Contents PAGEDescription of the Business 2

Justification of Location 3

Selection of Appropriation Labour 4

Sources of fixed and working Capital 5

Role of the Entrepreneur 6

Type of Production 8

Levels of Production 9

Quality control measures 10

Use of Technology 11

Linkages 12

Potential for Growth 13

Government Regulations 14

Ethical Issues 15

Bibliography 16

Appendix 17

1

Description of the Business

The name of my business will be Stasha’s Punch Shop. It will be a sole trader business

owned by Stasha King Massiah. We will strive for excellent service to the customer

directly. This business will be involved in the sales of local foods such as a variety of

punches, meals throughout the day consisting of bakes, breads, and pies with different

fillings. The business will cater to the general public with affordable prices, and good

food.

The opening hours of my business will be from 9:30 am to 8:30 pm from Monday to

Saturday. Our mission statement will be to provide our customers with the best quality

goods and services at the right price to achieve consumer satisfaction.

2

Justification of location

The business will be located in Arima #6 Queen Street. The reasons why I chose this area

are:

Little direct competition

There is no similar type of business close in proximity, which would not affect my

profits.

High Traffic flow

Queens Street is a very busy street with a very height flow of consumer traffic.

Exact target market

The customer flow on Queen Street consists of a lot of minimum and low income earners

which I plan to carter to with my price ranges.

3

Selection of appropriate labour

The type of labor that my business uses is mixed labor. Mixed labour consists of the use

of unskilled labor which is persons who have to be trained in order to do their tasks such

as cashers, replenishers and wrappers. There will also be skilled labor in use in my

business; these are persons who have been fully trained they can help with the running of

the business.

1. There will be four cashiers who help cash the customers’ orders. They will also

help the customers determine the best meal plan to suit their preferences and

budget.

2. Four persons for the replenishing of stock on a weekly basis to always guarantee

fresh ingredients for best quality food.

3. Eight wrappers to package the food according to the customers’ preference stay in

or take away. Also, four persons continuously stationed at a counter which will be

equipped with blenders, a sink, and ingredients for the punches.

4. I will need at least one accountant who would manage and prepare the financial

statements for the business. The accountant will advise the buyers on what type of

products are more profitable to ensure that the business shows profit.

5. There would be two supervisors to ensure that the staffs are performing efficiently.

He/she would also be dealing with customers if there are any complaints he can

4

relay the necessary information that would help improve the business ensuring

customer satisfaction.

6. There would also be two security officers to provide a secure eating environment

and hopefully prevent robbery, improperly attired persons and fights.

In total, there will be 22 employees.

5

Sources of fixed and working capital

Fixed capital are usually assets that are considered fixed in that they are not used up in

the actual production of goods or services, but have a reusable value such as refrigerators

land, and computers.

Sources of fixed capital are:

1. Refrigerators are used to keep perishable items at there respective temperature

without spoilage, such as dairy products and meats.

2. Land ownership saves a business from high rental costs of properties.

3. Computers will be used by accountants and cashiers to calculate the income and

expenditure.

Working capital is changed in the course of production, for example stock and grocery

bags.

1. Stocks will be constantly flowing in and out of the business as sales will result in

the purchasing of more goods for resale.

2. Brown bags and grease-proof paper will also be used frequently because it will be

used for the packaging of food.

6

Role of the Entrepreneur

The role of the entrepreneur is to raise finances in order to begin production and take

risks in entering the market. They make decisions on what, how, when, for whom and

where to produce. The entrepreneur is also responsible for the managing of the business.

Three functions of the entrepreneur are:

Inventing and commercializing new goods and services

To manage the sale of products

To manage the business

7

Type of Production

The type of production used in my business is tertiary production. Tertiary production is the sector that provides the services that are important to the first two stages such as marketing. This deals with taking the finished products and selling it to the consumer.

8

Levels of Production

The type of production used in my business will be Domestic production.

In domestic production everything is produced locally. This level does not involve any imports from foreign countries. Both human and natural resources are employed and the whole economy is dependent upon what it can produce from this resource.

9

Quality control measures

Two quality control measures that a business should adhere to are:

Making sure goods aren’t expired – This helps to prevent the company from getting a bad name. If goods are expired, the quality of food will be drastically reduced which will cause customers to no longer purchase from this business, causing a loss in revenue.

Clean environment – The business should always remain clean to encourage customers to visit the store and purchase food. The more customers that are attracted to the store will increase the revenue being made.

10

Use of technology

Two types of technology which will be used in my business are:

1. Security Cameras – will have a huge role to play in the security of the

customers and the business, these cameras will monitor the day to day

activities of customers to make sure they are safe and they do not shop lift.

2. Computers – have a huge role in providing information for financial

statements as well as reporting for all aspects of the business, such as planning,

monitoring and implementation of strategies, marketing etc. Information can be

accessed quickly from the internet to help improve the business.

11

Linkages

Stasha’s Punch Shop would be using a backward linkage as we plan to use

our own fruits and vegetables that we have grown in our garden. Our garden

will be located on # 4 Gasparillo Rd, Santa Cruz. The produce will be

transported by refrigerated trucks to my business, thus preventing spoilage

from occurring. This would benefit us because less money will be spent on

purchasing goods, thus making us earn more profits.

12

Potential for growth (Internal)

Expanding our range of products:

By expanding our range of products we will give our customers a wider variety of

brands and items to choose from. This should cause a higher influx of customers

thus improving sales because we will be meeting more of the customer’s needs.

Hiring more persons

By hiring more persons we will improve the efficiency of the business. By having

more cashiers, packers etc.

Potential for Growth

Internally – is the expanding of the store for more storage space for products that are for sale and it will also prevent the inventory from being overstocked. While expanding we can add a lot more variety of goods because of the additional space. The more goods available will cause us to earn more profits.

Externally- the potential of growth is created by opening new branches for customer satisfaction. This will prevent customers who live far from coming to only one location; instead they would have lots of options to choose from.

13

Government Regulations

These are the two government regulations that impact my business:

Taxes: Reduce the amount of money available for investment in the business. The tax is

paid out of the profits made; therefore the more profits made the more taxes are owed.

Minimum Wage – As of February 1st 2012 the minimum wage was increased to $12.50

per hour. This results in higher payrolls costs for the company and less profits.

14

Ethical Issues

One ethical issue relating to production is, we do not keep our employees under harsh

conditions. They have very flexible working hours and we encourage and try to motivate

the employees so they can work better. The better our employees work we reward them

with bonuses or an employee of the month award to boost their enthusiasm. This will

ensure that our customer service is always top off the line.

15

Bibliography

Books:

Essential Principles of Business for CSEC - by Dr. Alan Whitcomb

16

Appendix

Profile 2

LINKAGES

Forward Linkage - Potato → Harsh browns

Backward Linkages - Vegetable Garden ← Potato

Primary Production

↓

Agriculture → → → Tertiary Production

↓ ↓

Fruits & Vegetables Stasha’s Food Stores

17