Try Scoring Runs (TSR) is a coaching programme designed to improve

children’s cricket skills through weekly coaching sessions. It was developed by

Kelly Evenson, an Ex-England cricket player. Kelly employs instructors who
deliver the programme using the sports hall facilities at schools across the
Worcestershire area.

Information:

Number of sports halls with cricket classes 5

Price per class per child £9
Number of classes per hall per week 14
Maximum number of children per class 8

Kelly set TSR up as a sole trader because she wanted to make the key business
decisions herself. Initially Kelly used a bank loan as her main source of finance
to buy bowling machines and other coaching aids. Kelly secured the loan
against her home which she owns.

Kelly would like to expand TSR. However, she is struggling to raise the finance
herself as her costs are still high. To help her manage financially Kelly has
arranged an overdraft on her business bank account. She relies on this to pay
employees if the business does not have enough cash at the end of the month.
Kelly has recently received a letter from the bank explaining that interest rates
on bank loans and overdrafts are going to increase.

Kelly is considering changing the legal structure of TSR from a sole trader to a
private limited company (Ltd). [9 marks]
 Advise Jade on whether this is a good idea.
 Give reasons for your answer.

I think that it would be a good idea for Kelly to become an LTD because as she is
struggling with finance she may have other workers that she has employed that
can help her out with some money and also if Kelly becomes an LTD she will
have Limited Liability so if she gets in debt they cant take her possessions but
one of the downsides may be that she has to fill out lots of forms and has to
apply to be an LTD which can be a long and hard process. Becoming an LTD
could also affect Kelly by not getting as much income because she doesn’t
receive all of the money because she has workers and employees to pay but
being an LTD may attract more customers gaining more profits. I personally feel
that TSR should become an LTD because it could really stretch Kellys business to
its full potential.

Structure
One point for becoming an LTD – it must be linked to the case.
One pint against becoming an LTD – it must be linked to the case
A final decision – should TSR become an LTD – you must justify your decision