my principle of business sba

1. Description of Business
The name of the business to be established will be luxury collection clothes store; it will be
located at 10 main streets Riversdale. This business will be a soletradeship, which will be owned
and control by Shaneka Anderson the manager/entrepreneur and will be serving up to the next
five year.
This business will need the following equipment in order to be established: sewing machine, cash
register and computer. This business will be employing (3) three employees one accounting clerk,
a receptionist and tailor in addition to the manager.
The aim of this business is to provide meals of high quality on time of reasonable prices for the
people in and around riversdale
. Some objectives of this business are:
• Providing food on time.
• Providing employment for community member.
• Making a profit.

2. 1
Organization Chart
The Luxury collection will be owned and controlled by Shaneka Anderson, the manager would
be engaged in:
Taking order from customers, planning the short and long term goal of the clothes store, for
example, the source of capital for the business, the type of service offered and the number of
workers to be employed, coordinating the workers to ensure that the day – to-day objective are
met.
Reporting directly to Shaneka are three head, the receptionist who will responsible assisting
customers and watching the store, accounting clerk who is responsible for ordering the material
Shaneka Anderson
(Manager)
Receptionist Accounting clerk Tailor

3. for the business and doing all the accounting work for the business and the tailor is responsible for
sewing the garment.
2
Justification of Location
This business to be established will be located at 10 Main Street Riversdale North East St,
Catherine. The business will be established in this area because:
1. The location of raw material:-
There will be no need to incur high transportation cost in getting the material to the
manufacturing plant because the material sell close by.
2. Quailability of social amenities:-
The area is well developed, have infrastructure such as light, water and good road. There
are two schools and a lot of businesses health center for emergence and a police station for
safety close by.
3.

4. 3
Selection of appropriate labor
The Luxury collection clothes store will only employ three (3) persons. A receptionist an
accounting clerk and a tailor, the business will be small therefore does not require the labor of a
lot of workers.
The business will employ two (1) skill workers (accounting clerk) and one (2) semi- skill worker
the receptionist and tailor. Worker must have (cxc) mathematics, English language along with two
two (2) other business subject or a certificate.
The business will need a skill worker to deal with the business money, by ensuing that customers
get back their right change, the semi-skill worker is needed to clean the store and assisting
customer, making design and sewing the garment.

5. 4
Source of Capital
The capital of the business will be as a result of the personal savings/inheritance of the owner
which amounted to $230,000. However a small business loan of $270,000 will be requested from
Jamaica National Building Society making the capital a total of $500,000. Collaterals for the loan
will be the equipments use in the business.
The loan that will be acquired will be re-paid at an interest rate of 5% making the total $13500
as re-payment. This will be separated and spread equally over two (2) years at $ 23625 per month.
Some assets to be purchased from the capital are two (2) sewing machines, a Cash Register and
a Computer. These will form the Fixed Assets as well as Capital of the business. Another Fixed
Asset is the building to hold the operations. No lease or rent will be paid for the premises as it was
inherited by the owner from her deceased grandparents.
Working capital will be obtained from the sales income of the business which will be invested
to ensure growth. In order to pay accumulating expenses, the business will require a loan of

6. $300,000 from Co-operate Credit Union at a fixed rate of 10% making the total value to be re-
paid $330,000. This will spread over three (3) years at $9,166.666 per month.
5
Roles of Entrepreneur
The role of the entrepreneur is important in the effective and efficient running of the business.
There are many different roles an entrepreneur must carry out and among these is the bearing of
risks. The entrepreneur must be willing to take risks in order to make profits.
The manager will be engage in planning the short term and long term goal of the business,
coordinating the workers to ensure that the day-to-day objective are met, organizing the resource
and the worker so that all the service provide will be offered and evaluating the services offered,
and making changes necessary to please customer, while at the same time remanding a profitable
concern.
One obvious function of the entrepreneur at the LUXURY COLLECSTION CLOTHES
STORE is planning. This is the process of looking ahead, making decisions and formulating
policies around the goals of the business. It involves the entrepreneur finding out the effective
methods to be used to achieve the main objective which is customer satisfaction and plan how
these methods can be used to bring about productivity.

7. 6
Types of production
The business will be involved in secondary Production by offering the product that is finished to
customers. The business will engaging in making uniform, fashionable clothes such as party
clothes and formal clothes and gown for graduation to meet the demands of the customers.
This type of production is necessary for the survival of the business the goods offered will be the
main source of income for the business.

8. 7
Levels of Production
The level of production that will be used is Domestic level of Production. This involves the
production of our services not only for the individual’s family or community but for the local
market. This business will be involved in this type of production because it was conceptualized in
order to provide our goods to citizens locally at the luxury collection clothes store the business
will be offering goods in and around Riversdale.

9. 8
Quality Control Measure
In order for the business to perform effectively and efficiently, the manager will have to take a
few quality control measures and ensure that the workers are performing their tasks well.
One quality control measure is the evaluation of work of the employees to see if the tasks are
done correctly. This will be done by the manager who will observe each worker and give a report
of what she thinks as well as how they can improve the quality of their work for future tasks to be
done properly.
Ensuring proper sanitation and safety of the working conditions is another quality control measure
that will be undertaken by the manager. This will be done by implementing instructions and
regulations for employees to follow which in most cases will get daily objectives of the business
done with ease.

