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Investigating the feasibility of opening a business.

Extracts from this document...

Introduction

Investigating the feasibility of opening a business Introduction The aim of this investigation is to explore the feasibility of opening a competitively priced Nail & Beauty Parlour aimed at a wide range of consumers of varying lifestyles and age groups. A suitable location has been selected in the suburban town of Northwood, Middlesex, directly opposite the tube station, with many bus stops in the vicinity. Throughout the course of the investigation, various methods of Primary and Secondary research were adopted in order to evaluate whether the business was feasible. The proposed location is approximately...square feet in size and will cost �27 000pa to rent, with rates of roughly �14 000. All required materials could be purchased from 'Sally�s Beauty Warehouse� in Collingdale, a town approximately 20 minutes away from Northwood by car. They offer bulk purchasing of all products related to hair and beauty at a discounted price and have a reputation for selling high quality products. The business will be called 'Northwood Nail & Beauty Bar�. It will have a contemporary design, in order to appear trendy and upmarket. METHODOLOGY Secondary Research Objectives Objective 1 Discover if the chosen location will generate sufficient custom, by assessing the competition in surrounding areas and conducting a SWOT analysis of Northwood. This may be investigated by comparing the services offered by competitors to those of your own and conducting a foot count of the number of clients served at particular hours on particular days. Objective 1 It was discovered that there is another Beauty Salon in Northwood as well as a number of hairdressers, which provide the manicuring service. Their prices however, are substantially higher than any that the Northwood Nail& Beauty bar is aiming to charge. This alone will enable it to compete effectively. Below are 2 comparative lists between the planned features of the Nail & Beauty Bar and the competitors in Northwood: Services exclusive to Northwood Nail & Beauty Bar: � Threading - a more accurate method of hair removal that is a specialized skill originating in India. ...read more.

Middle

research information that there was an extremely large, non-resident population of 15-18 year olds, due to the two girls only private schools in the area. There were also a large number of females shopping in the town due to the many residential homes. Whilst it can be assumed that the high proportion of pensioners in the area may not have sufficient disposable income to spend in the Bar, it can also be assumed that this will be compensated for by the rather high disposable incomes of the school girls. A discount for pensioners and students with NUS card may be considered once the business is well established in the community. Pie chart to show the current outlets favored by the consumers interviewed It is evident from the chart and the foot count performed previously, that the main competitor in the nail service, is in Harrow. As Northwood is a significant distance away from Harrow - some 7 miles, the Bar will be opening the door for a whole new range of customers and hopefully develop the custom those living in the area that previously visited the Harrow store. It is also evident from the survey conducted, that demand for the treatment offered is not consistent throughout the day, everyday. It is therefore not profitable to remain open from 09.00 - 17.00 every day if it would prove beneficial to the business to be open from 12.00 - 21.00 on particular days throughout the week. The feedback compiled suggests that the following opening times should be tried provisionally: Monday - 09.00 - 12.00 Tuesday - 09.00 - 18.00 Wednesday - 12.00 - 21.00 Thursday - 12.00 - 21.00 Friday - 09.00 - 21.00 Saturday - 09.00 - 18.00 Sunday - Closed A graph to show what potential demand is for the services offered A Graph to show what potential clients are willing to pay for specific treatment A graph to show how many times on average the Women interviewed, visit a Beauty Parlour. ...read more.

Conclusion

The forecasted profits are extraordinary mainly due to the low costs incurred and if such a simple idea could generate such large sales turnover, it may not be a bad idea to make the idea of the 'Northwood Nail & Beauty Bar� a reality! APPENDIX A Map of the Proposed Location for the 'Northwood Nail & Beauty Bar�. Proposed Location Bus Stop Train Station School Investigating The Feasibility Of Opening A Nail & Beauty Parlour In Northwood. Sheena Patel. Candidate No. Centre No. Various Methods of Sampling Random Sample Random sampling involves selecting respondents to ensure that everyone in the population has an equal chance of being interviewed. Achieving a totally unbiased sample requires careful thought. Research companies use the following methods: � Pick names at random from the electoral register, e.g. every 100th name. � Send the interviewer to the address given on the register � If person is out, visit twice more before giving up (to maximize chances of catching those who lead very busy lives and are rarely home. The method is very effective, but slow and costly. Quota Sample Quota sampling involves selecting interviewees in proportion the consumer profile within the target market, for example, in the case of the Bar, equal numbers of women within the specified age groups. This method enables interviewers to question anyone who walks down the street as long as they achieve the correct the quota and they can interview as when and where they want. This is the most commonly used method of sampling because it is relatively cheap and effective. Stratified Sample Stratified sampling involves only interviewing those with a key characteristic required for the sample e.g. only women interviewed with respect to the Bar. Within this section of the population, individuals can be found at random, or by setting quotas based on factors such as social class and region. Cluster Sample Cluster sampling is the process of sampling within a specified area only. E.g. in a selected seaside resort (for swimwear). This is not a common form of sampling. ...read more.

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