"Is there a scope for a new business in the local area"
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Business Studies GCSE Coursework "Is there a scope for a new business in the local area" Introduction The aim of this coursework is to find out whether there is a scope for a new business in the area, the area I am going to base this project on is Northwich. Northwich is quite a large town, which is already in development, with many shops already in the town. Northwich is an old town, dating back to pre-Roman times. It is situated in Cheshire a flat area of land covering hundreds of sq. Kilometre's which was once under the ocean. The sea dried up millions of years ago, leaving salt deposits everywhere, which are now exploited by many industries. I.C.I built the only Soda Ash producing factory in Europe. Northwich also has many rivers and canals running through it which were vital for transportation of goods. The town itself consists of quite a lot of shops with a wide range of goods available. There are many food shops (in fact too many so I will not be opening one of them), a couple of sports shops, and they don't look very busy so opening a sports shop might not be a wise idea. There are quite a few cafes and a McDonalds and a KFC although they are always busy, so it might be a good idea to open one of them. All in all, Northwich has almost everything you need, bar a few things, including some big shops, like multi-national shops, and new shops. I am going to open a new business that I think is needed in the area, this may be because there is not one there or that the one that is already there is not a good one. I am going to ask businesses whether they think certain things would attract customers. And also do research to find out what business would be popular to the public. ...read more.
However outside of town, not many people would be passing by, so not many people would see my business. * I will need only minimal storage space for selling equipment for people to buy and perhaps food or drink, so that is not going to be an issue. * Most of my stock will be stored on display to the customers, as there won't be much, but not all as some will have to be stored elsewhere. * There will be no large items for sale. * I will not need a staff room as all staff will be working and they can have rests etc. In the bar or other areas of the leisure centre. * I will need toilets as well as changing rooms, showers, and perhaps saunas and things in the swimming pool area. * It is going to be a big place with lots of people coming and going at all times, so a large car park will be needed with a well functioning entrance and exit system. * There is not much competition of other leisure centres in Northwich, the only other leisure centre is moss farm, and I believe that will not pose much threat and it wouldn't matter if I was next door to it or on the other side of town, however it might be useful to be near moss farm, so all the local people that go there will come to my leisure centre instead. * Security would probably be a good idea in a big leisure centre as there will be many areas that cannot be used at night so the will need to be locked up, and there will be lots of valuable equipment inside so I will need CCTV to watch this, another thing that will need to be watched is vandals and people scuffling which will bring down the popularity of the centre, so I will have to keep them out. ...read more.
I work my break even out by Fixed costs/Contribution (contribution is Price per unit-Variable costs) Here is my break even: As you can see my break even point isn't exactly 8000, it is more likely to be around 7600, however, this means that in 1 month, I will need to take in over 7600 customers to break even, and people may not spend 5 pounds each, so 8000 will be a more realistic amount. Cash Flow Forecast Here is a cash flow forecast for my business which lasts for 7 months, to predict the finance for the first 7 months of my business. I wok this out by adding in my cash sales and other income and add them together to make my total revenue. I then add in what I will pay out for stock, wages, electricity and add them together to get my total costs. For profit I take my total revenue and take the total cost off it. Then I to get my balance brought forward, I will add together profit and my balance from the previous month (which will be my loan in the first month) to get my balance carried forward, then my balance brought forward becomes the balance carried forward from the previous month, here is my cash flow: From looking at this you can see that I will start to make money in June, and the busier months are June and July, because those are the summer months when people tend to do more outdoor activities. Final Answer After looking at all the evidence I have gathered, and all the factors I have researched, I can conclude that there is a scope for a new leisure centre in Northwich. I say this because I can see a good opening for my business in that area, as moss farm isn't very good and I think my better, more advanced, leisure centre will be much more popular, and should take all the customers from moss farm. Jack Spilsbury 11T Business Studies Coursework Mrs Roberts ...read more.
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