Business Plan for Shopping Trolleys Ltd.

Shopping Trolleys Ltd. Name: Shane Mc Donald Student Number: 113511517

Shopping Trolleys Ltd. Name: Shane Mc Donald Student Number: 113511517

Table of Contents:

1. Executive Summary 2

2. Description Of Business 4

I. Background of company

II. Idea Generation

III. Swot Analysis

3. Market Strategy 6

I. Marketing Mix

II. Target Market

III. Competition

IV. Projected Market Share 7

4. Sales Strategy 8

I. Cost of Production

II. Competitors Price

III. Consumer Perception

IV. Legal Regulations

5. Research and Development 9

6. Staffing and Operation 10

I. Organisation Structure

II. Manufacturing

7. Health and Safety 11

I. Safety measures 11

II. Ethics to stakeholders 12

III. Advantage of being ethical 13

IV. Environmentally conscious business 14

8. 3 year Financial Projections 15

I. Projected financial plan after year 1 15

II. Projected financial plan after year 2 16

III. Projected financial plan after year 3 17

9. Funding Requirements 18

1. Executive Summary:

Purpose of business plan:

The purpose of this Business plan is for the company Shopping Trolleys Ltd. to receive € 300,000 form investors for a 10% share in the business.

Business Description:

The company has four shareholders and the business premise is located in a business park known as Dublin’s Business Park in Co. Dublin. The business hires eight full time and four part time staff. It hopes to hire more employees within the next few years. The shopping trolleys produced by Shopping Trolleys Ltd. are extremely unique. As they are the first shopping trolley to contain a calculator, a mobile phone charger and a scanner.

Market Analysis:

These appliances were added to the traditional shopping trolley after a consumer survey which was conducted in June 2013. Shoppers were concerned about issues regarding the weekly shop. These issues included not knowing the cost of the shopping until at the checkout. Customers were worried that their phone battery would die while doing the weekly shop. They also felt unnecessary time was wasted unloading and reloading goods on the conveyor belt. Therefore, Shopping Trolleys Ltd. produced a product that met the demand of shoppers.

Pricing Strategy:

The company uses the Price Skimming Strategy. It charges a high price for the trolleys until other companies will enter the market. Shopping Trolleys Ltd charge €125 per shopping trolley. The company’s Sales Representatives travel to shopping centres trying to persuade them to purchase the trolleys.

Market Share predictions:

For the first few years of operation, it is hoped that Shopping Trolleys Ltd. will not face competition in the market. Currently, it occupies 100 % of the market. When competitors do appear in the market, it aims to occupy 80 % of the Irish market. If the company does expand into Europe it hopes to control 70 % of the market and if the business becomes a global company it aims to occupy more than 50 % of the market. The company believes it can achieve such figures for the market share as it is focused primarily on the consumers’ needs and it repairs damaged trolleys free of charge.

Research and Development:

Surveys, Feasibility study, prototype development and test marketing was conducted prior to the launch of the product. These processes were done to reduce the risk of failure of the product. Therefore, Shopping Trolleys Ltd is fairly confident in the success of their business as it received positive comments from consumers in the test marketing phase.

Management Structure:

Shopping Trolleys Ltd operates under a Functional Organisation Structure. There are eight full time and four part time employees. There is one Managing Director who supervises the Marketing, Finance, Production and the Human Resource Directors. They in turn supervise the Sales Representative, Accountant and Factory Operators.

3 year financial projections:

Year 1

Year 2

Year 3

Sales

€ 625,000

€ 3,125,000

€ 12,500,000

Cost

€

€

€

Profit

€ 11,500

€ 502,750

€ 5,450,000

Dividend

€ 2,875

€ 125,688

€ 1,362,500

Funding Requirements:

To purchase the premises, equipment and stock Shopping Trolleys Ltd. required € 1.5 million. This was funded by the shareholders who contributed 1 million, while the business also received a loan from AIB of €500,000 which it hopes to repay within three years. Each shareholder owns 25 % of the business so capital is shared equally.

Shareholders information:

· Shane Mc Donald, Masters in Process and Chemical Engineering

· John Murphy, Managing director in Dell Computers

· Sean Mc Carthy, Production Manager at Dairy gold

· Conor Long, Owner of Long’s Accountant firm

Recommendations:

It is recommended that Shopping Trolleys Ltd. does not expand into European if the product is not a success in Ireland. They must be receiving healthy profits each year for them to even consider expanding their business into the European market.

