SAIMA ARSHAD
Assignment Front Sheet
Qualification
Pearson BTEC Level 3, Extended Diploma in
Business
Reg. No. Learner’s Name
18000487- Saima Arshad
Hand-out Date Hand-in Date
24 February, 2019 4 April, 2019
Assignment
Summative Report
Type
Assignment Title Becoming a business entrepreneur
Assessment and Grading Criteria
To achieve a pass, grade the
evidence must show that
the learner is able to:
P1 Present the initial business
idea using relevant criteria.
P2 Explain how to identify the
target market
P3 Describe the skills needed
to run the business successfully
and what areas require further
personal development. (TW,
EP)
P4 Describe the legal and
financial aspects that will affect
the start-up of the business.
P5 Produce a proposal
containing the essential
information for the start up of a
business. (TW, EP)
IE – independent enquirers
18000487 UKCBC
Unit Number and Title
Unit 36: Starting a Small Business
Assessor’s Name
Dr. Tajwar Hussaini
Submitted On
6 May, 2019
To achieve a distinction,
To achieve a merit, grade
grade the evidence must
the evidence must show
show that, in addition to
that, in addition to the pass
the pass and merit
criteria, the learner is able
criteria, the learner is
to:
able to:
D1 Present a
M1 Explain methods used to
comprehensive business
identify the target market for
proposal that addresses all
the proposed business
relevant aspects of business
startup.
M2 Analyse the proposal
development needed to run the
business successfully.
M3 Assess the implications of
the legal and financial aspects
that will affect the startup of
the business.
RL – reflective learners SM – self-managers
 CT – creative thinkers TW – team workers EP – effective participators
Key

Learner’s Declaration

I certify the work submitted for this assignment is my own and research sources are fully
acknowledged.

Learner’s Signature: Saima Arshad Date: 6.5.2019

Acknowledged by

Assessor Signature: tajwar@ukcbc.ac.ae Date:

1
 STARTING A SMALL
BUSINESS
Unit 36

Table of Contents
STARTING A SMALL BUSINESS............................................................................................6
P1-................................................................................................................................................6
Introduction:.................................................................................................................................6
Name of the business:..................................................................................................................6
BY SAIMA ARSHAD
Type of business:..........................................................................................................................6
Aims and Objectives of the business:............................................................................................7

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 Business Planning:........................................................................................................................7
Product:........................................................................................................................................7
Price:.............................................................................................................................................7
Promotion:....................................................................................................................................7
Place:............................................................................................................................................7
Attractiveness of business:...........................................................................................................8
Unique Selling Point:.....................................................................................................................8
Demand for new business:............................................................................................................8
Competitive Edge:.........................................................................................................................8
Balancing personal/business needs:.............................................................................................9
Checking Profitability:...................................................................................................................9
Business Trends:...........................................................................................................................9
External Influences:......................................................................................................................9
Work for Independence:.............................................................................................................10
P2-..............................................................................................................................................11
Target Market:............................................................................................................................11
Primary Research:.......................................................................................................................11
Market Trends:...........................................................................................................................11
Secondary Research:...................................................................................................................11
Customers actions and choices:..................................................................................................12
Competition:...............................................................................................................................12
Sales Forecasts:...........................................................................................................................12
Political:......................................................................................................................................13
Economic:...................................................................................................................................13
Social:.........................................................................................................................................13
Technological:.............................................................................................................................13
Legal:..........................................................................................................................................13
Environmental:...........................................................................................................................14
SWOT ANALYSIS OF MY BUSINESS “FREEZE”...............................................................................14
M1-.............................................................................................................................................15
PESTLE AND SWOT ANALYSIS:.....................................................................................................16
P3-..............................................................................................................................................18
SKILLS THAT ARE REQUIRED TO RUN MY BUSINESS....................................................................18
General management skills:........................................................................................................18
Sales and Marketing skills:..........................................................................................................18
Analytical Skills:..........................................................................................................................18

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 Negotiation Skills:.......................................................................................................................19
MY PERSONAL SWOT ANALYSIS..................................................................................................19
IT skills:.......................................................................................................................................20
Creativeness:..............................................................................................................................20
Presentational Skills:...................................................................................................................20
M2:.............................................................................................................................................21
1- IT Skills..............................................................................................................................21
2- Creativeness.....................................................................................................................21
3- Presentational Skills.........................................................................................................22
4- Balancing my work and personal life:...............................................................................22
5- Interpersonal skills:..........................................................................................................22
6- Organizational skills:.........................................................................................................22
7- Management skills:...........................................................................................................22
8- Punctuality Skills:..............................................................................................................23
P4-..............................................................................................................................................24
LEGAL ASPECTS...........................................................................................................................24
Terms and Conditions:................................................................................................................24
Consumer Protection Law:..........................................................................................................24
Data Protection Act 1998:...........................................................................................................24
Fair Trading Act 1986:.................................................................................................................24
License:.......................................................................................................................................24
Insurance:...................................................................................................................................25
Suppliers:....................................................................................................................................25
FINANCIAL ASPECTS....................................................................................................................25
Personal Survival Budget:...........................................................................................................25
TOTAL CASH FLOW OF MY BUSINESS...........................................................................................26
Total Cashflow:...........................................................................................................................26
M3-.............................................................................................................................................27
Data Protection Act 1998:...........................................................................................................27
Fair Trading Act 1986:.................................................................................................................27
Sales of Goods Act 1930:.............................................................................................................27
UAE Labor Law:...........................................................................................................................27
Health and Safety:.......................................................................................................................28
License:.......................................................................................................................................28
Recording System for VAT and TAX:............................................................................................28
National Minimum Wage system:...............................................................................................28

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 Budget:.......................................................................................................................................29
Break-Even:.................................................................................................................................30
P5-..............................................................................................................................................31
Name of my Business:.................................................................................................................31
Address:......................................................................................................................................31
Mission:......................................................................................................................................31
Vision:.........................................................................................................................................31
Purpose:......................................................................................................................................31
Appearance:................................................................................................................................31
Target Market:............................................................................................................................31
Competitors:...............................................................................................................................31
Human Resources:......................................................................................................................32
Vendors/Suppliers:.....................................................................................................................32
Market Plan:...............................................................................................................................32
Operations:.................................................................................................................................32
Growth and development:..........................................................................................................32
Financial Projects:.......................................................................................................................32
Contingency:...............................................................................................................................32
D1-..............................................................................................................................................33
BUSINESS PROPOSAL...................................................................................................................33
Mission:......................................................................................................................................33
Vision:.........................................................................................................................................33
Bibliography:...............................................................................................................................35

STARTING A SMALL BUSINESS

P1-
In the below task, I am going to explain the idea, type of my new business, the aims
and objectives along with the target market that I will choose to conduct further
research after starting my new business.

Introduction:
The type of industry that I have chosen for my business is juice industry, I have chosen
this type of industry because the
industries of fresh juices and beverages
never goes out of trend. Drinking is
considered as one of the basic needs and
necessities of every individual that they
require in their daily life. There are many
other industries of juices and energy
drinks, but people are always keen to try

5
another taste and check out for new places to buy their drinks and satisfy their thirst.
The main products that will be offered in my juice store are fresh fruit juices, energy
drinks and other fruit beverages.

Name of the business:

The name of my juice store will be “Freeze”. It will be situated in U.A.E. Dubai near the
universities or schools. I decided on this business idea because I think according to the
weather conditions of Dubai that is mostly hot. Therefore, there is a large demand for
fresh fruit juices and energy drinks as well. Nowadays, fresh fruit juices have become
extremely popular with people of all age groups. Particularly thousands of students
which are studying in the colleges and universities within Dubai, demands very much for
fresh juices in their normal life or daily routine.

Type of business:
The type of business that I have chosen to start is a sole trader, I have chosen this type
of business because it is the simplest and easiest form of business as this the first
business I have come up with.
Starting as a sole trader will
help me in the best way to stay
away from those particular
things that can have a bad
effect on the growth of my
business. In a sole trader
business, a business can be run
on by the owner itself and there
are no specific legal
requirements, the business can
be started in a simple setup to
operate and start the trading of
the products. As I will be the
sole owner of my business, I
will be completely responsible
to control my assets and make
business decisions without the
interference of any other party.
Later on, I will hire employees to work under my guidance in order to achieve my aims
and objectives.

