All2One has been open as a small business for 5 years which offer wigs, cosmetics and beauty products. The owner has gained the experience for running his own business named All2One Slough. In order to open his business the owner had told me that he needed a mortgage from the bank and used his savings to open the business. At first this was a great worry for him, and therefore caused a lot of stress since he did not want to go bankrupt, thus he had worked long hours and which was a great challenge for him as he was the only worker.
However, there are many disadvantages of being a sole trader, which are as follows; unlimited liability, overloaded with work, not able to take days of for a holiday and no business partners to share views and discuss problems with.
The owner has to do all the work himself as he is a sole trader who has the full responsibility over opening and closing the business himself; not only this but he has to keep the shop very clean to attract more customers who may not feel like visiting a filthy shop and may go to another business. A filthy shop could become very unhygienic if he is not very careful and may result to closure. There is a huge workload upon him as he does not have any employees to help him, which results in him to carry the entire burden of the business himself and this may become very stressful.
Other tasks he carries out is to keep the shelves full and never empty to retain customers. He also has to make sure that there is enough money in the till for everyday use; not only this but he has to keep records of payments and daily income.
His business is located on Herschel Street which is situated behind the slough high street. All2One has remained as a sole trader and have not changed the ownership as it would not suit him for various reasons. He also added that he likes the challenge of having his own business. There are also many advantages for him to be a sole trader these are that; he is his own boss: he makes all the critical decisions of the business; he keeps the profits; he does not share his profits with anyone e.g. a partner or a shareholder.
However he does not wish to have the hassle and the problem of having a partner and enjoys his independence of being the only owner. On the other hand, I recommend that he should turn the business into a private limited company and therefore he could have the benefit of limited liability which would protect him from losing personal possessions in case of bankruptcy.
Not only does he have to look after and care for his customers, but he has to fulfil the tasks which I had stated above which can be very stressful. Aims and Objectives of a Sole Trader
All2One's aim is the same as all other businesses, which is to increase sales and make more profit. Another one of his aims is to expand and offer more products and open a salon in the back of his shop, this would cost him more money to extend the shop, buy new equipment and employ a worker for the salon. Every business has an aim and an objective which is to know what they wish to achieve and to know what they have to do in order to succeed in keeping the business running.
In order for All2One to be successful, the owner has set himself some objectives to offer great customer service and to have competitive prices to overcome competitors to retain customers. He also has to keep up to date with the latest fashions which he can offer to his customers and keep them satisfied and shop their regularly. He has to keep up to date with the modern hair trends so that he can be as good as other businesses in the area. It is absolutely vital for him to be successful because this is his only means of income and he is dependant on the local community.
All2One slough relies on the local community so therefore it is important to keep customers satisfied and spread a high-quality word regarding his business. He must be very careful with his prices and ensure to charge a competitive price which is neither too high or to low. He must also insure that he meets the customers requirements and to keep up to date with fashion and latest trends. The type of customers he gets are mainly female who look for wigs, cosmetics and beauty products however he also attracts a number of boys and hairdressers who are interested in gel who appreciate his services a great deal.
However, he must also ensure that he keeps his shop up to a high standard meeting the hygiene requirements therefore he must keep it clean ant tidy. He also has a radio set up in his shop to keep the customers from getting bored while doing their shopping.
All2One have a certificate on the shop front to show that he is a professional and that he is qualified so that he is able to promote his business. Being a single owner of the business requires him to be fully focused on the business which reduces the time that he is able to take of work. This is why his supplier delivers products to the shop every week to save time to deal with customers.
When a customer spends over ï¿½15 at his shop he offers a discount to retain these customers. All2One have been opened for 6 years and they are a well known business. When he decided to open their was only one shop in slough that offered these type of products but offered a small variety, hence he decided to open it but offering a larger variety.
Three years after he had opened another shop offering the same type of products nearby. This meant he had competition which forced him to reduce prices to retain customers. Now that there are two competitors close to his business he has to ensure that he does not lose any customers otherwise he will be in great havoc which would cause him to go bankrupt.