You are to look at the probability of setting up a new retail outlet in your local area.

? A small gym does not require a high amount of human resource, which cuts the capital and retained profit required to set up this business and maintain it in its early years.

? Gyms are very popular with many different socio-economic groupings at the present time therefore the present is a good time to set up this type of outlet therefore the prospects of this type of outlet are better.

The disadvantages of entering this market in Cumbria are:

? Because of the established "Classic World of Fitness" gym in Carlisle and the new "Living Well" development in Kingstown, if Carlisle was chosen as the location for the new gym a franchise in order to limit the risks of starting a new business would be unlikely to be obtained. However alternative locations like Keswick or Working ton a franchise and the benefits which accompany it would be easier to obtain as there are no existing franchise outlets in these areas.

? Because of the same two developments: if Carlisle was chosen as the location for this type of outlet the most likely source of finance, a bank, would be difficult to obtain therefore the chances of being able to set up this type are limited. However there is a possibility of running a gym as a separate business on the same premises as the "Living Well" leisure centre, which does not have a gym facility, this may be mutually beneficial to both businesses.

? In this market there is strict health and safety legislation therefore establishing a new outlet in this market is not as easy as establishing an outlet in a different market where there is not as much health and safety legislation. Also an accident in a gym could severely damage this type of outlet, this disadvantage is not just to be considered in starting up a gym but also every day the gym is open. Reputation is what all the success a business has or does not have is based on, establishing a good reputation and keeping it in order to obtain repeat trade, is harder in this market than in others. This could be a key disadvantage in the establishment of a new gym.

? Though the amount of human resource is not high the staff that are required to staff a gym are required to be specially trained and good staff may be hard to find in Cumbria as the population is not particularly large and training facilities for staff are not particularly good in this area.

? Sport and leisure facilities are a luxury good and in a town like Workington and in areas of Carlisle where the inhabitants are not particularly wealthy means that the demand for this type of outlet in these areas is not great therefore this limits the chances of a new gym succeeding. However in Keswick where the inhabitants are better off there is likely to be a demand for this type of outlet so the chances of success are better for this outlet.

? If the outlet has objectives of becoming a sports centre then obviously the area that is required for this is land. This means that though at first a gym would only take up a fraction of this space the land would need to be purchased. This vast and immediately unnecessary increase in the amount of capital needed to begin this business. This creates the following problems: profits will need to be retained for some time in order to finance this (profits which will no longer be available to improve the business or allow it to provide more services and make it more popular.), though the business would then have enough land to expand it would not immediately have the capital to do so and the increase in the amount of capital needed to be invested in order to start this business may deter investors (for example a bank prepared to invest.). This problem could be solved by choosing a location with much land surrounding it currently unoccupied so that the land does not have to be purchased at h e start of the business venture or sharing the premises of the "Living Well" development already in Kingstown.

? A gym is a business that can be of many different sizes or equipped to many different degrees. However to begin with the gym must be well equipped to reach a basic standard and therefore be used. This means that that the start-up costs are high and must be found all at once would be a danger as the degree to which the gym is equipped would not be able to be built up over time after how successful is, in practice, can be established. This increases the risk of entering this market.

? Health and Beauty facilities:

The advantages of entering this market in Cumbria are:

? The amount of human resource required at first is not high therefore reducing the amount of money which is required to start up the business and maintain it in its first years therefore increasing the chances of success for this business.

? No expensive machinery or equipment is required when the salon is new and simple with further reduces the amount of capital required and therefore the amount that must be borrowed or retained therefore increasing the chances of the business succeeding.

? There is no real established market leader in this market in Cumbria, which is a major boost to the chances of this outlet.

? Due to the fact that there is no real established market leader in this area and the effect that this advantage has on the prospects of the business: a bank, the most probable source of finance is much more likely to invest in this business. With a bank willing to invest in this business the chances are good getting the new outlet established.

? A new business has a better chance of success in a market which is not brand name dominated as it is not at a major disadvantage, in this way, to larger companies it may have to compete against.

? This sort of outlet is such that not all the services it can provide ultimately need to be in the new salon and can be added when enough retained profit or further credit or capital can be raised once the performance of the business has been assessed. This also provides the business with plenty of potential for growth and is less of a risk than setting up a large development all at once in case the venture is a failure as more money has been lost.

The disadvantages of entering into this market in Cumbria are:

? Though the human resource required is not large the staff required need to be specialists with some knowledge of music in the field therefore they may be difficult to find in an area with a small population like Cumbria. If the staff take a lot of the small amount of the money made by the business in its early years it may make the business have more difficulty in surviving.

? This market is not popular with as many social groups; it appeals mainly to women. This means that the business has a smaller target market therefore the amount of customers which can possibly attend this is lower, the target market is smaller and the turnover this can generate is lower.

? Because Workington and Calisle are not particularly well off areas and health and beauty is a luxury service the number of customers is likely to be lower there for turn over generated is lower, less profit can be retained limiting both the chances of the business´s chances of survival and opportunities for expansion. Though in Keswick this disadvantage may not apply and the demand is likely to be much higher as the public there have more to spend on luxury goods.

? Because there is no competition in Cumbria this means that no similar businesses have had great success therefore it will take a special health and beauty business to succeed where others have failed. Because no others have succeeded it suggests that in Cumbria this is not a good market to enter.

