Opening of a New Showroom - Business Plan Example

(Assignment) Business Entity My plan is to open a new showroom d ‘JBR Collections’ in the Los Angels of USA. Theshowroom will deal in locally produced and imported wristwatches, wall clocks and time pieces to the elite, upper, and middle class people of the city. The showroom will be offering premium quality products at affordable prices, and the showroom will stress on quality and affordability. My decision to join the watch sales is purely based on a thorough market research. As per the reports of Dobrian, named ‘High-end and popularly priced watches create uptick in sales’ dated 1 January 2007, the watch sales will continue to increase. In addition, it is pointed out that America is an emerging market for high-end watches, especially the complicated and fashionable ones. In addition, despite the recession, there is a report by Johnson in the National Jeweler dated 1 April 2005 that the sale of fine watch grew by 6 %, and as per the reports, the sale of high – end watches rose in double digits. In addition, there is report that the watch market has a 9.3% increase in 2005, a figure that attracts all businessmen considering the impact of recession. However, the rise is visible in high-end products, not in low-end products. From the above analysis, I found it safe and profitable to have my business in watch and timepiece retail, especially focusing on the elite class of the society. By starting my showroom in strategic location like the city of Los Angels, a decent business is assured. As per the reports, there is a sharp increase in the sales of watches ranging above $ 10,000. In addition, there is a considerable rise in the sales of ‘steel and diamond watches’. Moreover, as per reports, the total US consumer spending on watches and other jewelry rose by 1.2 percent, as compared to 2009 (Jewelry & Watch Retail). Furthermore, according to the DJ US Consumer Goods Index, ‘consumer goods’ come fourth in the list of ‘best performing industries. Thus, it becomes evident that there is a possibility of this industry performing better than all other industries. Moreover, as per reports, the sales of Swiss watches in Chile increased by 30% in 2007 and are expected to rise more (Economic Integration). In addition, there is the logic that there will not be any fall in the sales of watches as they are all time requirement for people. So, even if there is no sharp growth in demand, there will not be any considerable fall in the sales. The only issue will be the competition from other retailers in the market. Thus, it becomes evident that retail of watches is one of the best business opportunities in the present business climate in the US. In addition, as per predictions, there is no possibility of a sharp downturn or fluctuation in the sales of watches in America. I would like to mention here the fact that American economy is on its recovery path from the recession, and hence there are new business opportunities as people are regaining their lost financial safety. As people are regaining their financial strength, it is highly likely that they will again start purchasing apparels and cosmetics, as they are an essential part of life. As compared to other such things, watches are a necessity for all people. So, taking into consideration the influence of recession, and the still weak economy, it is wise to select the retail of watches. In fact, I have selected Los Angels as the location of my showroom. There are various reasons for this selection. The first consideration is the huge population of Los Angels. It is the most populous city of California. As per reports, the population of the city is around 4.1 million (Beacon Economics, 2010) In addition, the location is the focal point of the Los Angels- Long Beach Riverside, with a total population of over 18 million. Yet another point of consideration is the higher income of people in Los Angels city. As per reports, the per capita income of people in the Los Angels city is an average of $ 55,000 (Beacon Economics, 2010). In addition, to make sure that the retail is not affected easily by economic fluctuations, the target market of the retail will be the elite, upper, and middle class people. I give the first priority to watch retail because I have a number of friends in the field who got long years of experience in the business. As they all have considerable amount of experience in the business, especially scaling through the troubles of recession, I can establish my business and run it without any friction from the very beginning. In addition, considering the posh location of the business, it is this watch and timepiece retail that offers reasonable amount of profit. Though there is a considerable amount that is to be spent initially, the business is relatively risk-free as compared to other businesses. In addition, as the showroom provides branded items to the elite class, the expenditure on advertisement to ensure media presence will be less. In addition, the advantage of this business is that the products offered; watches, wall clocks and timepieces are always in demand by individuals. Though one cannot expect a sharp rise in the sale as it is unlikely for individuals to purchase these items like food items or beverages, there is no possibility of the sales of these items going backward because these items are always needed by households and businesses. These items are not included in the list of luxury, and are considered certain basic requirements. Thus, the possibility is that their sales will remain inelastic. Considering the above facts, it becomes very evident that one of the safest and most profitable businesses at present is the one I selected. The retail of watches, wall clocks, and timepieces ensures reasonable profit at less risk. Taking into consideration the growth of watch and timepiece sales, and considering the considerable proportion of elite class in the LA city, the decision to start a showroom of watches, clocks, and timepieces seems the right one. Works Cited Beacon Economics (2010). Los Angeles City Council Districts: 2010 Economic Report. Bernard Parks [Online] Available at http://www.bernardparks.com/files/Beacon_LA_District_Report_FINAL.pdf?phpMyAdmin=hNoSrtFTgqs8hXjeMgpOPChD1dd Dobrian, Joseph. “High-end and popularly priced watches create uptick in sales.” All Business. 2007. Web. 16 March 2011 “D J US real estate services index.”. Big Charts: A Service of Market Watch. 2011. Web. 16 March 2011 “Econimic Integration, Economic blocs, Trade agreements and Trade barriers.” Scribd. (n.d). Web. 16 March 2011 Johnson, Emma. “Luxury, men’s timepieces beat the clock in 2004 watch sales report.” All Business. 2005. Web. 16 March 2011 “Jewelry & watch retail.” Hoovers. (n.d). Web. 16 March 2011 Read More