I cannot express enough thanks to my dear friend Kashima Johnson for staying up with me each and every night, helping me to gather information until my S.B.A was completed, secondly my mother and father for providing me with the necessary equipment to finish the given assignment, last but not least I would like to express my deepest of gratitude to the Lord Jesus Christ for giving me the strength and wisdom to bring an end to this S.
This S.B.A that I have devoted my heart, mind and soul in is to present a synopsis of a business plan for the founding of a tattoo company by the name of ‘Lux Appapholix Tattoo Designs’. An analysis of the main arrangement necessary for the efficacious development of the business will be highlighted in the given School Based Assessment.
Description of Business
Lux Appapholix Tattoo Designs (L.A.T.D) is a sole trader business owned by Leighton Stevens that operates in the free market economy of Jamaica.
L.A.T.D provides a tattoo service for the people of Kingston and surrounding areas in Jamaica. L.A.T.D looks to provide high quality tattoo services to its customers efficiently and to make sure customers are satisfied when the service is completed.
Justification of Location
Different factors play a role in how successful a business will become, one such factor is the location of the business. L.A.T.D will take this factor into consideration when choosing a suitable location to conduct business. L.A.T.D will be located at 7 Knutsford Boulevard, New Kingston, Kingston 5. The reason why the business will be located here is because there is a need for the tattoo studio to be close to its market. This location was also chosen because in this area there are a lot of other companies, restaurants and clubs; these other companies will provide L.A.T.D with customers. There are many means of transportation in this area which will give customers access our tattoo studio easily. There are also stores in the vicinity where supplies for L.A.T.D can be purchased for the smooth running of the business like skin ink and needles.
Selection of Appropriate Labour
Skilled, semi-skilled and un-skilled workers are necessary for the smooth running of the business. This is so because their skills and expertise are needed in the different sectors of the company for it to function effectively and to make as much profit as possible. L.A.T.D will use skilled, semi-skilled and unskilled workers. In total L.A.T.D will employ eight workers: a secretary, an accountant, three tattoo artists and two cleaners.
In conclusion to my school based assessment, the thirteen criteria of a business plan to establish a business are examined and I hope I have enlightened the reader of the following plans to start and develop my tattoo business Lux Appapholix Tattoo Designs.
A secretary is needed to keep track of customer’s appointments and to keep track of the number of sittings a client has at L.A.T.D. This person is important to L.A.T.D in that the secretary can inform the tattoo artists of any arriving customer in advance so that they can make the proper preparations for their client. An accountant is also needed in the business to keep track of the profits and losses of L.A.T.D. This person is important to L.A.T.D in that she can help the manager make vital decisions in the case of budgeting and purchasing supplies. Three main tattoo artists including myself are vital to L.A.T.D because we are the persons providing the clients with the service that they want. Two cleaners are needed to clean up the different stations of the studio between breaks and before closing. These cleaners play a vital role in L.A.T.D in that they are the persons keeping the studio clean and sanitary.
Sources of Capital
A total of $800,000 will be needed to establish the business. $400,000 will go towards purchasing fixed capital and $300,000 to working capital. The sum of money will be obtained through a loan from the National Commercial Bank (N.C.B). The $500,000 will be used to purchase fixed capital for L.AT.D such as: computers, furniture, an entertainment system, a point of sales machine etc, these equipment will be purchased from Courts Jamaica Ltd where we can get everything needed at a suitable price fitting to the fixed budget. The $300,000 would be used to purchase working capital such as tattoo needles, grips, tips, tattoo machines, tattoo power supply, tattoo removal equipment, etc. These products will be purchased from www.lightinthebox.com, also workers salaries will be deducted from this for the first three months.
Role of the Entrepreneur
An entrepreneur is a person who coordinates the factors of production efficiently to make a profit. As an entrepreneur I have many roles in L.AT.D, one such role would be that I have to work additional hours to make sure that the business gets off to a good start and to address any unforeseen problems that L.AT.D will face at the early stages of entering the market. As an entrepreneur I have to set short and long term goals for the business and the employees to achieve and to set rules and regulations in place for the employees to abide by. The entrepreneur also has to make sure that the workers are adequately equipped with their necessary tools to carry out their duties both effectively and efficiently. Most importantly the business is just getting off the ground so valuable time must be dedicated to hard work and this may lead to the downfall in workers attitude to complete their given tasks so it’s the entrepreneur’s job to find ways to encourage workers in these dire times, to make sure that they are motivated to do their best by giving incentives such as bonuses etc.
