Business Development Plan
Human Resources Management (HRM) includes a variety of activities within the business. This is a matter of deciding what staffing is required for the business to and whether to use independent contractors or hire employees to fill these needs;-* Gathering and training the best employees* Ensuring that these are high performers* Dealing with certain performance issues* Ensuring that your personnel and management practices conform to various regulations and are up to standards.* Making sure that your staff are well-mannered and polite towards the customers/consumers* Organising and building routines for the employees so they now when they need to be present and the hours that they work and when they have their lunch break etc.* Making sure that the staff get their wages/paid on time* Also ensuring that all staff are treated equally and with the same respectThe activities include managing the way you approach to your employee benefits, compensation, employee records and personnel policies.
This usually occurs within a small business for both for-profit and non-profit businesses and they have to carry out these activities and they have do carry out theses activities themselves as they can not afford to get part or full-time help. These policies are usually in the form of employee manuals, which all employees are given.The people that may be needed to be employed in order to make the business run more efficiently and successful if it was to expand would include;* Manager (Sole Trader) – Managing the business and the overall businesses making and demanding orders and meeting customer needs and expectations* Managing Sales Director – To control the selling of the product(s) and also to ensure that the customers get a good quality product(s)* Deliveryman – Deliver Good i.e. food products that are needed* Employee – Working on The Tills, Helping Customers & Serving* Employee – Shelving and Working in The Stock Room as well as CleaningEMPLOYEES(FOR VARIOUS STAGES WITHIN THE PRODUCTION PROCESS)MANAGING SALESDIRECTORMANAGER (SOLE TRADER)DELIVERYMAN SUPPLIERSHuman resources are the people who work for the business the employee and all of the managing members of staff.
Staff Quality – various ways are used in order to measure the quality and ability of the staff these include ensuring that the people who apply for jobs and want to work for you are;* Honest, kind and trustworthy* Capable of doing the work and able to hold responsibilities* Reliable along with being punctual* Flexible and co-operating* Motivated* Willing to learn new things and progressingWhen a business is first started up, it is hard to get hold of staff and therefore you have to start off with a limited staff; but as the business progresses more and more employees of various different skills and abilities are required. I as the manager/sole trader of the business will have to recruit high-quality staff so that they don’t have to be trained and everything does not have to be explained in detail.This should be cost effective as the employees will fill their roles within the business and effectively improving the quality of the human resources as people with good qualifications along with a good experience in the field will needed to be picked.The ways in which these can be managed is directly through the sole trader so that he/she is aware of what is going on inside the business.I should also look at the communication skills of anyone before employing them as this a necessity in business today as so many employees don’t have good communications skills and all staff are judged by the quality of there communication skills with other people.
I will also need to ensue that all the employees that I chose work good in a group as well as individuals as someone it is better to work as a work force in a team as it is much easier when trying to accomplish a goal and I therefore will organise my workforce into a team.Also I will use references form previous employees in order to in order to judge whether or not they are capable of doing the job and are suitable enough.Costs – Businesses often want to recruit staff as cheaply as possible (minimum wage) and this may not be affective in most cases as they may not do the job as efficiently as they may not get motivated by this lack salary towards them.I will pay a decent salary to my staff as they will need to be trained and know how to deal with customers properly and therefore they will be motivated to do well and sell the products as they know they will be getting a decent pay. Along with the wages I will have to pay National Insurance contribution to the Government. The training of my staff will also cost extra but it should be cost-effective as in effect the staff will work harder after being trained and also receiving a higher pay; this will mean that they will do more and get more business and this will result in a higher profit margin.
There is also a downside to this method as training is expensive and the employee may leave shortly after receiving their training; and this will result in a waste of expense and also this will reduce the businesses effectiveness as there will be a shortage of employees and if there is a high unemployment within the economy then it will be a lot harder for me to find another employee that will fit the role and it will be harder to attract and keep hold of staff.Start-Up Balance SheetI will now produce and start to create a start-up balance sheet for the first 3 months of my business.Loan to start up the establish the business = ï¿½35,000Personal Investment (Money Inherited) = ï¿½10,000Family Investment = ï¿½5,000’Cheap ; Cheerful Foods’ as stands at 1st of April, 2009AssetsCapital and liabilitiesEquipmentsï¿½5028.32Capital at startï¿½50,000Stock(s)ï¿½ 4,071.00Debtorsï¿½0.
00Loanï¿½35,000Cash at Bankï¿½ 35,000Cash in Handï¿½15,000Cheap & Cheerful Foods Balance Sheet as at 01.04.09Fixed assetsï¿½ï¿½Equipment5028.325028.32Current assetsStock4,071.