10. 9
Use of Technology
The manager will need to purchase simple as well as complex technologies such as sewing
machine, internet, point of sales a cash register and a computer.
The gas stove will be use to cook the meal, while the warmer and the mico wave will be use to
warm/keep the food warm for the customers the refrigerator will be use to keep thing cool and
prevent vegetables from spoiling easily.
The cash register will be used to keep the money paid to the business by customers, produce
receipts and to calculate so that the correct change is give to the customers. This will help in
ensuring that customers are not unfairly treated in their monetary transactions with the business.
The business will also use a computer to create flyers to advertise and to create instructions to be
posted around the restaurant to show the customers the different type of meal that we offer for
breakfast lunch and desert as well as some healthy tips and information for the customers.

11. 10
Linkage
LUXURY COLLECTOIN will be involving in the backward linkage. The business will be
linked to a fabric industry for the raw material for the production of the goods (clothes). Material
such as jeans, cotton, wool, linen and silk are some of the material that will be purchase from the
fabric store and used as input.
The fabric industry will assist my business as their raw material will be request from my business,
the fabric will be used to make long lasting and fashionable customs build brand clothes.
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12. Potential for Growth
The business has tremendous potential impact for growth, as the services are demanded by the
schoolers, workers and the people in and around riversdale. The firm has the potential to expand
the clothes store and to change the structure of the business.
The business could grow to private limited company where capital can be obtained from
shareholders, thus reducing the cost of borrowing from financial institution. The manager will
also expand the business by building two other branches in linstead and bog walk these areas
were chosen due to the fact that the population and activities of each area allows the manager to
realize that there will be a suitable market to offer our goods

13. 12
Government Regulation
All business should adhere to certain government regulations. First, the manager will register
the business with the Registrar of Companies in order to show that it is a legal operating entity.
This will enhance the image of the entity in that customers can feel safe while conducting
business with LUXURY COLLECTION CLOTHES STORE as it will not be an illegal entity.
Secondly, the business will obtain a Tax Registration Number (TRN), in order to pay taxes on
time and in the correct proportion as it is stipulated by the government that all legal operating
entity in the country should pay taxes. In doing this, the business will have a good reputation
both in the eyes of the government and its customers.
The managers also need to obtain a license in order to offer the goods it has conceptualized.
Failure to abide these regulations will result in the business facing serious penalties and business
or law suits against customers due to damage of their clothes.

14. 13
Ethical Issues
There are a lot of issues a business can encounter when dealing with workers and customers.
These issues usually involve the ethical code for ‘behavior’.
The major ethical issue to be faced is showing respect to workers and customers. Lacking respect
will lead to loss of customers and grievances among workers. This will be a great disadvantage to
the business because the customers will be providing the business with profit and the workers will
be providing the services.
This will be ensued by holding relations seminars to teach workers to communicate or relate with
each other and customers in order to satisfy demands. This will therefore boost the reputation of
the business thus increasing the volume of sales.
Another ethical issue that the business will ensure is that customers will choose their design and
take their measurement. This will be ensured because if this is not done customers will complain
that there clothes are not fittig them properly or that’s not the way they did want it to make.

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16. Table of content
Title Page
Title i
Acknowledgement ii
Introduction iii
Main Topic
Description of Business 1
Organization chart 2
Justification of location 3
Selection of Appropriate labour 4
Sources of Fixed & Working Capital 5
Role of Entrepreneur 6
Types of Production 7
Level of Production 8
Quality Control Measures 9
Use of Technology 10
Linkages 11
Potential of Growth 12
Government Regulations 13
Ethical Issue 14
References 15

17. Bibliography 16
Introduction
This School Based Assessment titled “Establishing a Business” aims at conveying the different
aspects and steps in establishing a business in this economy. These aspects include describing the
business, justifying the location, selecting the appropriate labour, stating the sources of working
and fixed capital, the role of the entrepreneur, stating the type and level of production, showing
quality control measures, the uses of technology, linkages, the potential for growth, the
government regulations and ethical issues faced by the business.
The business to be established in my project will be called “Luxury Collection Clothes Store”.
The business will aim at providing custom build fashionable clothes at a low price to commuters
living around the organization.
The business will be owned and operated by its manager who hopes the business
will be well-known and supported in order to obtain a lot of profits to reinvest in its activities.
This project lays out the different aspects as listed above in relation to establishing “Luxury
Collection Clothes Store”, so sit back, relax and get ready to be astounded.

18. ii
Acknowledgement
First and foremost I would like to thank God for life strength, understanding and wisdom so this
SBA could be a success. I would also like to thank my mother and my aunts for assisting me with
the basic necessities that I needed to complete this SBA. I would also like to give my gratitude to
my teacher for guiding me through this SBA. Last but not least I would like to thank my good
friend for been there for me through the time and giving me the confidence to move every step of
the way.
Sincerely, I show full appreciation and gratitude to the persons listed above.

19. i
References

20. 15
Bibliography
 Robinson, K (2003). The Jamaica Observer, Principles of Business CXC Lecture Series (Kingston,
Jamaica, W.I.).
 Robinson, K and Hamil, S (2001). CXC Principles of Business (Carlong Publishers, Kingston,
Jamaica).
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