The goal of this task is to create a web design company that offers outstanding services and products, taking into account all relevant factors. Moreover, it requires the development of a five-year business plan.
When starting a business, it's essential to consider all financial aspects. HSBC provides an information packet that covers various factors to help with this. Moreover, the internet can be a valuable source of knowledge for new entrepreneurs.
A finance finding (3.1) reveals that the business will commence from a residential unit, since there are only two employees who will reside within the house. This move will prevent them from expending essential capital, especially as there will be minimal influx of funds. Additionally, the procurement of computer hardware and software, including furnishings, will be financed through pre-existing capital.
Seeking a bank loan or grant
...from the local council are alternative capital options. HSBC provides a small business loan option starting from �1000 to �25000 with interest rates as low as 9.1% and a maximum repayment period of 10 years. Additional information can be found in appendix 1 ; 2.3.2.
HSBC business insurance will cover all of the business possessions at a good price. A detailed list of the possessions to be insured must be provided to HSBC, and payment can be made in instalments as arranged. (3.3)
The Peterborough-based business establishment is strategically positioned in close proximity to other major corporations in order to increase visibility among neighboring enterprises and their clientele. Moreover, the two proprietors of said enterprise will also double as staff members, thereby negating any need for a dress code due to the absence of direct interaction with customers.
If a business ha
just two employees, their pay is calculated according to the company's earnings. But if there are other non-owners working for the business, then a set salary must be agreed upon.
Marketing efforts for the house will include prominent advertisements and signs in the vicinity along with advertising in local newspapers and sending letters to local companies to promote its web design service. The company may even conduct market research to demonstrate the potential benefits of web advertising and selling to its customers.
A 5-year plan has been created that outlines the subsequent objectives:
- During Year 1, the emphasis will be on acquiring new customers and generating enough revenue to balance out initial setup expenses, given that starting a new business can be challenging.
- In Year 2, the focus will continue to be on making a profit while repaying any remaining costs. By year-end, a profitable margin should cover all expenditures.
- The aim of Year 3 is to prepare for expansion based on current customer demand by saving money throughout the year.
By the 4th year, if everything runs smoothly, the plan is to establish a new store in a different location, providing the same services related to web design along with selling computer software and hardware. As for the 5th year, the goal is to recover the investment spent on the new store. 3.7.
The goal of the business is to project a professional image. To gauge public opinion of the service, adverts will be reposted after receiving feedback from a few customers. Additionally, examples of the company's previously created websites will be shared. In conclusion, while the business is capable of sustaining
itself without the need for outside financial support, HSBC is readily available as a backup option if necessary.
The business can increase its coverage by having a positive reputation and utilizing online advertising. It is recommended to purchase affordable hardware and software to start, as the premises are already well situated. If there is a need for any unforeseen loans, it is wise to seek out a trustworthy bank with favorable terms such as HSBC.
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