Being a sole trader of my business, I have to face some kind of legal constraints that is
unlimited liability that means all of my assets of business will be at risk in case if the
things go wrong. I have to pay off all the debts related to my business. Another legal
constraint is the tax that is liable on all the income from the business and have to be pay
off personally by the sole trader. Running the business alone is pretty hard, but at the
same time it will make easier for me to setup my business and settle whatever
requirements that I want to make, and I will be able to register my name as the legal
sole trader of my business.

Aims and Objectives of the business:

To monitor and measure the progress of “Freeze”, I have set an aim of my business that
will explain clearly what I want to achieve through my business and why it is being set-
up. The aim of my business is to keep up with the new demands and trends that
individuals requires regarding drinking and in order to stay ahead successfully of other
competitive business, to be able to provide best customer services in order to make
profit is an essential objective but at the same time my aim is to spread a good name in
the juice industry by making customers satisfied with my business products. By doing
so, it will help in gaining fame and popularity, the name of my industry will be spread all

6
over the country because as time will pass by the business will expand and if it will
provide the best facilities to the customers by making reasonable prices of the products,
then there is no risk that the business will not be successful. Because the word of mouth
from customers can make the business popular in various ways.

Business Planning:
Planning the business differently plays a very important role in differentiating the
product from its competitors through some unique quality and it can be easily measured
by discussing the 4p’s which are product, price, promotion and place.
Product:
The product that I have chosen for the
business of Freeze are fresh juices,
beverages and energy drinks. The
products will be made of fresh fruits,
without adding artificial sugar in it and
according the choice of customers that
is whatever flavors the customers
would be interested in can be made
easily by the employees of Freeze
without any additional charges along
with the fix payment of juices or drinks.
Price:
The price of the products will be affordable by the people of upper and medium income
both. The prices of juice will be around AED 20 or 25 and I hope to sell around 100
drinks per day. As it is the start of a new business, prices cannot be much expensive
because if the prices will be expensive it is quite possible that the customers will not
select Freeze for the purchasing of their wants, and they will visit some other
competitive juice those who are having cheaper pricing.
Promotion:
The promotion of the products of Freeze will be made through the personal social
website of Freeze and also through other sources of social media that is Facebook,
Instagram, Twitter etc. Later on, with the growth of the business the advertisements of
Freeze products will be published in newspapers and banners will also be placed in some
of the particular places near the industry of Freeze.
Place:
It is very important to decide the right place to sell any kind of products. For the
business of Freeze, the store will be located in Dubai near universities and colleges so
that it will be easily reachable by the students studying there and also for other working
people nearby. As it is a sole trader business, the owner will be fully responsible for legal
registration of Freeze market store.

Attractiveness of business:
Through the unique selling point of Freeze, customers will be encouraged in a number of
different ways to visit Freeze and buy their required products that is juices or energy
drinks. Firstly, best standard of products will be provided to the customer that will
ultimately encourage the customers to come back again and again for purchasing the
products of Freeze. The store will be organized in such a way that the customers will feel
a friendly atmosphere and a place to spend time with family or friends by enjoying the
delicious drinks in a healthy environment. In addition, loyalty cards will be offered by
Freeze to the customers because it is the best way for customer retention. And this will
help in developing the wants of customers to return to Freeze in the future.

7
Unique Selling Point:
Almost all the businesses in the world has their own unique selling point because this is
the only factor that discriminates one’s business from another business. My unique
selling point is that I will provide juices without artificial sugar added in it by replacing
the requirement of artificial sugar with
original sugar made of other fresh
fruits. Another unique selling point is
that customers will be provided the
facility to choose their own flavors to
make their required drink or beverage
as their will be no fix recipes of
making only particular flavored juices.
Even if there are many other juices
industries that provides fresh juices,
still my business will be different from
those because most of the juice
stores use sugar as their basic
requirement for making fresh or
artificial juices.

Demand for new business:

In order to have a knowledge about the demand of customers many different options
can be adapted. For example, I will be doing primary and secondary research and the
basis of segmentation to ensure that is there any demand for my new business of juices
or not. Market demand keeps on changing over a period of time, a business cannot
examine its position for the coming few years because demands of customers are always
unpredictable that is the customers may quit buying from one market and shift their
interest in buying from some other new store. But it also depends on business that how
good it is making relations with its customers to make them loyal with the brand.

Competitive Edge:
By offering the customers a greater value product as compared to the competitors in
order for gaining an “edge” over them is known as competitive edge. I am planning to
create various competitive advantages that might differ in some ways among the
similarly-sized companies that are delivering the same services and products as Freeze.
For a small business as Freeze, this is a very serious and crucial element of the entire
marketing strategy. I will make my business achieve the competitive edge in such a way
that it will provide higher quality products and services through lower costing products
and services which justify higher prices.

Balancing personal/business needs:

One of the most important part that plays a vast role in developing a small business is
that the owner of a small business must have a knowledge to find out the right balance
between his/her work and personal life because “a lesson better learned sooner in a
person’s career than later.” As I am the sole owner of my new business Freeze, it is my
responsibility and very first job to be imperative to set boundaries with my customers, to
give time to myself to refuel in order to refocus so that whatever work I am producing
will never be considered as bad quality work and to keep helping my employees in every
possible way. In other words, creating an equal balance between the business and
personal life helps in maintaining the progress of a business in the long run.

8
Checking Profitability:
The profit margin is the most
important aspect of a business that
must be examined before starting a
new business or entering into a
business venture. Calculating the
profitability of a business is the most
accurate way to determine the
success of a business. Various steps
can be taken to check out the
profitability margin of a business for
example, by calculating the revenue
of a company, deducting the costs
from the revenue and calculating
the expenses of a company. I will be
taking all these different measures to
check on profitability status of my business and it will ensure that there is no point of
making mistakes in calculating the expenses and costs. Because a little mistake can lead
my business to face many challenges. Therefore, I will take appropriate measure to
determine that what months are better than others. Also, if I will make any kind of
changes in the company, I will determine the profitability before and after, to analyse
that what so ever the changes were made that will enable the business of Freeze to
access whether the changes were worthwhile or not.

Business Trends:
In order to start with my new business, there are various steps that must be measured
and monitored. Nowadays, customers have more choices as compared to the early
times, the trend of business is to deliver the services fast and seamless because the
customers prioritize fast delivery processes and personalized service. This is true in
every situation either the customers are ordering a lunch, drinks, making a financial
transaction or getting their car repaired. The business of Freeze will be run according to
the going and upcoming trends in the business market and in order to be fairly running
with the smaller startups, I will be making good relations with the large legacy
companies to fall behind them who offer better user experiences.

External Influences:
Businesses operate in an external environment in which competition from rival
businesses also takes an account on commercial, local, international, national and
political. A business can have a control over these influences by taking a few difficult
steps, but it will help the business to maintain its position in the market for a long period
of time. Freeze is a small business setup and being a small company, a lot of political
factors relates to the interaction with local agencies and government. To have a good
working relationship on national and international level is the upmost rule for running a
business on a better level. This increases the ability to influence codes and laws that will
affect my business, having access to tax subsidies and local funding can also be another
political issue that may have an influence on Freeze business.

Work for Independence:

Personal independence in the form of ownership is the core of every business either it is
a small business or a large business. I will be running my business independently by
choosing whatever the business needs are and being free to achieve the goals that are
close to the objectives of success. The desire for independence motivates me to
smoothly maintain my business position in the big market of trade. Owning a small
business is the best kind of independence because the owner of the business can easily

9
make decisions without depending on any other party and can arrange the duties of the
employees according to the proper schedule.

P2-
Target Market:
A group of customers on which a business aims for making marketing efforts and
resources within a business’s serviceable market is known as target market. In other
words, a target market is a subtotal of the
overall market for a service or product. The
business that I have started is named as
“Freeze” and the main specialization of the
business are fresh fruit juices and energy
drinks. Primary research as well as secondary
research will be used for the market research
of my business. In primary research,
information is collected that is new and
authentic in the form of views and opinions
from the public in order to analyze the aims
into achieving them. Another method that will
be used for my market research is secondary
research, it includes the information that has
been collected from secondary sources that is
through Internet, published articles and many other sources. In other words, the
information that has been collected previously by some other company or within the
company itself.

