• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15
  16. 16
    16
  17. 17
    17
  18. 18
    18

Small Business Strategies - identifying the target market, necessary skills, plans for development and legal and financial constraints.

Extracts from this document...

Introduction

National Diploma Business Unit 37: Starting a small business P2 - Describe how to indentify the target market Market research Market research is essential if an organisation is to make the right decisions when producing a new product or service. This means the organisation must consider many different factors such as: * The target audience * What they require * When they require it * Where the product sells best * The activities of competitors * Changes in the current market Market research is the process of planning, collecting, and analyzing data relevant to marketing decision-making. It usually requires using a combination of primary and secondary research tools to better understand a situation. Primary research (also called field research) involves the collection of data that does not already exist. This can be through numerous forms, including questionnaires and telephone interviews amongst others. This information may be used in such things as questionnaires, magazines, and Interviews Secondary research: data which already exist in some form, having been collected for a different purpose, perhaps even by a different organisation, and which might be useful in solving a current problem. Sales forecasts A sales forecast is a prediction of what sales will be achieved over a given period, anything from a week to a year. Sales managers require sales people to forecast, in order to provide data to production, purchasing, and other functions whose activities need to be planned to meet sales demand. Sales forecast - Projection of achievable sales revenue, based on historical sales data, analysis of market surveys and trends, and salespersons' estimates. Also called sales budget, it forms the basis of a business plan because the level of sales revenue affects practically every aspect of a business. Customers' actions and choices Customer behaviour can be used to highlight market trends, building up a profile of potential customers and consumer preferences, aspirations and lifestyle which will help businesses greatly in making accurate forecasts for the future in terms of what level of demand there is from certain segments of the market. ...read more.

Middle

If things go wrong as they sometimes do, or a potential legal problem arises between the business and a third party, having a solicitor at hand could save considerable hassles (and costs) further on down the line especially if the solicitor has been in your service for quite a while meaning that he will have a better overall understanding of your business and requirement. As with business consultants and accountants however, the costs can be quite high depending on the tasks at hand and what is required of the solicitor on a regular basis. Training Training for staff is very important as it equips them with the skills required to carry out their duties properly. By training the staff well, the business will benefit from increased productivity as they will be able to work more efficiently and effectively resulting in an improvement in their work rate. As well as boosting productivity, good training will also help to improve the quality of service the business offers. By training staff so that they are competent and confident will also allow them to reflect the image and quality of service that the business offers. This in turn will go a long way in helping the business to grow and expand which could see a significant rise in profits. Often, the training employees receive will be obligatory due to Health and Safety purposes, as well as to comply with the Disability Discrimination Act, Equal Opportunities Commission and so forth. www.peterboroughbts.co.uk/Train/benefits.asp P4 - Describe the legal and financial aspects that will affect the start-up of the business. - Chose at least 5 from each section Legal Aspects Legal status - Upon starting up a new business, one of the decisions that I had to make was the legal status of the business. Considering my financial position and the risks involved, setting up as a limited company is the most viable and safest option. ...read more.

Conclusion

This means that I will be protected from any law suits against myself or the business. The other type of compulsory insurance I require is motor insurance as I will be utilising a company vehicle and therefore it must be insured and cover all the people who need to make use of it. Section 5: Financial resources plan It is important that the business will be able to provide me with my personal survival budget. The initial main costs for Serenity beach will be the premises, equipment including all the computing hardware and software as well as renovating the caf´┐Ż area and locating a suitable supplier for it. It is also vital that Serenity Beach adopt a sound pricing and marketing strategy if the business is to raise awareness, attract and retain customers and succeed in the long run. Our promotional activity will focus on the local area and will include local news, flyers and leaflets as well as radio slots on regional radio. As Serenity Beach are new on the market, it is important the right pricing policy is adopted as pricing has a huge impact on sales and profits. If the pricing policy is spot on, it will allow our business to establish itself firmly in the market and hopefully set us up for many prosperous years of trading. Section 6: Growth and development plan While Serenity Beach are currently focusing on Brighton, if this first store thrives then it will pave the way for further expansion to other regions across the UK. If Serenity Beach Brighton generates the amount of cash required for expansion, we could be looking towards extending operations in London, Edinburgh and Glasgow. Section 7: Financial contingency plans If in the even of financial hardship, Serenity Beach has a financial contingency plan in place. Personal savings and assets could be ploughed into the business to shore up Serenity Beach during rough periods. As well as this, emergency loans can be arranged with the bank to help the business remain solvent during tumultuous times. http://www.knowthis.com/tutorials/principles-of-marketing/planning-for-market-research/primary-research-advantages.htm ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Unit 9: Marketing Strategy

    The highest proportion of people appeared to buy their bread and cakes from small shops such as Spar, this corresponds with the percentage of retired people living in Sutton-on-Sea whom have answered this questionnaire as the only "supermarket type shop" is a small Spar shop on the high street.

  2. Market entry strategy of Aldi and Lidl. Plans for expansion.

    up their stores in suburban areas and remote districts where they can save money on rent or on purchase prices of properties and being a 'grocery discounter' Is a good strategy to expand their business abroad. Economic and political environment in the home country is influential on company's decision to go international.

  1. Unit 1 P5 Describe the influence of two contrasting economic environment on business activities ...

    When businesses are recovering from a recession the demands will start to increase which will make suppliers to supply more of the products for the demands. We would expect that the revenue will increase a lot quicker than usually, this is because consumers confidence are more confident and will start to demand which will increase the revenue in the business.

  2. Unit 3 M2 explain the limitations of marketing research used to contribute to the ...

    Lidl and Aldi as they don?t have strong finances they won?t be able to access the research that Tesco PLC would be able to Smart (specific, measurable, achievable, resources, time-bound) When gathering information, if it?s not cost effective, then the objectives that you have set will be invalid because the information is not very dependable or valid.

  1. Unit 3 D2 Make justified recommendations for improving the validity of marketing research used ...

    reliable to use then the organisation should use the information to make changes to the marketing planning?s that are already in place. Another way that Tesco PLC can validate the information is though doing regular updates on the data collected, in order for the organisation to see the changes in

  2. Unit 1 P3 P4 P5 P6 Business Organisation and The Business Enviroment - comparing ...

    .? Sainsbury?s ketchup sales have gone up by 140%. Sainsbury?s believe that this is why they were not affected by the recession, because although their customers did not buy branded products their own branded sales increased massively. Sainsbury?s think that their customers trust their own labels more than others.

  1. Unit 2 M2 Assess the importance of employability skills and personal skills in the ...

    through qualifications, experience in the industry, experience in the job role etc. High level of staffs Higher levels of staffs such as a store director have a wide variety of staff roles and responsibilities within Tesco plc and need the right employee ability skill to be a store director.

  2. Unit 1 P6 Describe how political, legal and social factors are impacting upon the ...

    The E.U is an economical as well as political union where they currently have 28 parties, they operate by the system of supranational independent institution an intergovernmental negotiated decisions made by the members. Formed back in 1951 originally with only 6 countries, so what affect does it have on businesses,

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work