Architecture Assignment

Architecture Assignment

Interior Design Business

Answer No: 1

Short Term Goals

Long Term Goals

Personal

To satisfy my passion and love for interior design.

Managing and balancing time between family and business.

To earn my living from what I love doing most.

To spend quality time with family so as to establish a strong relationship and bond with my wife and children.

Financial

To capture 20% of the market in the first year of my interior design business.

Establishing insurance and retirements plans.

To develop a regular savings and investment program

To rapidly grow my business in next five years by capturing maximum market share.

Obtaining long term health coverage facilities and maintaining a retirement fund

To make a smooth living financially through my own efforts.

Answer No: 2

List the skills you have and how they will help your business

List the skills required to start an Interior Design business

Decision making: decision making is required in order to make effective and very useful decision for the business. Such as what sources of funds to use?

Organizational Skills: this helps in handling multiple tasks at a time. You can do so by prioritizing the task.

Leadership and management skills: Management and Leadership skills are important to start and manage a business. Time and human resource management are essential matters handled through this skill.

Planning skills: we need to plan our project strategically, financially, in terms of risk, logistic etc.

Business Specific Skills: Advertising, bookkeeping, Customer service, billing, general office.

Industry Specific Skills: Sales, photography, ordering skills.

General interior design business:

Knowing trends, graphic designing, sales, Eye for colour and Balance, public relations

Answer No: 3

Risks to Business Success

Risks to Personal Lifestyle

Time

Sales, Price and deliveries

Insufficient quality time with family.

Lifestyle

Managing personal life along with business

Family Pressure, social life, etc

Finance

Short of funds, Losses, etc

Stable and smooth earnings.

Answer No: 4 and 5

In order to determine and meet the legal requirements of the business we need to decide whether we will operate as a sole proprietor, partnership or as a corporation. The legal status of the business depends on the type and scale of business that you are planning to set. Below are the advantages and disadvantages associated with each type mentioned above:

Sole trader

If you want to start your own business quickly without making much investment than sole proprietor is the right option for you. You can use your own skill set to run the business and you have overall control of your business.

Advantages

Minimum initial investment

No audit requirements

All the profits generated from the business belongs to the owner

No filing requirements and registration fees.

You solely make all the decisions

Disadvantages

Unlimited liability

Arranging funds will become difficult as the business grow.

Limited growth capacity

Legal Requirements

Fulfilling legal requirements of HMRC

Registering for Value Added Tax if income exceeds £77,000

To register legally as self employed



Partnership

In this type of business two or more people are involved or start the business. They altogether are responsible for profits, losses, and risks.

Advantages

Business survives even if one of the partners decides to leave the business

Management responsibilities are shared among the partners

Arrangement of funds is easier than sole proprietorship

Disadvantages

Unlimited ...