Partnership:
A partnership is a form of business ownership that has at least two owners (partners). Each partner acts as an owner of the company, which is an advantage because the partners can share the decision making the risks of the business. A disadvantage is that, as in a sole proprietorship, the partners’ personal assets could be lost if the partnership cannot meet its obligations.
Partnerships are easy to form.
They end when a partner dies or leaves the partnership.
Limited company:
A limited company is a business owned by shares. The corporation may have only a few stockholders, or it may have many stockholders. The stockholders are not personally liable for the corporation’s debt, and they usually do not have input into the business decisions.
Corporations are more difficult to form than sole proprietorships or partnerships.
Corporations can exist indefinitely.
4.2 Type of Business
Khun Patana, I suggest that you have a company in the Australian and New Zealand food and item products.
I suggest this because there are many people from the two countries living in Bangkok and it would be appropriate to sell products from their home country.
Also people who are from Australia and New Zealand who live in other Asian countries which have no ship like this one might be enticed to buy from us and take back to their expatriat country.
The figures I have collected in #3 show that there is a high demand with 53% of people questioned would be willing to buy at the store if it were set up and would shop there on a regular basis, this gives you Kuhn Patana a good idea that this business may actually work.
4.3 Location
I have considered 3 main locations on where the business should be put up.
Central has a good variety of market we would be able to target. But lacks a good amount of floor space for the business
Emporium has a large amount of floor space for the company to be built on but may not have as many customers who will buy the products.
World plaza this was a promising option until we found out that a space of 20mx20m will set the company back a near 30million baht. This is of course out of the option for the time being unless the company has adequate profits and wants to expand or franchise.
I have chosen Emporium to be the venue of choice by two things, one being that it fits into the recommended budget of 10million baht and has an adequate floor space to put the business up upon.
4.4 The competition
At the moment there are competitors for the business because this is a unique selling point of only Australian and New Zealand products and nothing else. A consumer will not find these products anywhere else in Thailand.
There is indirect competition like villa market and food land but neither is sufficient enough to be a cause for concern.
4.5 The Marketing Mix
4.5.1
The business may be able to have a demand and supply if the company has any competitors but because at the moment there are no competitors this may not be necessary.
I have decided on the price to be high in the first quarter to boost profits as much as would be possible and in the second and third quarters to move on to a more common and average price for the products.
4.5.2
The company will be able to promote its products in several was.
Advertising-which can take different forms such as television adverts or magazine adverts.
Promotion-which would include money-off coupons.
Personal selling-this includes company representatives going directly to the customer to try and sell them something.
Public relations-to make customers aware of the company and its products through sponsorship of the media.
4.5.3
The company may be able to extend the product life cycle of some specific products by changing the design in some way or the logo of the product to entice buyers and consumers to buy the product.
4.5.4
Some channels of distribution which the company could use may be to have larger products to go directly to the company like TV’s and stereos but chocolate bars and sweets to be on the shelf and left the consumer take by themselves.
4.6 Management and staff
The management of the business need to know how to run the company and when there is a problem how exactly to fix it in the least amount of time.
The staff will need to be trained for the various jobs in the company
Some leader ship styles may be that of having ideas going around with staff input since staff deal with customers who may give comments.
4.7 Possible problems
One of the first steps in evaluating a new business idea is to find out who else is already doing it. Do some Google searches. Find out who your competition will be. Find people who are doing something similar or related.
The next step is where a lot of would-be entrepreneurs make a wrong turn: The strong tendency is to drop an idea as soon as we find somebody else is already doing it. We somehow convince ourselves that we have to keep searching for ideas until we find something completely new. Innovation is glamorous. We love to hear stories about the guy who makes a fortune by inventing something completely new. And besides, there's no sense starting with established competition from day one, right?
To be fair, I'll concede that competition should not be taken lightly. Entrenched competition can be tough to beat. Picking the wrong competitor as your goliath can be suicide. However, avoiding competition altogether is usually not a good strategy for getting a business going
The big problem with avoiding competition is that you are also avoiding customers. The existence of a competitor indicates the existence of paying customers. If you can't find anyone who is making money with your idea, you really need to wonder if there is any money to be made there at all.
As an example, suppose you have a cool new business idea. You want to revolutionize parking and car rentals at airports. The idea is simple: Airports are visited by two kinds of people: Some people bring their car and leave by plane, so they pay to leave their car in a parking lot. Other people arrive by plane and need a car, so they pay to rent one from a car rental agency. Why not match these people up? Instead of paying to park their car, travelers can actually make money by allowing it be rented while they're gone on their trip. From the perspective of the renter, everything is the same as it is for existing car rental agencies, except that we can charge really low rates since we don't have to carry the capital costs of owning a fleet of vehicles.
As far as I can tell, nobody is doing this business model right now. If you want to get into a new market which is wide open and free of competition, jump on this exciting opportunity today. You don't even have to give me a piece of the profits for contributing the idea. More specifically, I have no interest in sharing a piece of the losses. :-)
There's a very good reason nobody is running this kind of business: Most people do not want a stranger driving their car. Many people just don't treat rental cars very nicely. The owner of the car is not likely to think the risk and aggravation are worth the trouble for the money they'll get.
The lesson here is that "new" ideas aren't as valuable as people think. Most of the time, when you find a market with no players, it's not really a market. Money is made by beating competition, not by avoiding it. If you want to start a new business, don't look for an idea which has never been tried. Instead look for someone who is serving real customers but not doing it very well. Find a way to do it better.
