Business Studies Shop
After considering all the different business ideas, I have come to conclusion and have decided to open a retail business. The name of my shop will be ‘GAMEz’. The shops primary product will be computer games, but it will also sell game consoles and related accessories. I have chosen to open a game shop because technology is rapidly increasing and more people are taking an interested in gadgets. That is why I believe my shop has the potential to be very successful.
I have decided that GAMEz will be located in the Fort Shopping Park in Birmingham. The Fort shopping Park is packed with major stores such as; WH Smith, River Island, JD Sports, Boots, Carphone Warehouse and many more. Basing my business here is a good idea because it is well positioned. I have no competition from other similar stores. The most important aim for a business in the public sector is to make a profit in order to survive. If a business does not make a profit it will go bankrupt and have to close down.
If my business survives and there is a place in the market for my shop, I will increase the amount of profit my business makes by various methods such as raising prices and advertising my business. I would like my company to have unique features and be appealing to many. If my business becomes successful I will think of higher objectives like expanding the business and eventually becoming the biggest in the market My aims and objectives will be to create an effective market campaign and to set up a successful business.
It will be necessary for me to conduct some market research in order to discover who my potential customers are. To do this I will have to consider a range of pricing and promotional strategies that will be appropriate for my shop. My market research will be made up of field and desk research. This will help me find out who my potential customers are and what products in my field are most in demand.
I will monitor the research and with my findings I will construct a business plan. In order to find the finest way to make my business unique, I must look and gather research about rival businesses. By doing this it will provide me with an idea of what my unique selling point will be, in the hope that I can persuade my potential customers away from my competitors and to favour my shop. I will also ask 100 people of all ages preferably in the Fort shopping park a number of questions related to the type of shop that I will be opening. I will use quantitative and qualitative research to find out things such as how much people will be willing to purchase for my goods to spend and I could also find out their opinions. To take in account of my potential customers is extremely important as there will be no point me spending my budget opening the business and no one being interested in buying anything.
I will then interview successful businesses such as HMV and Gamestation. I believe this will help me because they are hugely successful companies that are full of ideas and ambitions that I could use. To get my start-up capital I will use medium-term external finance. I will be financing my business partly from interest free loans from a newly opened Islamic bank of Britain. This means that I will be saving more money as I don’t have to pay interest back to them. I will need to be loaned a sum of ï¿½10,000 for my start-up capital. But to pay back the loan I will need to make profit so the cash inflows must be greater than the cash outflows.
Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include helping create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.
Field research is obtaining new data for a specific purpose. The marketing department of a firm or a specialist research organisation can provide this. Typically, the data is gathered in face-to-face interviews, telephone surveys, by post or via the internet, using questionnaires. This is called a survey. Sometimes potential consumers are asked to test products, and their responses are recorded. I could ask many people who are shopping at the Fort. I can make a questionnaire to find out customer information and what they want. I could also ask a number of successful companies and get information from them in order to make my company successful.