BTEC First Diploma in Business
2007 - 08
Unit 10: Starting a Small Business
‘Getting Started’
Name: _______________________________
Assignment Manager:
Hand out date:
This assignment has five tasks.
The final deadline for the whole assignment to be completed and handed in is:
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The following guidelines should be used when completing your assignment:
- You must refer to the criteria banner and the content of the unit throughout the assignment.
- You should make sure you do detailed research and have a good understanding of the subject you are researching. Keep a note of the resources you use as you go along.
- Before handing in you must:
- Check that you have completed all tasks
- Label work appropriately
- Present tasks in the correct order
- That your name appears clearly in the header of each page and the page number appears in the footer of each page.
For further details refer to the ‘Student Guidelines’ that were issued to you at the start of your course.
Scenario |
Part One – The Business Idea
Task 1: (P1)
You have now decided on a final business idea. You need to present your initial business idea in a written report. The report should include:
- The type of business you will be setting up
- The aims and objectives of your business
- The planning that you will need to do/ information you will need to find out
- Why your business is likely to succeed e.g. demand, unique selling point, trends etc
- External influences on the proposed business e.g. Competitors, customers, political, local, national etc.
You must consider the following;
Criteria: type e.g. new, purchase an existing business, franchise; aims; business planning; attractiveness of idea e.g. unique selling point, demand for new business, competitive edge; balancing personal/ business needs; checking profitability; business trends; external influences e.g. commercial, political, local, national, international; self esteem e.g. work for self, independence, power, achievement.
Task 2: (P2)
Now that you have finalized your business idea you need to find out about the target market that you wish to enter. This will involve researching your competitors and their strengths and weaknesses; conducting a SWOT analysis of your business idea and considering any external influences that might affect your target market e.g. environmental issues and your customers.
To achieve M1 you must explain and justify the methods used to identify the target market for the proposed business.
You must consider the following:
Identifying target market: e.g. market research, published research, sales forecasts, customers’ actions and choices, effect on business, competition, strengths and weaknesses, market trends; environmental issues.
Task 3: (P3)
You have now researched your business idea in more detail and have a better picture of the work involved. You have started to think about the skills that will be needed to make your business a success.
Describe the skills needed to run your business successfully. Highlight the skills that you will contribute to the business as well as skills that you may need to employ.
Outline any skills areas that will require further development.
To achieve M2 you must analyse the development needed to run the business successfully. What skills gaps/ shortages do you have and how will you develop these to ensure success. (Don’t forget to consider the cost of this and whether or not your new business could afford these developments)
You must consider the following:
Skills: own contribution; technical/ operational – relating to products/ services, management, recording and checking performance of business, personal selling, administration, previous experience, strengths and weaknesses
Development: identify skills gaps/ shortages; professional help; training; planning; cost implications; accessibility; timescales
Part Two – Start up, running costs and legal structure
Scenario
You have now decided to approach your bank manager with your idea. You are hoping to borrow some money from the bank to help you set up your business.
Task 4: (P4)
In order to prepare for your meeting with the Bank Manager you need to prepare a summary of costs. You have also been advised to be aware of the legal structure for you new business. You must:
- Compile a list of your start up and running costs – identifying approximate amounts for each.
- Explain your understanding of each of the ownership types and make a recommendation for which one you feel is most suitable and why.
- Describe any legal aspects that may affect your business e.g. planning permission, licensing, contracts, national/ local laws etc
To achieve M3 you need to assess what impact these financial and legal aspects could have on the start up of your business. (What systems would you put in place to address these issues?)
You must consider the following:
Legal aspects: legal status e.g. sole trader, partnership, limited company, franchise, co-operative; legal liabilities; trading terms and conditions; trading standards; licences; record keeping; resolving problems; national/ local laws; regulations and bylaws; health and safety; fire regulations; licensing; liabilities; planning permission, contracts, duties and responsibilities; regulatory bodies; sources of advice
Financial aspects: personal survival budget; cost of premises, equipment and supplies; running costs; employing staff; pricing policy; break even; cash flow forecasting; profit and loss budgets/ accounts; sources of finance e.g. grants, loans, borrowing, sponsorship; record keeping
Part Three – The Business Proposal
Task 5: (P5)
Using the template supplied fully complete the business proposal/ plan for your chosen business idea.
To achieve D1 you must produce a PowerPoint presentation and deliver your business proposal, addressing all aspects of your business start up comprehensively.
You must consider the following;
Business proposal: models; reviewing information and ideas; setting targets and goals; purpose of the plan; components (type of business, market, human/ physical/ financial resources, financial and profit forecasts, growth and development, contingencies).
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