Chain and Gear
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Chain and Gear is the company that I decide to establish for the purpose of introducing retail sales of new bicycles. The product has many customers who require the service of bicycles as the place is not hilly. The students and staff in the region require bicycles to go to school.
The primary customers for Chain and Gear Company are the small business entrepreneurs which have rapid increase of income of approximately 35% after every six months. The secondary market is the students in the five universities, and tertiary customers are the working staffs in those universities. The company should specialize with only one bicycle as the main industry.
Barley Wiggins as the managing director for ten years in the Tour de France has been a successful manager. The manager has made the company to be the leading producing business company in the region (Jocelyn 2010). I now decide to establish and run my own business premise and set up my own website and expand the product range to four new products. This is simple because Tour de France has equipped me with experience to deal with large quantities of product as I have worked in the company at a managerial position for five years. I first began investigating about owning the bicycle shop four years down the line (Roncevich 2011). The business seemed to be challenging as there seems to be many other industries selling the same.
My approach towards one bicycle selling industry was practical as Tour de France promised to sell this to me. Negotiations started about buying the industry with effect from January 2013. Then the goal was set about transfer of ownership and bicycles but this time there will be no selling of 21bike helmet.
The Objectives of Chain and Gear
The main objectives of this business industry focus on the basis of benefits to both the customer and the industry owner.
1. Provide high quality products that Chain and Gear is known for.
2. Manage the ownership without being sold to different people to assure customers about good services.
3. Maintain the finance of the business without having a staggering finance and other times there is no money.
4. Aim at selling the original bicycles which will serve the customer for a longer time
5. Aim at working with improvement in results.
Reason for this Product
The reason for having this product in the market is that research indicates that every person has to move from one geographical point to another. As the economy of the country rises life becomes more complex making it hard for citizens who are not earning. Bicycles do not require fuel (Bennett 2010). It requires little amount of money to service and maintain the bicycle and this can be afforded by common man. Purchasing a bicycle is not expensive because everybody can buy a bicycle within a short period of time. It does not require much amount of money for maintenance and purchase.
There are other products to be sold together with bicycles such as bicycle accessories. These go together because most spare parts are sold in the same shop. Some of the new bought machines have warrant that makes the sellers to keep their spare parts. Most bicycles riders remember where they bought and this is where they go for spare parts.
Products Selected and Reasons
Bicycles are the selected product, because the region is flat where by they do best in these flat regions because it is easy to ride. Secondly, bicycles do not use fuel this is why they are preferred by the students.
This is a business opportunity that will provide jobs. The business has to start with three employees who will later be increased depending on the number of customers. Customers determine the number of employers working in a business because each customer must be served within the shortest time possible (Moore 2012). Later these employees should form their union which will make them more active. Employee’s salaries will be increasing depending on the number of customers and the level of education.
Source of Money to Business
The First Century Bank will be the source of money to the business whereby it will be the loan will be taken and the profit will be saved in the bank in order to acquire loan in future. This will be the bank to give loans, banking all the money that comes in or out of the business premise. First Century Bank shall be the salary paying bank. Money will be raised from willing donors who will be funding the industry.
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Every business must have assets which act as security to the business (Abrams 2011). This may help during the time for loan application which are valued and the equal amount released. Chain and Gear Company its security will be a lorry and the title deed.
The expected sales range from the minimum of ten bicycles to fifteen bicycles. Sales per bicycle range from a minimum of one hundred thousand to minimum of hundred and fifty thousand.
Over Heads to be Incurred
In starting a business there is capital that is incurred which is listed during business start as capital (McDavid 2009). Money has to be used for preparing a place where to run a business. Security also requires some money to boost it and this money has to be either from capital or the profit made. Business premises must also be cleaned and provision of other service like servicing the bicycle and security and this will be catered by the profit.
Money is a factor of starting and running a business. Capital is the basic factor of starting and running up a business. The company should operate in such a way that it does not incur much expense to avoid loss. The company should contact monthly analysis to determine the progress whether is operating in loss or profit.
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