The business that in a small shop is selling clothes. The shop is called Sew Lovely and it located in my hometown , Butterworth .
1.1 Product Offering / Service Offering
The product chosen as clothes. The garment that sell in the shop is suitable for all gender. The quality, tailoring and design of all garment are fashionable and satisfied to all customers.
For the service offering, it will provide the online shopping to all customers, let all customers can get the products in the most easier and convenient way. Furthermore , it will provide the postal service to all customers. So they can receive their item in a short time. It also have the return policy to return to all customers. Example, the item that purchased can be return and trade within 15 days if they are damaged or others reasonable issue. Moreover, there will be extra promotions to thank to all customers for their support such like “Buy 1 Get 1 Free” , “Member’s Day” and so forth .
1.2 Target Customer
The targeted customers of the clothing business is the high school and college students that between 13 to 24 years old. The reason that chosen them as the targeted customer is because high school and college students are very regard to their costumes and affected through fashion nowadays.
1.3 Business Opportunities
Fashion was started from the period 1600 – 1650 in Western European. But nowadays fashion are getting more changes and many peoples around the world also pay more attention to it , especially the high school and college students, they are very regard and affected through the fashion. So, clothing is the one that they will pay more attention to. Furthermore, the garment that having a trendy design,wonderful tailoring and good quality is always a fashion must. Because its can let all customers be more confident when wearing a trendy costumes.
2.0 Form Of Ownership
The form of the ownership that chosen is sole proprietorship. A sole proprietorship is a business that owned and run by one person and there is no legal distinction between the owner and business entity. The sole proprietorship is personally entitled to all of the earnings and is accountable for any debts that the employer incurs.
To set up a sole proprietor business ,it need to register and decide on a location for the business. Next, it need to obtain the business licenses and permits from federal , state and local government. Moreover , it need to get a business checking account after applied the tax ID number. Finally , it need to create a advertising and marketing graph greater detail exactly what merchandise that what to sell, who is the targeted customer , defining the opposition and defining how to advertise the product.
2.1 Advantages Of Sole Proprietorship
One of the main pros of sole proprietorship is setting up enterprise as a sole proprietor requires much less paperwork. There is a lot of forms associated with setting up business in any given state. A sole proprietorship is also complete control because the owner of the sole proprietorship has complete control over all decisions .There is no need to negotiate with others when a selections or changes is required.
Moreover , the tax preparation of the sole proprietorship is very easy. The enterprise is not taxed separately, so it is handy to fulfil the tax reporting requirements for a sole proprietorship. The tax rates are additionally the lowest of the business structures.
2.2 Disadvantage Of Sole Proprietorship
Sole proprietorship have the cons of having limitless liability for any debts of the business. The sole proprietorship consequently has to put in vicinity all kinds of insurance to ensure that in case the commercial enterprise faces difficult times, their personal property will not in flip be taken away
Moreover, sole proprietorship will difficult to raise the capital by selling some stock or using other means to attract the irrelevant investors. Because the poverty of attracting outside capital forced the owner need to rely on the savings or loans from family and friends.