Detailed Ouline Unit 36

Unit 36: Starting a Small Business
Detailed outline
Starting a small business is an ambition for many people. The business idea could be almost
anything such as a coffee shop, a courier service, a hairdresser, a motor vehicle repair
workshop, a DJ service, a painting and decorating business, an equipment hire operation, or an
organic smallholding producing fruit and vegetables.
Use the link below to find out more business ideas
https://smallbiztrends.com/2016/10/small-business-ideas-for-beginners.html
Note: the report should be written in precise and professional tone. You have to
address in third person. Don’t use “I,you,we,us” . Use your suggested business
name to address. Take help from the links provided, write in your own words and
relate to the proposed business.
All the questions and criterias should be related to the proposed business.
To achieve distinction criteria, all the questions should be explained in detail and
should include all the points given under each question. AND proposal outline in
P5 should be comprehensive.
Give at least 20 references in proper Harvard style.
Task 1 report and presentation

P1 present the initial business idea using relevant criteria
 Suggest the name for the proposed business

 Give a brief introduction/background of the proposed business idea and answer the
following:
 Criteria: type eg new start up, purchase an existing business, franchise; aims; business
planning;
 Attractiveness of idea eg unique selling point, demand for new business, competitive
edge; balancing personal/business needs; https://www.nasp.com/article/1733F0D9-
5C1F/5-examples-of-unique-selling-propositions.html
 Checking profitability; business trends; https://quickbooks.intuit.com/r/pricing-
strategy/4-ways-to-measure-your-profitability/
 External influences eg commercial, political, local, national, international;
https://smallbusiness.chron.com/seven-external-factors-business-21960.html
Political factors that can affect the business are: Take help from the factors given below and
relate them to the proposed business
 Tax and economic policies: Increasing or decreasing rate of taxes is a good example of a political
component. Government regulations may raise the tax rate for some businesses and can lower the
same for others due to specific reasons. This decision will directly impact businesses. This is why
maintaining a strategy which can deal with such situations is very important.
 Political stability: Lack of political stability within a country can significantly impact the
operations of a business. This can especially be true for businesses that are operating on the global
scale. For instance, a hostile takeover can take over a government. Eventually, such a situation will
lead to looting, riots and general disorder within the environment. Such situations can disrupt
business operations and activities which can have a major impact on its bottom line.
 Foreign Trade Regulations: Every business has a need to expand business operation to other
countries. However, political background of a country can influence the desire for a business to
expand its operations. Tax policies that are particularly controlled by the government can induce a
particular business to expand operations in different regions whereas; other tax policies can hinder
the process of business expansion for some industries. Government initiatives, which have been
designed to support local businesses, might work against international companies when the
question is of their competitiveness in a foreign region.
 Employment Laws: Employment laws are made to protect the rights of employees and include
every aspect of employer/employee relationship. Employment law is an aspect that is very
complex and involves several pitfalls as well. When businesses’ are in touch with the latest
developments in this law, they can manage to take their business in the right direction however,
those who get it wrong needs to be completely prepared for the expensive results it will generate.
In modern corporations, employees are almost 98% of the company for the accomplishments or
lack thereof and any changes within employment law will, of course, have a great impact on the
business operations.
 Self-esteem eg work for self, independence, power, achievement

https://www.entrepreneur.com/article/237634
P2 and M1 explain how you will identify target market

M1 explain the methods to identify market for the proposed business
Keep the points mentioned below to answer P2 and M1
P2: Identifying target market: clearly explain in detail how the target market of the proposed
business will be identified
M1: eg market research, published and field research, sales forecasts, customers’ actions and
choices, effect on business, competition, strengths and weaknesses, market trends;
environmental issues
https://www.inc.com/guides/2010/06/defining-your-target-market.html
https://www.quicksprout.com/how-to-identify-the-target-market-of-your-startup/
https://www.mymarketresearchmethods.com/an-overview-of-market-research-methods/
P3 describe the skills needed to run the business successfully and what areas require further
personal development
Consider the following points to describe the skills:

Skills: own contribution; technical/operational – relating to products/services, management,
recording and checking performance of business, personal selling, administration, previous
experience, strengths and weaknesses
https://www.smallbusiness.wa.gov.au/business-advice/starting-your-business/business-skills
https://www.mindtools.com/pages/article/newCDV_76.htm
M2 analyze the personal development needed to run the business successfully
Consider the following points:
Development: identify skills gap/shortages; professional help; training; planning; cost

implications; accessibility; timescales
Task 2 report
P4 describe the legal and financial aspects that will affect the start-up of the business
Legal aspects: legal status eg sole trader, partnership, limited company, 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 eg grants, loans, borrowing, sponsorship; record keeping
P5 produce a proposal containing the essential information for the startup of a business/ D1
present a comprehensive business proposal that addresses all relevant aspects of business
startup.
Business proposal: models; reviewing information and ideas; setting targets and goals; purpose
of plan; components (type of business, market, human/physical/financial resources, financial
and profit forecasts, growth and development, contingencies)
All the headings of the business proposal should be explained comprehensively to achieve
distinction.
Business proposal template
Prepared for:
Prepared by:
Introduction of the proposed business:
Targets and goals of the proposed business:
Purpose of the business plan:
Type of business:
Market analysis:
Human, physical and financial resources used for the proposed business:
Profit forecast:
Business growth and development strategy:
Contingencies:
In order to make contingency plan for the business consider the following questions:
1. Identify the main risks to your small business

2. Pinpoint operation essentials
3. Establish employee roles and responsibilities..
4. Backup data to avoid losing it.
5. Review and revise your contingency plan bi-annually. Go over and update the plan
every six months to account for staff changes, economic factors, and other issues
pertinent to the business.
M3 assess the implications of the legal and financial aspects that will affect the startup of the
business.
For the legal and financial aspects described in P4, assess their implications for the proposed
business to achieve M3. Analyze their impact on the business in detail.
Give at least 20 references in proper Harvard style

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Unit 36: Starting a Small Business

Use the link below to find out more business ideas

Give at least 20 references in proper Harvard style.

Task 1 report and presentation

 Suggest the name for the proposed business

question is of their competitiveness in a foreign region.

every aspect of employer/employee relationship. Employment law is an aspect that is very

 Self-esteem eg work for self, independence, power, achievement

P2 and M1 explain how you will identify target market

Keep the points mentioned below to answer P2 and M1

Consider the following points to describe the skills:

M2 analyze the personal development needed to run the business successfully

Consider the following points:

Development: identify skills gap/shortages; professional help; training; planning; cost

Personal survival budget;

Cost of premises, equipment and supplies;

Break-even; cash flow forecasting;

Sources of finance eg grants, loans, borrowing, sponsorship; record keeping

Business proposal template

Introduction of the proposed business:

Targets and goals of the proposed business:

Purpose of the business plan:

Business growth and development strategy:

1. Identify the main risks to your small business

Give at least 20 references in proper Harvard style

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