Types of Production
L.AT.D is a tertiary industry; this is so because we at L.AT.D provide customers with a service. The business will be opened from 9am-7pm on Monday-Saturdays, on Sundays from 12pm-6pm. L.AT.D will be offering a (15%) fifteen percent discount to all customers who get a tattoo on the first and last Saturday of every month, also a (10%) ten percent discount will be rewarded to any returning customer who got a tattoo at L.AT.D, this means that returning customers will qualify to get a (25%) discount if they get a tattoo on the first and last Saturday of any month. Levels of Production
L.AT.D at its evolving point will only look to provide tattoo services for the domestic market; mainly the corporate area, Kingston and the surrounding vicinity. L.AT.D will also take into account that the area that they are located in is a tourist hub with all the clubs and tourist attractions and will do tattoos at a discounted price for tourists.
Quality Control Measures
L.AT.D will always look to maintain a high quality standard when delivering our services. A measure that L.AT.D will use to make sure that their standards is the best is the purchasing of supplies from distinguished tattoo suppliers and when transactions are made from this supplier the goods will be properly inspected. Additionally, as a certified tattoo designer I would walk around the tattoo studio from time to time and assess the tattoo designers to make sure that they are carrying out the service to the best of their capabilities because when the service is finished, the customers should have a feeling of satisfaction and not to feel a sense of regret when they visit our tattoo studio but rather want to recommend L.AT.D to friends, family members and loved ones.
Use of Technology
Our world is currently evolving around technology and it only seems fit if L.AT.D follows that trend and transform along with the world in this technological revolution. Our tattoo designers at L.AT.D will be designing tattoos with the aid of a computer, already installed with designing software to style and shape different tattoo designs fitting to the personalities of our clients and also to their liking, this will also make their work load a little less. An entertainment system will also be installed in the tattoo studio; a stereo for listening music, a television with video games to keep the minds of our clients occupied and also a fridge for refreshment, this entertainment system will enhance the business in that it will keep our clients busy when they are waiting to get their services done.
L.AT.D would have a backward and forward linkage present in the business. There would be a backward linkage in that we depend on www.lightinthebox.com to supply our needles, tips, grips, inks, machines etc. This linkage would benefit the business in that L.AT.D will gain reputation from shopping at this website because it is well known for its genuine services in the tattoo industry. The forward linkage would be L.AT.D providing the service to the clients. This would benefit L.AT.D in that it makes profit for the business. Potential for Growth L.AT.D will be looking to expand internally and externally within a time span of five years. Internal growth in that once enough profits are made, branches will be opening up island wide, this would have a major effect on L.AT.D in that more profits will be made and our reputation as a tattoo company will skyrocket. A mobile service will also be put in place called ‘L.AT.D road style’; this would be a van that will drive around the country equipped with tattoo artists and their equipment that will provide tattoo services for customers in various locations across the country, this will expand our fan base tremendously. In a span of fifteen years of successful business L.AT.D will look to expand externally i.e. expand overseas, doing this will provide jobs for younger aspiring tattoo designers, strengthening our fan base,gaining reputation for the business, contribute to the economical growth of Jamaica and make profits for the owner.
Government regulations are important to L.AT.D because it shows that the company is legal and registered with the government and is a law abiding business of the country. L.AT.D has a backward linkage to www.lightinthebox.com where we order tattoo supplies, these supplies has to pass through customs and we have to pay a fee to clear these supplies when they arrive in the country, this show that L.AT.D is not acquiring supplies overseas illegally. On the other hand the government has a limit on the amount of items we can import into the country so that will have a negative effect on L.AT.D because the limited amount of supplies may run out easily. L.AT.D also pays taxes to the government which has a positive impact on the business because it shows that we are registered with the government, L.AT.D also will conform to the laws, some of which may include that workers are to be paid overtime for their services which will have a positive impact on the business because it shows that we at L.AT.D are not condoning in illegal activities such as letting employees work overtime without payment.
All designs done by our tattoo artists are 100% original. L.AT.D will be known for its genuineness among its customers, with this being accomplished it will give L.AT.D a boost in growth in the local tattoo industry. In times of a recession many tattoo supplies are hard to come by, even when this is so L.AT.D will never substitute the original supplies that are needed to complete the services, by doing such an act and by sticking to our values and morals will surely make customers give L.AT.D a positive review among friends, family etc. Many diseases are transmitted through contact of blood; L.AT.D will properly dispose of needles and inks as soon as a client has finish getting their service done, making sure that customers have a positive say about our environment at L.AT.D.
Name: Leighton Stevens
Teacher: Miss. Jackson
Subject: Principles of Business
Cite this Business Plan For the Founding of a Tattoo Company
Business Plan For the Founding of a Tattoo Company. (2016, Aug 17). Retrieved from https://graduateway.com/sample-pob-sba/