Several factors require careful evaluation and consideration when setting up a business investment. If not well articulated, the investor risks losing viability in the business sector prompting eventual collapse out of this venture. Some of these factors for consideration in investment include location, set up and operational cost, target market, background knowledge among other factors. This case study paper evaluates Terry’s plan and goal in the investment about to be set up. This is in line with the various factors for consideration in setting up a business investment.
Background Knowledge
Knowledge and experience in the specific field of investment are very essential before setting up a business firm. Familiarity with the services offered makes management easier. Inadequate knowledge leaves the businessman vulnerable to fooling from customers, competitors and suppliers. In this case, Terry depicts knowledge of the business investment under consideration. She has clearly set out the investment margin, target population as well as the projected profit. She is aware too of all the necessary requirements. This indicates that she possesses the potential for rational management of this Island Shades business. In addition, she plans to use the website as a marketing platform indicating possession of adequate knowledge in business. Terry has adequately researched on how much she will spend on employees and the number required.
Location
Location is crucial in setting up a business vendor. The best location should guarantee easy and quick access by customers promoting sales. Poor location on the other hand limits sales to very desperate limits leading to losses. Terry’s plan to locate the retail store in Palacio is strategic because this is just off an interstate highway in a city. The population is quite high with a good number of people employed. This guarantees improved sales as planned by Terry.
Operational Cost
The goal of any businessman is reduce costs and increase sales so as to improve on profits. Terry has an awesome plan on reducing cost by intending to employ university and high school students on shift and part time basis. Being part time employees, they are not entitled to medical and dental benefits helping Terry reduce costs.
Target Market
Identifying the population to provide market for the investment is equally important. Correct choice of target market fosters business and largely increases turnover. This involves study of the market demands in order to provide best suited commodities to the customers. Terry targets middle and high income earning population. This move however depicts discrimination of consumers. Being a new investment, Terry is not aware of the response of the customers and therefore it is prudent for her to incorporate even the low income earning citizens in her plan. In so doing, she stands a chance of attaining high business turnover on her Island Shades.
Careful consideration of Terry’s plan predicts success. The strategic location of the firm, website marketing, potential operational hours and use of aggressive and persuasive employees are adequate tools to guarantee success.
Positive adjustments to Terry’s plan promise even better success to this goal and plan. Incorporating low income earners in this plan means that Terry overcomes the hurdle of customer discrimination. This attempts to increase the overall sales of Island Shades flourishing this investment. Quality advertisement on posters during inception of this product increases awareness from the masses. In so doing, the business picks up quickly.
In summary, Terry’s goal and plan is in line with the various factors of investment. She has great choice of location, possesses sound business knowledge, and has better control on operational costs. Recommendations advanced include inclusion of low income earning people into the plan and conduct wide advertisement at inception of the Island Shades.
Reference
Anonymous. (2012). Key Factors To Consider When Staring or Investing in a Business.
Retrieved Jan 10, 2013, from Six Sigma Online: http://www.sixsigmaonline.org/six-sigma-training-certification-information/key-factors-to-consider-when-staring-or-investing-in-a-business.html
