What factors might stop my business from being succsessful
The main aspect that may stop my business from being successful is competition. This is because most areas in North Harrow do sell ice-creams and deserts and those shops can be well known by people within the area so it may help reduce the amount of customers coming to Jay’s dessert and treat parlor. There are many ways of dealing with this problem. Firstly I could make my customer service better by employing friendlier staff in the hope that customers will be satisfied with the service provided and therefore will hopefully visit Jay’s dessert and treat palor again.
Another way of solving this problem of competition is by increasing the quality of my product and by also using a variety of promotional methods to advertising my products meaning above the line and below the line. Above the line will ensure that the public knows the product exists as this method consists of the media’s involvement where as below the line will increase the likelihood that customers will buy my ice creams and desserts as they will be attracted by the money saving coupons which in the current economic climate every penny can make a difference.
The purchase of raw materials is an important factor when running the business as I will need to ensure that I have enough to make my ice creams and desserts with to sell to my customers. However this problem can be solved by purchasing cheaper raw materials and although this may lower the quality of the food that I am selling, in the long run it will save me quite a bundle of money. An alternative method that I could resort to here without reducing the quality of the ice creams and desserts I am selling is to take out a loan.
The location of my business can also stop my business from being successful. Firstly if the business is not located in a highly populated and financially viable area then my business will not gain enough revenue resulting in fewer customers coming to my shop. Also a none financially viable area will mean that after residents have paid off all their bills such as gas and electricity they will not have disposable income which they will want to spend on ice creams and desserts such as crepes.
Both of the above factors can also reduce the chances of me being able to expand my business and it may also lead to insolvency. The last factor that may affect the success of my business is planning permission. This is because if I do not get planning permission for the shop front of my business then I may face certain consequences as if the building is not constructed properly or it is build on private land my business may suffer in the future as the building may have to be reconstructed.