10
Primary Research:
In primary research, in order to get opinions of people about the products and services
of Freeze, I will conduct a survey and questionnaire in a few parts of Dubai near the
Freeze store. The research will be done for different purposes such as what kind of
design should be made for the packaging of the product and how much the customers
would be willing to pay for the products of Freeze. By analyzing the result of the surveys
and questionnaire, it will be easy to set the way in which the product should look like
and the pricing strategy of the products as well. Furthermore, by getting this type of
data, it will be easy for me to understand that how many individuals are interested in
buying their products and how many are not at all interested in purchasing their
products. For example, more of the students of universities and colleges might be
interested in buying fresh juices plus energy drinks rather than working people which will
help in providing the clue in who to target and when to reach out to them. Because it will
be situated in the middle of the main area of purchasing drinks and eating stuff, and due
to high quality products at cheap price, in this way many people will be attracted
towards Freeze.

Market Trends:
It is very essential for a business to analyze the market trends of the current market
because only then it will be possible for a business to produce according to the upgoing
trends and demand of customers. Through my primary market research, I will be making
strong focus on the market trends, as my business of Freeze includes the sale of fresh
juices and energy drinks, although the trend of buying juices to satisfy the thirst can
never be changed or finished because it is a human nature that every individual will have
to purchase something to drink on daily plus hourly basis. Therefore, there is no such
trend for juices that can be focused in order to sell the products of Freeze in the market.

Secondary Research:
In Secondary Research, I will conduct a research by visiting the various websites of
juices or energy drinks and wholesalers to find out the best packaging of the products
that are perfect for selling in order to make similar purchases as it may attract most of
the consumers. Also, it will be researched that what size of juices are commonly bought
or sold so that the information that will be gained can be used in finalizing the products
of Freeze before the point of selling to the end consumer. Most of the secondary
information that will be researched for Freeze might be through the internet because it
can be declared as a valid source of information as it is being used by many business
and consumers on a daily basis in their normal routine life. Any books or magazines will
not be used for the research because finding relative information in magazines or books
is very time-consuming and would be hard to find to suit the needs of my business.

Customers actions and choices:

Through secondary research, I will be analyzing customers choice and actions as
customers have a wide range of choice and this can have a big impact on the way in
which business attracts its customers and build loyal and high value customers, grow the
customer base. The choice and actions of the customers are dependent on a company’s
products, if the quality and standard of a product is according to the demand or choice of
several customers, it is quite possible that the customers will remain loyal with the
business. As I am the owner of my business Freeze, it is totally understandable that
every individual has different tastes and preferences and it can be changed at any time
depending on a variety of factors for example, a person’s mood, the season and the time
of day. I will keep a measure on these particular factors and respond to the individuals
according to their preference by providing them with choice because it has a very big
effect on my business. And without taking care of the customer’s choice, a business

11
cannot be successful. Therefore, my very first action will be finding out the tastes and
choices of my target audience.

Competition:
Through the secondary research, one of the best strategies that I will be using to beat
my competitors is that I will provide outstanding products with excellent customer
services. Because it is 74% proved that the word-of-mouth plays the role of a key
influencer in the purchasing decision of customers. Another strategy that will help me to
fight against my competition is to have a great logo and effective branding of my
business Freeze because most of the time people are attracted towards a brand through
its logo. I will keep refining my products and will ensure that it is put at first place before
the sales and money it generates. On the other hand, if the product of Freeze will not
leave a long-lasting impression on its customers, my business will not succeed in gaining
loyalty and repeat customers. Therefore, in order to stay at the edge against the
competitors, it is very important for me to make its products unique and high
standardized at affordable pricing.

Sales Forecasts:
The process in which estimation is made for the future sales of a product or service is
known as sales forecasts. I will evaluate accurate sales forecasts so that it will further
enable me to make decisions that are informed correct and I can also predict long and
short-term performance of my business through sales forecast. Right after the set-up of
Freeze, the data of sales for each coming day will be stored and will be used afterwards
for industry wide comparisons and economic trends. It is much easier for a company or
business to predict about the future sales depending on their past business data. Sales
forecasting will help my business to understand that how I can manage my business and
its workforce, resources and cash flow. In addition, sales forecasts will be very effective
in helping me to allocate the internal resources of my business accurately, predict that
what type of sales data is important for my business when searching for acquire
investment capital.

Pestle analysis is carried out by various business planners which helps them in
developing more informed strategies that is long term plans. Following are the external
factors that may influence the development of Freeze (juice store).

Political:
I might have to face some sort of issues that are related to rulings and guidelines
implemented by the government bodies on nutritional information such as on food and
drink (Food and Drink Innovation Network 2016). As I am the manufacturer of Freeze,
therefore I must meet the standards that are provided by the government for securing
the health of people. Political factors have direct and indirect impact on the business for
example, potential opportunities and trade agreements of Freeze such as access to new
markets and it may have to face the threats of trade tariffs, which may arise of these.
Due to these factors there will be an increase in the cost of ingredients if the fruit
farmers are unable to access the cheaper labour for fruit picking, which than are used to
manufacture Freeze products that is fresh juices and energy drinks.

Economic:
Economic factors have a deep impact on drinks because it may include taxation which
may impact either in a positive way or in a negative way depending on the level of its
profits. For example, the economic situation in the U.A.E can have impact on the sales of
Freeze products i.e. juices and drinks due to the availability of substitutes of cheaper
prices. There is also an uncertainty around U.A.E that has led to a weakening of
Dirhams, making the raw materials more expensive to import and this will have a direct
impact on the cost of sales if the prices of drinks or food increases. Therefore, there is a

12
possibility that I have to go through all such factors for making the business grow in the
future.

Social:
Socio-cultural factors impact in various ways, it includes the changes in the tastes of
consumers which can help me to make my business more successful due to its natural
ingredients used in manufacturing of juices and premium pricing. I am engaged in
developing a growing interest amongst the consumers regarding the health concerns and
that the customers are willing to pay a premium price for the drinks. A lot of consumers
will be interested in associating with my juice store and reputation because with the help
of my new business I will also be engaged in providing charity of 10% from my business
profits and later on knit a hat campaign which will raise money for the needy.
Technological:
New methods of production that includes
issues such as recycling, for example I
will be using 100% recycled plastic in its
bottles and will also find new ways to
deduct the negative impacts on the
environment. Other technological factors
include social media, official website and
few other platforms that are reachable
by the consumers through the use of
technology. My juice store will have its
own personal official website through
which the customers can just click and
go through all the offers on its products
to find out their required product of
juices or drinks.

Legal:
It is important for me to comply with the legal framework of U.A.E that is health, safety
and food or drinks manufacture laws. As the laws of U.A.E are very strict in securing the
lives of people living there, therefore there are different laws that I have to follow while
conducting sales in the market by taking care of the rules and regulations that must be
taken under consideration while operating the juice store. There is also a separate
legislation of employment rights to be followed and if I will not follow these laws and
rules, there is a big possibility that my juice store Freeze has to face many issues related
to its further sales in the future and may be my business could be shut down due to
uncertainty in carrying out the activities.

Environmental:
Environment factors are the most important factors due to the reliance on natural
ingredients and their commitment to sustainability. For example, Freeze reduces its
carbon footprint, whenever there is an issue of climate change it will have an adverse
the weather conditions which will impact the harvesting of fruits. Therefore, I will take
care of the sources from which I will buy ingredients that are fruits from the farms, in
case if there is change in the climate, I will make myself aware of the condition before
the time of changing so that I can prepare myself for this sort of impact on my business
and to fulfil that gap by importing the ingredients from some other countries by
continuing to improve the manufacturing processes and use of resources. I will also
offset any kind of potential costs simply by reducing the areas such as water use or
wastage.

SWOT ANALYSIS OF MY BUSINESS “FREEZE”

13
 Strengths The strength of my business can be that as the weather in
U.A.E is mostly hot summer, therefore the demand for fresh
juices and energy drinks is very high. And this will help my
business to run effectively, so the startup risk will be limited.

Weaknesses The weakness that my business might have is that there are
already various competitors of juice business in the market
and it is quite possible that they can offer similar products as
products of Freeze. There will be limited flexibility in pricing
and the startup costs will also be limited. High transportation
costs can also be considered as a weakness.

Opportunities Opportunity to my business can be that the advertisements

of my products will be displayed on the internet that is on
various social websites such as Facebook, Instagram and
more. Freeze will also have an official website through which
customers can easily purchase the products online.

