Barbers/hairdressers: The business about the barbers/ hairdressers comes under the sector of territory. The barbers and hairdressers offer the services to the people and society. The tertiary sector includes the delivery of services to other businesses and to final customers. The services involve the distribution, transport and sale of the products from the manufacturer to client. This service occurs for the retailing and wholesaling, financial services and pest control.
Growing unusual fruit and vegetables: This business falls under the primary sector because it grows the vegetable and fruits to from direct on the earth. This is primary work because it is growing directly from the earth and get in use (Ershadi et al, 2020). The primary sector involves the economic sector which extraction of the natural resources/raw materials. The raw goods can be finding in the nature. This involves the sunlight, raw minerals, lumber, water and crude oil. These all goods can be used through the natural resources and include the products which are related to the agriculture.
Consultancy/ accountancy/tax advice firm: This business comes in the tertiary sector and provides the unique offerings to the businesses. The services can be making use by the any individual or businesses.
Gardening services: The business idea can comes in the secondary sector because the business can manufacture from the raw materials (Shim 2019). The secondary sector includes the activities containing in various degrees of the procedure of material which is raw.
2. Describing businesses in each sector contribute to society.
Barbers/hairdressers: In the tertiary sector, this business helps in boosting the confidence of the people and improve their mental health. The barbers or hairdressers served a crucial role in the grooming ritual of the men and women. The shops are considered as community hubs since the people come for the haircut and also do the camaraderie and conversation.
Growing unusual fruit and vegetables: These play an important role in improving the health of society and provide the healthy as well as nutritious fruits & vegetables (Bouncken et al, 2021). The healthy and tasty vegetable and fruits reduce the risk of stroke and heart diseases.
Consultancy firm: This business offers tax & accounting services to the individuals to grow the business and create transparency in financial conditions. The financial practices come with the economic growth for the businesses.
Garden sheds from raw materials: The business contribute to the society unique offices with the gardens and build the unique space for the work. This creates a good working space for the workers and creates from the raw materials. These practices are the sustainable and eco-friendly for the environment and society as well.
Task B: Legal Frameworks For Businesses
1. Describing selected business idea
The chosen idea is growing unusual fruit & vegetables are found interesting because it is healthy option for the individuals. This can be grown by own and with the raw materials it is the main important factor about the business. The freshly grown vegetables and fruits provide the nutrition & good health to the society (Globocnik et al, 2020). This kind of business is important because it can provide the direct consumption of the healthy food. Meanwhile the process it main goals is to preserve the texture, flavour, nutrition and flavour with the prolonging the shelf life of the fruits and vegetables. This is the main reason of the choosing the business and it is interesting, beneficial for the individuals and society as well. This idea offers sustainable and eco-friendly practices and increases the healthy lifestyle. This business idea offers an opportunity to improve the quality of food and increase the health.
2. Demonstrating choice between starting business as a sole trader or as a limited company (Ltd.)
Sole trader:
This refers to business entity who solely operates all the business entity and functions. Sole traders are the one who takes business decisions without any interference of others and thereby contributes in business success.
Strengths:
Flexibility: This is the biggest advantage of having sole trader is flexibility. The sole trader can easily adapt the changes in the market. The sole traders can use the high degree of flexibilities.
Simplicity and control: The sole trader can completely control over the business. The sole trader can make the decisions of day to day operations and strategies of the long term (Sole trader, 2023). This is easy to register with the companies’ house and can start the trading immediately.
Tax efficiencies: The Tax system of the sole traders is not complicated as compared to the limited companies. The organization just needs to the complete the self-assessment return for the Tax. The organization doesn’t have to navigate the difficulties of the director’s loan, corporation tax and dividends.
Confidentiality: The sole traders have privacy in the terms of the business dealing with the limited organizations. In the sole trader there is not requirement of publishing the details and address to the office with the specific control over the organization.
Weaknesses:
Personal liability: As the owner of limited company, there is no available limitation on liability of the sole traders.
Marketing and credibility: The individuals prefer to deal with the companies which are limited since the sole traders don’t consider the high risk.
Raising capital: The sole traders can face the challenges related to the raising capital because it doesn’t submit the annual accounts. This can reduce the financial transparency of the company and hamper the ability to have a loan from bank.
Limited company (Ltd.):
The Limited Company is known as type of corporation which limits the liability personally of the shareholders in the corporation.
Strengths:
Minimising personal liability: The main benefit of the limited organization is it limited protection of liability (Limited company advantages and disadvantages, 2023). When the organization can run in trouble it secures the personal assets.
Professional status: The professional status can be improved by considering the trading in the limited company.
Weaknesses:
Number of members: The number of members in the limited company is limited, it can increase maximum 200.
Accounting requirement: In the limited company the requirement of accounting is more time consuming and complex.