It is also recommended that the Shopping Trolleys Ltd. hire employees who have a proven track record in relation to business expertise.

2. Company Description:

Shopping Trolleys Ltd. was established on the 1st February 2014 by its four shareholders.

Company’s Shareholders:

Each shareholder has a 25 % share of the business. The names of the shareholders are Shane Mc Donald, John Murphy, Sean Mc Carthy and Conor Long. All the shareholders have previous business expertise. Shane Mc Donald and Sean Mc Carthy have a lot of international expertise having worked abroad as managing directors in transnational companies. John Murphy and Conor Long have particular business expertise in production and finance respectively. However, this is their first business venture together.

Contact Details:

Shopping Trolleys Ltd. premises is located on the outskirts of Co. Dublin in a business park known as Dublin’s Business Park. The company’s address is 1 Dublin’s Business Park, Swords, Dublin 6. The company can be contacted by phone on 021 - 4894215 or by email on www.ShoppingTrolleysLtd@hotmail.ie for any further information.

Idea Generation:

After a large field research process where individuals were surveyed in regard to what they would improve about the weekly shop. The data collected from the surveys conveyed that shoppers were worried about not knowing the cost of their shopping, they felt time was wasted and shoppers were worried their phone battery would run out.

After collaborating all the concerns, the modern shopping trolley was produced which contains a calculator, a scanner and a mobile phone charger. Individuals using these trolleys are no longer worried about the price of their shopping as the calculator notifies them of their balance immediately after an item is placed into the trolley. Items must be scanned before being placed into the trolley. This is done by the scanner attached to the trolley. The trolley has weighted sensors so if an item is placed into the trolley and not scanned an alarm will signal. This is done to reduce stealing of items in the store. Finally, a mobile phone charger is also attached to the trolley so consumers can charge their phone while they do their weekly shop. Mobile phones are at the epicentre of today’s world. The phone charger will be powered by electrical energy, as kinetic energy is created when individuals push the trolleys around the supermarket. Energy cannot be created or destroyed, but it can change from one form to another. This is what is done with regard to the shopping trolley as kinetic energy is changed to electric energy which is used to power the mobile phone charger. As iPhones have a large market share in the mobile phone business, the trolleys will contain an iPhone charger lead. However, as not everyone has an iPhone another port is present where the individuals can plug in their cables to charge their phones.

Swot Analysis:

SWOT analysis was conducted by Shopping Trolleys Ltd. to identify its strengths, weaknesses, opportunities and threats that face it. Shopping Trolleys Ltd. believe that its strengths are up to date machines, excellent staff, a product chosen by the consumers and the only producers of the product in the world. The company’s weakness is that it will find it difficult to expand into the European Market. The company has the opportunity to expand to Europe and then the global market. It is aimed that Shopping Trolleys Ltd. will achieve higher sales and profits by expanding into the European and global markets. Shopping Trolleys Ltd. will face the threat of competitors shortly after the product is launched into the market. Other companies will appear and will be in direct competition with the business. This threat has the potential to shut down the business.

Product:

The product is a modern shopping trolley which contains a calculator, a mobile phone charger and a scanner. It hopes to replace the traditional shopping trolley that is currently present in shopping centres around the world today.

Business Suppliers:

The business’s suppliers are Stainless Steel Co-op which is located in the same Business estate as Shopping Trolleys Ltd. The company has chosen Stainless Steel co-op as their suppliers as they will pay very little in transportation costs between the two companies. Stainless Steel Co-op has been in operation for the past 20 years and they are recognised for their high quality stainless steel. Shopping Trolleys Ltd. receives the stainless steel as metal slabs, the equipment in their premises takes the stainless steel and reshapes it into a shopping trolley. Shopping Trolleys Ltd also receives wheels from Stainless Steel co-op. Another machine purchased by the business connects the wheels to the trolley. Another supplier to the business is Apple, who supplies the business with an Apple iPhone charger. An electrical company known as Business Electric provides Shopping Trolleys Ltd. with the calculators and weighted sensors. These have been specially made as to fit perfectly into the shopping trolleys. These are fitted by the employees in Shopping Trolleys Ltd.

