Imagine a business you would like to own. Do some research in your local community to find out what kind of equipment you will need, how much rent and utilities will cost (check local listings), how m
P
roject 2
Evaluation 32
Economics (BUSH 035 061)
Be sure to include ALL pages of this project (including the directions and the assignment) when you send the project to your teacher for grading. Don’t forget to put your name and I.D. number at the top of this page!
This project is worth 200 points. It will count for twelve percent of your course grade.
Project Instructions
Imagine a business you would like to own. Do some research in your local community to find out what kind of equipment you will need, how much rent and utilities will cost (check local listings), how many workers you will need (compare to similar businesses in your area), how much you will need to pay the workers (look up pay for similar workers in your area), and how you will meet start-up costs. Will you be able to get a loan? If so, how much will your loan payments be? Will you form a partnership? Once you have these figures established, use what you know about businesses to complete the project.
You may type your answers in the space provided after each question. Type your bibliography after the directions for Part C.
A. Company information:
1. Company name (1 point possible)
The company’s name would be “Steph’s Furniture”
2. Product or products being sold (2 points possible)
Steph’s Furniture will be selling furniture, such as couches, beds, tables, chairs, wardrobes, and other kinds of furniture. Other products that the company will be selling will be house decors, electronics and anything thing else that a person would need in their house.
3. Location of business (2 points possible)
The location of my business will be in Lubumbashi, Democratic Republic of Congo.
4. How will you conduct business (online, store, service, office setting, etc.)? (10 points possible)
I will conduct my business both on-line and in-store. I would make sure that my store was located in a place where everyone can easily access it, like a mall. Because many people like to search up the company online before shopping there, they will find the online store easier and simpler for them. The store will contain and sell products like tables, chairs, desks, sofas and all sorts of other furniture. The company will be giving memberships to the regular shoppers and will also be providing a delivering service for both online and instore shoppers.
SOUNDS LIKE A GREAT BUSINESS IDEA.
B. Develop a Business Plan Guide for your company:
1. What factors of production are required to start the business?
a. Natural resources (5 points possible)
The natural resources that would be useful to start a business are land, heating oil, and fresh water.
b. Labor resources (5 points possible)
Approximately 15 employees will be needed for the company to operate smoothly. I would employ 4 employees to help customers and set up the new products that we would be selling. I would also employ 3 employees to work as cashiers, since most customers don’t like waiting in lines to purchase their goods. The online part of the company, I would employ 4 employees to create and update the website and to manage the online purchases of products. As for both the online and in-store delivery of furniture, I would hire 4 employees to deliver the products to their destination.
c. Capital resources (5 points possible)
The human capital for the company would include marketing skills, management skills, and lastly communication skills. The physical capital for the company would be a measuring set, including a combination ruler and level and measuring tape, and a carpentry set.
2. How will you cover start-up costs for your business? (10 points possible)
The start-up costs, including electricity and technology, will be about $30,000. I will cover the start-up costs for my business by applying for a loan from the bank and using my personal savings. When I open my business and start making profit, I would then pay back my debt to the bank, which would be amount 20,000. I would pay the bank amount $1,000 a month. WILL YOU NEED COLLATERAL ON YOUR LOAN? WHAT IS THE INTEREST RATE? HOW MUCH WOULD MONTHLY PAYMENTS BE? -3
3. What type of business will it be, and why did you decide on this type of business? (10 points possible)
The business will be a limited partnership. I decided on this type of business because it allows me to be a general partner, while the other investors will be limited partners. This form of company would make it easier to find investors. This would be advantageous, as the limited partners will only be liable for the amount on investments they put into the company. They will appreciate it because they will only lose the money that they put into the business and will know that this is a safe investment. Another advantage of a limited partnership is that I will have the full control over the company.
4. What government regulations will you have to follow? (10 points possible)
The government regulations that I will have to follow are those in the OHADA treaty. The purpose of the OHADA treaty is to systematize market and business law by creating and implementing laws tailored to the economies of each state. Ministries and departments will start regulating and checking the store. Most of the ministries and departments will probably come just once, but other ones will come multiple times. They will check the standard of the store, make sure that I am following that I am following all of the regulations, and collecting taxes. The steps that I will have to follow include filling out forms for creating the business, verifying the corporations name, depositing my capital in a commercial bank and registering the store to the different ministries that set up the regulations for businesses. ARE THERE ANY REGULATIONS REGARDING WAGES? LABOR? ADVERTISING/MARKETING? -3
5. What barriers will you face? (10 points possible)
The major barrier that I will face will be the competition from the other stores around me and the products that they are selling.
