Experienced interior designers Jason and Amelia

Experienced interior designers Jason and Amelia Case Study:

Experienced interior designers Jason and Amelia
Experienced interior designers Jason and Amelia

Experienced interior designers Jason and Amelia decide to go into business together. Although neither of the two friends has ever worked in a business before, they decide the time is right for them to start a business.

They enter into a partnership, with each of them investing £2,500 into the business.

Based in London, their “product” is a home-makeover service, modeled on the popular daytime television programmes where ordinary households are transformed through small building work and decoration.

Experienced interior designers Jason and Amelia Revenues:

Jason and Amelia expect to get two projects per month for the first 6 months of trading; each project will generate £5,000 of sales. Customers will be expected to pay 25% of the price as a deposit with the balance on completion. Each project is expected to last one month.

The main costs associated with the start-up are:


£4,000 (month 1) and £2,500 (in month 4), a total investment of £6,500


£400 per month

Legal and accounting costs

£1,550 (month 1 only)

Project materials

£2,000 per project. It is assumed that suppliers will allow Jason and Amelia 30 days to pay for these costs

Sub-contracted labor (other tradesmen)

£4,300 per month. These will be paid in the month incurred.

Sophie & Jack will pay themselves a salary of £900 each per month whilst the business is established.

Other sundry costs

£500 per month have been assumed.

You are required to complete an analysis of the above case study using the following questions as SUBHEADINGS:

  1. Prepare a 6 month cash-flow forecast for the business ñ you may estimate if any numbers are missing, but you must highlight/show your estimates.
  2. Considering the cash-flow forecast you have created, would you offer Jason and Amelia any advice? Give your reasons.
  3. Consider what other types of information Jack and Amelia might need to run their business. Suggest the types of information they need and why they need it.
  4. Jason and Amelia have set aside £400 per month for marketing. Using your knowledge of the marketing mix (4Ps) give them advice on marketing their business.
  5. Jason has met a local businessman who knows some laborers who are prepared to work for below minimum wage and without paying any tax. Using the laborers would reduce his project costs by 50%.
  6. Do you think Jason should take this offer? Explain your answer.
  7. Discuss other ethical issues that might affect the business.
  8. Considering the case study overall give your opinions on whether you think that their business will be a success. Explain your reasoning. Do you have any other advice for them about their approach to starting a new business?

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