NAME: RYAN SHANKAR SINGH

CANDIDATE NUMBER: 090067

CENTER NAME: ABRAM ZUIL SECONDARY SCHOOL
CENTER CODE: 090067
TERRITORY: GUYANA
SUBJECT: PRINCIPLES OF BUSINESS

TOPIC: ESTABLISHING A BUSINESS

TEACHER: SIR AFMAT
Acknowledgement
I am deeply indebted to a number of individuals for who by their support and encouragement
have contributed towards the success of this project. First and foremost, I must extend thanks to
Almighty God for giving me the knowledge, wisdom, the understanding and the skills necessary
to complete my School Based Assessment. I also wish to express a big thank you to my family
for providing all the necessary materials needed to complete this project, especially my sister for
taking time out her busy schedule to assist me in putting my project together. Also, a special
thank you to my subject teacher, Sir Afmat for guiding and helping me all throughout this
project. Finally, thanks to my colleagues for their support.
Table of Contents

TITLE PAGE
Description of the Business 1

Justification of Location 2

Selection of Appropriate Labour 3

Sources of Labour 4

Role of the Entrepreneur 5

Types of Production 6

Levels of Production 7

Quality Control Measures 8

Use of technology 9

Linkages 10

Potential for Growth 11

Government Regulation 12

Ethical Issues 13

Bibliography 14

Appendices 15,16
Description of the Business
The name of the business to be established will be the Singh’s Natural Juice Company, which
will be a partnership business. This establishment will commence business on the 14th July, 2013.
The business will entail converting fresh fruits into natural juices. It will also satisfy the crave for
natural juice by customers as well as, satisfy the nutritional values of people and it will also
create employment in the neighbourhood.

1
Justification of Location
The Singh’s Natural Juice Company will be located at Zorg-en-Vlygt on the Essequibo Coast.

Three reasons why the business will be located in Zorg-en-Vlygt are:

 The village is very populated.

 It is in the heart of the fruit producing area.
 Accessibility of human resource.

2
Selection of Appropriate Labour
Singh’s Natural Juice Company will be engaged in various processes so this firm will require
skilled, semi- skilled and unskilled employees. Labour proportion and selection will play a vital
role in the production and hence will be done meticulously.

This firm will be recruiting fifteen (15) employees.

Stated below is the proportion and selection of labour:

 Seven (7) unskilled employees will be employed in the production (manufacturing)

sector.
 Three (3) semi- skilled employees would include the production supervisors.
 Five (5) skilled employees will include general manager, quality control manager,
marketing and sales manager, purchasing manager and financial controller.

Reasons for employing the different skill workers:

Skilled:

 To help in managing finances.

 To assist in the company’s overall management.

Semi- Skilled:

 To supervise overall production.

 To supervise the employees when working.

Unskilled:

 Responsible for the manufacture process.

 Responsible for cleaning.

3
Sources of Capital
This is a very important factor of production and as such, the sources will be determined
respectively to facilitate the business.

Fixed Capital:

Singh’s Natural Juice Company would need a fixed capital of one million dollars ($1000000) for
investment purposes.

This one million dollars will be acquired through a loan from Republic Bank Limited, using the
business transport as security.

The fixed capital would be used to purchase the different machines needed (slicing, extracting)
as well as other materials needed for maintenance.

Working Capital:

A total of $400000:- will be needed as working capital for the Singh’s Natural Juice Company.
$200000:- will be acquired from the company’s chequing account with Republic Bank Limited;
whilst the other $200000:- will be acquired through remittances from abroad.

The working capital will be mainly used to cover finances such as workers’ wages, providing
training to employees, compensation for job related injuries and for maintaining safe working
conditions and equipment.

Summary of Capital:

Fixed Capital:

Loan $1000000:-

Working Capital:

Savings $200000:-
Remittances $200000:-

Total Capital $1400000:-

4
Role of the Entrepreneur
An entrepreneur is a person who initiates or finances new commercial enterprises. The
entrepreneur will undertake several responsibilities which will include:

 Risk bearing.
 Raising of finances for production.
 Combination of the factors of production in their correct proportion so that maximum
results will accrue to the business.