6. How will you produce and distribute? (10 points possible)
For the production of my products I did some research and found out that Australia has the best furniture producing industries. By getting my products from Australia I will have a huge advantage from other stores in Lubumbashi in terms of quantity. I will get a contract with them that benefits us both. I will be designing the furniture and will send the designs to the Australian industry for them to produce my designs. As for distributing I plan to contact a delivery company and making them my partners, so that I can deliver the products to the customer’s locations.
7. Why is there a demand for your good or service? (10 points possible)
There is a demand for my goods because most of the stores in Lubumbashi sell furniture and decors that are not made of quality material and supplies. By selling furniture and decors that is made of good quality material I will make a name for my company and people would prefer to buy from my store because my products would last longer.
8. How will you meet this demand? (10 points possible)
I will meet this demand by giving customers the option of designing their own furniture and ordering them directly from the company in Australia. This would bring in lots of customers because they would be able to customize and create unique furniture that they would like and are unique to them. They would be able to choose the material that the furniture will be made of and the color. They would also be able choose the pattern and designs of the furniture and also be able to engrave designs like names and flowers on it.
9. Who will your main competitors be (list actual businesses)? (10 points possible)
My main competitors in Lubumbashi will be Jambo Market, Liberty Ma Maison, and UAC SARL.
10. How will you compete with your competitors? (10 points possible)
I will complete will my competitors by using social media as my marketing base. Since I am going to sign a contract with an Australian industry to produce my products, I will be able to lower my prices while not making a loss on the company. As I have mentioned above, I will also be giving out coupons, gift cards and membership cards to the customers.
11. How will you market your good or service? (10 points possible)
I will market my goods by posting ads (videos, pictures and links) on social media platforms like Instagram, Facebook, TikTok. Twitter, WhatsApp and Pinterest. I will also sponsor some YouTube videos that are showcasing my products. Another way that I will Market my goods is by handing out flyers and coupons to people and will also air commercials on TV and the radio.
GOOD IDEAS
12. What type of labor force will you need? (10 points possible)
When I open my business, I will be hiring 15 employees. Four of these employees would be helping out the customers throughout the store and setting up the new furniture and products on display. Three of these employees will be in-charge of the registers and four of the employees will work on the website that contains the online store and the marketing details of the company. The last four employees will be delivery the products to the customers. My employees will work full time from Monday to Saturday and will have Sunday off.
13. Does your community support this type of labor force? Does it have the supply? (10 points possible)
My store will have an unlimited amount of labor force because my employees will be required to only have communication and marketing skills, a driver’s license and an artistic eye.
14. What types of wages and benefits will you need to provide your workers with? (10 points possible)
The wages that I will provide my employees for working & hours a day for 6 days per week will $15 per hour, my manager will be earing $23 per hour. The benefits that my employees will be having are free lunches, health insurance, a retirement plan and paid time off. GOOD BENEFITS OFFERED
15. Will unions be part of your organization or have an effect on your business? (10 points possible)
Unions will not be part of my organization because they are not taken seriously in Lubumbashi and will only slow the organization down. It won’t make the organization productive and will contribute negative factors to it.
C. Cite all sources (newspapers, websites, brochures, etc.) that you use in a bibliography. The Publication Manual of the American Psychological Association is commonly used for business papers. You can find this manual at your local library or do an Internet search for APA guidelines. (20 points possible)
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&ved=2ahUKEwjSr-6aq7XnAhXDoVwKHZRxCOIQFjAEegQIDRAI&url=https%3A%2F%2Fwww.ohada.org%2Findex.php%2Fen%2Fcomponent%2Fcontent%2Farticle%3Fid%3D7%3Aohada-treaty-reviewed&usg=AOvVaw1FCk8wzB5DvrraPZaeAAu2
https://www.hg.org/article.asp?id=22009
O’Sullivan, Arthur; Sheffrin, M. Steven; & Wiggins, Grant. (2010). Prentice Hall: Economics.
United States of America: Pearson, Inc.
GOOD RESEARCH. BE SURE SOURCES ARE IN PROPER FORMAT. -5
D. Your paper should be well organized, without any errors in spelling, capitalization, or punctuation. If you are unsure about spelling or punctuation, consult a dictionary or a grammar guide. (10 points possible)
Project Submission
When you have completed Project 2, save this project assignment document with the name:
BUSH035061_YourNameHere_Project2.doc
Go to your course management system to upload your project file.
Project 2 6 BUSH 035