Threats Threats to my business are that there might be changes in

the regulations that will impact my business because the
insurance costs are continuously increasing in U.A.E and
increase in price inputs can also cause upward pricing. The
laws in U.A.E are very strict. Therefore, it can be difficult for
Freeze to follow all the rules efficiently.

M1-
To identify my target market, I will be using both primary and secondary research
methods. Both researches will provide me a detailed, reliable and accurate information
because both of them have their own benefits and drawbacks as well. However, by using
these methods it will be easy to eliminate the drawbacks and access the information that
is much useful to identify my target market for my business appropriately. I have
decided to use primary research, which will include questionnaire and the secondary
research which will include internet research.

At first, I am planning to create a questionnaire and hand it to different people because

it is the most accurate and easiest method to collect information as it will be specific for
my business needs. Most of the population is familiar with the format of questionnaire,
therefore it is clearly understandable for them. All the information and data that I will
gathered from the results of questionnaire will be up to date and modern because it will
be obtained by myself and I will have the knowledge that where it has come from.
Questionnaire is helpful in collecting information from various people of different areas in
a very short period of time. In order to analyze the results of the questionnaire, charts
and graphs can be used that will compare the results that has been gathered for the
given questions. It will not be possible for the competitors to steal my data and
information or make a duplicate of it as I will be carrying out my research all by myself
that will be specifically only for my business “Freeze” which will ensure exclusivity.

14
On the other side, there are several disadvantages of questionnaire such as it cannot be
ensured that all the people who have answer the questionnaire have clearly read the
questions or else they have just given random answers only to complete the questions
which means there can be false answers that might not be truth. If the questionnaires
are done by distributing questionnaire papers to different people, therefore to print out
those papers can be considered costly and a lot of money would be wasted for producing
the resources, material and equipment as I want the information to be purely accurate
so I have to start from scratch. But questionnaires can be a proper method for research
because I will have full authority to choose the people who are going to answer my
questionnaire.

The second type of research method that I will be using is secondary research, I will be
conduct this research through the internet which is very useful for me to identify my
target market. Internet research will allow me to gain a large sample of data and
information by finding it a single time that will increase the amount of statistics I have.
There is no fear of data entry errors as all the information that is published over the
internet is inputted automatically. This research method can be considered as a more
diverse sample based research because all the competitors of my juice store may have
already done the research and it is quite possible that they have uploaded the
information on the internet therefore it will not be difficult for me to find and there will
be several other links related to the content of my research it means there is no lack of
data on the internet. Internet research is known as a cheapest way to gather information
for conducting a research because there is no specific need to provide equipment or
materials as the research has already been obtained by some other resources.

There are also disadvantages of internet research is that sometimes I can rush through
the information and I might not read the information carefully or may be skip some of
the important data that may result in collecting inaccurate or wrong information which is
invalid to my research that won’t be useful. Although, most of the information that is
taken from secondary resources on the internet is not reliable and it can be uncertain
because the people who have published that information may not have proper
knowledge or they might not be experts for producing such data that is why I will be
completely careful while conducting my internet research. I will find those links and
websites that have reliable and have valid sources.

Focus groups are also a good approach to research. Indeed, focus groups are more
reliable than individual interviews or questionnaires. It is not appropriate, however, for
my target business market. People are able to integrate their own opinions consciously
or unconsciously with their own thinking, which can easily produce misjudgments and
lead to incorrect development of companies. Moreover, focus groups do not gather as
much data as surveys.

Finally, the best way to help my business improve is to use both questionnaire surveys
and online surveys. I will be able to obtain more accurate information that is more close
to the actual thoughts of consumers and use it effectively and effectively, so that people
and companies save money. These two methods of research thus make the target
audience and the target market research methods most convenient for companies.

For Freeze, improving its business continuously and understanding customer value is
very important, which helps to further promote and improve the business. The company
has found that young people are the target consumers. The investigator and I will
examine how young people like Freeze products with qualitative and quantitative
research.

15
Qualitative research is exploratory research in particular. It is used to understand the
causes, perspectives and motivations behind it. Focus groups and observations are
qualitative research methods.

Quantifying problems by generating numerical data is quantitative research. Quantitative

research aims at deepening the understanding and thinking of human behavior. Mainly
paper research, face-to-face interviews and online surveys are the most frequently used
research methods. I will select the method:
1- Online survey (multi-selection survey).
2- Interview (multi-select research) interviewed in the university area near Freeze.

In different places outside the universities, researchers and I will meet customers face to
face, mostly young customers. I can quickly understand the views of consumers about
Freeze, then improve Freeze as suggested, so I can create a full Freeze picture.
Consumers from different countries and regions are present at universities with different
conceptions of Freeze products. I will therefore carry out a website survey, collect data,
analyze data using tables and draw conclusions, and then improve Freeze's marketing
strategy. Using quantitative and qualitative research will help me analyze the target
market for my business and improve it further.
The opening of my business “Freeze” will be on January 2020 next year.

PESTLE AND SWOT ANALYSIS:

In order to monitor and analyzing the different factors of a market environment PESTLE
and SWOT analysis tools are used by the marketers which can have both direct and
indirect impact on my business Freeze. In Pestle analysis, different external influences
help in understanding the conditions of the market and the impact that it will have on
my business. Pestle analysis has also provided aid in identifying my target market
through some basic details and information of the environment and market in which my
business is operating. By having a focus on different pieces of information that has been
achieved by PESTLE analysis it can be clearly understood that what kind of business
strategies I have to apply on my business to be successful in the market in the starting
of my business and in the future as well.

SWOT analysis are helpful in identifying the target market by finding the strengths,
weaknesses, opportunities and threats according the environment of a market in which
my business will operate. One of the strengths of my business is the hot summer
condition of UAE due to which the demand for my juice products will rise and the
weaknesses had also been identified and improved as well. There are many opportunities
also such as displaying advertisements of Freeze products on the official website of
Freeze or through advertising banners displayed on the streets and the threats are the
legal terms that is difficult to be followed in order to run my business smoothly. I have
found the solutions to all the weaknesses that my business has and improve it perfectly.
By identifying the threats to my business, I have come up with various ways in which I
can avoid those threats before starting my business “Freeze”.

16
P3-
In this task, I will be explaining the personal skills audit and then analyzing the personal
developments that are required to run a business and the ways in which I would pursue
each in order to start my business with great strength.

Developing a small business into a successful big enterprise demands more than
passion. And there are a lot of facts that are necessary to run a business successfully.
There are many businesses in the world that fail mainly because they don’t have the
proper practical business skills. Hard work is essential to establish a business but at the
same time a lot of other skills are important to expertise in the field of business. In order
to understand and to run a business smoothly and successfully requires a wide range of
skills, from health knowledge to best management skills and effective communication. It
is vital to have best employability and management skills to understand the choice and
preferences of clients. Another most important thing is to keep the customers safe and
to ensure that the premises is professional and legal. There are many types of skills that
I will need to manage and run my business of Freeze successfully.

SKILLS THAT ARE REQUIRED TO RUN MY BUSINESS

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General management skills:
Controlling and directing a group of people for the purpose of carrying out the activities
of a business in order to achieve
some the aims and objectives is
known as management skills. As
I am the owner of my business
Freeze, therefore it is required
that I must encompass the
direction and deployment of
financial resources., technological
resources, and human resources.
The main key to run my business
successfully is to analyze that
how to manage, develop, and
implement a workable
management system which is the
basic need to manage the daily
operations, supporting the business and manage the daily operations.

Sales and Marketing skills:

Developing marketing methods, sales and policies from the point of pricing to the point
of advertising the sales techniques. All these things are essential in growing my business
successfully. The ability to understand my competition and that the industry trends are
difficult to cope up with for the development of marketing strategy. My main objective is
to understand how to design or craft and communication to deliver a message to the
right target audience that generates my new business and in return will provide
profitable benefits through revenue streams.

Analytical Skills:
At present, technology has become more advanced and complex. Therefore, it is crucial
to run a business without the use to technology. And with the rapid increase in the
technology, it has become more easier for the businesses to run the processes of
manufacturing and selling. As I am the owner of my business, it is my first requirement
to possess analytical skills that means analytical thinking the ability to objectively assess
the exact present position of my business in order to decide and set the mission that
where I want to be in the coming future and in order to decrease the gap between the
present and future growth of the business.