5
Types of Production
Singh’s Natural Juice Company will be involved in all three types of production. The collection
of fresh fruits (raw materials) from the environment will be considered as primary production.

Also, the company will be engaged in extracting the natural juices, process and package it. This
is referred to as secondary production.

Finally, Singh’s Natural Juice Company will also be providing a service whereby the packaged
juices will be sold to consumers. This involves tertiary production.

6
Levels of Production
This firm will be involved in domestic production or local production. In other words, Singh’s
Natural Juice Company will be using local inputs in order to produce natural juices which will be
sold on the local market to wholesalers and retailers countrywide.

7
Quality Control Measures
Singh’s Natural Juice Company will place a schedule specifically for spot check-ups so as to
ensure that the quality of the finished goods will be maintained and consumers will be fully
satisfied. The quality control manager will do spot check-ups weekly and the labourers will work
diligently towards achieving goods of high quality.

As a result of the weekly spot check-ups, it will ensure that customers are fully satisfied with the
products they purchase from Singh’s Natural Juice Company.

8
Use of technology
The use of technology will play a vital role in Singh’s Natural Juice Company. A specially
constructed machine will be used to wash, peel, slice, extract juices, fill and cap bottles as well
as label them. This technology will definitely aid in the quick processing of the juices to meet the
demands of customers.

Also, the use of a computer will be effective. Advanced software such as Microsoft Words,
Microsoft Excel and Microsoft Access will be used for the preparation of documents as well as
assist with accountancy.

Further, the use of the internet will aid in advertising and marketing the products produced by
Singh’s Natural Juice Company.

9
Linkages
Singh’s Natural Juice Company will be involved in the following linkages which will strengthen
several industries involved.

 Forward linkage which will be formed due to the production of fruit juices and which
will boost fruit cultivation in Zorg-en-Vlygt. Since the product of the fruit farmers will
become the raw material of Singh’s Natural Juice Company.
 Backward linkage which this firm will be involved in will result in the demand s for
sugar from Guysuco, electricity from G.P.L. and water from G.W.I. will lead to the
establishment of Singh’s Natural Juice Company.

10
Potential for Growth
Singh’s Natural Juice Company will try its utmost to expand and diversify from a small scale
production of fruit juices to a large scale production.

Internal factors that will contribute to the growth of the business are:

Singh’s Natural Juice Company plans to reinvest in employee development through education
and training as well as, the company plans to introduce a delivery service which would increase
its revenue.

External factors that will contribute to the growth of the business are:

Singh’s Company plans to establish several branches in Guyana and will work hand-in-hand
with the government to reduce unemployment. Further, it also plans on establishing its other
branches in densely populated areas.

Singh’s Natural Juice Company expects to increase its production and will work diligently
towards achieving this dream.

11
Government Regulation
This firm like any other will have to comply by the rules and regulation of the government and as
such, it is required that Singh’s Natural Juice Company must be licensed by the government to
operate before establishing this firm which would decrease the profits of the business and which
will enable the business to operate without any hinderances.

12
Ethical Issues
Singh’s Natural Juice Company will ensure that fair trading practices will be demonstrated and
practiced. This firm will not encourage fraudulence and will ensure that consumers are satisfied.
This firm will try its utmost not to be involved in black-marketing since this will affect
consumers significantly. Singh’s Natural Juice Company will also ensure that the products will
be tested for harmful chemicals by the Guyana National Bureau of Standards.

13
Bibliography

 Waterman L. Ivan and Ramsingh Dave: Principles of Business for Caribbean

Examination, Macmillan Caribbean Education Publishers, London, 1999.

14
 A forecast of Singh’s Natural Juice Company

for the next five years.

Years 2013 2014 2015 2016 2017

Sales 1000000 1500000 2000000 2500000 3000000

Gross Profit 700000 900000 1000000 1500000 2000000

Operating 300000 750000 460000 1000000 650000

Expenses
Profit before 400000 150000 540000 500000 1350000
tax

16