This assignment focuses on the arrangement for setting up a business in Cyprus, and the potential continental requirement necessary for running an off shore enterprise in that country. Consideration is given to set-up processes, image concepts, operational and financial aspect that will impact on the business.Show the process of setting up a business, using the example of Aristo Develops Company in Cyprus as a case study.Contents (Jump to)1. Introduction2. Potential Company Profile3. Products and Services4. Marketing5. Operations6. Financial Planning7. Conclusions8. Bibliography9. Appendices:-Appendix A: Entreprenuers Curriculum VitaeAppendix B: Legal and Taxation ConsiderationsAppendix C: Banking Matters1. INTRODUCTIONThis document is a reflective paper on the aspects of setting up a business in Cyprus, in which it offers some of the conceptual aspect of business planning, Cypriot regulations and aspect of how to financially plan for businesses. It draws on other established businesses and aspects of financial requirements that any entrepreneur would need to consider in some depth. Appendices are provided with some aspects noted in the paper.2. POTENTIAL COMPANY PROFILEThe business plan is written to reflect the aspirations of Cyprus Interiors as a new and vibrant company set up to provide excellence in interior design and architecture.Mission StatementThe mission of Cyprus Interiors is to assist clients in locating prime real estate properties, and through proven design and concepts technology provide the know how expertise to ensure that the properties are professionally finished and furnished to a level of superior quality and ultimate excellence that reflect the unique tastes of each clientCompany GoalsOur target is to provide a high and unique class of interior design service that meets the specific requirements of each client. In doing so:Source materials and suppliers that reflect the high standards of a professional interior designer;Offer a seamless service from initial consultation to expert finish through to ongoing maintenance and upgrading;Continually provide services that reflect new design technology, changes in concept, construction and client tastes;Engage staff, contractors and associates in continuing professional development that keeps the company at the edge of new and exciting developments in interior design.PotentialThe potential of the business will be reflected in the continuation of the new build era that is currently engaging Cyprus. Many new and exciting developments are planned and executed to reflect the growing trend in, holiday property, timeshare and professional residential dwellings.Similarly the ongoing and exciting dialogue with the European Union (EU) for greater integration also has extremely positive and exciting potential for professional interior design companies.The opportunity for diversity is also a clear indicator of the market trends across the property industry. Potentially, the company could move comfortably into professional letting, building and leisure facilities to which a small number of competitors are slowing becoming engaged (Aristo Developers 2008; Medina 2008).StrengthsThe company will be managed by a professional designer with a clear track record; British degree standard education; professional experience of customer service and related industries and a network of associations to professional businesses and associated that can engage with and through the company.The company will be incorporated under Cyprus, UK and wider EU legislation in order to ensure that its operational impact can be as fare reaching as possible for our potentially international client base.3. PRODUCTS AND SERVICESAs interior designers we will provide a full range of services. In that we will bring together a team of architects, planners, interior designers and graphic designers in our business. In doing so our services will maintain a professional seamless experience for our clients.We will recruit associates that have proven track records in their professional fields, with visible portfolios that carefully reflect the growing trends and experiences of our clients.This in itself will engage a collaborative integrated approach for our clients in which they will be guided through the seamless professional design of their project with a professional consultant who will project manage their requirements to a high level of standard and expertise.In doing so we will focus our interior design excellence with clear and professional note of our clients residential and commercial needs.Uniquely our competitive advantage will be in engaging the client collaboratively in each project, ensuring that the seamless nature of each clients design is professionally executed to a high standard using products and services that reflect their budget.Our costs will be competitive, in that we will take reflection of the market trends and in particular take note of our competitors but, uniquely, set our costs, to reflect the professional levels within the current commercial standing our industry.4. MARKETINGTo ensure the success of the company it has been imperative that some key research has been undertaken to consider the wider market, competitors and potential niche markets.The growth industry that interior design has become is reflected in the many larger companies that are now engaging in this aspect of property services. We have considered some of the larger companies currently successfully operating in the market place, many of which are after some considerable time in the market, diversifying to ensure maximum impact.Currently, we have four main competitors:Aristo Developers, who are in the main a property, Leisure Company that also, provides interior design services (Aristo 208)Medina A younger British company that builds, renovates and provides interior design concepts.Ampersand Interiors, again a British company that is engaged in providing furnishings and fittings into the Cyprian market.Scott Brownrigg again a British company, with a proven track record of renovation expertise for older buildings across a wide international portfolio.There are also a number of smaller companies that provide aspects of services and appear to have a returning client base for design services.Marketing ConceptsFrom engaging in market sampling it is apparent that most competitors are operating successfully though a network of building agents, developers and associated industries. Thereby engaging contracts through competitive tendering, carefully targeted sales forces and brochure campaigns.The smaller companies appear to work through advertising concepts, press articles and networking with smaller building contractors: plumbers, electricians, building maintenance etc.Customer Niche MarketTo ensure that the company engages customers attention it