Negotiation Skills:
Negotiate is the part of every business that is the basic need of daily routine business
operations and almost everyone negotiates informally without being aware of it. Formal
negotiation is learned through experience and practice. For my business of Freeze,
formal negotiation will be required and as I am used to negotiate with people frequently
tend to be more skilled at it because experienced people are more intelligent in deciding
what to speak and when to speak with the customers or with other business dealers. The
main key of my business is to develop a win-win approach to other parties and keeping
in mind that I want to achieve the most benefit out of it that is possible for my business.

My Contribution to the business:

In order to contribute into my business, I have explained my strengths and weaknesses
along with the threats and opportunities that I might face while running my business.
Starting a business is not easy, even if it is a small business a lot of skills are required.
Management skills always comes up with experience and without experience it is not
possible that I can manage the business successfully and smoothly. Therefore, I must
have a knowledge that how things can be done within the time limit and how to delegate
the work and duties to my staff members or employees. The mission and vision of my

18
business is to provide healthy products to my customers, and I will manage my work
being a good leader to make others work towards the target. Communication skill is the
second most essential for my business. As I am the owner of my business, it is
important for me to be well-versed in multiple languages. It is not a must rule but still it
is very useful and creates a good image while dealing with the customers of different
languages because more than language, effective communication is what matters the
most.

MY PERSONAL SWOT ANALYSIS

STRENGTHS
Organizing and management skills
Great Leadership skills
Excellent mathematical skills
I have proper knowledge of financial
literacy
I have excellent decision-making skills
I have commercial awareness
I am independent
THREATS
Shortage of finance
There is a limitation in government grants
Lack of jobs available
Arrival of new laws
The growing market of trade requires a
lot of new skills and knowledge
Wide range of competitors
Economic down-turn
WEAKNESSES
Research skills are not at its peak
Lack in presentational skills
IT skills are not fair enough to handle
computerized schedules
I am not able to work under pressure
Not so creative or productive
OPPORTUNITIES
Internships
Information is available on the internet at
various different sources
Availability of new training courses
Government grants are available for
businesses
Any kind of research can be made without
any difficulty

I will overcome my weaknesses by adapting various ways such as by attending different

courses in order to fulfill the gap that I have as my weaknesses because only then it will
be possible for me to achieve the best position for my business in the market of trade.

IT skills:
Nowadays, IT skills are imperative to any business and not only to Freeze. Being able to
represent the reports of the financial position in a digital or computerized form and
making all the sale processes on PC’s and making the invoices. Managing online
presence is very challenging when there is lack of IT skills. Therefore, in order to meet
all the demands of a business and to control he day to day business operations IT skills
are basically needed at every stage. I have enrolled to various IT courses that will enable
me to become more IT literate. The performance of Freeze will be run both online and in
physical store so that it will be easy for the customers to reach without practically
visiting the exact location of my juice bar.

Creativeness:
Being creative in every aspect is necessary for any business in order to become unique
and having creativity could help a
business to be more successful and
dominant. It is very important for Freeze
to become more unique due to the high
competition in the juice industry. I have
enrolled to some graphic and designing
course that will teach me that how to
design my prodcuts of Freeze, what kind
of packaging will make my product look

19
more attractive and unique from every prospective. Becoming creative is endless and it
will help me throughout my business in the long run. It is also possible that I will not any
designer to make the special packaging of my juices and other drinks and simply it can
be designed and packaged by myself.

Presentational Skills:
Presentational skills are very essential for the success of Freeze. In order to be able to
promote the products and services while starting a new business is the very first step to
pursuit towards future success and making corporate image in the industry by competing
against the competitors. In order to meet this gap, I have planned to arrange some sort
of presentations in order to teach my employees their duties even if the employees are
not experienced, it will be easy for them to understand by watching the presentation.
Freeze will definitely improve its performance by attracting the people’s attention by the
use of presentational skills.

M2:
I will be analyzing the personal development that I feel needs to be incriminate only then
I can run my business successfully. The opening of my business “Freeze” will be on
January 2020 next year.

Personal development skills that are needed to run my business:

1. IT Skills
2. Creativeness
3. Presentational skills
4. Balancing my work life and personal life
5. Interpersonal Skills
6. Organization Skills
7. Management skills
8. Punctuality skills

SKILLS TIME DATE COST (AED)

PERIOD
IT Skills 3 weeks 7 January- 28 January 300
2018
Creativeness 2 weeks 28 January- 100
11Februrary 2018
Presentational Skills 1 week 25 Februrary-4 March 150
2018
Balancing my work life 2 weeks 18 March-1 April 2018 200
and personal life
Interpersonal Skills 3 weeks 8 April-29 April 2018 120

20
 Organizational Skills 1 week 6 May-13 May 2018 350

Management Skills 2 weeks 3 June-17 June 2018 100

Actions that are needed to be taken by improving my skills which are my weaknesses
and in which I have lack of knowledge. Therefore, I will adapt some major actions to
fulfill the gap that I have in those personal development skills for running my business
successfully.

1- IT Skills
In today’s time and age, it is very important that a business owner must have the skills
to be able to provide tech support whereas research, communication and analysis are
highly dependent on using computer systems. I lack in having knowledge in some
particular areas such as using the basic programs that is Microsoft Word, Excel and
many others. In order to know how to take full advantage of all the program’s features I
will be taking IT Classes that will be for a period of 3 weeks and will cost around AED
300. If I will not take this course it is quite possible that I may not perform efficiently,
less likely to reach my potential aims.

2- Creativeness
Being enough creative by having the proper knowledge that how to design a product
from every prospect so that the customers will be attracted towards is not an easy thing
for every business. I lack in being creative and for this reason I will be joining building
creativity course for a period of 2 weeks and it will cost me around AED 100. The cost is
not very expensive and will guide me that how I have to design and make the packaging
of my products unique before it reaches the store for sale. I might collaborate with some
other juice stores in order analyse that what my competitors has already done as it is a
great way to boost my own creativity.
3- Presentational Skills
Presentational skills are required in almost every business, it is an easiest way to explain
the employees about their work and goals which I have to achieve for my business. As I
lack in having presentational skills because it is very tough for me because I consider
myself that I was not born with natural eloquence and public speaking can be nerve-
racking for me. Therefore, I will be attending session of 1 week for learning
presentational skills and it will cost around AED 150. After the completion of these
classes I can pack my presentations with great enthusiasm, tons of useful content and
unique/proprietary data.

4- Balancing my work and personal life:

In order to fulfill this gap I will have a conversation with the motivational speakers to
have a knowledge the way they speak, perform their activities of business and I will ask
them for any good tips that will be helpful in my business, it will be for a period of two
weeks. It will cost me around AED 200 to speak with some famous motivational speakers
and it is also possible that it will not cost for some of the speakers who are available
without paying any cost. On the other side, I will set a schedule for my personal life as
well so that I can give proper time to myself and I can do what so ever I want to. In this
way I will not have an unhealthy unbalance.

5- Interpersonal skills:
This training that I will take is to improve certain areas in which I feel lack of experience
such as employing those staffs who have the skills which I don’t have so that they can
cover up the duties of my business without facing any kind of difficulty, I will practice to
speak with big businessman or businesswomen in order to gain confidence in myself and

21
I will go to training classes to seek regular teaching. These classes will be for 3 weeks
and it will have a minimum fee of AED 120 that will not cost me expensively although it
depends on the classes that how many times, I will attend the sessions.

6- Organizational skills:
I will have my own personal juice store that will have a beautiful layout and organized
place so that customers can sit and enjoy in a clean and pure environment. There will be
a separate place where I will keep my documents safe. Finding a place for my store can
be expensive for me and it will be difficult for me to afford the cost, but I will apply for
bank loan for AED 100,000 so that I can start my business easily. To have a proper
knowledge for building a space for my juice store I will attend some developing
organizational skills session for a period of one week that will cost AED 350.

7- Management skills:
One of the basic skills that is needed to run a business successfully is management
skills, as I am the owner of my business therefore, I have to set certain time schedules
for my employees to
work efficiently and for
making these schedules
I might need some kind
of training classes. I will
apply for training
sessions for a period of
2 weeks, the cost will be
not so expensive such
as 100 AED. But this
training will provide me
extra management skills
in order to improve the
management of my
business and will help in
relieving my stress that I may have regarding my business.

