Ideas of starting a business
There are several potential ideas which I can choose to run as a business. So I have to analyse whether it is beneficial to choose that idea. I have to look at the budget I have and how much that project costs, look at the competitors in the area and market, look at whether I can make enough profits and whether I can find enough staff who have the skill needed for that particular job. A phone is useful idea as I can make lots of profits from selling phones. However, a phone shop may require high start up costs because of things like such as buying the phones and accessories which is quite expensive.
Another advantage of setting my business as a phone shop is that there are not many small businesses who sell phones. However, there are large store such as carephone warehouse, phones 4 u and link. So if I wanted to setup my business as a phone shop I have to research on the area and see whether there are any big stores such as carephone warehouse, phones 4 u and link, because if there are any competitors it wouldn’t be worthwhile setting up my business there.
A barber shop looks quite a good idea as there are not any high start-up costs; the only start-up costs are things like the basic equipment needed like several chairs, accessories such as scissors, mirrors, gel, etc. However, a disadvantage of setting up my business as a barber shop is that there are many barber shops in nearly all areas, so only if I offer a cheaper and better service I will be able to compete in the market. Another advantage of barber shop is that it is quite easy to run as there a not many running costs.
A mini-supermarket is a very good idea as profits can be made easily. Another reason is that staff can be found or trained easily to work at my store as the job itself doesn’t really require knowledge of store just basic till skills and info about products we sell. However, a disadvantage of running a mini supermarket is that there are several mini-supermarkets in the area, but I offer personal selling and sell products which the customers want then I can compete against them.
Another advantage of running as a mini-supermarket is that the products sold can be bought easily from a cash & carry nearby. Another advantage of choosing this business is that it doesn’t have a high start-up costs, the start-up costs are cost of goods, rent, tills, wages, etc. A games/DVD store is easy business to set-up in terms of low start-up costs, the start-up costs could be stock needed such as DVDs, games, consoles, etc.
Another advantage of setting up my business as a games/DVD store is that it doesn’t necessarily require lots of staff to run it as all it needs it two cashiers and one store assistant to help the customers with any enquires. However, a main disadvantage of setting up as games/DVD store is that because of rise in illegal DVDs sold at very low prices, it is affecting the DVD store market badly as they cannot compete with the prices set by illegal DVD selling. So this idea may not be ideal because of decrease in demand for DVDs.
Finally, a car-wash may be a good idea as there are not many competitors in the area, so profits can be made. However, setting up a car-wash may need large place to set it up so it may be difficult to find a suitable place and even if a suitable place is found to base the business, the rents may be high as it is a larger area. Another advantage of setting up a car wash is that staff can be recruited easily as they don’t necessarily need any knowledge of car-washing.
However, there may be risk that the demand my customers for car-wash may be declining as customers decide to wash their cars themselves at home as it will save money. Conclusion of the ideas After analysing various possible businesses I can set up I have decided to choose my business as a mini-supermarket as I feel that is the project with less start-up cost and most beneficial to me as I can offer much better service than my competitors. I also believe I can find information easily of my competitors as a mini-market than any other business.
I have decided not to choose to run a phone shop because it has high start up costs. Also I feel I wouldn’t be able to compete with the like of carephone warehouse, phones 4 u and link as they offer phones at a very cheap price. I have decided not to choose to run my business as a barber shop because there are many barber shops in all areas so it would be difficult for me to compete with them unless I offer a cheaper and better service. However, I have decided to keep this as a back-up idea if my mini-supermarket idea doesn’t work, as I believe I can do well as barber shop.
I have decided not to run my business as a games/DVD store because I feel the decreasing demand of people buying DVDs at store has been decreasing because of illegal sales of DVDs. So I believe I cannot compete with illegal DVDs cheap prices as I started charging people same price as them I will go bankrupt. I have decided not to choose to run my business as a car-wash because of very high rents and peoples tendency to wash the cars at home, so I feel it is not worthwhile spending my money on that business as I feel I would not be able to make enough profits to match the costs of running the business.