Explain how knowledge of personal strengths and weaknesses can be applied to preparing for and contributing to a business
When setting up a business you need to have passion, confidence and knowing your skills set. The business I intend to set up is a Window cleaning business. There are certain things needed to follow to set up me business and they are Strengths, Weaknesses, Opportunities, Threats and Skills.
There are several skills that are needed to operate a successful window cleaning business, which are good communication skills, customer service and time management skills.
I have little experience of customer service; this will come under one of my strengths. With the little customer service skill that I have, I am able to communicate with customer and find out their needs and how I can provide that best customer service possible
My weaknesses could affect my business because I am bad at time keeping, which could affect my business because if am always late my customers will look for someone else. One of my weaknesses is motivation, this can affect my business because if I am not motivated I won’t be interested in doing my job and not enjoying the job and will end up just doing a bad job in anger.
If my window cleaning business is successful I would employ two people. I will also expand my business by going online and advertising my websites. By doing this it will help my business get more recognition from online users.
Threats are always on business owners mind because just you could slip up and even worst it might be the economic downturn which could make you lose everything you earned. This also means my business could get some competition from top internet sellers that have a better advertising than me.
Identify how regulations and laws for small businesses can affect preparation for business.
My business will have to consider its legal status and take a number of laws and regulations into account. The first thing I have to consider is the type of ownership. I will look at the advantages and disadvantages of a sole trader, partnership and a private limited company. | Advantages | Disadvantages |
Sole trader| Control - Sole traders maintain full control of their business. Running it how they please without the interference of others. | Liability – sole traders are not seen as a separate entity by the law. Therefore, they are subject to unlimited liability. This means if the business gets into debt, the business owner is liable. In the worst case, this may mean a person risks their home, personal savings and any other assets they have both in and outside of the business.| Partnership| * Owned between two-twenty people and they share in decisions making. * Profits and losses are shared. * Varity of skills e.g. partners may have different skills.| * If responsibilities are not shared equally, arguments can occur and working relationships may be affected. * Profits are shared. * The partners have unlimited liability e.g. if the business goes bankrupt the partners can lose personal possession. | Private limited company | * Capitals can be raised through sales. * Shares can be bought and sold. * It is easy to set up a private limited company.| * Every share holder has to vote so decisions can take a long time. * Matters have to be discussed by the Board of Directors. * The business has to register with the companies’ registration Office and comply with any legislation in place.| Legal process for starting a business
All businesses have to inform the government they are setting up as they need to deduct tax and national insurance. HMRC - this includes customers. Sole traders must let the government know within three months of starting a business, and you also need...