8- Punctuality Skills:
Setting specific time plans for the jobs that have to be done within the time limit and the
need for getting the work done in a systematic way is the upmost skill that is needed for
running my business on a smooth scale. I will guide my employees by making specific
deadlines in order to have more productivity in my business and to get the tasks done in
a rapid speed. For this purpose, it might cost me a little expensive because I may have
to buy computer system or IPAD for entering the data and time for sales and profit of
each day.

22
P4-
In this task, I will be explaining about the legal and financial aspects imposed by the
legal and financial authorities that are necessary to be implemented into my business in
order to run smoothly and how it will affect the start-up of my business.

LEGAL ASPECTS
A number of laws has to be followed while starting a new business that would directly
affect the start-up and I will ensure that I am aware of all the appropriate rules and
regulations to avoid facing any kind of consequences if I am not able to follow those
rules. I will run my business as a sole trader, that clearly indicates that I am the only
owner of my business. The very first reason is that being the sole owner gives many
kinds of opportunities while running a business such as all the responsibilities are in my
hands and whatever benefit I will achieve will be kept with me because there are no
shareholders of my business. At current moment, I will not have any partnership with
any other individuals because I feel that I have enough experience and knowledge to run
my business on my own. Multiple legal aspects have to be taken under consideration
while I start my new business and financial aspects as well.
Terms and Conditions:
Legal rules and regulations are must to be followed for starting a new business either it
is a small or large business. As I am doing a business of juices, various laws are made
for this type of business. In my business, I will be strictly making focus on this law to
give the rights and obligations to the consumers for certain protection measures to fight
the overpricing and monopoly. This law will help me making a good relationship with my
customers in order to make them loyal with my business. Some of the laws that I will
implement into my business are below.

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Consumer Protection Law:
This law has been implemented by government in order to ensure that the consumer’s
get the proper confidence in the market and create a fair relationship between the
businesses and consumers. This law will be included in my business so that the rights of
consumers will be protected because providing safe products that are made of good
ingredients which will not harm the consumers in any way is very essential for the
development of my business.

Data Protection Act 1998:

This is an act of United Kingdom Parliament and it was designed to protect the personal
data that is stored on computer systems or in any other organized paper filing system. I
will follow this legislation in order to secure my personal information and documents
regarding my business.

Fair Trading Act 1986:

This act provides for consumer information standards and was made by the statute of
New Zealand. The main purpose of this law is to encourage the customers from any kind
of misleading, unfair trade practices and deceptive conduct. I will implement this
legislation on my business in order to enforce safety standards of products.

License:
Business License Dubai is another important aspect of my business. I will get my
company assigned with the government legally in order to have a License to run my
business in the U.A.E market. I will sign an agreement with the U.A.E government or the
Local Service Agent. On the other hand, without collecting a business license to start the
operations of my business, it will not be possible for me to legally run my day to day
activities. Therefore, getting a license for my new business is my first but not the least
obligatory, although there are certain other rules and regulations that comes along when
starting a new business.

Insurance:
This legal aspect will help in securing my business in case of any uncertain situations, I
will register my business with the Insurance company for a period of one year in the
starting and later on I will renew my insurance in order to ensure that I don’t have to
face any loss in case of unseen disasters. As I am the owner of my business, so this is
my upmost responsibility that I get my business registered with the Insurance Company.
And if all these aspects are followed by me, it will definitely help my business to grow
successfully without any fear of loss and my business will stand in a market with a legal
position.

Suppliers:
I will choose such suppliers that have a good reputation in the market of trade, the
ingredients that I will buy from those suppliers will be hygienic and safely produced
because my business is of fresh juices and people prefer those products for drinking that
are manufactured in a good and clean environment. As it is the matter of health and
safety of people, certain laws are made for securing the health of customers. I will
definitely follow the laws that comes under the area of saving the lives of people by
providing them hygienic and safe products.

FINANCIAL ASPECTS
Personal Survival Budget:
Personal Survival Budget gives details about the average monthly income that is salary
of benefit payments by deducting all the expenses and costs that would occur in a month
for example, monthly bills, rent and utility bills. Personal Budget will help me in

24
determining that whether I will be able to meet the monthly Start Up Loan repayments
or not. Being a responsible business person, it is important to realize that I can afford a
loan before offering for one. Even if I would decide not to proceed for a start-up loan
straight away, a personal survival budget will be a great tool for me to keep my personal
finances on top of the list and being focused in not spending my money on useless things
or useless expenses. There are several benefits that I can get by creating and updating
my Personal Survival Budget regularly. For example, Personal Survival Budget will help
me in planning for future and saving money up for something, it will help me in being
aware while overspending on unnecessary things, it will support me in making realistic
and sensible decisions for myself and even for my family, it will provide me with a
greater control over my spending decisions and personal finances.
Regular Bills Months Regular Bills Months
Rent 800 Rent 800
Home Insurance 200 Home Insurance 200
Outing Expense 220 Outing expense 220
Clothing 300 Clothing 100
Mobile 80 Mobile 40
Internet 100 Internet 50
Travelling Expense 70 Travelling expense 60
Medical Insurance 150 Medical insurance 150
Television 300 Television 300
Fun Money 250 Fun Money 250
Electricity 1000 Electricity 500
Total 3470 Total 1900

By reducing some of the extra expenses of my survival budget and by cutting off the
useless extra things that is expense of outing, fun money and television, I will be able to
save AED 1570. Keeping this aside, I already have saved a total amount of money that
is AED 50,000 but this saved money I will use only in bad situations of my business. I
will take a loan of AED 100,000 from the bank.

TOTAL CASH FLOW OF MY BUSINESS

Inflow AED
Cash received from the bank loan 100,000
Total Start-up Cost 100,000

Operating Cost (per month)

Utility Bill 5,000
Store Rent 3,750
Internet 1,000
Raw Ingredients Cost 20,000
Salary 9,000
Total 38,750

Total Revenue (Per Month) 75,000

Profit (Per Month) 36,250

25
Total Cashflow:
A statement of cash flows shows the movement in the cash account of a company. It is
used to present the cash inflows and cash outflows by calculating the three activities of a
business such as operating, investing and financing.

In my business, I will be starting with a loan of AED 100,000 and my profit margin will
be AED 40,000. Operating expenses of my business will include the utility bills, internet,
raw ingredients cost, salary and my total expense will be AED 38,750. As I will be having
3 employees and per employee the salary will be AED 3000 so in total it will be AED
9000 for all the three employees. All the increase and decrease in cash will be followed
in the financial account of my business in order to calculate the profit that I will earn and
also the loss that I have to pay off due any other reason. My prediction will be that I will
be breaking even within three months and all profits made after that will be considered
100% profits towards the business.

M3-
I will be evaluating the implications and assessing the benefits of financial and legal
aspects that will affect the start-up of my juice business.

Data Protection Act 1998:

While starting up my business “FREEZE” I will follow certain legal laws in order to run my
business successfully. The Data Protection Act 1998 is one the laws that I will implement
in my business because it gives me security to protect all of my legal data and
documents within my business. By including such laws in my business, I will be able to
secure my documents which I don’t want anyone else outside the business to get access
to it. Those documents and information will be locked in a separate secured place in my
own office where everything else such as information and important files will be put
separate in drawers and folders to be easily accessible only by me. The legislation will
provide me help to focus that all the information is accurate and is up to date, collecting
such information that will be needed for different specific purposes. Legally, according to
the Data Protection Act it is my responsibility to ensure that all the documents will be
saved for a period of 6 years and for this reason I have to make sure that I will have
enough storage space to keep all the relevant documents of my business in a systematic
and organized order.

Fair Trading Act 1986:

As mentioned in p4, Fair Trading Act 1986 is an act that has been designed by New
Zealand and its main purpose is to protect the customers from any kind of misleading
and deceptive conduct. I will implement this law into my business so that the consumers

26
will get their proper rights and any kind of misguidance will not take place. Therefore, I
have to be careful in every single aspect of my business and I will give the directions to
my employees that they must not conduct any kind of misleading that can be harmful for
the customers. For example, any false information that is given to the customers
regarding my products or services such as the quality, kind or ingredients can be
deceptive representation of my products that can affect my business very heavily. On
the other side, I will not spread false statements about my business by saying that I
have any particular sponsorship with other big businesses. And whatever approval or
endorsements I will make, they will be authentic and legally approved by the
government of U.A.E.

