Business Name: “Q Clothing”Business Idea: ClothingLocation: The business will be based in London as it is the capital city of EnglandWhy am I going to be a success: I am going to be successful business as I will sell a range of products to my customers.The reason I chose “Q Clothing” as my business name is due to the fact that it is unique and original name which will attract a wider range of customers as well as creating a successful brand and mean that I can increase the popularity of my business. The reason I will choose Clothing as my business idea as it is a product which is unique and will appeal to my target audience which means that my business will hopefully have a long life span as it is a need for the consumer. Furthermore clothing is an everyday need and so it will not be hard to sell clothes but I have to know what types of clothes are being sold on the market.I have chosen to choose London as the location of my business due to the fact that it has a wide range of customers coming from outside of the country and will spend a lot of money to buy clothes from my business as I will have an increased footfall from tourists and other residences that reside within the area and therefore will increase my profit exponentially. My business is going to be a success due to the fact that the clothes I will sell will be off a high quality and an affordable price yet sell certain clothes at higher yet reasonable prices as the increase in population and demand for new and trending fashion will affect my business so I will need to keep up to date with the latest trends to increase my profits and sales.
Local Factors? Location – My business will be situated in City Centre as it is the heart of the city and a lot of tourists and people go there to shop and because of this would increase the chances of someone buying from my business. An advantage of being situated in the City Centre would be that there will be more footfall of customers to enter the business as potential customers. However a disadvantage of this would be that because I will be based in the city centre there will be more competitors and might reduce the number of customers I will get. ? Staff – I will have a high number of staff working for me in my business as it will make it easier for the customer when they need help and guidance. An advantage of having a high staff number would be that it would be easier to manage the business overall and make it easier for me to make the important decisions needed rather than wasting time. However a disadvantage of this would be that due to this high number of staff in my business it will increase the total expenditure as I will have to pay for the wages for all the staff working at my business. ? Equipment – I will have different types of equipment in my business like: Racks, Hangars, Mannequins and Tagging supplies as these will be needed to advertise my clothing products. An advantage of having racks as a piece of equipment would be that customers can easily see the different types of clothing I will have in the shop and choose for them.
A disadvantage of having hangars would be that they would cost a lot of money as I will have a massive variety of clothes and they will all need hangars to hang them upon the racks and as my business increases so will the variety of clothes and increase so will the amount of hangars needed. Furthermore an advantage of having mannequins would be that it would be an easier and appealing way to attract potential customers to buy some clothes and could get picture of what it might look on them. ? Stock – I will have a wide range of clothing that will be sold in my business because it will increase the amount of customers that I will attract as well as increase the range of my target audience. An advantage of having a lot of stock would be that I will sell a lot and whenever someone comes to buy something I wouldn’t say that I don’t have it and it is likely that I would sell it as well as having a range of sizes in the type of clothes. However a disadvantage of this would be that I might not be able to sell all the stock I had bought because of an external factor and therefore increase my loss and reduce my profit.? Customer – I will target people of all ages as that will increase my target audience and the amount I sell.
An advantage of this would be that my profit and my sales would increase as I am appealing to a wider range of audience and therefore increasing the chance of me selling some clothing to them. However a disadvantage of this would be that I will have to buy more clothes to appeal to more people and ages and might make a loss if I don’t sell all of the stock I have like I have mentioned above.? Suppliers – I will buy from Big Suppliers like EA7 and Versace, Louis Vuitton, Balmain Paris and sell them, for reasonable prices as I will negotiate a decent price for the customer, myself and the supplier and that way everyone would be happy. An advantage of negotiating a price and asking a discount from the supplier would be that I will get the product for a cheaper price and even if I don’t sell a lot of it I will still make a profit and worst comes to worst I will increase the chances of breaking even. However a disadvantage of this would be that a lot of suppliers don’t like to negotiate prices with new start-up businesses as it’s hard to know if their business will be successful or not.
? Competitors – My competitors that I will face would be big brads and shops like JD’s or Selfridges and Scott’s as they are more well-known but to get the upper hand I will big discounts on bigger brands as an opening sale on big brands so I can become popular and well known quick. An advantage of this would be that I would attract a wide range of audience yet a disadvantage of this would be that there is still a risk of the other bigger brands drawing my customers towards them and reducing my potential buyers, sales.National Factors? Levels of employment – Depends on if levels of employment are high or low? VAT-Value Added Tax (VAT) is levied on the sale of goods or services by UK businesses. VAT is collected on behalf of HM Revenue & Customs by companies.
