Advantages: - These research techniques are important because
Asking people: -
This is the first method of carrying out research and it’s called primary research. Asking people is where information is obtained directly from customers. This method includes interviews, issuing questionnaires to customers, analysing purchase records or by carrying out telephone research. It is so important that the people we choose represent our customers so that their opinions would be representative of the customers we are trying to attract.
Reading publications: -
This is the second method of carrying out research and is called secondary research. This research includes local and national newspapers, yellow pages, articles in trade journals, electoral rolls, booklet etc.
Online: -
This type of research is the easiest way of obtaining information from agencies and organisations that offer advice on business start-ups. There are several online websites that offer advice and help such as and . There are some websites that charge you for their advice and support. E.g. they sell some software’s which include all information about how to deal with day to day business life.
Planning ahead and planning techniques: -
A plan declares what you are going to to do in your future. It’s much important that your plans are reasonable and link to your financial targets. Having a plan ahead is very important as it will provide a rough idea of what our business will become in future. For example we can’t plan that something costs us £5000 if we only have £1000 in our bank account.
Planning techniques includes: -
- First you think about what you want to achieve in 12 month time and where you want to be. After that identify the steps and resources that are necessary for achieving this goal.
- Using a wall planner to enter key events and preparations for these.
- Recording all commitments and ‘to do’ personal organiser or diary, so anything that is important is never forgotten.
Controllable and uncontrollable aspects: -
Controllable aspects are that where our partners can directly take some action. This may include
- Reduce prices to sell off extra stock and achieve their target sales.
- Sign up temporary staff to cover for staff absence due to illness.
- Rescheduling work to meet an urgent meeting.
Uncontrollable aspects are factor that can affect the plan but these can not be controlled by owners. They are
- Changes in interest rates which affect the lone repayments
- Competitors launching a new product or service.
- The borough council or local authority introducing new parking restriction or one way system that reduces passing trade.
- Suppliers increase their prices.
Although uncontrollable issues usually involve an element of surprise, effective business owners try to be prepared. We ask our selves that ‘what could really hurt our businesses? After this they we came to decision weather if there are any protections that they we can protect ourselves and what action we would need to take when the situation is occurred. This is known as contingency plan. Some times these contingency plan helps, like interest rates falls down or opponent could go out of business.
Timing: -
Many markets have quiet times and busy times. Almost new businesses like to open in time to benefit from particular good times, such as retail stores opening in September or October and tourism-related industries in time for the summer season.
Every business took time to get established and attracted customers, so there must be enough time for owners and staffs as well to find their feet.
The work that needs to be done to start and run a business: -
There are two main stages in planning to start and run a business.
The Planning stage: -
The planning stages of our business involve having many business ideas, researching, marketing and finance. Until this stages complete our business is a just idea, not a reality.
- Having an idea. Research resources and skills that is required.
- Work out start-up cost.
- Identify possible sources of finance.
- Write findings into a business plan.
- If plan feasible, obtain and prepare premises.
- Start business and monitor progress. Set targets but be flexible. Learn more experience.
The preparatory stage: -
The preparatory stage of our business involves putting all our plans into a real action after finance is agreed. Several business plans start their trading on sure day. Before getting on into some real action we need to carry out some several tasks, so that everything is ready on time. This also depends upon the nature of business. E.g. Salam Meet shop is a small retailer they might be similar to the list below.
- Obtain premises
- Agree lease/rental terms
- Check water, gas, electricity connected
- Paint/clean premises
- Install shop fittings and fittings
- Buy and install equipment e.g. cash register
- Install telephone/fax line etc
- Buy stick
- Appoint and train staff
- Advertise opening.
After this the owner needs to convert the entire list into actions plan using a wall chart, dairy or computer. The plan should also take into account the possibility that things could go wrong, such as stocks are being delivered late.
Materials and supplies: -
If our business produces well then we must buy regular raw materials for goods. If goods or services are brought ready to use or sell then we called it supplies. In both situations every business needs to find cheap and dependable recourses. Then we need to decide how often to re-order material and how much to order. But before we make any decision we need to look at
- Storage space
- The effect on the cash flow of paying for large quantities of goods.
- Possible discounts for bulks purchases.
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The length of time form ordering to deliver. This is called lead time.
Whatever we decide, we have to look at how much stock is needs to start up and routine system of reordering needs to be established.