00Cash at Bank35,000Cash in Hand15,00054,071Current liabilitiesCreditors00.00Net current assets54,071Long term liabilitiesBank loan(35,000.00)Property lease7,200NET ASSETS-FINANCED BY:CapitalOpening CapitalAdd Net profitA balance sheet enables you to see what the business owes and owns at a certain period in time. It shows the fixed assets of a business such as property or a company car; the current assets such as stock and debtors. This also shows the amount of cash that you currently have at bank as well as in hand.
A balance sheet for the business also shows liabilities, which are how much money your business owes such as bank loans and to creditors.Unlike a profit and loss account the balance sheet shows how much you owe and own at certain period in time and not annually as after a financial year as opposed to the profit and loss account.PROFIT AND LOSS ACCOUNTStarts business with ï¿½50,000’Cheap ; Cheerful Foods’ as stands at 1st of April, 2009AssetsCapital and liabilitiesEquipmentsï¿½5028.32Capital at startï¿½50.00Stocksï¿½4,071.00Debtorsï¿½0.
00Loanï¿½35,o00.00Cash at Bankï¿½ 35,000Cash in Handï¿½15,000ï¿½10,000.00ï¿½40,000.00After selling an average of ï¿½300 worth of food products due to the average person spending between ï¿½5-10.00 at convenience store and having an average of 40-50 customers per dayCost for 3 months of stock= ï¿½ 4,071.00AssetsCapital and liabilitiesStocksï¿½ 4,071.
00Capital at startï¿½0.00Debtorsï¿½0.00Creditorï¿½ 2,357.24Cash at Bankï¿½ 30,929.00Loanï¿½35,000.
00Cash in Handï¿½15,000ï¿½55,028.32ï¿½37,357.24Now I am going to create a balance sheet for the next 3 months after selling the same amount as last 3 months.AssetsCapital and liabilitiesStocksï¿½ 4,071.00Capital at startï¿½0.00Debtorsï¿½0.
00Creditorï¿½ 4,714.48Cash at Bankï¿½ 26,858.00Loanï¿½35,000.00Cash in Handï¿½15,000ï¿½45929.00ï¿½39,714.
48Now I am going to create a balance sheet for the next 3 months after selling the same amount as last 3 months.AssetsCapital and liabilitiesStocksï¿½4,071.00Capital at startï¿½0.00Debtorsï¿½0.00Creditorï¿½ 7071.72Cash at Bankï¿½ 22,787.
00Loanï¿½35,000.00Cash in Handï¿½15,000ï¿½41858.00ï¿½42071.72A profit and loss account is a type of financial document which is produced by accountants in order to aid the owner(s) of the business in making financial decisions. This would show the owner(s) of the business how there is business in term of performance and effectively, if the business is make a profit and so worthwhile or making a loss and so needs to make so critical decisions and changes or else the business will hit a critical financial crisis.Documents such as this are often presented by the Inland Revenue and the bank when asking for loans.
This will give you and insight into the organisations performance, usually at the end of the financial year. It will present the different forms of income such as fees received.CASH FLOW FORECASTSAfter I had opened my business I used up all of the stock as I didn’t have much to start of with, this is why I know owe the suppliers ï¿½ 411.23. The positive point about the first 3 months however, was that everyone was trying out my products as people are spreading the word around and because of the advertisement.
This is why I regularly sell 40 doughnuts a day. I have made some regular customers that help me keep my business going.After the next 3 months again I have made a profit of ï¿½349.44. My business is becoming established and hopefully one of my main aims is to make more profit by selling either more products or by selling more products for a higher price. Another aim is to create a brand image for my company within the next few months.
Thankfully for the time being I am making enough profit to keep my suppliers and customers happy as well as making a living for my self.The only problem with my business is that I no longer get the time to buy stock off of my supplier in advance instead they withdraw the money and deliver the stock to me. This is why all of the stock that I receive gets used up and so it doesn’t come up on my balance sheet. In the further I tend to buy the stock 6 months in advance so that I won’t have to worry about running out of stock, this way it will be easier for me to sees more clearly on my balance sheet exactly how much profit I am making.So far I have not been in any negative cash flow as my business if fresh and so I get new customers trying out my products. The only negative issue is that as my business stands right know I am not capable of producing more than 40 doughnuts which are sold very quickly throughout the day.
I am hoping to employ at least one or two new employees so that I will be able to produce more products and make more profit.as cash is a liquid asset to the business as it enables you to buy the goods and services for your organisation. However, an organisation must monitor whether it has enough cash to buy and sell goods and that money will come back into the business as the owner will reinvest the money into the business in order to supply more goods and services. A cash flow forecast is incredibly useful to a business as it can be used in many ways; for example it can time expenditures such as overdraft which can be set up to pay for loans and bills. It is also a clear way to show if a business can achieve it targets and if it will be able to pay for all payments due or whether it will have to use and extra source of finance to pay for them, and this will give them a head start to do so.
This is also a good document to produce when producing a business plan as it gives a good impression when presenting business plans to the bank and building societies to invest in the business.