This approach seems scary, but that's merely because the risks of facing a competitor are easier to see. If you're going to fail competing in an existing market, you probably know how that failure is going to happen. In contrast, the risks of creating a new market from scratch are far less obvious and visible. But even though those risks are harder to see, they're actually huge. An optimistic person can too easily convince himself that those risks aren't really there. Believe me; creating a new market segment is much harder than it looks.
Some sources of finance the business may have would be in the form of a loan from a bank.
Questionnaire
Please take your time to fill in this questionnaire for our soon to be opened Australian and New Zealand store. We would like to get an idea of what products we should buy a dhow we are able to improve on the shop in general.
1. What age group are you in?
I would ask this question to be sure that the people I am asking are in the right age group, I would not want any people below the age of 20 or above 60 so I included this to be able to gauge that.
My findings show that the majority of the age group that I had questioned was between the ages of 20-50 years old.
2. Why would you shop at an Australian and New Zealand store?
You like Australian and New Zealand Products
You are from Australia or New Zealand
Other please state
I would ask this question to get an idea of the consumer’s wants and needs; this would be good to see so that when time comes to buy the products for the shop I will be able to know what to order form the supplier.
I found that 52 % of people liked Australian and New Zeeland products and were willing to buy them again. Only a small minority of 8 % of the people questioned asked were from Australia or New Zealand. The other 40% went to various countries products of which mostly were local Thai.
3. What sort of shopper are you?
Window shopper (12%)
Food shopper (12%)
Everyday shopper (42%)
Occasional Shopper (12%)
Other please state (22%)
This may give an idea to how often our customers will actually buy our products.
These findings show that a large amount of people I had questioned had been everyday shoppers which may very well be willing to shop at our Australian and New Zealand store.
4. What products do you shop for here in Emporium?
Food items (31%)
Electronic items (9%)
Home ware items (28%)
Vehicle items (2%)
Other items please state (39%)
____________________________________________________________________________________________________________________________________
This will give you an idea of who our targeted customers are and what they would perhaps buy.
The results here show that the company will be able to sustain a large amount of the market of 69% the other 40% being goods that are locally produced and not Australian or New Zealand by origin.
5. Would you like to see these products sold here in Emporium?
Australian and New Zealand cheese yes (30%) No (4%)
Fresh Tasmanian Mussels Yes (7%) No (2%)
Vegemite and Skippy Peanut butter yes (4%) No (3%)
Books magazines Motors Woman’s weekly yes (19%) No (11%)
Other please specify (20%)
____________________________________________________________________________________________________________________________________
This would give the idea of what the consumer wants and what we could stretch to on a limited budget of 10 million baht.
This shows you Kuhn Patana that a large amount of products may be sold at the Australian and New Zealand store.
6. Do you shop at any of the following stores?
Food Loft (36%)
Villa market (30%)
Fuji supermarket (3%)
A&S (13%)
Others (29%)
This shows that a fair majority of people shop around the city center which shows where our store will be.
5.0 Conclusion
One of the first steps in evaluating a new business idea is to find out who else is already doing it. Do some Google searches. Find out who your competition will be. Find people who are doing something similar or related.
The next step is where a lot of would-be entrepreneurs make a wrong turn: The strong tendency is to drop an idea as soon as we find somebody else is already doing it. We somehow convince ourselves that we have to keep searching for ideas until we find something completely new. Innovation is glamorous. We love to hear stories about the guy who makes a fortune by inventing something completely new. And besides, there's no sense starting with established competition from day one, right?
To be fair, I'll concede that competition should not be taken lightly. Entrenched competition can be tough to beat. Picking the wrong competitor as your goliath can be suicide. However, avoiding competition altogether is usually not a good strategy for getting a business going
The big problem with avoiding competition is that you are also avoiding customers. The existence of a competitor indicates the existence of paying customers. If you can't find anyone who is making money with your idea, you really need to wonder if there is any money to be made there at all.
As an example, suppose you have a cool new business idea. You want to revolutionize parking and car rentals at airports. The idea is simple: Airports are visited by two kinds of people: Some people bring their car and leave by plane, so they pay to leave their car in a parking lot. Other people arrive by plane and need a car, so they pay to rent one from a car rental agency. Why not match these people up? Instead of paying to park their car, travelers can actually make money by allowing it be rented while they're gone on their trip. From the perspective of the renter, everything is the same as it is for existing car rental agencies, except that we can charge really low rates since we don't have to carry the capital costs of owning a fleet of vehicles.
If you want to get into a new market which is wide open and free of competition, jump on this exciting opportunity today.
There's a very good reason nobody is running this kind of business: Most people do not want a stranger driving their car. Many people just don't treat rental cars very nicely. The owner of the car is not likely to think the risk and aggravation are worth the trouble for the money they'll get.
The lesson here is that "new" ideas aren't as valuable as people think. Most of the time, when you find a market with no players, it's not really a market. Money is made by beating competition, not by avoiding it. If you want to start a new business, don't look for an idea which has never been tried. Instead look for someone who is serving real customers but not doing it very well. Find a way to do it better.
This approach seems scary, but that's merely because the risks of facing a competitor are easier to see. If you're going to fail competing in an existing market, you probably know how that failure is going to happen. In contrast, the risks of creating a new market from scratch are far less obvious and visible. But even though those risks are harder to see, they're actually huge. An optimistic person can too easily convince himself that those risks aren't really there. Believe me; creating a new market segment is much harder than it looks.
6.0
Bibliography
Books used
Advanced business: Michael Fardon
GCSE applied business Michael Fardon, Chris Nuttall, John Prokopiw
IGCSE business studies Karen Borrington peter stimpson
Websites used
