Would Bramhall be a good place to start a business?
This assignment concerns whether Bramhall would be a good place to start up a retail business. In this regard, I will attempt to indicate as to what sort of place Bramhall is, how wealthy the people living there are, and what types of retail businesses already exist there. Having considered all these factors, I will conclude whether this area is good for starting up a retail business and, thereafter, I will recommend what sort of retail business would do best. 1. 2 Background of Bramhall Bramhall is located to the south of Stockport.
The people living here are one of the wealthiest in the whole of Stockport. Hence, their purchasing power is higher than that of its neighbouring areas. The largest retail centre in Bramhall is located in the Bramhall village. In addition, some other small retail centres are scattered throughout the village. Moreover, there is a huge retail centre in Stockport, which is a few miles away from Bramhall. In Bramhall, modes of public transport such as bus services are not widely used because many people own vehicles.
Due to lack demand for public transport, it has been realised that a good network of such transport is not needed. However, there is a good railway link connecting Bramhall to bigger cities such as Manchester and Birmingham. Also, Bramhall is benefited from a range good banking facilities. 2. Location Factors Before starting a local business, a businessman must be aware of the location factors. Generally this guides you how to choose a suitable location for the business intending to be set up.
Mainly, there are six factors to be considered namely, supply, labour force, competition, transport, customers, and at last but most importantly cost. Supply factor is very important and essential because without that, a business would not have sufficient stocks to sell. Keeping sufficient stock is helpful for smoothly running the business. In Bramhall, there is a fairly good supply for the businessmen within easy reach. In contrast, if you think of starting a business in the middle of Antarctica, supply is not within easy reach at all. It does not mean that all remote places would not have supply.
For example, if you think of starting an oil business in the middle of Sahara, supply of oil will be found, but then, you have to look at the other factors like customers! Next factor is competition. High competition makes less profit, as there will be less turnover. For example, it would be useless if you start a fast-food shop in a street where there are a large number of similar shops. It would be a much better idea if you start a retail business in Bramhall because it has lesser competitors for the same business. Cost is the most important factor of all the above.
There are different costs for different locations so one can not start a business wherever he or she wants. For example, if one wants to start a business next to the World Trade Centre, it will surely cost him or her a fortune. Hence, having considered your resources, you must decide what the optimal amount you could spend on the location. In the case of Bramhall, location cost is relatively higher than any other neighbouring towns. However, higher the cost higher the benefit will have in Bramhall. The next Factor I chose to talk about is customers.
Having a substantial customer-base is the most determinative factor in succeeding a business as it is basis for earning profits. In other words, without profitable customers, you would run into a loss-making situation, which is difficult stay in the business. In the case of Bramhall, there is a very good customer base with enough money to buy commodities. Here, I would like to talk about transport. A better transportation system can attract many customers for a business. Such a system must be characterised with a good road network available for potential customers for easy access to retail shops.
Bramhall is advantageous as there is a good road network with some public transport facilities such as buses and trains. Last, I would like to consider labour force, which is also vital for running a business smoothly. Sufficient labour force is essential for selling, collection, and helping the customers in selecting items. Without these services, it would be really hard to run a retail business. Looking at labour force in Bramhall is not so bad but I think that labour force in its neighbouring towns like Cheadle, Hazel grove and Poynton would be better.
However, Bramhall is not so bad compared to some of the other towns in Stockport. 3. Planning permission and Change of use A business cannot be operated only if people wish. There are laws and regulations to be followed. Seeking permission is important. There two types of such permissions: planning permission and Change of Use permission. Without these, local authorities would not allow him to run the business. The planning permission is normally needed to setting up a new business.
If any one wish to open up a new business in Bramhall, he or she will have to go through the necessary procedures laid down by the Borough Council. In this case, the person must have to provide all details of the expected business. If there is charge to be paid he/she will have to pay to the Council. Similarly, the permission is needed to change an existing business to another type. For example, if some running a fast food business wants to change it into a fruit and vegetable shop, he/she need to inform the Borough Council of the expected change and provide the necessary details about it.
The Council again may charge for the change. Having considered all these, the permission may be granted. 4. Understanding the Market and Market research 4. 1 Understanding the Market A business would need to know what its target market is for determining the type of crowd that they are going to target at. Different types of crowds would have different kinds of expectations. By focusing on meeting one of these expectations, a business can be much more successful as it would gain advantage of expertise in a particular service.
In the areas like Bramhall, there are a number of market sectors. These include food products, daily consumer products, (soap, toothpaste… ), clothing, entertainment, toys, stationers and newspapers, furniture, motoring and so on. Knowing these would help a businessman to determine what kinds of shops that already exist and what kinds of businesses that will have to be in Bramhall. Having chosen a particular sector for a retail business, she/he will also have to know what is less competitive and what is more competitive.