Operational Structure:

The company is a private limited company which is advantageous to the shareholders. They have limited liability, this means if the company goes bankrupt and owes a lot of money, the shareholders are not personally liable to repay the loans. It is easier to raise capital as four people are putting money into the business. The company also pays less tax on their profits than any other business organisation. After holding the business’s first statutory meeting, each shareholder received their share certificate, showing that each has a 25% share in the business. The shareholders also elected its board of directors to run the company. These are Ryan O Sullivan, Thomas Ryan and Patrick O Connell. Each shareholder is informed of the day to day running of the business by its board of directors.

3. Market Analysis:

Product:

The product is a modern shopping trolley which contains a calculator, a mobile phone charger and a scanner. It hopes to replace the traditional shopping trolley that is currently present in shopping centres around the world today.

Price:

At present Shopping Trolleys Ltd have no competitors in the market. They are the only business in the world that produces such a product. However, as the retail industry continues to grow in Ireland, they expect competitors to enter the market within the next few years. Therefore, the product charges consumers a high price (€ 125) for the shopping trolleys using the pricing strategy known as price skimming. This pricing strategy is done as the company is trying to recoup all the money it spent in the Research and Development phase. It aims to receive a good return on its investment so it can expand into Europe and then the global market. However, once competitors enter the market the price of the product must be reduced in order for the company to survive and maintain sales. As Shopping Trolleys Ltd. was the first to produce the product it is hoped that consumers will continue to do business with them even after competitors have entered the market.

Promotion:

The business promotes its product in the magazine “Centres Essential” which is supplied to all shopping centres around Ireland. This costs the company approximately 5,000 euro and it will appear in the monthly magazine. Shopping Trolleys Ltd. has secured a place in the shopping fair which is held annually. This fair is attended by every shopping centre representative in Ireland. Therefore, this would be an ideal time to launch the company’s product. There is also a European shopping fair that the company hopes to be present at in England after its third year of operation. Advertisements will also appear on television screens showing shoppers the new shopping trolleys.

Target Market:

In Ireland, Shopping Trolleys Ltd. main customers are Dunnes Stores, Tesco, Aldi, Lidl, Marks and Spenser and Supervalu. On average each of these shopping centres requires approximately 200 trolleys. Therefore, their sales representatives will travel to each of their main consumer’s headquarters in Ireland to try and persuade them to purchase the shopping trolleys. Shopping Trolleys Ltd. will also have a website called “www. Shopping Trolleys Ltd.ie” where consumers can visit and arrange orders online.

Competitors:

When competitors do enter the market Shopping Trolleys Ltd. believes it can defend against them by charging a lower price for the product then their competitors. As they have already being in the market for quite a while, it is hoped they have established good relationships with their consumers. They aim to do this by replacing products that were damaged free of charge. The business also hopes to be socially responsible which means that it treats all its stakeholders fairly and honestly. Socially responsible businesses produce products to an extremely high quality and their product has been advertised in a legal, honest and responsible way. Therefore, consumers are attracted to these types of businesses whose ethics and social responsibility programmes they agree with.

Projected Market Share:

For the first few years of production, Shopping Trolleys Ltd. will have the entire market to themselves. This means it will control 100% of the market. However, when competitors become present in the market it is estimated that the company market share will reduce. However, it is aimed that Shopping Trolleys Ltd. will still occupy more than 80% of the market share. When Shopping Trolleys Ltd. has enough money it will expand into the European market where it hopes to occupy more than 70 % of the market. If this is achieved it will then expand into the global market where it is aimed to occupy more than 50 % of the market share. This expansion is done to diversify as they don’t want to become too dependent on one market. These are assumptions based on the shopping trolleys being an extreme success and that another company does not produce a more advanced product.

4. Sales Strategy:

There were many factors that were considered in order to determine what price Shopping Trolleys Ltd. would charge for their shopping trolleys. They chose to charge € 125 after considering the following factors.

Cost of Production:

It was vital that Shopping Trolleys Ltd. charged a price for the product that was at least equal to the total cost of making and selling the product. Each shopping trolley cost approximately € 70 to produce.

Competitors Prices:

When competitors enter the market with their version of the product, it is at this stage where Shopping Trolleys Ltd. will reduce the price of the product to maintain its sales and profit. It will reduce its price to € 115.

Consumers Perception:

While conducting the surveys each shopping centre was asked how much they currently paid for the shopping trolley. On average one trolley cost the shopping centre € 100.

Legal Regulations:

The Irish government set the maximum price of the product to be € 150 while the minimum price of the product was set to be € 100.

