Introduction
For a business to implement its policies successfully, it ought to base them on very risk grounds. The saying goes that the high the risk the high returns. The potential of a retail business idea depends entirely on the size of the market on which the products are availed. Also, as a determinant to the success of the business idea is that, the competitors should know very little concerning your business idea. Information about a business to a competitor is an issue of concern. It should be highly kept in secret or far from their access. All the business aim at achieving success in their long run; hence, good policies should be implemented depending on the potential of a business.
The size of the market will highly determine the success of the food store business. Market is the most vital function in examining the implementation of every business idea. Market as a function to the demand model of analysis comprises of sub-functions. These sub functions may include the suppliers to business, customers, substitute products, compliment goods and market size. When a market has potential buyers or customers who are well informed about the business product, the success to the respective business idea faces no hustle. The same case applies to the size of the suppliers. Suppliers enable a business to keep it customers happy by availing all the goods. A good market with good suppliers promotes the success to a business. In order for the business idea to succeed, the level of substitute products should be very low. Also, these substitute products should be subjected to a bit high prices than those with our food outlets. Selling compliment goods at rather cheap prices increases the sales to the main product. All these lie under the market variable of the demand model function.
The share of the personal income is also another function under the demand model that influences the success to the business of food store. In economics, levels of consumption that a person adopts are assumed by his social class and the general assumption of the standards of products. The social standards that our food store would rate itself will assume the kind of buyers to expect. Food is a basic need to everyone, but the quality and price of our food products will assume the kind of customers to expect. Very low prices attract people of small income while very expensive products are only bought by rich people. For food [product to lie in a gap so as to trap all kind of income earners, the business ought to price their products according to the quality. The prices should also be considerate to all groups of people. The size of the disposable income by the consumers refers to the income left after the payment of taxes and compulsory payments. When disposable income is high, it means that the level of purchasing power is high; therefore the levels of demand to products will also be very high.
Leakages from the markets of location mean that, not all customers in the market where our business is to be located will shop from our outlets. This is a threat to our business. The best way to counter this, by increased campaigns on alertness and awareness creation of our businesses products. Advertisement could be done through local media stations and shows. Another way to create awareness of our products is by engaging in public events. Coming in as sponsors or facilitators in the events will make the surrounding community aware of what we offer in our business.
External demand entails the chances of a demand as a result of people who park far from our area of location. The means of dealing with function face some hardship in analysis. It is hard to outline procedures of dealing with this because it is based on chances; the influence of this demand function to the demand of commodities is very minimal. Therefore: neglected, unless the area of business location is a tourism site.
Expectations of the market share are determined by the existing competitors in the market, and also the effective of the strategy with our business. For the business to realize success, it should have a higher level of dealing as compared to the existing business ventures of the same kind.
In conclusion, the most key factor of the demand function that highly affects our business success is the quality of the products. Once we venture in the food business with quality products at reasonable prices, there is no objection or doubt to the growth of the business. Relatively good customer relations as compared with other business will also assume a great success to our business. Customers are the next determinants in the outwit of business, when any food store business venture lacks customers, it means that falling is provisional; a business should work hard always to maintain the customers it has, and seek for more customers.
