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External factors that could affect my business.

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Introduction

External Factors External factors that could affect my business are: * Competition * Planning permission * Tourism * Currency * Population * Import and Export * State of the economy * Recession If a recession occurs them the unemployment in stone will be high and less money circulating through the shops in stone. This will make people wary of their financial situation and will not be willing to spend money on luxury items like the CD's and Videos I will be selling in my shop. This could cause my business to go into a lot of debt or even bankruptcy. If I was planning on expanding my business by building an extension onto the premises I would have to apply for planning permission, this means I have to seek approval of my design before I can start building. ...read more.

Middle

If I buy stock from abroad the exchange rate of certain currencies will play a big part in the profit I produce. The higher the exchange rates the greater the value of the pound. This would make other countries unwilling to sell their goods, but would rather buy in goods, because of the large return they would receive. This would be the opposite if the exchange rates were low. Low exchange rates would not be good for my business because I would receive less for my money. If import rates are high then I will have to buy products from the wholesalers at a higher price. ...read more.

Conclusion

I would be stupid of me to set up my business in a small village because I would not have many customers and my business would not last long before it failed. Also as I am selling CDs so I am targeting more young and middle aged people, so if I set up my business where there is more of an older generation my business is likely suffer. If the state of the economy is suffering my business will be affected, this is because the unemployment rate will be high and I will not be making as much a profit. Therefore I would have to raise my prices loosing even more customers, eventually my business will go into debt because I have not been able to maintained my level of profit enough to breakeven. ...read more.

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