For the organization the limited company is suitable for it to start the new business with the new idea. This creates limited liability in the starting point which creates the distribution and highly satisfying in the new start-up. The agriculture department needs the most investment in the sustainable practices. By the limited company it can improve the credibility in the market place. This structure allows the company to have best decisions and growth in the future.
Task C: Financing A New Business
1. Explaining the sources of finance which chosen for the selected business idea
Community grant: This is the appropriate strategy for the new business idea because this supports the projects and activities (Local Community Grants, 2023). This is the best strategy for the business because it never expected to be repaid. This is donation from the government on the initial level of the business it considers as appealing with the financial support. This sticks with the sustainable practices within the company.
Angle investors/venture capitalist: The strategy offers the own personal capital, this venture capitalist the organizations which typically invest in money of other people and organizations. This also attracts the innovation in the growing the vegetables and fruits. This kind of investment in this kind of business idea can be considered as a development.
2. Discussing the benefits and drawbacks of selected sources of finance
Advantages and disadvantages of the two finance raising strategies
Community grant:
The grant is way of government funds of the projects and ideas to provide on the public sector and stimulation in the economy. The grand support is the recovery initiatives, research in the innovative and some other programs.
Advantages:
Non- Repayable: The main benefits of the grants are it never expected to be repaid. This method is like a donation which is given by the government.
Boost credibility: This is the competitive secure to the government grant, this is the great achievement in the Community grant.
Disadvantages:
Contractually bound: Since it is the government funding this always strings attached, which means the grand can be awarded for the government believes of the align missions and needs.
Short term solution: This is the short term solution for the financial issues because government grants are related to the unsustainable due to the short option.
Angle investors/venture capitalist:
These investors are wealthy and private which are focused on the finance of small business venture.
Advantages:
Willing to take risk: This is the best for taking risk factors in the starting point in the business which is essential for the business.
Not a loan: This will offer the needed capital not as load, for this they will receive the ownership stake of the organization.
Disadvantages:
Set the bar higher: Due to the tolerance of the risk this set the higher expectations than the usual bar. Due to this issue company has to suffer the most and face the challenges.
String attached: Due to the non- payable policy the investor offer the capital and the organization has to offer the equity of the business portion as deal.
Choosing the community grant for the company because it is aligned with the goals & value of the business and come with the numerous benefits. Due to the business idea about the environmental friendly, it needs the support from the government for the same goals. Due to the non-repayable it can improve the relations in the community and business can run successfully.
Task D: Human Resource Policies
1. Describing two human resource policies
Pay: The HR policy also provides the provision for the leaves which is unpaid with the detailed rules about the salary cuts on late arrivals and half day offs. As accordance to Factories Act, 1948 can be used; the employees can get paid on the holidays as well on every week. The employees can get the pays for extra work and time as well. The policy includes the extra amount for the extra efforts on the holidays which are crucial for the well-being of the employees. The policy is important for the employees it creates a positive work environment which boost the work of the employees (10 Essential HR Policies and Procedures, 2023). By offering the transparent communication with the team members can boost the relationship of the employees with the organization. This policy supports the fairness, trust and outlines the duties of both sides’ employee and employer as well.
Health and safety: Each employee expected to the stick with the rules about the health and safety to caution the work activities. Employees have to inform immediately for the any condition which is unsafe to the supervisors. Any employees whoever violate the standards of the safety, may be a subject to the action which is disciplinary and termination as well. This is important for the company to know about the safety of the employees from the eventually and hazardous things which can impacted the workers. This policy plays a crucial role in the making sure about the numerous regulatory and legal requirement for the work safety.
References
Books and Journals
Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2021. Knowledge-and innovation-based business models for future growth: Digitalized business models and portfolio considerations. Review of Managerial Science, 15(1), pp.1-14.
Ershadi, M., Jefferies, M., Davis, P. and Mojtahedi, M., 2020. Towards successful establishment of a project portfolio management system: business process management approach. The Journal of Modern Project Management, 8(1).
Globocnik, D., Faullant, R. and Parastuty, Z., 2020. Bridging strategic planning and business model management–A formal control framework to manage business model portfolios and dynamics. European Management Journal, 38(2), pp.231-243.
Shim, J., 2019. Loan portfolio diversification, market structure and bank stability. Journal of Banking & Finance, 104, pp.103-115.
Online
10 Essential HR Policies and Procedures, 2023. Online. Available through<https://www.nuclino.com/articles/hr-policies-procedures>
Limited company advantages and disadvantages, 2023. Online. Available throughhttps://www.rapidformations.co.uk/blog/limited-company-advantages/
Local Community Grants, 2023. Online. Available throughhttps://www.rapidformations.co.uk/blog/limited-company-advantages/
Sole trader, 2023. Online. Available throughhttps://business.gov.au/planning/business-structures-and-types/business-structures/sole-trader#:~:text=A%20sole%20trader%20is%20the,%2Dto%2Dday%20business%20decisions.
