The key the key planning factors factors
What are the key planning factors involved in starting your own business? There are a number of key factors which I must consider before embarking upon setting up my own business. Competition One of them being competition as the prices of other nearby beauty salons may be cheaper than our business (Bella Beauticians) prices therefore we need to keep an eye on our competitors to see if their prices drop or increase in case we lose customers , and to avoided our business shutting down.
Also we need to make sure that we are not competing with strong names, as they have already built up a huge reputation which means if we do compete with them then it will be a major risk as we are a new business who still yet needs to accumulate customer loyalty and a good reputation. Population Population is a key factor as if we have a wide customer base; we therefore increase sales which increases capital for the business and profit.
If we do not consider population we will not have a lot of costumers coming into Bella Beauticians which means not a lot of sales will be made and the business will not be able to carry on. In particular if we are targeting women, we need to determine that there are a sufficient number in the area to create enough customers. Location Location is an important factor as we as a business needs to consider the rent of the shop floor as we might not be able to afford it causing no profit for Bella Beauticians; an example of a location that is very expensive to rent out a shop is central London.
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If we do not provide an excellent service and products then our business will have a risk of shutting down as customers are not satisfied therefore no customers will come in Bella Beauticians. Target market Target market is vital in the business world as we need to make sure that our business considers who our target is e. g. who is around the area, as if there are variety amount of schools around then that means that students will be Bella Beauticians target market therefore prices will need to be low so they can afford our products/services.
If we do not consider this then we will have no customers which will lead to Bella Beauticians to shut down. Capital Capital is the main key factor as without money the business cannot go on. Our business needs to make sure that we have enough money to cover all the costs e. g. employees, rent, products, suppliers etc. and have profit left over as well to maybe expand the business. Market/ demand for my service When setting up Bella Beauticians it is vital that we determine if there is going to be an actual demand for the services and products we intend to offer.
To help me find out if there is a demand for the service/product we wish to offer, we have conducted research to find out if there is a demand for the service we wish to provide and if it also meets the range of services they would like. Our research came back with the majority of my target audience saying that they would like to have their nails eyebrows and wax done. Therefore we have picked these 3 services to be provided in Bella Beauticians, we also found out that our target market will prefer our business if it was ethical so we are providing fair-trade nail vanish that they can buy from our store as well.
As our unique selling point we are offering loyalty cards for when costumers use our services, for more than 8 times they come to Bella Beauticians the 9th time they can get their nails done for free, along with this we give student discount. Overall conclusion As our business Bella Beauticians has a unique selling point, provides discounts for our target market, and because of our high quality market research this will help us create a good business plan which will be ready for us to start up our business.
However all the key factors; competition, population, location, product, target market and capital, are vital to the success of Bella Beauticians and need to be taken seriously if we want our business plan to work. If we unsuccessfully not fully achieve these aspects, then there will be a major risk of our firm in failing to accomplish the needs of the market place, failing to increase investment and eventually it may cause risk of financial failure and bankruptcy making Bella Beauticians close down.