OUGD502: PPP- Taking care of business

We spent quite a while trying to figure out the costs which we would need to take into account when setting up the business:

Rebecca has previously done business and economics so this was incredibly helpful as she could explain quite a few different aspects that I didn't previously understand. 

I helped put together what needed to be bought in terms of a shopping list and prices but then Rebecca put together an organised table which makes the lists easier to understand:

We worked out how much we would need to charge for each item based on the profit we needed to make and also how we could cover the basic costs of making:

To be able to cover these costs we would need a start up loan to be able to set up our business and begin to sell products:

As the yearly profit would be £676.72 this would go towards paying for the loan over a longer length of time and also allowing us to create more artwork and sell more products based on the demands of customers. We found that when looking at the costs we would run this business as a smaller sideline company alongside what would be our regular job as this is something we wouldn't want to put all of our money into just in case it didn't work out. As we previously discussed with John a high percentage of smaller businesses fail in the first year but we hope we would not be one of them. But it is definitely the most sensible option to start small with a view to future plans and expanding slowly when we will eventually have a higher profit and then in turn be able to pay ourselves full wages instead of 30hrs each a month. 

Our business as stated previously is a Partnership agreement. This means as stated before we have agreed to have a 50/50 split on the business. However the items purchased individually would be taken into account such as a printer/ scanner as they are individual items instead of being purchased together. As a printer would be bought individually the other person must contribute money towards printing designs to be ready to be screen printed at West Yorkshire Print Workshop.