will be important to offer specific services that others either omit or do not provide. Therefore, it is apparent that the specific interior design focus needs to be customer focused, and offer unique designs that are not copied into other designs or properties. Thereby offering the customer their own product designed and integrated to their choices. Many of the competitors offer similar concepts, and copy designs over and over, thereby loosing the uniqueness aspect. Therefore, it is crucial that all marketing brochures reflect the unique and necessary nature of the client centred approach to our design and product packages.Pricing ConceptsOur services will engage a wide range of products that can be easily sourced, in some cases, freighted at low costs to our locations. Retaining a large volume of stock would not be economically viable and so a full range of professional brochures would be necessary to offer the client a range of choices.Each project would be prices according to the clients budget, and where necessary our professional expertise would offer advice and direction towards products that will support the clients needs and also be at a level of finish that reflects their product vision. However advise by PSYBT (2007) carefully notes that:Low price and good value is not the same thing. Dont think that if you drop your price, customers will come flocking to you. Instead, they might think you are cheap and nasty and avoid you.People should squeak (slightly) at your price. You can always lower your price by offering them a special discount, which will make them feel good.You dont want to win every customer. It is much better to have 5 customers paying you £20 an hour than ten paying £5.Give a menu of prices. Perhaps have a low entry price for your service, but concentrate on offering the value-added extras to your product or service.Be very careful of VAT implications as often the threshold for registration can be reached quicker than you think. For more information contact your local Customs and Excise office.(PSYBT 2007 p.22).LocationOur initial location would be a small office/studio that is easily reach by potential and current clientele. This base would afford the business a focal point for client and professional meetings as also, a base for preparing briefs and designs.5. OPERATIONSInitial ManagementA director would manage the Business, initially while the business establishes itself within the market place. The director has proven experience in customer service industries and is qualified and professionally experienced in interior design to degree standard (Appendix A)However, the engagement of key personnel, associates and sub-contractors would be undertaken as soon as appropriately possible according to the development of the business.Continuing Professional Development (CPD)To ensure that all areas of the business operation is competently managed, it will be a requirement for all personnel to engage consistently in CPD. Therefore, contact would be made with educational institutions that could support the venture in ensuring optimum personnel competence. In this respect, contact would be made with Alexandra College who offer specialist training in Interior Design and associated learning in Cyprus. (Alexandra College 2007)Legal & Taxation ConsiderationsThere are a number of residential and commercial considerations that need to be clearly clarified in that, residency within Cyprus hold two specific roles: residential permit, temporary permit and permanent permit requirements. As also other major property taxation VAT issues. These are explained in more detail in Appendix B.Banking ConsiderationsCyprus is a low taxation country and also offers a considerable range of banking facilities, concepts and arrangements for business. Many of the UK larger banks are represented in Cyprus. As also many other EU banks and credit agencies. The legalities and regulations within Cyprus are managed by the Central Bank of Cyprus, whose website provides a wealth of information and operates on similar lines to that of the Bank of England. However, appendix6. FINANCIAL PLANNINGIn order to ensure the success for the business, the following documents would be prepared:12 Months Profit and Loss ProjectionsThe 12-month forecast can be seen as the crucial centerpiece of a potential business plan where the entrepreneur focuses on the realities of running a business. Fictitious figures do not provide a real picture; the figures need to reflect a period of concentrated effort on the venture by the owner (SBA 2004).Four-Year Profit ProjectionsThis ambitious tool is excellent for those potential owners who want to take the business finance forecast beyond the first crucial year of operation.Personal Finance StatementThis crucial tool is vital for any arrangements with banks or investors; it reflects the financial standing of the owners. Moreover, many will have invested their own assets in the venture, which may include mortgaging or re-financing homes and other assets (SBA 2004).PSYBT (2007) note the caution is essential in providing a sound financial basis for a new venture in that:Many businesses with fantastic potential, great products and customers lined up can go bust simply because they dont have enough cash in the bank for a short period. All it takes is a few of your customers paying late, a series of regular overhead payments, and a limited overdraft to do this. Ironically it is often businesses growing fastest that run into these problems. Good cash flow will not make your business a success PSYBT 2007 p,27).Sound financial planning is crucial for the business, from the projection targets the business director can manage and try to ensure that the forecasts are achieved at the target dates in the plan. Failure to do so will provide, careful warning towards potential problems and remedial action can be taken before those problems are pitfalls.7. CONCLUSIONSThe most important aspect of the business planning stage is to ensure that the entrepreneur has a complete and comprehensive knowledge of the business, its environment, concept, market and moreover, its finances.The PSYBT (2007) offer a tracking list of important aspect for potential business entrepreneurs, much of which has been explored in this document. This critical preparation is noted in appendix D.8. REFERENCESALEXANDER COLLEGE (2007) Interior Design Course Insights: undated; [online] (cited 6 November 2008) Available from:< http://www.alexander.ac.cy/~website/interiordesign.html>ARISTO DEVELOPERS (2008) Company Profile; undated; [online] (cited 6 November 2008) Available from: < http://www.aristodevelopers.com/profile/>BURNS; F (2008) Get Big, by Starting Small; Online: 26 September 2008; [online] (cited 7 November 2008) Available from:
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