New business in my local area
For my GCSE coursework, I have decided to look at opening a new business in my local area. For my business to succeed, I need to consider some key aspects of opening a business. These include choosing a suitable company name so that people can recognise the shop and also, decidng which type of business it will be (e.g. sole trader, partnership, Ltd) because each type has good and bad points, so you need to consider your options. Also, I need to fond a suitable location for my business which will be big enough for the main retail area and for storage. Also, it should be big enough for consumers to gain easy access around the store.
The layout of the shop is also an important factor. If products are not positioned correctly, then it will take customers a long time to find the item they need. If they cannot see the item they need quickly due to the layout of the shop, they may take their custom elsewhere which is not the aim. By research, (e.g. questionnaire) I need to find a gap in the market which would help me in deciding the products to sell. I am going to do a people count outside 2 locations to see which has the most passing trade, helping me with the choice of which location to go for.
I will write a letter to an owner of a small business in Garforth to ask questions and so they can give me tips on opening a new business in this area. Also I will have to look at competition in the area to see who will be against me competing for market share. Once I know the type of products I will be selling, I need to work out my break even point. To calculate this I divide my ‘fixed costs’ (rent etc) by my ‘profit contribution’ (the profit I make from each product I sell). This could be in monetary terms or in terms of how many products I sell.
Garforth is a good place to open a business as it is a bus link area. There are many, many houses in the surrounding areas and approximately six schools. It is a wealthy area as there a lot of larger residential properties and many people drive cars. There are also new housing developments in the area – proving the wealth. I would open my business on Main Street as it is in the centre and is popular with local residents. It has many different types of business which could also attract people from outside of the area, such as a Supermarket, Dentist, Doctors, Solicitors, Chemist, Estate Agents and a local college. As it is the main road through the town, people are likely to stop at shops on their way from and to home or work.
WHY IS GARFORTH A WEALTHY AREA?
There are many factors which show that Garforth is a wealthy area. For example there are many houses in the area including lots of semi/detached houses and many new housing developments showing that people have the money to want these new houses building. About 15% of houses in Garforth are detached houses, which is a high number; detached houses are more expensive than the others, which show wealth. Also the average house price in Garforth is much higher than the national average, which shows greater wealth amongst the people that live here, as they can afford them. The average number of cars per household is 2, which shows that the families can afford to keep these cars, which are not cheap. Even if the cars are company cars, this shows they have good jobs; which will pay well – proving wealth. Also in Garforth and the surrounding areas there is a high level of employment, which indicates there is an income coming into the households.
Even the shops on the Main Street of Garforth confirm wealth in the area. There are three travel agents within throwing distance of each other. This shows that there are many people wanting to go on holidays. Holidays are not cheap, about ï¿½700 per person, so people must be able to afford this, showing wealth in this area. Also, there are many estate agents on Main Street. In Leeds, the average house price is approximately ï¿½84,000, however Garforth is one of the wealthiest towns in Leeds and so the average price is higher. With all these shops, it is showing that people want to buy new homes all the time, proving wealth. Other shops which prove wealth on the street are solicitors and banks.