Creating a business
Being an employed music manager of the superstore HMV music retailers, I take charge of the daily management tasks that come upon me. I am also in charge of the despatch section of the company and also supervise other shops when needed. From my knowledge of the music industry and the vast amount of profit made in this industry, I have decided that I am willing to purchase or rent premises, which will be well suited to this venture. The location of the premises has to be a potential customer area like a busy shopping centre, road or in the town centre. The location also has to be where there are only few competitors.
Myself and one of my colleagues who I presently work with will run the business. I will also employ younger members of staff to work in holidays and Saturdays, as it will give them a good experience to work in the retail industry. At present I have i?? 9,000 to invest into my business venture, but estimate a further i?? 14,000 capital and an overdraft facility of i?? 2000 which will be required to replace old stock for new. I have estimated that I will need i?? 14,000 for all the refurbishment’s made to the property for it to be transformed into a music retailer.
I will also have to spend a vast amount on advertising and also to full my premises with the latest music selection, which will start my business making sales and in the long run a profit. I am therefore writing to you to ask National West Minster Bank to supply me with the extra finance required. The following information, which includes a financial section, will provide you with full details of my proposal. I have decided to call my music retailers Music Mania. My business is different from any other music store as it will beat all high street prices.
My target market is the young side of the consumer population as they seem to spend more money on the goods I will be selling and I think that they take more interest into music now a days. I have decided that to beat my rival competitors like superstores like HMV, Virgin Mega stores, and Our Price I must make my prices cheaper in able for to come to my store and come again after they have told friends and family. The only disadvantage I have over the larger retailers is that I cannot provide the public with all the latest albums and cannot give a wider selection like larger retailers can provide.
The advantage of my store will be that I can make prices cheaper and I can also provide customers a large selection of Dance music, which I will be mainly catering for. I wish to complete these objectives in the next few years but I wish to complete the following objective as soon as possible as I feel that is one of the most important objectives I have to carry out in order for my business to be successful. In order for me to research into the music industry I will have to conduct a questionnaire which will give me information I need of potential customers and it will also be up to date.
I will have to include on my questionnaire the age of the potential customer in order for me to target the right age market. I will also conduct a count test in which I will stand in front of one of the leading music retailers and count how many people go into the shop within 1 hour. I will conduct this for one day during the week and on Saturday when it is busier. I will hand out 50 questionnaire, which will give me a good selection and I will then collect all the information and then analyse and evaluate the evidence. I will do this in the form of charts and graphs in order to show true evidence.
I have decided to carry out a questionnaire as it is the best way to conduct primary data collection. The data that I will collect from primary data will help me to gain marketing advantages over rival competitors. I will also have to research into secondary information that will also give me different information which I cannot collect by myself. Some of the evidence will be a general outline and could be slightly irrelevant but could give me feedback to competitors. I will research into the mintel reports which give vital statistics about income and peoples spending.
I carried out my field research by asking 50 people walking by to fill out a questionnaire which I designed Appendix 1. The way I designed my questionnaire was that I quantitative and qualitative questions in which enabled me to collect and analyse the data appropriately and to it’s full potential. I distributed the questionnaires at random which gave me a wide selection of people to analyse and also gave me an insight of what type of persons to target my business venture at. I have how analysed these results and have come up with some conclusions which could effect my potential business.