Sales of Goods Act 1930:

This is an act of Parliament of the United Kingdom which has regulated UK commercial
law and English contract law regarding the goods that are sold and bought. Under this
act many compulsory rules were made such as where the goods are being transferred
and agreed to be transferred for a monetary consideration. I will implement this law into
my business because it will help me in keeping the true records of transactions so that
there will be no fear that where my property(goods) are being sold. There is no
drawback of this law because it is made for protecting the property of the owners of a
business.

UAE Labor Law:

The UAE labor law I have to take into account when starting my business. United Arab
Emirates and the labor law guarantees the corresponding issues facing workers; this law
must be observed as clearly laid down in it, for example, employee contracts, salaries
and working conditions. For example, it provides that young people can work up to six
hours a day, and adult workers can work up to eight or evenings a day to help me
arrange my time. My company will comply with UAE employment law standards that can
also enhance the credibility of the company and attract additional workers, such as
prompt payment of wages and certain good benefits. However, I also have a few
problems with UAE labor law. In the absence of adequate employment, the citizens of
other Arad countries, followed by citizens of other nationalities, should be prioritized.
I ensure each one of my staff has a valid visa for working legally, for example a working
visa. In my company, there will be no tourist visa holders. The employee would
otherwise be arrested, fined and deported while I'd be fined or even shut down. If I fail
to pay my staff in good time, WPS will begin the protection program at the United Arab
Emirates immediately and the company's visa and bank account will be locked, which
seriously impacts the business ' normal activities.

Health and Safety:

I have to be accountable for the health and safety of all staff and clients, the most basic
legislation of all companies as well. Fire safety work needs to be strengthened in order to
continue to develop stably and healthily. Enterprises undertake a number of fire control
measures to promote the development of commercial economic building. Fire-related
losses are also very severe, since they are related directly to safety management.
Companies should therefore be equipped with basic fire extinguishers, fire alarm
systems and other equipment to enable all workers to master the use, and to escape,
knowledge and skills of fire extinguishing equipment. The normal business is however
postponed with the regular fire drill. One day I am going to consider doing a very
complete fire drill, which is important too.

License:
As mentioned before, I will make a legal license for the place that I will purchase to open
my new juice store “Freeze”. The license will be legally approved by the government of
U.A.E and this license will be needed at every step in my business for example, if I will

27
rent a store or shop then at that time I have to show the dealer of my store that I have
the legal permission to start my business. As the laws in U.A.E are very strict therefore
without license it is not possible for me to purchase a store and even deal with the
suppliers. All the suppliers that I will deal will be my own suppliers and they will be
having good reputation in the market and it is necessary for me to ensure them that my
business is legally registered with the government because if any business is not
registered with the government and it purchase ingredients from the suppliers without
having a license, it will harm the reputation of both business and suppliers as well.

Recording System for VAT and TAX:

Keeping adequate records for TAX and VAT is the basic requirement of every small and
large business. I will keep a record for my small business that will be saved in a diary or
in a sophisticated computerized system, that will process sales, purchases, orders and
stock records. These VAT records are kept for at least six years, but it is necessary that
all the records must be complete, readable and accurate. If I will not use the system for
keeping records of TAX and VAT, it can affect my business in many ways because if
there is a mistake in calculating the income and expenses it can make me to suffer a big
loss in my business. In each transaction, I shall pay attention to the rate of VAT 5%, but
globally, the rate of VAT 5% is quite low. VAT rates are between 25% and 27% in
European countries, like Sweden, Norway and Denmark, and over the next five years the
UAE has regularly excluded new taxes. Therefore, opening a new shop in UAE is a good
option. I will be paying more taxes if Freeze is established to travel to Sweden or
elsewhere. The United Arab Emirates have also implemented a cheap insurance scheme
for foreign workers, enhanced mobility and ensure that workers ' rights are upheld. I'll
follow that plan in order to make my staff work better and help me to attract more
employees. However, this tax of 5% is costly. For instance, I would have to pay AED
1500 tax if I spend 30,000 on components, for example fruits, for the production of
juices. I also have to add 5 percent of this tax on my customer transaction when selling
juices. For instance, I usually sell an AED 25 juice product. I must decrease my profits,
so that the price of my goods stays the same since I have to maintain the low prices to
attract customers.

National Minimum Wage system:

On the other side, problems can also be caused through the Data Protection Act for my
business is that whatever information I receive the National Minimum Wage system is
something that I have to abide by because they will keep a record of my business that
how many employees I am going to hire and how many employees I will be able to
afford in the start-up of my business. I will be abided by the rule that I have to pay my
employees their salary according to their age and work hours. For example, if the
employee is under the age of 18 then I will be required to pay them per hour AED
19 and if the employees are between the age of 18 to 20 years they will be paid AED 26,
if the employees are between 21 to 24 they will receive AED 33, in the last if they are 25
and above they will get AED 34. However, these amounts may change according to the
legislation of the current year. Therefore, the national minimum wages will charge
according to the year in which I will be starting up my business and by having a focus on
these amounts I will set the prices for my employees and this will help me in maintaining
and organizing my budget to be controlled and remain smooth. Whatever money I will
pay to my employees will be mentioned in the cash flow forecast and work out to predict
that how well I am operating my daily business performance.

A problem that my business will face is that the employees have a knowledge that what
exact amount they should be receiving for their working hours and they might not work
any extra hour exceedingly out of their time limit because they already know that how
much certain amount of money they are obliged to receive. This may make the
employees to not do their jobs with enthusiasm because they know that somehow, they
have to get paid either they perform well or not, which might be great problem for my

28
business. But I will need staff who are fully engaged and work deliberately and who are
enough knowledgeable that what are they talking about and also such employees who
work more than they are required to perform. It will help me to ensure that my business
is performing well, and I am making maximum profit I possibly can.

Budget:
As Freeze progresses and develops further. It will expand, its financial position will
change greatly, it will be larger, although Freeze is a small business, there will have
more income, and if there are more, for example, more staff will be at Freeze, more
juice machinery is going to be at Freeze to make more money. At the same time, more
money cannot always be gained, the income may be lower in a certain time. For
example, the time of Ramadan is when tourists will be less, leading to less benefits, for
the people affected by the culture of strength (Ramadan is expected to begin in May this
year). The interest is significantly reduced through cash flow. Freeze was losing money,
moreover. The reason for the loss was that there are no customers due to the influence
of Ramadan, as they all fast and they won't buy drinks before the time, so there will be
no income. At the same time, Freeze is advancing and encouraging, resulting in
increased costs. Below is my business budget for the next three months.

Cash Flow (Freeze)

May June July
Cash Inflow
Revenue 50,000 75,000 130,000

Total Inflow 50,000 75,000 130,000

Operating Cost Per

Month
Employee Salary 3000 3000 3000
Raw Ingredients for
Juice 20,000 20,000 20,000
Utility Bills 5000 5,000 5,000
Store Rent 3,750 3,750 3,750
Cost of Indoor 500 500 500
Total Outflow 32250 32250 32250

Net Cash flow -17,750 -42,750 -97,750

Break-Even:
The point on which the company will not have a loss neither a profit is known as break-
even point. In order to analyze the number of units and amount of revenue to cover up
the total cost, break-even is used. By dividing the unit contribution with the fixed cost,
break-even is calculated and to calculate the unit contribution the sales price is
subtracted from the variable cost. Although I am starting a new business, this will help
in determining the unit’s quantity which I need to produce and also determines that what
amount of profit I will gain.

Impact of break-even on my business will be that it will guide that what quantity of
products are needed in order to avoid any kind of loss. Mishandling the units and making
mistake in calculating the units might cause my business to suffer a high amount of loss

29
and debts. And the business might not be able to cover the expenses which will
eventually cause the business to not gain much profit.

Following is an assumption of break-even chart for my business:

Break-even Total
  Total Cost Total Variables Volume Amount
Ingredients $5
Labour $7 $12 538 13,462
   
Total Fixed Cost $7,000
Sale price per
unit $25
Unit
Contribution $13

P5-
In this task, I will be producing a business proposal in which there is essential
information and aspects that are relevant to my business that I need in order to start-up
my business.

A business proposal is basically an indication that how I am going to start up my new

business and what I am going to do, it will just focus on the key points of the business.
To allocate the resources and prepare myself to move in every kind of situation either
problems or opportunities that could be possible after starting my new business.

Name of my Business:
FREEZE

Address:
Near Universities and Colleges in U.A.E. Dubai.
Other locations for business: In the start I will be opening only one separate store
because at first, I want to analyse that my business will be successful or not. Depending
on the total sales, if I will achieve a good profit than I will decide to open a second store
in some different location.

