Range of needs for customers
To aid me in my coursework I will look at various and suitable texts and material. I will be using the Internet as part of my secondary research as well as books in order to gain information. The business that I have chosen for my assignment is mobile phones retailer. My mobile phone shop will be based in the city centre, were this will attract variety of different types of customers. People from all over United Kingdom come to visit one of the main shopping centres in the UK which is the Bullring, and also I would get different cultured people from all the UK taking out a mobile phone contract.
My mobile phone shop would have one large room for serving customers and another private office at the back was financial department takes care of. I would provide chairs and tables for customers who wish to go further with the product and discuss any issues that may occur during the service for example, customer wants to take out a contract and would like to know full detail information about the mobile phone contract service provided. My work shop would regularly be checked, information updated every week, advertisements, health and safety procedures and etc.
My business idea location will be in the city centre, where most attractions and most people intend to be and therefore more likely for more business. My business will located in the central of Birmingham were this will be easier for people to get to and also transport on buses, trains and etc would be easier for people because they travel through the centre of Birmingham which is the city centre making it a easier location for customers. I have chosen this business idea because I believe it is simple and the quickest way in making good money.
As it is any business mans aim to make as much money as they could and also this business involves a lot of money but easier than any other business. I have also chosen my own business idea because I would like to achieve my own aims and objectives, being dependant on my own, take care of my own responsibilities, self success, being head at all times no one is superior then me and especially which I will enjoy doing is being in charge of team work and etc.
Being in control of the business would make me proud; my esteem will eventually build up and become highly respected from the community and members of staff. In competition of my business idea I think it would be successful because working constantly towards identifying and satisfying customers needs. In order to satisfy my customers I would influence and convince that my product is worthy of purchase. My success is based on research on a wide range of needs for customers.
The knowledge I gain from customers is translated into quality products which satisfy my customers and that I am better then my competitors. My aim is to provide a variety of different types of mobile phones contracts or on pay-as-u-go to my customers in order for them to take interest and carry out a further my unbeatable deals. My main target is to aim for business men which have more likely interest in having a reliable and worthy mobile phone. Ten reasons for failure Lack of Skills Many business people have a great idea, but they lack the skills necessary to see things through.
This applies to a combination of things: This is why preparation is so important, taking the time to acquire as many of the skills necessary to running your businesses before you set it up is as important as hitting the ground running. The worst thing that can happen to me is not to be prepared. Poor sales I can have the greatest idea in the world and I may be the most motivated sales person in the world, but if nobody wants what I’m selling, I am on the way to nothing. Before I actually set up my business, I have to carry out enough market research to know whether what I have to offer is what people will want.
More importantly, I have to be brutally honest with myself. I will need to keep In mind these questions: Do people really want it? Is it priced correctly? How will I sell it to them? Unless I can answer these questions honestly and accurately, I will be on the way to success. Lack of financial controls I may have the right product and can sell it successfully, but if my accounting practices are in disorder, I will eventually find myself in a mess. Lack of financial control will cause cashflow problems and my business will suffer as a result.
If I’m weak in this area, I must hire a good bookkeeper to manage my accounts. That person should be able to do my accounts both for external use, such as tax, but also for internal purposes, so that I can forecast your cashflow needs effectively. Again, the solution involves realistic research before starting up, setting money aside to pay bills and calculating what may happen, in terms of the likely competition, when I set up my shop. High cost of borrowing If I have done my homework correctly, I should have identified how much money I will need to power up my business.
The problems come when I have to borrow that money. Here, one of two things can happen, either the money I borrow at the outset involves high rates of interest, perhaps because traditional sources of funding were unavailable, or run out of money part way through the start-up and are forced to borrow more, at much higher rates of interest than I originally expected. This is why an accurate estimate not just of how much I may need, but also a detailed assessment of the credit options available to me and how much interest am I going to pay must be an integral pat of my business plan.
Customers unable to pay I have a great product and I sell loads of it. But when it comes to getting the money for what I supplied, my customer doesn’t pay you for months, and then goes bust himself. Poor payers can cause large cashflow problems at the best of time. Matters become even worse if they become insolvent. Before I agree to provide any service or product, I should always carry out due diligence inquiries in relation to any prospective customer. I should check how they intend to pay, when and if any other suppliers have ever had problems with that company.
The other thing to bear in mind is that a good customer can become a bad one, even if I have a good relationship with someone, I should still carry out periodic checks on their credit worthiness. If I can, don’t place all my eggs in one basket. A customer who takes 90% of what I sell may be worse than 10 who each take 10%. Overtrading I may be ticking along nicely, meeting demand adequately. Suddenly a prospective customer comes in and asks for three times what you can reasonably deliver. I see pound signs in front of my eyes and agree to the deal, only to find I can’t meet up on that promise.
Overtrading not only damages my relationship with customers, it also leaves me open to potential business failure. This is because to supply that much more, my business may need to borrow more money to compensate for the increased costs for example, extra staff, materials, etc, of meeting the increased demand. While I am waiting for payment, I have to pay interest on the new sum I have borrowed. One solution may be agree to increased demand only if my customers pays in cash. An alternative is to budget for enough time between receipt of an order and the payment received in your bank, known as “lead time”.
I will to borrow enough to cover that gap. Poor marketing Successful marketing is, above all, about good management, testing and measuring my product. It is about finding ways of tailoring what I offer to customers needs and letting them know that I have what I want. Many business owners often ignore marketing because they do not have experience in it, they feel they do not have sufficient time to do it, or it feels like a costly exercise for limited return. As if to prove them right, when they do market themselves and their products or services, they get no response.
Yet successful marketing can do wonders for a business. Before I start up, work out an affordable marketing strategy. It may be as basic as having the right calling cards and letter-headed notepaper. But I may want to progress to promoting myself through effective advertising. The simplest way is to research other successes in my field, learn the lessons and apply them myself. Failure to deal with red tape Every year, businesses are forced to devote extraordinary amounts of their time to filling in a range of government-inspired paperwork and procedures, including VAT and tax forms, National Insurance and so on.
It can all seem very burdensome, particularly if all I want to do is concentrate on the business of selling what I offer and then delivering to my customers. The reality, is that there is no way round this problem, I have to do the paperwork. So I had better be aware at the earliest stage that it will be demanded of me and set aside a reasonable amount of time each week or month to do it. Factor it into my working time. If I am unwilling to do the work, make sure I have professionals to hand who can. I will make sure that any business plan I set up takes into account this hateful side of running a firm.