PROUSF43           Setting up a small business

Overview

This standard is about setting up a small soft furnishings business.

Before setting up your business you need to be clear what you hope to achieve from the business, how it will fit in with your lifestyle and that of your family, why you want to take on what may be a major change in your life, and if you will really enjoy the particular activity. You might be able to explore your idea on a short training course or “taster” day, to give you some basic, practical experience of your dream, to see if it is feasible for you.

It involves:

1.            deciding on activities that will give the most reward, whether financial or personal enjoyment

2.            deciding on location for the activities – this will be probably be your home, so you need to consider your family's needs as well

 

The standard is aimed at those working in soft furnishings.

 

Outcomes

Performance Criteria

You must be able to:      

1.            identify the ways you can legally operate as a self-employed individual or within a partnership

2.            assess the benefits of charitable or company registration and choose the appropriate status for your business

3.            assess formats in which to work that meets objectives for your business

4.            identify resources required to set up your business

5.            identify markets for your products

6.            identify suitable locations for the business

7.            estimate costs required to set up your business

8.            set fees for products and services you will provide to cover all resources and costs

9.            identify potential customers for your products and services

10.          create a marketing plan to reach potential customers

11.          source suppliers for materials you will need

12.          set up trade accounts with suppliers

13.          confirm business meets all legal requirements

14.          identify ongoing paperwork to be completed

15.          develop a business strategy and work plan to set up your business

16.          check the business meets all relevant health, safety and environmental requirements

17.          check the business meets insurance requirements

18.          set up workspaces following the business strategy and work plan

19.          confirm your products and services comply with current legal and safety requirements. 

Knowledge & Understanding

You need to know and understand:

1.            different types of legal status available and their advantages and disadvantages

2.            where to get specialist and reliable legal and business advice

3.            tax position for your business

4.            liabilities and insurances required

5.            insurance requirements for your business

6.            how to write a business strategy and work plan

7.            how to set up efficient filing systems

8.            equipment required for your business

9.            marketing methods to reach potential customers

10.          national and local laws and regulations that apply to your area of work

11.          information on law and regulation available and from which organisations’

12.          why it is important to use professional advice to find out about laws and regulations

13.          how to use free and paid for sources of advice