5. Research and Development:

Shopping Trolleys Ltd. is a relatively new business as this is the first product it has produced. The company has four full time managers in the business. They are reasonably confident with regard to its future as in Ireland it is the only business that produces this product. Their future sales projections portray the company’s confidence as each year they hope to be in profit. They also hope to expand their business each year and after three years of production the business hopes to expand into the European market.

A considerable amount of money and time was spent in the Research and Development phase of this product. The figure is in the region of € 200,000 over a two year period. This money was spent on developing prototypes, paying wages of accountants and surveyors so when the product was launched into the market it would not be a failure.

Product Process:

Surveys were conducted in all of Ireland’s main shopping centres. Shoppers were asked to fill in a short survey regarding their concerns about shopping trolleys and what they would improve about the weekly shop. A feasibility study was conducted investigating whether it was actually possible for Shopping Trolleys Ltd. to produce the product and make a decent return. All the data collected from the surveys were collaborated and many prototypes were designed using Computer Aided Design software in order to produce the perfect product that satisfied the consumers concerns. Test Marketing was launched in three shopping centres around Ireland. These shopping centres included Dundrum in Dublin, Mahon point shopping centre in Cork and the Cresent shopping centre in Limerick. The trolleys received a positive feedback from each shopping centre and this lead to the full scale production of the product and its launch. All these stages were required to make sure that the product would be a success when it appeared in the market.

6. Staffing and Operations:

Shopping Trolleys Ltd. operates under a Functional Organisational Structure. The Managing Director is in charge of the day to day running of the business. The Managing Director will supervise the Marketing, Finance, Production and the Human Resource Directors.

Functional Organisational Structure:

Managing Director

Production Director

Human Resource Director

Finance Director

Marketing Director

Factory Operators

Employees

Accountant

Sales Representative

Expected Employees:

Shopping Trolleys Ltd. hires 8 full time and 4 part time employees. Each part time employee receives a wage of € 20,000 while each full time employee receives € 40,000 annually. It is hoped in the next few years of operation the business will require more employees due to the increasing demand for the product. This will have a positive effect on the community. More people will be in employment which will improve the economy and standard of living to individuals living in close proximity to the business.

Manufacturing:

As Shopping Trolleys Ltd. has only recently been founded the equipment that is used in the company is relatively new. It operates under batch production where a certain amount of trolleys are produced at a given time.

The machines used in the company are operated under the manufacturing software known as Computer Aided Manufacture (CAM). This means that each trolley is manufactured to an extremely high standard. The company will also apply for an ISO 9000 Certification. This will make sure that the qualities of the products produced are internationally recognised.

Expansion of the business:

In the second year of production the company hopes to expand its premises. There is two acres around the premises where expansion can occur. With the expansion of the business it will also require more employees.

7. Health and Safety:

Health and safety is extremely important to Shopping Trolleys Ltd. Therefore, it is crucial that the company follows the following business practices to prevent an accident occurring.

Training:

Shopping Trolleys Ltd. is training all of its employees what to do if an accident does occur. The training will cover a first aid course. Shopping Trolleys Ltd. receives stainless steel in a block form and uses specialised equipment to reshape the steel into the shape of a shopping trolley. This can be hazardous as very high temperatures are required to reshape the stainless steel. Operators are required to wear protective clothing such as gloves, safety glasses, safety helmets and non-flammable materials. A factory shut off alarm is also located in the factory so if an accident does occur this device can be pressed which will shut off all machines.

Location of buildings:

The majority of the business’s employees will be working in the offices which are located a safe distance away from the main manufacturing area. This is done as if a fire does occur it is hoped that the fire will be extinguished before it reaches the offices. Thus this will save countless amounts of lives.

Quality Standard:

To make sure that Shopping Trolleys Ltd. produced the product to the highest quality standard possible it applied for the ISO 9000 award. This is an internationally recognised award that is given to businesses that produce their products to the highest quality possible. Shopping Trolleys Ltd. represented body is known as IBEC. This abbreviation stands for Irish Business and Employers’ Confederation.

Ethical to community:

Shopping Trolleys Ltd. is ethnical to the community as all of its employees and suppliers are located within a 5 km radius of the factory. Its local suppliers are Stainless Steel Co-op, Apple Computers and Electric Group. Shopping Trolleys Ltd. has organised events within the local community and is providing sponsorship to local teams. The company protects the local environment by recycling as much waste as possible. It also aims to reduce their Carbon Footprint each year..

