Examine the key considerations involved when planning and organising a small business, including:

Question 1

Market research

What is it?

Answer 1

collecting and analysing information about customers and the business opportunities available

Imagine “hunted” security looking at information about each escapee.

Question 2

Market research

Why is it important?

Answer 2

• Market research helps the entrepreneur to make better decisions by understanding consumer behaviour.
• helps to understand your customers and their needs, as well as what your competitors are doing

Question 3

Market research

How can it help?

Answer 3

• By collecting and assessing information about the needs and wants of consumers, a more accurate and responsive marketing plan can be designed and, therefore, the risk of failure can be reduced.

Question 4

Location
What is it?

Answer 4

The place where a particular point or object exists.

Question 5

Location

Why is it important?

Answer 5

• A good location can make the difference between success and failure.
• If customers don’t see store, they most likely won’t know about it
• A good location will lead to more sales.
• Profits
• The location chosen can affect many aspects of how a business operates, such as total sales and how expensive it is to run.

Question 6

Location
How can it help?

Answer 6

• Good locations allow ready access, attract large numbers of customers and increase the potential sales of retail outlets

Question 7

Target markets
What is it?

Answer 7

the group of customers to whom a business intends to sell its products

Question 8

Target markets

Why is it important?

Answer 8

• Effective, affordable way to reach business
• Can effectively access resources; time etc
• Selling for purpose
• It will help business to thrive
• Target customers, generate business

Question 9

Target markets
How can it help?

Answer 9

• This approach allows the business to better satisfy
  the wants and needs of the targeted group, and makes it easier for the business to increase sales and profits.

Question 10

Location factors:

Answer 10

• Cost
• Closeness to customers
• Closeness to support services
• Closeness to complementary businesses
• Visibility
• Closeness to suppliers
• Closeness to Competitors