30
Mission:
The mission of my business “Freeze” is to provide high quality products at affordable
prices, ensure the utilization of cost-effective and high-quality raw materials.

Vision:
The vision of my business to create customer satisfaction through delivering products
and services that will exceed the expectations of customers and provide opportunities
equally in an environment where I will be assisting in achieving the vision of my
business.

Purpose:
The main purpose of my business is that I want to increase the market share but at the
same time it can be very challenging for me. Second aim of my business is that, I want
to target people of all age groups because drinking is the basic need of every human
either they are young or old, people cannot survive without satisfying their thirst.

Appearance:
The outside look of my store will be very appealing to the target audience and there will
be no duplication in the Logo of my business as it will be licensed with the government
before that startup and once the people will start getting into my store, their demand
will be more because when something trends specially drinking and eating products,
everyone gets involved and everyone want it.

Target Market:
My target audience will be the people of all age groups either they are kids, children,
middle age or elderly people. My products(juices) plus ice creams as supplementary will
be for all age group people.

Competitors:
There are various competitors of juice industry in the market, but the products of Freeze
will be different from that of competitors. Because I will be having a unique selling point
of my business is that it will be candy themed, that is the way in which the
products(juices) will be packed in a candy themed plastic bottles so that the customers
will be attracted towards it.

Human Resources:
I will be running my business as a sole trader or sole owner because this will allow me to
run my business by making decisions on my own without having concern or interference
of any other party. In the start-up I will run my business on my own and later on I will
have a few employees, I will provide them with their salaries according to the minimum
wages law of U.A.E.

Vendors/Suppliers:
I will have my own suppliers and vendors so that I will be ensure that what so ever
ingredients that is fruits and other important supplies that I am buying from my
suppliers are purely hygienic for the people. Therefore, I will not trust any outsider and I
will run my business with my own legal suppliers. As the main products will only be the
fresh juices that will be own-made by my store and I will be purchasing the ingredients
such as fruits from my own suppliers and wholesalers which I have a close relationship
with.

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Market Plan:
From my point of view, my market plan will be working as a sole trader because it is the
best way to start-up a new business and I want to earn as much profit as I can to make
a living and getting a recognition in the global world of trade to be recognized and gain
popularity. I will encourage the customers to come again and again by providing them a
friendly environment in my store I will make design my products and store in such a way
that people will be attracted towards it.

Operations:
All the operations of my business will be carried out perfectly by making appropriate
decisions. My store will be opened from 8 am in the morning and it will be closed at 10
pm at night. I will set the prices of my products in such a way that it will be affordable
by all classes of people either they are low, medium and upper classes they will be able
to purchase my products without facing any kind of difficulty. However, the prices will
not be very low because product represents the price therefore, the pricing strategy will
be affordable in all cases.

Growth and development:

I would be expanding my business and build another store and it is also quite possible
that if I will be successful in expanding my store to the second store, I might get my
products into the department stores that is inside the big shopping malls and other
supermarkets as well.

Financial Projects:
I will grant a loan of 100,000 AED from the bank and I hope to start paying off the loans
along with the interest that will be charged 10% on the total amount monthly. I will
maintain the point of break-even (the position of business when there is no profit or
loss)
by adjusting my everyday expenses.

Contingency:
I will set a plan for every unexceptional risk that might occur at any time in the future.
My contingency plan will help me for risk management in any difficult circumstances. I
have saved 50,000 AED as my personal savings that might be helpful in such kind of
situations.

D1-
BUSINESS PROPOSAL

My store of juices and fresh beverages will be a for-profit business, the ownership of my
business will be sole proprietorship. My juice store provides fresh flavored juices and it
also provides ice creams, the environment of my juice store is clean and hygienic, the
layout is well organized and attractive so that the customers will enjoy and have a
pleasant time which they will spend there. The main aim of my business is to keep up
with the demands of customers and fulfill their expectations so that more and more
customers will come to purchase products from my juice store as it will help me in
maximizing my profit.

Mission:
“The mission of my business ‘Freeze’ is to provide high quality products at
affordable prices, ensure the utilization of cost-effective and high-quality raw

32
materials. Providing the best customer services and establish the trademark of
my business through innovative marketing.”

Vision:
“The vision of my business to create customer satisfaction through delivering
products and services that will exceed the expectations of customers and
provide opportunities equally in an environment where I will be assisting in
achieving the vision of my business.”

There are several competitors in the market because drinking and eating is the basic
necessity of everybody’s life. Therefore, the competition between drinking and eating
stores or restaurents can never be finished. Freeze will be located near the universities
and colleges, there will be a lot of competitors nearby the location of Freeze. The pricing
of my store products will be affordable by all the classes of people even if they are lower
income, medium income or higher income people and the prices can also be negotiated
depending on the customer. One of the advantages that my store has as compared to
my competitors is that all the products that I will provide will be made of fresh fruits.
The unique selling point is that no artificial sugar will be added in it, fresh fruit sugar will
be used as a substitute of artificial sugar.

The promotion of my products will be made by using social media platform that is on
Facebook, Instagram, Twitter. After the time when my business will be settled, I will also
publish advertisements of my products in newspapers and banners that will be displayed
in different locations of U.A.E. My products will be high standardized that will help in
encouraging the customers to come again and again to purchase from my store. Later
on, the customers who will be loyal to my business will be provided with the loyalty
cards as it is the best way to build a long-lasting relationship with the customers. This
will also help in developing the interest of customers to return to Freeze in the present
and future as well.

At the start-up of my business I will work on my own and later on I will hire a few
employees who will work under my orders for running day to day processes of selling
and serving the drinks to the customers. The staff will be well organized, they will have
enough knowledge to understand the basic needs of customers and provide them with
the best customer services. They will have the required skills that will be needed to run
my business successfully. As I am the owner of my business, the employees will work
under my guidance and I will have full authority to make decisions and guide the
employees in order to achieve my aims and objectives. I will have my own suppliers that
are trustworthy, they will provide me the materials such as fresh fruits that will be
needed in the making of juices.

My business will operate in an external environment in which competition from rival

businesses also takes an account on commercial, local, international, national and
political. But at the same time, I will try my best to have control over these external
influences by facing a few difficulties, but it will be beneficial for my business in the
coming times. As known, my business will be a small business so it is quite possible that
it will face various political factors which relates with the local agencies and government.
Personal independence in the form of sole ownership is the core of every business. I will
have my own personal independence in the form of sole ownership, the desire for
independence motivates the business to smoothly maintain its position in the big market
of trade.

To identify my target market, I will be using both primary and secondary research
methods. Through the research I will find out that what are the demands of customers in
the category of drinks. The main target audience will be the people of all age groups
either they are children, kids, middle age or elderly people. There is no specific
ingredient that will not be suitable for children. In fact, all the ingredients that will be

33
used in making of my products will be purely hygienic and manufactured in a clean
environment. After few weeks of my business start-up, I will employee few people to
work under my guidance as it is a new business I cannot employee multiple individuals
as my employees because I want to achieve a large profit therefore, whatever profit I
will earn, it will only be my property and at the end of the achievement I might feel
proud of that what so ever I have done in my business and that how far I have come.

The opening of my business “Freeze” will be on January 2020 next year and for this
purpose I will grant a loan of 100,000 from bank. And I hope to pay off the bank loan
monthly along with the interest that is 10 percent each month. I will be extremely
organized and managed in my financial stages that is I will be checking my break even,
profit and sales target constantly without any mistake and maintained to ensure that the
business is stable that it can be survived for a longer period of time and in case, if I am
not able to handle my business financially, it is quite possible that I will ask extra
financial help from the banks to aid my business.

I will expand my business slowly by reaching a wider market of customers and later on I
will open my second store in some big shopping mall or any other famous area within
the U.A.E. because this is the best way to make a huge profit and have a massive
customer base as most of the population goes to the shopping malls for making basic
grocery purchases for day to day needs and wants. I feel that my business will be very
successful because it is an unusual idea of packaging and it stands out as a centre of
attraction for people of all age groups especially for the students who are studying
nearby my store. I will be selling my own brand-named juices because I have a strong
passion for it, knowledge and determination to be able to make it effective and
successful. It will enable me to work by improving my skills of different ranges and it will
be help me in the future as well for a various number of things.

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