Project U269 Legal Aspects
Ownership: Sole Trader
Reasons why the ownership is suitable for my business: it is owned by one person, as the sole trader the owner is personally liable for the business debts, and may have to pay them personally. This is called Unlimited Liability.
Advantages:
* Not many legal restrictions on forming a business * Allows for a more personal service to the customer * Easier to maintain control, make decisions and implement changes quickly * No need to share profits * Financial information is kept private.
Disadvantages
* Risk of unlimited liability * Business growth is limited by the amount of capital one person can raise * Long hours and difficult in finding time off from holidays of illness * No one to share the responsibilities of the business with, which can be quite stressful and lonely
Terms and Conditions
When a company starts out, it is important that it clearly sets out the business traders. New business owners need to be aware of their legal obligations under the trading terms and conditions, which should include information on pricing, payment term, credit facilities, and delivery options and so on. It is always recommended that the trading terms and conditions which conditions should be put in writing and agreed in writing by the customer. This will help protect the business from any disputes with customers. The ordering hours for my business is 24/7 as it’s a website, but the delivery times are Monday to Saturday 9AM-7PM this important to state in the Term and conditions to ensure the customer knows when to expect the delivery and how to prepare their schedule accordingly.
If a business relies on buying certain products and services, it is important to read the terms and conditions of suppliers.
Licences
Licences that I will need to get: some businesses such as pubs and clubs, nursing homes, cinemas, theatres, taxis and pet shops, require a licence before they can operate. Like my business where I would be selling hats online and the licences that would be required are the trading licences, vat for customers, textiles and clothing import licence.
Record Keeping
All businesses are required by law to keep financial and other records related to it. There is a number of benefits to be gaining from keeping records. * Accurate records will save you time and therefore money. * They ensure that bills are paid only once. * They enable a business to keep up to date with how much it is owed and how much it owes.

Certain financial records are required by law to be retained for at least six years. The following are documents that must be kept by all businesses.

The final record of all the financial ins and outs of the business this is done using a cash book or using a Microsoft excel Spreadsheet. These transactions are called cash-flow records which consist of: * Cheque book stubs and cancelled cheques * Bank Paying-in books and statements * Copies of own invoices and those of suppliers * Receipts and delivery notes * Receipts of all cash purchases * Remittance advice from customers * Copies of payment made or received using online banking
The person who is responsible for completing the cash book is the accountants because they are in charge of record keeping, as accurate records will save you time and therefore money. Making them essential to every business.
A Sales Ledger (or Spreadsheet) records all sales made by the business and money received for those sales. A purchase ledger (or Spreadsheet) records all a purchases made by the business.
The sales clerk, purchase clerk and the accountants are responsible for the sales and purchases ledger so that they can keep up to date records on the business as it ensures that the business bills are only paid once.
A record of all wages, salaries and national Insurance contributions made by the business to its staff must be kept. Furthermore, a petty cash book should be used to record all small transactions paid for by cash.
Good accounting software computers packages are available which can save time. These packages can add, delete and amend any calculations as well as recalculating and running totals., this To resolve problems some business will use clear and effective disciplinary procedures which should clarify what employee behaviour is acceptable to the company. For example, employee found using personal e-mail during the working day and against the wishes of the company. I would keep all financial records of the business. Financial help will be done by accountants hired by the business. The accountants will sort and prepare the account for the end of the year.
ACAS (Advisory, Conciliation and arbitration services) offers advice on grievance and disciplinary procedures. It publishes a code of practice a code of practice which sets out principles of what the business owner and employees should do to achieve a reasonable standard of behaviour in any grievance and disciplinary cases. The disciplinary procedures I would use in my business would be 3 strike system as the first warning would be a verbal warning, second would be written warning and the last would be a disciplinary meaning I would have to relieve them from my business.
All businesses need insurance cover. Some insurance is compulsory but the one my business will use is Public Liability insurance which will cover any claims for damages caused by any employee of the business.
I would have to change my house insurance to be able to cope with my business as I will be working from home on my computer.
The insurance I will need to change are my building and contents insurance.
The insurance that I will need for my business is business insurance to help prevent the effects of liquidation and bankruptcy or if any good are damaged building insurance for fire and theft
Contract of employment
Names of employee and employer: Mr. Joe Boggs and Miss. Jenna Porter
Job Title and job description: Retail assistant- Requires ability to handle customers, re-stack shelves and keep shop floor clean and tidy.
Place of work and address of employer: 123 Fake Street, Warwick & 321 Ironman Road
Pay and how it will be paid: £10 per hour and £18,000 pa and the payment will be made direct to your bank or building society (Bacs payment).
Hours of works: 37 hours per week start from 8:45am – 5:15pm including a 1 hour lunch break allowed an hour lunch break between 12-2pm
Holiday pay and Entitlement: 20 days paid holidays (a week notice is required).
Notice period: A one month written notice period will be given if their job will cease.
Date employment will cease: 30/04/2016
Disciplinary rules: Disciplinary actions will be taken if rules are broken at the work place. If the firm’s disciplinary rules are broken the 3 strike rule will be in full effect.
Paying employees
Wages for all retail assistant staff members £10 per hour as all employees pay must be equal due to equality law 2010.
I have made sure that all employees will receive no less than the national minimum wage as set by the national minimum wage act 1998

