Analyzing Startup Finances & Stakeholder Decisions - B Moore Case

This report provides a financial analysis of a business startup, focusing on the steps required to start a decorating business and the impact of financial information on stakeholder decisions. It outlines key steps such as defining a business model, creating a business plan, researching competition, determining resource needs, addressing regulatory requirements, establishing industry contacts, and implementing marketing strategies. The report further examines how financial statements, including the income statement, influence decisions made by stakeholders such as management, shareholders, investors, and the government. A case study of B Moore is presented, including an income statement for the year ending 30th September 2021, and an analysis of the company's financial performance trends, particularly in the context of the COVID-19 pandemic.

RBT STRUCTURE

Table of Contents
RBT STRUCTURE.........................................................................................................................1
Table of Contents.............................................................................................................................2
Part A...............................................................................................................................................3
QUESTION 1..............................................................................................................................3
QUESTION 2..............................................................................................................................4
PART D...........................................................................................................................................5
REFERENCES................................................................................................................................6

Part A
QUESTION 1
Steps to start a business as a decorator:
1. Decide your business model: Do you want to set up a product driven business
wherein you will conceptualize the decoration as well as sell the necessary products or just a
consultancy firm involved in the conceptualization? Each model operate in a different setting and
you will need to talk with the people operating in both fields and get their perspectives on
pros/cons of both.
2. Create a business plan: Many founders don’t put in much time and effort into creating a
roadmap as it requires a lot of planning and premeditation; when you are starting out, it is
difficult but essential (Allen, 2020). Your plan should deliberate upon things like services you
are going to offer, who would be your target group/s of buyers, what all needs you would cater to
along with basic offering/s, how would you utilize the online channel, how would you match
your marketing efforts with the content your buyers consume etc.
3. Research the competition: find out what other businesses are specializing in your
segment, and how you are going to set apart yourself, whether in terms of design, quality, price,
after sales service etc.
4. Determine what all you need to get started: You would want to deliberate upon
various physical, financial as well as human requirements for starting the business. You need to
create a concrete plan with regards to location and space, investments, equipment/products and
their suppliers, hiring or availing services of professionals such as painters, designers, carpenters
etc.
5. Regulatory and legal requirements: You need to list down what all licenses and
registrations your business is subjected to in your jurisdiction, like tax authorities etc.
6. Making industry contacts: You will need to establish contacts with various parties
like suppliers. Find out businesses involved in the manufacturing or distribution of various
decorative products and equipment (Niyungeko, 2021). Along with that you would also need to
consider the terms offered by various suppliers in order to arrive at the best deal. Moreover, you
also need to contact with skilled carpenters, painters etc. and find out their charges for
decorators. At times they may also prove useful in becoming sources of new contracts for you.

7. Marketing: This is one of the most important steps in establishing a successful
business. Consider all of the possible channels of marketing. Start networking with professionals
like designers, real estate agents, architects as well as home furnishing businessmen who can
provide you with referrals. Have a listing of your business in local directory, as well as in online
and print versions of local newspapers and magazines and other publications. Create a website,
as well as a business page on Facebook where you would post pictures of your offerings.
Moreover, Twitter and Instagram should be used to show before and after shots of your work, to
build interest. Also create business cards, pamphlets, brochures to hand out to potential buyers,
and make sure to carry all of these when visiting an interested person.
QUESTION 2
The financial information support the decision-making process of various stakeholder.
The management of the company is highly influenced its decision-making with the use of
different financial statement include income statement, balance sheet, cash flow statement and
such like of financial record associated with the business venture. Marks and Spencer Company
is associated with the London Stock Exchange of which the financial records get influence with
the various financial record of the business venture (Torelli, Balluchi and Furlotti, 2020). The
shareholder of the company is another key stakeholder group that get influence against the
financial record of the business venture. The shareholder need to take decision about invest in the
business which get affected against the projection denote by the financial record of the company.
The shareholder of the company need to further take decision to sustain shares and also to
reinvest capital in the business based on the financial record depict by the statement. Investor is
another key stakeholder group associated with the business venture that get affected against the
financial record depict all different information (Hajek and Henriques, 2017). The investor of the
company need tp tale decision of putting capital into the business. This is highly influence with
the performance company project in its financial record. The government is also a key
stakeholder group effect the financial record. The government take decision of charging the tax
based on the information projected in the financial record of company. This has significantly
affect all different stakeholder decision-making.

PART D
a) Income Statement for B Moore for the year ending 30th September 2021
Particulars Amount £ Amount £
Sales less return inwards (95000 - 3500) 91500
Less: Cost of goods sold
Opening Stock 18000
Add: Purchases Less Return Outward (110000 - 720) 109280
Add: Carriage Inwards 890
Add: Wages and Salaries 14000
Less: Closing Stock (13000) (129170)
Gross profit (37670)
Less: Expenses
Carriage Outwards 500
Motor expenses 1400
Rent 7000
Telephone Charges 830
Insurance 1030
Office expenses 800
Sundry expenses 250 (11810)
Net profit (49480)
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021
Profit/Loss 55800 77100 85500 98400 87600 97200 112400 (65400) (49480)
With the emergence of pandemic in the year 2020, there seems a very poor performance
of almost all businesses and B Moore is no exception. Also, with the continuation of lockdown
due pandemic, the loss-making conditions continue to exist in the year 2021 but the amount of
loss has been reduced. Accordingly, for the year 2022, it can be said that there may be a loss but
it would expected to be lower than that of 2021 loss amount as the recovery phase has begun.

REFERENCES
Torelli, R., Balluchi, F. and Furlotti, K., 2020. The materiality assessment and stakeholder
engagement: A content analysis of sustainability reports. Corporate Social
Responsibility and Environmental Management. 27(2). pp.470-484.
Hajek, P. and Henriques, R., 2017. Mining corporate annual reports for intelligent detection of
financial statement fraud–A comparative study of machine learning.
Allen, C., 2020. Six Steps to Starting a Successful Business. Marriott Student Review, 3(4), p.7.
Niyungeko, A., 2021. Evaluating Starting a Business Indicators Innovation in the
World. Management & Economics Research Journal.
methods. Knowledge-Based Systems. 128. pp.139-152.