Ethical to employees:

This business is ethnical to its employees as it provides them with a very attractive salary and extremely high working conditions.

Ethical to shareholders:

It is ethical to its shareholders by providing them with honest financial information regarding the company each year and by giving them a reasonable dividend.

Ethical to government:

The company is also ethical to the government. The government provided the business with a starting grant to the business, it improved the infrastructure of the local area and it lowered the tax the company will pay to them. Therefore, Shopping Trolleys Ltd. has the responsibility to the government to obey all the laws of the country and to pay all its taxes on full and on time. The company has already obeyed the government with respect to the price of the shopping trolleys. They set the maximum price allowed to charge to be € 150 while the minimum cost to be € 100 per trolley. The company charges € 125 for each trolley.

It is extremely important that Shopping Trolleys Ltd is ethical to all its Stakeholders. There are many advantageous to the company of being socially responsible.

Consumers:

Consumers will like the business for being socially responsible. Consumers care about the environment and about being socially responsible and will buy from Shopping Trolleys Ltd.

Employees:

The company will find it easier to recruit and keep workers. This is because employees like to work for businesses that are socially responsible.

Investors:

The business will also receive offers from investors if they are socially responsible. Investors don’t want their capital funding harmful or illegal activities.

Save money in the long run:

If the business behaves properly no one has any reason to sue in the future for bad business practices.

Shopping Trolleys Ltd. hopes to become an environmentally conscious business by taking the following measures.

Sensitive to the Environment:

It will minimise waste and pollution by reducing, reusing and recycling. The company’s employees will be asked to reduce its waste by photocopying on both sides of the paper, sending e-mails instead of memos, using rechargeable batteries and storing data on computers rather than printing it. The company will reuse paper clips, rubber bands and it will give its employees ceramic mugs which can be reused. It also aims to recycle as much waste as possible.

Honest about Environmental Issues:

If the business has an industrial accident which will affect the local habitat it will tell the appropriate authorises immediately.

Open to new Ideas:

It will attend waste workshops and waste seminars that are run each month by the local community. This will be done so the business will be able to learn how to manage its waste.

Environmentally Aware:

It will conduct regular audits to assess the impact the business is having on the environment. It will then take the necessary steps that are required to reduce the harmful effects the business has on the environment.

Consult Others:

It will communicate with all the interested parties before it makes any decision that may affect the environment.

8. Three Year Financial Projections:

Projected financial plan after year 1:

Sales:

It hoped that it will produce 5,000 trolleys for purchase. Shopping Trolleys Ltd. main customers at this stage will be Londis, Centra,Spar and Gala who are retail shops on a minor scale. Shopping Trolleys Ltd hopes to make 625,000 euro.

Cost:

The company must repay a certain percentage of their loan of € 500,000. As they aim to repay the loan within 3 years approximately €170,000 will be paid by the business to AIB after the first year. The company will employ eight full time employees each on a wage of € 40,000. This amounts to € 320,000. They also have four part time employees who are on a wage of € 20,000. This amounts to € 80,000. Also the cost of running the business such as electricity and transportation cost will cost the business € 7,000. The company aims to give € 1,000 to the local community. It will pay taxes of € 10,000. Finally, the company must pay € 20,000 to its suppliers.

Profit:

This leaves the company in a profit of €11,500.

Dividend:

Each shareholder will receive approximately € 2,875.

Sales

€ 625,000

Costs

Retained Earnings

€ 5,500

Loan Repayments

€ 170,000

Suppliers

€ 20,000

Wages

€ 400,000

Electricity

€ 2,000

Community

€ 1,000

Taxes

€ 10,000

Transportation Cost

€ 5,000

Profit

€ 11,500

Shareholder (each)

€ 2,875

Projected financial plan after year 2:

Sales:

Within two years of operation Shopping Trolleys Ltd. hopes to have sold over 25,000 products to its consumers and hopes to be selling the products to Ireland’s major supermarkets such as Dunnes, Tesco, SUPERVALU, Aldi and Lidl. If it manages to sell all of its estimated products Shopping Trolleys Ltd. has the potential to make € 3,125,000.

