The New Mobile Phones Shop Viability - Case Study Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2012 New Mobile Рhоnе Shор Introduction My intended business idea is a new mobile phones shop. This idea has come from a thorough analysis of the customer needs that has been fuelled by the progression from the standard mobile phones to smartphones, which are more efficient. From fashion-conscious teenagers to savvy soccer mums, the necessity to personalize and customize mobile phones is a solid market. I have also made significant contacts with a large number of individuals, a factor that has inspired me to come up with a business idea that will allow me to take advantage of the contacts created. Besides, I am convinced that this business idea represents a worthy entrepreneurial opportunity taking into consideration the increasingly expanding mobile phone market. Analysis of the Nеw Mоbilе Рhоnеs Shор Viability Business viability is determined by its continuing survival, as well as its ability to create sustainable profits over a given time period. According to Murray (2012), Viability can only be attained if one has a clear understanding of the market behaviour of whatever space one is intending to hack. Therefore, it does not matter how smart one is as a starter or how much capital one has in the bank to enable him/her start his/her own business, if one is unaware of how his target customers behaves, then he/she will struggle to make any significant impact. The new mobile phones shop business will be viable as it intends to have well defined products and services intended to solve the increasing demand for more efficient mobile phones. The business also intends to focus on both personal and general business consumers as its target markets. These groups of consumers will provide the business with a significant market penetration. Additionally, the business intends to provide services and product packages that are appropriately priced and will provide services that suit each group of consumer’s needs. Analysis of Finance Coming up with a business idea is just half the battle. Getting funding is what stops most small-business owners in their tracks. As highlighted by Brown (2010), generating a business idea is just half the battle. Getting capital to fund the business is what prevents most small business owners from making their ideas practical. Nonetheless; I intend to use my own private resources to finance the start of the Nеw Mоbilе Рhоnеs Shор business. I plan to invest $4166 of my own money (proceeds from the sale of my clothing shop business).My cash flow projection indicate that the new mobile phones shop business will need/require approximately $ 85,575 of working capital during the initial months of the first year of the business operation. I also consider that in case some extra funds prove necessary, I have identified two other options that will enable me raise further funds. These include; approaching my bank in order to raise a medium-term loan and the selling of equity. Thesecould provide some capital to enable growth of the business. Analysis of the Business Location My market research reveals that marketing plays the most significant impact on individual’s choice of products and services, followed closely by choosing the right location. According to Entrepreneur.com (2012), a poor business location forms one of the major causes of business failures. Thus, business location has been an important consideration for my new mobile shop business. The business will be located at the centre of the central business district of London city. One of the reasons for this is that other than the significant number of contacts including friends, the central business district of London city has a population base that is large enough to sufficiently support my business. Further, they have a reliable economic base that will ensure a health environment in which my business can grow. The location will also be convenient for my customers as the mobile phone business relies a lot on visibility and exposure of the business premise to attract customers. Besides, the pavements within the city are wide enough such that customers can stand as well as look through without distracting other pedestrians (Entrepreneur.com, 2012). Iam also concerned with keeping my operating costs down, and this means locating my business near key suppliers in places accessible for deliveries. Lastly, I also believe that since majority of my customers will be busy professional individuals, off-peak hour’s access to our products and services will be a strategic way in which the business can be differentiated from others. Analysis of the New Mobile Shop’s Competitors The potential of the market is enormous for products, evidenced by the ever-growing telecommunication industry in our country. There is no doubt that the telecommunication industry is one of the most essential growth industries in the UK and is contributing significant gains within the capital market (Telecoms market Research, 2008). As such, the competition is high; there are a number of businesses offering similar brand names as those that my business is intending to supply, and which might even be cheaper. The business’ strongest competitors boast a strong customer base and experience. However, their locations seem undesirable with limited customer service space. I therefore intend to highlight the outstanding features and selling points that will favour our products. Most significantly, my products will be available in the store, since it is the products that our store is carrying that are going to be sold. The need to attract, acquire, influence and retain my customers remains a major concern to this business since revenue growth through the acquisition as well as the retention of customers is a significant business. Analysis of the structure/employees The business is technically a small medium enterprise as a result the number of employees will be below 50 employees. The business will employ a total of five people. This will consist of the owner as the general manager, a marketing manager, an office administrator and two shop attendants with one of them acting as the secretary at the beginning. The business will operate 6 days a week.The business opening hours will be officially from 9.00 a.m. to 8.30 p.m. References Brown, H, 2010, How to Get Startup Capital for Your Business. Entrepreneur.com, 2012, Location: The Physical Space where your Business Exists, Retrieved on 30th November, 2012 from Murray, J, 2012, Viability (of a Business), Retrieved on 30thNovember, 2012 from Tolu, 2010, 4 Steps to Achieving Viability with Your Business. Telecoms Market Research, 2008, UK mobile operator subscriber data, statistics and market share Read More