The type of business to be established is a sole trader business. A sole trader business is a business owned by one person. Local creations will be the name of the entrepreneur’s business and it will be involved in the production of locally made items. The business involves secondary production, this means that industries take raw materials and change them into finished goods. In the business raw materials such as straw, sea shells, flowers, clay and many more to make finished products such as pillows, bouquets of flowers, chains, cold pots and many more. Objectives: The business will make a profit of at least 20% within the first two and a half years of operations by meeting the needs and wants of customers and selling the products at the most reasonable prices.
The business will expand after 5 year period by training people who are willing to learn about producing crochet and many other natural products and items. Mission Statement: “Advancing the future through creativity and productivity” Justification of location Local creations will be located in Jeremie Street in the capital city of Castries, close to other major business and shopping areas. Three reasons why this place was chosen: It would be an ideal location for the business because it would be situated between many shopping malls where tourists visit e. g. La Place Carenage. * Availability of raw materials e. g. embroidery, thread, needles and sewing supplies will be low because local creations will be located in the middle of the city and there are major shopping areas. This will make it easier and very convenient to get the business raw materials. * There will be easy access to infrastructure such as electricity, roads and telephone lines which will be essential to the proper functioning of local creations. Selection of Appropriate Labour
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A stakeholder is defined as ‘an independent party with an interest or concern in something’. Stakeholder groups are not all alike and therefore will want different things from a business. As each stakeholder deals with the business in different ways these needs are likely to conflict. With all of these differing needs it will be difficult for the business to satisfy all stakeholders at ...
Local creations will be involved in skilled and semi skilled labour. The business will employ a total of six persons. There will be five semi skilled persons and one skilled worker. The Semi Skilled Workers * A Security: To ensure that the business is secured and safe. * Three Factory Production Line Workers: They will be responsible for producing the finished products. * A Cleaner/ Janitor: Will ensure that the business place is clean and tidy. ’ The semi skilled workers were selected to ensure that the business runs smoothly and produce goods adequately with the help of hands. The Skilled Workers A Mechanic: Responsible for fixing machines being used by employees in the business if needed. The skilled labour were selected to ensure that the entrepreneur have good quality products. Sources of fixed and working capital Fixed capital refers to the permanent capital invested in an organization which is used to purchase fixed assets. Local Creations will require a total of $100,000 to set up the business. A loan will be borrowed from Bank of St. Lucia to purchase land, building, and vehicles. Working capital is the day to day finances needed for running a business. This capital is needed for paying bills, purchasing raw materials.
The entrepreneur can help by using personal savings to purchase e. g. crochet thread and paying wages. Role of the entrepreneur The entrepreneur is an individual who undertakes a risk by investing money, time and energy in the building of a business with the aim of making a profit. Functions of entrepreneur: * The entrepreneur has to mobilize resources for the implementation of the business plan. * The entrepreneur has to co-ordinate various units effectively by having proper communication channels and supervision. * Raise capital for Local Creations from savings or borrowing for investment in the business. Type of production
The Business plan on Women Entrepreneur
1.1 MEANING The classic definition of an Entrepreneur is “a person who organizes and manages a business undertaking, assuming the risk for the sake of the profit.” The word ‘entrepreneur’ is derived from the Old French word ‘entreprendre’ which was first used by the economic ‘theorist’ Richard Cantillon in 1755 in an essay where he used this term to describe a ...
Local creations will be engaged in secondary production. Raw materials e. g. crochet thread which will be the main raw material in the production process will be transformed into finished products of handbags, clothing and home decorations. Level of production Local creations will be producing goods on a domestic level. This level involves producing goods for the national community. All the business items will be sold at the main department in St. Lucia. The business will target different types of customers at its level e. g. tourist who visit the country and people in and outside the city. Quality control measures
First of all the entrepreneur would be responsible for ensuring that the business will have good quality products to meet the standards that the firm has set out. The entrepreneur will ensure that the raw materials that have been purchased are of good quality and are always of a high standard. The goods are to be inspected. A staff member who has training and expertise will be responsible for inspecting every item produced. Only after the items have been checked and approved by the inspector, that they will be packaged for sale. Use of technology At local creations, two types of technology will be used, which are cameras and computers.
Cameras are used to monitor the business to make it easier for the entrepreneur, so that the entrepreneur would not spend too much money on securities. Local creations will be using computers to get different ideas and styles of crochet patterns to better the products. This will help to increase the business efficiency in that workers will not have to think really hard on designs but can use the computer to stimulate designs and patterns. Linkages A linkage is when an industry provides something that another industry needs to provide its products. The type of linkage that will be established within local creations is a backward linkage.
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Is a small business owner an entrepreneur? In order to answer this difficult question, one must compare characteristics and understand the difference between small business owners and entrepreneurs. Additionally, one must establish baseline definitions of a small business and an entrepreneur. Clear-cut definitions vary on what categorizes a business as small in the government's eyes, thus, size ...
Local creations will depend on Ramco plastic limited located in Rodney bay for plastic bags to package the products. The business will benefit from this linkage knowing that plastic bags are easily available and reduce cost of transportation. Potential for growth Internally: Local creations will be looking into sharing some of its profits with employees. This will come in the form of increase wages based on workers productivity. Such motivational technique will help to increase the overall profits of the business. The business will use its profits to purchase new equipments to reduce the breakdown of the used ones that were purchased.
That would help to lessen interruption in the production process, thus increasing the level of efficiency. Externally: After a five year period when local creations have made all their profits, the entrepreneur would have idea to expand on the business. Government regulations Local creations will abide by the laws and regulations of the country. As a business organization, local creations will pay tax based on its profits. Local creation will meet the standard set by the bureau of standards. Local creation will also be making NIC contributions on behalf of its employees as stipulated by law.
This will impact on the business because the government the business follows the government polices and so the government wouldn’t encounter any problems with the business owners. Ethical issues Garbage disposal will be one of the ethical issues that local creations will be dealing with. If garbage are not to be taken care of at the end of the day person would have no interest of coming to the business because of the untidiness. So at the end of every day the entrepreneur would ensure that the garbage would be taken care of and let a health inspector visits time to time.
