Will a game shop in the UK be successful?
It is a bank’s decision whether to lend out loans or not. This often is based on the borrower’s cash flow plan, so if I had a very thorough cash flow plan on how I will spend the money, it would increase my chances of getting a loan. The advantage of a cash flow forecast is it can tell a company how well it will perform in the future therefore if there will be problem in cash flow, the company will know in advance and discuss any possible solutions.
However, some costs cannot be predicted accurately in a cash flow forecast as they are due to external influences such as change in government, social behaviour. Breakeven: The breakeven point is where the revenue line and the total costs line intersect. Below that point, there is a loss. Above that point, there is a profit. So I will be expecting some losses during the Introduction stage of the product lifecycle of my shop. Breakeven point = Fixed Cost Selling price – Variable cost Fixed Cost = Labour + Power + Rent + Interest + Security + Loan repayment
In conclusion the estimated income for my Cyber cafi?? is i?? 1794 per week. This is only estimation, judging by past figures but the past is not always a good predictor of the future because of factors such as change in consumer opinions, seasonal influences and trends at the time of launch. The results may also be weak because cafes are only a small minority of the eating out venues in Wakefield. The data found will also take into account restaurants, fast food, cafi?? -bars and possibly takeaways. I have not taken into account people under the age of 15 in my population because I think they are less likely to visit due to limited income.
I must also consider that some days during the week will be busier than others therefore the number of visitors per day may differ. Saturdays and Sundays will most likely be busier because fewer people are at work or college and most of Wakefield’s shops now trade on Sundays. Even though there are some weaknesses in the prediction of sales it does give some indication of the possible income the business will receive. Hopefully the Internet Cafi?? will attract more customers because after staff wages and bills are deducted from the total, the profit will be very low.
There is only one Cyber cafi in the Wakefield area, located on Wood Street, a well-known street by residents of Wakefield. I first of all emailed and then visited the Cyber Cafi?? but they were unable to provide me with any information, as the present owner was absent. The person running the Cyber cafi?? was unable to tell me when the owner was due to return or if he would be able to provide me with any information to assist me with my research. Other Cyber Cafes are all located in the nearby city, Leeds. I took the time to study the regular cafes in Wakefield as they provide food services, to give me an idea of the selection of food, service, staff and customers.
There are many in Wakefield centre and they tend to fall into different categories as the map indicates. There is little competition on price between the cafes but the more modern cafes seem to be slightly more expensive this is probably because the young generation tend to spend more money than older people and it is the young adults who are attracted to the more modern cafi?? s. There are several cafes that attract young people and the Cafi?? Bars in Wakefield are rapidly increasing. If I am to succeed with the business I must use competitive pricing and appeal to both young and older customers by making my cafi a cross between modern and traditional.
I also made use of the Wakefield Web Site which gave me information about the population of Wakefield, location of Cafes and maps of the area. On the map provided it is easy to see where neighbouring cafes, cyber cafes and cafi?? bars are situated in relation to my Cyber cafi??. The different categories are colour coded with a key at the bottom of the page. Many of them are near the town centre but they all provide different themes and appeal to different people which I think is why the majority of them are successful.