Cost:

The company hopes to produce 25,000 trolleys it will need to expand which is predicted to cost the business € 1 million. With its expansion it will require approximately thirteen more employees five full time and nine part time staff. This means that the company will be hiring 13 full time staff each on a wage of € 40,000, which amounts to € 520,000. It will also hire 13 part time staff on a wage of € 20,000, which totals € 260,000. The company will pay € 780,000 in wages. Electricity costs and its transportation costs will increase to € 10,000. The business hopes to pay approximately € 200,000 to AIB. It will put back € 57,250 into the business. The company aims to give € 5,000 to the local community. It will also have to pay €500,000 in taxes to the government.

Profit:

After deducting these expenses the company hopes to be in profit of € 502,750.

Dividend:

Each shareholder will be hoping to receive € 125,688.

Sales

€ 3,125,000

Costs

5 % put back into business

€ 57,250

Loan Repayments

€ 200,000

Suppliers

€ 60,000

Wages

€ 780,000

Electricity

€ 10,000

Transportation Cost

€ 10,000

Community

€ 5,000

Taxes

€ 500,000

Expansion

€ 1,000,000

Profit

€ 502,750

Shareholder (each)

€ 125,688

Projected financial plan after year 3:

Sales:

Shopping Trolleys Ltd. hopes to expand outside Ireland into Europe and it is estimated that with the continual expansion of the business that over 100,000 products will be sold. If all these products are sold Shopping Trolleys Ltd. could make approximately 12,500,000 euro.

Cost:

With its continual expansion the company will need approximately 10 more full time and part time employees. Therefore, the company will be hiring 23 full time and part time employees. Each part time employee will be on an annual wage of € 40,000, which will amount to € 920,000. While each part time employee will earns € 20,000 which will amount to € 460,000. The company will in total spend approximately € 1,380,000 on wages. The Company hopes to have a head office. This office hopes to be located in Dublin city along the docklands and it is estimated the office will cost the company € 2 million. The company’s electricity bill will increase to € 20,000. The company aims to buy more vehicles which results in transportation costs amounting to € 1 million. The company will have to pay approximately € 1 million to its suppliers. The company also aims to give € 10,000 to the local community. It will also have to pay approximately € 1 million to the government in taxes. The loan repayment aims to be repaid in full by the third year so the business must pay € 300,000 to AIB for the loan to be cleared.

Profit:

The company hopes to make a profit of € 5,450,000.

Dividend:

The shareholders will receive approximately € 1,362,500 each in dividend.

Sales

€ 12,500,000

Costs

5 % put back into business

€ 340,000

Loan Repayments

€ 300,000

Suppliers

€ 1,000,000

Wages

€ 1,380,000

Electricity

€ 20,000

Transportation Cost

€ 1,000,000

Taxes

€ 1,000,000

Community

€ 10,000

Office

€ 2,000,000

Profit

€ 5,450,000

Shareholder (each)

€ 1,362,500

9. Funding Requirements:

The company has spent € 1.5 million on purchasing the equipment, premises and stock. The equipment required such as machines cost the company € 200,000 the premises was purchased for € 750,000 and the stock cost the company € 100,000. The company also received a medium term loan from AIB to the value of approximately € 500,000 euro. The medium term loan has an annual interest rate of 5% and the bank expects the loan to be repaid in full in five years’ time. However Shopping Trolley Ltd. expects their product to be a success. Therefore, they believe that the loan can be repaid in full within three years which has the potential to save the business thousands of euros. If the company does repay the loan within the three years it will look very good if it apply for another loan from a financial institution in the future.

Expansion:

The company hopes to expand each year. After the first year of operation it aims to expand its premises which have been estimated to cost the company € 1 million. The cost of the expansion will be funded by its projected sales for year two. It also hopes to expand into the European market in its third year of production. The company hopes to locate its European headquarters in Dublin’s docklands. The office is predicted to cost the business € 2 million which also hopes to be funded by the company’s sales in the third year. Locating its head office in Dublin will be extremely beneficial as the transportation links are excellent. The company will pay less corporation tax on their profit. Dublin has many third level colleges therefore it has highly skilled staff.

Division of capital:

Each shareholder has a 25 % share Shopping Trolleys Ltd. Therefore, if the company achieves a profit each will receive an equal amount of capital. However, 10 % of the total profit each year will be set aside for retained earnings. It is vital that the business does reinvest capital back into the business as this money can then be used to expand the business by purchasing new equipment for the business or hiring more employees and using this money to pay their wages.

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