Idea of the business
The type of business is a high priority decision as it will take into affect the continuation of the business and the scalability is also to be assessed by the setup. The business needs to be profitable enough such that it comes out of its birth stage real fast otherwise most firms fail to go beyond till the growth stage and suffer an early downfall. Few important things are to be covered before the initialization of the entity. Some of which are the idea of the business, its chances of success and the entity itself whether it would be a sole proprietor or a company. The failure of business depends upon many factors.
The primary being its response to the customers as a poor CRM would initiate a downfall for the firm. The other factors include the market research which is based upon Product, Price, Place and Promotion. Many businesses that are setup fail within few years Begin with the end in mind. How you will grow the business not only depends upon what you want from it now, but also upon what you want from it in the long run. The problem arises when the firm suffers a downfall. If one is losing out than he can sell the entire business this is and advantage for the sole trader such that he can get the return real fast as compared to other institutions.
It is important keep on revising growth tactics. Growth strategies may take many different forms. Firms can focus on adding customers, building existing accounts or developing new products and services. For establishing a new business, my idea is of entering the Fast Food Market. The rationale for my choice being that current economic conditions foster income levels so an increase is probable. The Fast Food industry has a positive income elasticity of demand thereby increasing the demand with the income level and it would be profitable in the future.
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