Executive Summary

1.     Business Type

The business type (legal entity) I have chosen is a sole trader is the simplest form of business organization.

2.     Aims and objectives

The overall aim of my firm is to be the market leader of online selling of mobile phones. I think this will be a very tricky aim however with good customer service and perseverance I can achieve this. To achieve this aim I will pursue the following objectives:

3.     Unique Selling Point

The organisation which I am establishing is a second hand mobile phone retailer, I intend to create a friendly, welcome and comfortable atmosphere which will encourage the customers to purchase from the website. My competition I will have will be from organisations such as UsedPhonesUK and Secondhand-Mobiles, what I have acknowledged from viewing their websites are that the simplicity is not a factor of their website.


 See More: http://ahmedc49795.blogspot.com/2011/09/1-type-of-business.html

1.      PESTLE analysis

·   A political subject which may affect my firm is the Ecological/environmental issues which a new government may implement. Take for example the growing concern for global warming the government may place restrictions on electricity usage.

·         A social factor which may affect my operation is the growth of the unemployment rate. The unemployment rise has left people without jobs and being more careful with their expenses, therefore the consumers may opt for second hand mobiles which I sell.

·         Technology is ever changing in this world especially in the mobile phone market where the industry is constantly evolving. My company will have to acknowledge this change and keep up to date with the change. Current mobile phone generation is at 4G which are charged approximately at £200+ for a new handset. This has opened many opportunities for me as the 3G handsets have depreciated in value therefore my target market are more able to purchase to the lower technical mobile phones.

·         Economic factors which affect my company is the tax increase due to change of political power. The income tax has increased and the nations which are low earners are still affected. The current economic status is that we are recovering from a recession, however the mobile phone market is not affected as mobile phones are considered to be necessity therefore the market is constantly growing.

4.      Estimated: potential profitability.

Gross profit = (TSR) Total Sales Revenue – cost of sales

Assume: Total Sales Revenue = £110,000 per year

Cost of sales = 10% of Sales Revenue

Number of customers = TSR / Revenue per sale

Therefore: Gross profit = £110,000 - £60,000 = £50,000

Net profit = Gross profit – Expenses

Assume: Expenses = 50% of Gross profit

Therefore: Net profit = £50,000 - £25,000 = £25,000