Business studies-create your own business
In this assignment I am to investigate whether it is possible to create a business and perform market research . My business will be a new Chinese restaurant, it will specialise in Chinese foods, it will offer eat in and take away services, which also includes delivery. I chose a Chinese restaurant as my market research showed most people would prefer a new Chinese restaurant. I think it will be successful, as most people wanted a Chinese restaurant; and there aren’t many in the area, the area that I am going to locate in, is Hendon.
I’ve done a sufficient amount of market research to find out what prices people would be willing to spend on a meal and where people would like it to be located. Anyone can use a restaurant, which means my target audience would be everyone. So I need to promote well so it’s appealing to all sorts of people. The two types of business organisation types I could use are either a sole trader or partnership. A sole trader is a business, which is run and owned by one person, this person makes the decisions, invests and is fully responsible for the business.
A sole trader has unlimited liability, which means if the business doesn’t make profit and eventually goes bankrupt the owner is liable, meaning they could lose personal possessions in order to pay back the dept, this shows a sole trader has a lot of responsibility and needs to carry out a lot of market research. A partnership is the same thing as a sole trader but 2-20 people can own the business, meaning capital is raised quicker and the business can be run easier, the profits need to be shared out between the partners meaning not as much money is made as a sole trader.
The partners can help in decision making and running of the business making it much easier than a sole trade, however disagreements can lead to disputes. I decided to be a sole trader instead of a partnership, even though a partnership offers more capital and making the business easier to run, profits need to be shared out and disagreements can lead to the business failing. The skills or experience, which I have that involve a Chinese restaurant, are that I have a Chinese background meaning, I am knowledgeable about Chinese foods.
The aims of my investigation, is to gain enough market research about the marketing mix to determine how to set up my business, this includes prices, where to locate and what type of food to sell in my restaurant. This is what will make my business successful. I will need to carry out market research to ensure my business is successful. For me to have a successful business I will need to do primary and secondary research. Market research will help me discover what products people want and what services in a new restaurant.
There are many different ways in which I can do my market research, I will carry out Primary and secondary research to find out what I should include in my business. I will create a questionnaire for my primary research, which should provide a sufficient amount of information on what people want, where to locate and what prices are preferred. For my secondary research I will be using the Internet, browsing through competitors websites to find out any information, which I could use to my advantage.
After my questionnaires have been complete and distributed to 20 people, 10 males and 10 females so my research is fair and varied, I will have to analyse my results and present them on a chart, so I can clearly see the results. n order to achieve my aims, which are to try and create a successful business, I will need to create a product or service, in my case my product will be the foods I sell and my service is a restaurant. To find out which type of food to sell, I will need to do market research, in which I will be complying a questionnaire, to find out which type of food people would prefer in a new restaurant.
Price I will have to price my products, charging a price for my products is what will get me profit, which can determine if my business will be successful. There are a number of different ways in determining how to price my products, such as competition based pricing or skimming. I will be finding out what prices to charge, by analysing my questionnaires and doing some secondary research, which will involve getting menus from competitors to see how they price their products. Promotion I have to find the best way of promoting my business.
Promoting is letting people know about your service or product, which is why it’s so important. I will be promoting using leaflets, which is a cheap but effective option, which will be suitable for my situation as I will not have enough capital to use a better method of promoting such as on TV. Place Every business has to be located somewhere; there are many factors that determine where a business locates such as cost of site, labour and raw materials. I need to locate in an area that is easily accessible, e. g. near a bus stop or train station, this is so people can easily go to my restaurant without any hassle.
If I locate in a bad area it will put customers off, and I may not get much passing trade, which is why its important to locate in a busy area so theres lots of passing trade. I will use market research to determine where to locate. Target Market My target market is who I am targeting to attract to my restaurant, such as if I am targeting a certain age group or gender. As my business is a restaurant my target restaurant is anyone, this is because anyone can go to a restaurant, therefore I will be targeting everyone. I will do this by promotion.