# With reference to the local area would the opening of a new business represent a sound business decision?

Nilesh Mistry 11SD

Nilesh Mistry

Teacher: Mr Johal

With reference to the local area would the opening of a new business represent a sound business decision?

Introduction

The aim of this project is to analyse 2/3 different properties and choose which of these would be best suited to set up a business. To help me make a decision I will be using methods like a table of comparison; area maps in the local Leicester area and estate agents.

Methodology

Section 1 (Location Section)

As I have to identify a suitable location I will do research into 3 properties in my local area. I will carry out head counts at each location to find out which is the busiest. I will show the locations on a map then I will compare the locations in a table of comparison, to see which has the greatest business opportunity. Having done this I will then decide on the best location for my business.

Section 2 (Product Section)

As I have to choose a suitable product to sell/make I will first think of a range of products and say why I would like to sell them. Then I will conduct a questionnaire and analyse its results to see the effects of the various products will have on my business. Finally I will choose, based on the results of the questionnaire, my product.

Section 3 (Break-even Section)

Fixed costs, variable costs and revenue will be considered to determine how many units need to be sold to make a profit. This number will be compared against potential customers to see if the business is viable.

Location Section

Aim of This Section/Method:

In this section I will compare my properties looking at their various different characteristics and then I will choose the best property taking in mind all their advantages and disadvantages. To do this I will conduct a headcount – looking at the number of people walking by the shop door at 15 minute periods, I will do this three times on each property. Also I will show the locations on a map, I will do one map showing all 3 three locations and another of the area of the property I have chosen outlining all other shops in the area. As well as that I will put the information gathered e.g. rent, size, headcounts, location/area, parking space, etc into a table and compare each characteristic. Finally after looking at all the data I will make my decision about which property I will use.

Property Details

“Bairstow Eves are proud to offer this ground floor commercial property with a one bed roomed flat over. Comprising of main shop and office space to the rear one bed roomed flat with bathroom and downstairs kitchen.
An ideal investment opportunity.

Main Shop: 16'11" x 10'8" (5.16m x 3.25m). The main shop is being used as hair stylist, UPVC window and door to the front, radiator. Doorway leading to

Rear Office: 10'10" x 7'6" (3.3m x 2.29m). This is being used as the office, has window to rear elevation, door leading to:

Kitchen: 12'11" x 5'10" (3.94m x 1.78m). Kitchen units with role edge work tops and eye and base level units, stainless steel sink and plumbing for automatic washing machine.

Living Room: 14'2" x 10'11" (4.32m x 3.33m). Window to rear elevation, radiator, and door leading to:

Bedroom: 11' x 10'11" (3.35m x 3.33m). Window to front elevation and radiator.

Bathroom: 9' x 6' (2.74m x 1.83m). Window to rear elevation, low level W.C., pedestal wash hand basin, bath, and radiator.

Yard: Rear entrance to the flat, out buildings.”

Source: www.rightmove.co.uk

Map

This map shows the location of all 3 of my properties.

Table of Comparison

Now I’m going to put the details of my properties into a table so that the information is easier to look at and so that it can be compared.

I conducted 3 three head counts on my properties to see which was the busiest. I did three head counts at different times so I got a more average time spread over a day. I will now find the average of how many people will go my shop in one working day. I’ll do this by first finding the average number of people that walk by in fifteen minutes; then an hour and finally how many will go by in the time my shop will be open.

The average of my headcount shows that Property 1, 1 Kingston Road, has the most number of people walking by in 1 hour and in 1 working day, therefore the busiest. It also shows that Property 3, 216 Green Lane Road, has the least number of people walking by in 1 hour and one working day, therefore the least busy. This means that Property 1 as the better business opportunity and would be better to set up a business as there is more passing trade. However Property 1 may have had a high head count because of an event taking place in the area and the others may have had low head counts because their was something stopping people getting to the area, like traffic.

Conclusions and Recommendations

Evaluation

I have reviewed all three of my properties and they all have many advantages and disadvantages. The properties are located in different parts of the city in well established commercial areas.

Property 1, 1 Kingston Road, is located on the corner of Evington Road and Kingston Road. It is part ...