? As this outlet has objectives to expand either large premises will be needed at first increasing the amount of capital required to start the business or when the outlet wishes to expand premises will have to be moved therefore limiting the advantage which can be taken of the reputation the outlet has built up before expansion, which has allowed it to do so, and may lose it some repeat trade.

? If the outlet has objectives of becoming a health farm then obviously the area that is required for this is land. This means that though at first a health and beauty salon would only take up a fraction of this space the land would need to be purchased. This vast and immediately unnecessary increase in the amount of capital needed to begin this business. This creates the following problems: profits will need to be retained for some time in order to finance this (profits which will no longer be available to improve the business or allow it to provide more services and make it more popular.), though the business would then have enough land to expand it would not immediately have the capital to do so and the increase in the amount of capital needed to be invested in order to start this business may deter investors (for example a bank prepared to invest.).

? Clothes Shopping facilities:

The advantages of entering this market in Cumbria are:

? Because a high profit from each sale is so high due to the appeal of a designer label the highest profit can be generated from the least amount of sales. This is important as a large turnover can still be generated from small premises. This results in just as high a profit being generated but the business having a lower start-up cost.

? Clothes are essential goods therefore there will be a demand for them anywhere. However this may not be true of designer goods however.

? Human resource required is low and the staff does not need to be specialists therefore their wages can be lower and this places less of strain upon the income to the business. Ultimately this means that the outgoings of the business are lower and therefore profits are higher, more can be retained and used to increase further the chances of the businesses.

? There is no real established designer (upper end of this market, Gucci for example.) in Cumbria which leaves the market open for a new outlet increasing the new outlet´s chances of success.

? Because of the lack of upper class designer clothes stores in Cumbria it would be beneficial to a designer, as a franchiser, to enter Cumbria. If a franchise could be obtained then the new outlet would, without a doubt, be able to function on the name and reputation of the franchiser which would help to make it successful from the outset.

? Because designer stores are not huge, no large premises would be needed to set up this business therefore reducing the amount of capital needed in order to begin this venture meaning that: this type of outlet would be more attractive to investors and that all retained profits would go towards improving the business instead of paying for the premises.

? The most upper class shops that exist in Cumbria are the most popular suggesting that even classier outlet would succeed.

? The brand and the social group to which a designer outlet would appeal to mean that a large of profit could me made from not a large amount of sales therefore as the only designer outlet in the area a new outlet would receive all the sales of designer clothes indicating that a large profit is to be made.

The disadvantages of the new outlet being opened in the clothing market:

? A designer company which is at the top of the designer clothing may not be interested in giving a franchise in Workington, Carlisle or Keswick as they are not particularly glamorous locations which would fit well with the image of these stores.

? If a franchiser would not give a franchise in any of the chosen locations then this would mean that the new outlet would have to be run under its own new name and this would decrease the chances of success of the outlet given the brand name dominated nature of the clothing market.

? Designer clothing is expensive and appeals mainly to the better off section of the public thus making the target market smaller limiting the amount of customers that can be brought into the outlet.

? Conclusion ~ The Chosen Market:

Of the markets that I have considered I have concluded that the clothes shopping market provides the highest chance for a new retail outlet to be successful. Therefore I will construct a business plan for a new designer clothes shopping outlet in Cumbria for the following reasons:

? The socio-economic grouping to which this type of outlet would appeal to, are clear from the outset therefore conducting research has been made easier.

? There is the least amount of direct competition to this type of outlet generally in Cumbria. This fact alone means that there is the highest chance of success in this market for a new retail outlet rather than in the other two markets that I have evaluated. It also means that there is more chance of an additional local source of finance or possibly a franchise being obtained from a designer parent company. The latter of these results significantly reduces the risks of starting up a new business. The former also means that the business has more chance of starting well due to a larger amount of capital.

? Of the markets I have investigated the clothing market is the only market which provides an essential good or service therefore it has the largest target market therefore has the potential to obtain the highest turnover and therefore has the highest chance of success.

? Land is one of the most expensive start-up costs when starting a new business and as the other two markets will ultimately require large premises whereas a clothing outlet does not whereas due to its nature a designer outlet can generate just as high a profit from small premises.

? Specialist staff is not required to run this type of outlet therefore recruiting is easier and a lower wage bill results in lower running costs for the business.

? The least amount of capital is required in order to start this business in terms of land and machinery.

? The market in Cumbria is definitely not saturated with designer clothing retail outlets therefore there is a gap in the market which a new retail outlet has the potential to fill.

? Secondary research can be obtained from the fact that a new similar business, Debenhams, has recently opened in Cumbria.

? Difficulties that may be encountered during the project:

As with any mock research there are short falls when it is compared to actual research for a real business. These are caused by the following factors:

? As the research is mock it can be expected that it will not be a priority with businesses approached.

? As the project is on a deadline then the detail in which this research would be conducted for a real new outlet can not be reached.

? Businesses are busy with their own affairs.

? Proper research costs money that has not been invested into this project.

? A lot of the desk research conducted may be from sources right up-to-date.

? Primary research is time consuming and due to a tight deadline on this project the detail which may be required can not be incorporated.