Hours of work
The law says that workers don’t usually have to work more than 48 hours a week on average, unless they choose to. This law is sometimes called the ‘working time directive’ or ‘working time regulations’ and I would ensure that all my employees must
Other laws that effect my business * Regulatory laws * Labour laws * Tax laws * Reporting laws * The E-Commerce regulations 2002

My business will comply with these laws by making sure that our firm is environmentally friendly and does not harm the environment.
An example of environmental issues an online business like mine may have to face could be pressure from environmental groups making sure that the business used environmentally friendly packaging and that it’s made from recyclable materials.
I will ask make sure that all employees will be treated equally and minimum wage regulations are broken.
That the business must report its financial status to the government.
Also making sure that the business must report back to its investors and the government.
The E-Commerce regulation 2002 means that for my business which sell and advertising on the internet that customers are allowed to copy and store the copies of the online contracts meaning our customers will be able to keep all the online contract details.

Estimated annual expenditure | £ | Food | 3,000 | Clothing | 8,300 | Savings | 70,000 | Motor expenses | 10,000 | Loan repayments | 5,229.84 | Telephone | 240 | Entertainment/Socialising | - | Total | 146,769.84 |

Estimated Other income | £ | Other earned income | 17,000 | Benefits received | - | Total | 17,000 |

In order to survive I would have to draw £14,000 per Annum.
Premises
There are several reasons why I have chosen to set up my business in clothes retailing
The reasons for this include: as I have past experience in the field of clothing retail, I have a fond interest in clothing, as I have the necessary selling skills could help bring in the customers, I feel there is a large opportunity for a urban clothing store in the current market, I have rather advanced IT skills in which I will be needing to maintain a clothing website I also have good management and time keeping skills and lastly commercial awareness.
My site domain is online meaning it’s cheaper to maintain and has a very large target audience
Since it only requires computers to function I can work from home meaning the cost of rent will be lower and all my product can be stored in a warehouse, where they can easily be dispatched to the customers.
My competitors who are other popular online clothing websites such as topman.co.uk and other example is newlook.co.uk etc.
They are not as close to my customers as they mass produce clothing where as my business makes unique one of a kind urban clothing for a more original customers.
My competitors are strong as they mass produce to the public, already are well known. There are also week as they do not cater to the demand that we fill, which is a unique and urban styles.
I have chosen to make the business online as it is the future of the market as more things use online, it’s cheaper to run and it’s easier for customers to access as all they need is a computer or a smartphone.
The cost of the domain for the website will fluctuate depending on the success of the business.
Expansion maybe possible if there is a higher demand from the customer.
For storage facilities there will be a large warehouse in which I store my inventory good such as clothing and packaging, because it’s a cheaper and easy way to store large amounts of garments and other stock.
My customer will be able to find me as the business will be well advertised as people can reach me on social networks such as twitter and LinkedIn. Fittings (£) | Equipment (£) | Supplies (£) | Storage (3000) | Cash till (-) | Raw materials (20000) | Shelving (2000) | Lights (1000) | Stationary (350) | Signs (600) | IT equipment (5000) | Uniforms (-) | Counter (-) | | | | | |

Possible suppliers | Contact details | Example of products and prices | Delivery details (availability/ charges) | Payment methods | Ordering details | Reason for considering this supplier | Globalsources.com | www.globalsources.com | Thermal jacket £10 | 3 days standard/ express delivery within 24 ours | PayPal, credit card, debit card | www.globalsources.com | As they are cheap and reliable. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

Suppliers name | Product name/code | Quantity | Cost per unit | Total cost | Globalsources.com | M-T-018 | 100 | £2.80 | £280.00 | http://www.hktdc.com | HS0002 | 100 | £5 | £500 |

Staff name | Job title/ position | Hours per week | Hourly pay | Total weekly pay | Mr Peter Jones | Sales assistant | 37 | £10 | £370 |

My pricing strategy is that because the clothing’s are one of a kind so that customer will pay more for a more unique look and a higher quality of goods.
Like looking at Versace which is a high end clothing brand in which only have limited stock so the prices are already rather high.
The source of my income will a bank loan over the course of 12 months as the loan is for £5,000 I will have to pay 12 payments of £435.82 as there is interest on top
I have chosen a bank loan as if I produce a good business plan the bank accept my loan proposal and It will include easy monthly payments.
Whereas £5,000 loan from my parents would be rather expensive and if you can’t pay the loan back to your parents it can cause conflict.