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Establishing a Business



Registration Number:
Centre number:
Name of School: Mona High School
Territory: Jamaica
Year: May/June2017

Candidates Number: 3174470

Description of the Business
ALEM Wood Work and Joinery is a Sole Proprietorship owned by Annisa Lemonious. The Business will
sell a large variety of furniture which includes; dressers, bed side table, centre table, dining and more
.Our furniture’s are made from quality lumbers. There will be a maximum of sixteen workers. We offer

ALEM Wood Work and Joinery mission is to make a profit and provide customers with satisfying goods
at reasonable prices.
Justification of Location
ALEM Wood Work and joinery will be located at 35 Constant Spring Road, Kingston 10, St. Andrew,
Jamaica. I chose constant Spring Road as the location of my Business for the following reasons

 Furniture store will be located in Constant Spring Road because it’s usually busy and
many persons come there to shop.
 It would be easy access to marketing areas and other stores so I can purchase goods
necessary for production.
 An easy access in employing persons who tend to seek employment.
Sources of Fixed and Working Capital
Fixed capitals are assets that are kept for a long time and used many times in the production process. The
fixed capitals in this business are building, trucks, and other equipment. The money used for these came
from a loan of $20 million which I borrowed from Scotia Bank .By making profits I will use the money
and pay back the loan.

Working capital are stocks of material, goods and cash needed for the day to day running of the business.
The business was loaned $8,500,200.00 from the Jamaica National Bank to pay salaries and other
Role of the Entrepreneur
The roles of an entrepreneur are to combine new ideas and taking risk the time and money in operating
the business.
 Setting goals in which others are to follow.
 Organizing the resources for products to be manufactured.
 A risk bearer: taking big decision to make profits.
Selection of Appropriate Labor
ALEM Wood Work and Joinery have a maximum of two skilled workers and thirteen semi-skilled
workers .This includes a CEO, one Office Manager, one accountant, five builders, three sanders, two
sprays, one janitor and a security guard. The employed workers will provide the necessary required
services of them. Also workers are required because they put out the efforts.

The role and functions;

 The CEO Ms .Annisa Lemonious overseas that all production and services of ALEM
Wood Work and Joinery are flowing accordingly and also encounter in day to day sales
with clients.
 Office Manager he check to see that the inquired goods are in stock for production and a
weekly stock check is required as with face to face sales with clients that are `ordering
 The Accountant keeps up to date records of our daily transactions and she will also
collect payments from clients.
 The five builders will be in charge of the manufacture of the furniture.
 Three Sander ensure that all furniture have a smooth surface that are required.
 The spraying workers specify that all furniture’s are smoothly sand and ready to take on
spraying materials for e.g. sealer, tanner, compressor etc, that are enquired for the job .
 The Janitor is one of the most important people in the business because they ensure that
the area is clean and ready for production and the clients that are expected that day.
 The guard that checks individuals in and out of the firm, to check goods that is the
correct amount of good that is on the invoice that is delivery and the time log of the
Types of Production
ALEM Wood Word and Joinery will engage in Secondary and Tertiary Production.

Secondary Production involves taking the raw materials and converting them into finished or semi-
finished products.

The business will use raw materials such as maple, oak, mahogany etc and manufacturing them to make

Secondary Production convert raw materials obtained from the extraction industries into the desired
goods. Tertiary Production of the business will offer delivery services of our goods to customers.
Levels of Production
ALEM Wood Work and Joinery will engage in Domestic level of production which involves producing
goods and services not just for the individual, family or community but also for the local market. This
level does not involve import from foreign countries.
Quality Control Measures
ALEM Wood Work and Joinery will employ and inspector to come once a year to examine the
environment and check the machines to make sure that the products are high quality and also check
workers that they have on the right gears. We also employ a supervisor to monitor the workers in making
sure the products are well finished before selling it.

 Each sample of different woods will be sent to Bureau of Standards to check to make sure they
are in good condition and of the right standard.
 The furniture is also checked by the customer representatives to see if the discounts that are
promised to the customers have been given.
Use of Technology
ALEM Wood Work and Joinery will be using technology in various ways to enhance the efficiency of the
business by;

 The use of a cash register, this will track all sales made by the business. This could not take place
in the older days, because persons had no electronic device and had to use the one with ink only
“which took long to use”. This will ensure accuracy and speed.
 The use of a computer, this will help storing information, deadlines, and time schedules and this
will increase the speed of the business. Computers will have stored graphics of the designs so that
you have standard products.
ALEM Wood Work and Joinery will use backward linkage: This occurs when an industry has to depend
on another that is not directly related to it for services.

This will benefit us because it encourages local and regional economies as it foster economic ties since
more jobs are created. This means the company will make profits because of the discounts due to bulk
purchase and international spreads.
Government Regulations
ALEM Wood Work and Joinery must have certificate Register of Companies before the start of the
business operations .The Company uses a Certified of Registration and must be displayed appropriately at
the location. ALEM Wood Work and Joinery will also require getting a copyright license. ALEM Wood
Work and Joinery will pay income and co-operate tax.

In following the Government Regulations the business will be operating legally and persons will not
produce that will infringe on our brands.
Potential of Growth
ALEM Wood Work and Joinery can grow internally by employing more persons that are specialized in
skilled areas .We use new and improved machines, which increases production.

For external growth we will open new branches in expanding externally within public areas and this will
set more customers to purchase products. This business intends to have a maximum of 10 branches in the
next 4-6 years and this business will be well known overseas and the Caribbean.

Ethical Issues
ALEM Wood Work and Joinery will follow no path of misbehaviors that would cause the business in
losing sales or having a bad reputation .We ensure that all production are made in satisfying our
customers and in condition of use ALEM Wood Work and Joinery will ensure that the working
environment is clean, safe for customers and workers. We have overseen in making sure there are no
wrong doings in this Company and in the future they will patronize our business.

Beardshaw J (1992) ELB Economic a Student’s Guide

 Robinson K, Hamil S (2001), Principles of Business with SBA, Study Guide and Exercises,

 Robinson K(1999) CXC Ledger Series

Center Table

Bed Side Table