Finance

‘How will you justify commerciality? Where will you get funding?’

Start up

Minimal management was set up in 2018 by the 5 current partners. In an effort to reduce the company’s debts the founding partners each invested £40,000. The business used this initial £200,000 to buy its office space. This initial cost is more costly than renting the property however this will reduce the practices running costs throughout the years. This saving means as a practice we can provide the same high quality service at a lower cost to you the client.

Over 5 Years

As a company Minimal Management has big plans for the future. Our successful business is constantly looking at ways to improve and expand, and by 2025 we look to expand from our Nottingham based practice to other major cities in the UK. We have projected a steady growth in the company and our Profit & Loss predictions for the next 5 years show a strong income. This profit will be invested into the company to help set up other practices across the UK and Europe. With all the capital (in forms of property and profit) we aim to attract investment to help with our development.

‘What profits could you anticipate?’

We have anticipated the following profit over the next 5 years of our company.

Year 1 - £270,880 Profit

Year 2 - £573,400 Profit

Year 3 - £891,920 Profit

Year 4 - £986,560 Profit

Year 5 - £1,067,720 Profit

Full details and downloads can be found on our company website

http://mnmlmgmt.wix.com/group9

‘What will be the costs (capital and running costs)?’

Due to our company owning their property they will incur no rental costs. The cost of running the practice can be seen here.

‘What might be the implications of a continued recession?’

Effects of a recession

In any practice there is always uncertainty when it comes to the number of projects the practice will undertake at any one time. During times when the practice has a low work load Minimal Management will undertake a number of measures that are in the company’s best interests.

•      One of the first steps will be to encourage staff members to undertake their CPD.

•      Encourage staff members to take their holiday leave during these periods.

•      To improve the sales of the practice the marketing and advertising department will receive further finance in an effort to increase sales. This measure should attract more clients to practice.

•      In a recession that dramatically affects the practice and the building sector; further measures will be undertaken, such as placement staff will be made redundant.

Economic boom

During an economic boom the aim of the practice will be to maximise the number of projects undertaken. By increasing the number of projects that are undertaken it will in turn increase the partnerships profit.

The simplest method to increase the profit and production of the company will be to hire further staff. The staff chosen will be dependent on the practices requirements at the time of an economic boom.

Part of the 5 year plan of the practice is to expand the company so that it has offices in other major cities across the UK. The current plan aims to achieve this goal at the end of our 5 year plan, however should an economic boom take place before this time it will help accelerate the process and the company will have an opportunity to expand sooner than planned. On the other hand following a recession the aim of expanding within 5 years may become unrealistic.