VAT-exempt items include rent, private education, health services, postal services, finance and insurance, and gambling.? This would affect my business due to the act that the standard VAT rate in the UK is 20% so I would be charged 20% of the agreed price However being registered for VAT means that I also could charge VAT so therefore it makes it less of a loss and can be a steady inflow of money for businesses and customers alike. ? Income TAX: Income is taxable – and that is not just your wages but also what you might take in rent or your interest from savings and these are some taxable incomes which help the government run this country like public services: All wages and working income, Benefits in kind from an employer, Income from property and rent, Interest on savings and investments.
This means that I will have a reduced revenue meaning that I will reduce the amount of profit that I will be getting so to tackle this a possible solution could be that I increase the sale price of my clothing therefore potentially increasing my revenue and might make up for the taxation that will be taken from me.as well as the government might increases taxation that will be placed on me making it hard for me to make a profit. I will create an ethical name for my business.? Government – Furthermore depending on what government is in charge of the certain area were my business is located means that I will have to follow the specific laws and anything that happens to affect my business like for example: recently BREXIT has affected many businesses from big to small as this meant that the UK has left the EU and most of the products likes clothes and other imported there and other European countries so this will lead to an increase in price for many of the products as well as reducing the types of products that I will be allowed to sell as well as have to pay a tax for buying and selling their clothing in my business.? Furthermore another thing is dependent on the how the country is doing overall like if many people think that certain rules and laws are not enough for them to live and is affecting them badly they could call to change a law like minimum wage could increase for people meaning that I will have to pay more to my staff and this will also increase my expenditures so to tackle this dilemma I need to either reduce the staff or to decrease the price that I buy my stock for and therefore decrease my break even.? Economy – Depending on the economy my business may determine whether my business is successful or not for example if the economy is in an inflation period the price and value of the £ will increase rapidly and might make suppliers hesitant to sell to me as it will be worth less to them overall and therefore impacting exchange rates and lastly might increase interest rates to gain a reasonable profit and this will reduce the amount of customers that I will receive.
? Employment – Lastly another major national factor will be that depending on the level of employment I might have a reduced staff meaning that I cannot help the customers and run the business as well if the level of employment is too high will mean that I will have too much staff and will therefore decrease my overall revenue and decrease the amount of revenue that I will receive and will have a higher outflow s to stop this I can have less staff to decrease my expenditure and have younger staff with less experience which will reduce the amount I have to pay to them as It will only be minimum wage. Local Area – Birmingham (Town):According to the mid-2016 population estimates 1,124,600 people live in Birmingham.· 22.
8% (256,600) are children· 64.2% (722,300) are working age· 13.0% (145,700) are pensioners· Largest Ethnic Group is White British (53.
1%). · Pakistani (13.5%) and · Indian (6%).
My target audience would specifically be working age people from all ethnicities and backgrounds as they would be ideal customer and would need to buy products as they work and have money to buy this even though having clothes is a need and it applies to all the type of people that are stated above. In the year ending June 2017, the crime rate in Birmingham was lower than the average crime rate across similar areas. Yet the average crime rate was a staggering 83.99. So, to solve this problem of being robbed or of anything happening to the business I will have to invest in some kind of alarm and shutters that will keep the shop secure from burglars.In Birmingham there are a lot of clothes and shops in the vicinity of my business therefore it will be hard to draw customers to my shop but it would be easier to advertise as a lot of people go through the city Centre every day and will have a chance to come to the shop or get an advertisement of some kind preferably a type of advertisement that stands out than other shops.
Many tourists are attracted to Birmingham’s City Centre due to the fact that a well-known landmark is situated there and that is Bull ring as it is very iconic and is home to over a hundred shops to buy something from as well as Selfridges which also has variety of products like clothes to food or furniture and targets a wide range of people. This is a good place for my shop to be situated as it is busy all the time and many potential customers go through the City Centre either to get to work or jus buy something and because of that it would increase the chances for people coming to my business as well as increasing footfall and I will try and keep as much customers as I can by making them feel at home so they would return again.Furthermore, it has a wide range of travel that will be good for my shops as many customers would come past the shop and hopefully be attracted to something and therefore buy something therefore increasing my overall profit.
Even though there are many shops that sell big branded clothes like Flannels or other I will make my shop more well-known by specifically making my shop stand out from the rest for example by adding regular discounts and easy to access even if not in shop e.g. website etc.