making the business better for the customer. Quality Assurance Staff will also have to smart and presentable as if they are not it might attract the wrong sort of people in. There will be back checks on all staff to make sure they are suitable for the job at hand.
I will choose my suppliers on recommendation from other business managers. I will be looking for price, quality of goods and also the range of goods, which they have. For the cleaning company I will have a look at past reviews on how reliable and productive they are, not just on price alone, because if I choose a business which is very cheap the chances are the quality will not be the same as a business who charges maximum price for there services, but then again my business will not be able to afford such services.