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

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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.


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.


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.

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