Noah Won Chaminade High School 12th Grade
Have you ever wanted to start your own business? The most popular answer is yes. Most people at one point in their lives have considered setting up their own business and selling a product or service. Well, for those who answered yes, I will be explaining to you some basic factors that must be reviewed to determine the success of a business. The truth is, it is way harder than it seems! So, I hope this article will either captivate your interest in owning a business more or allow you to realize that owning a business is not in your best interest.
As an aspiring business owner, you must figure out the population density of the location you decide to establish your business. The number varies, as in some instances you may be looking at population per five square miles while others you may be looking per 20 square miles. To help determine, just think about yourself as a consumer of the product/service you are selling. Ask yourself, “How far would you be willing to drive for your specific product or service?” This is important because it gives a predicament on the largest amount of people accessible to your specific business.
Before starting up your business at a specific location, you must figure out if there are any other businesses in the same area that is selling the same product or service that you are. Especially for small businesses, competition can result in a decrease in profits as a result of trying to appeal more to consumers (ex: lowering prices or having special deals). When there is less competition in an area, there is more demand for your business alone and thus your profits are likely to be higher. When there is more competition, there is more supply with less demand.
The consumer culture within your area is important to determining how high and frequent the demand of your product is. For example, if you are living in a rural setting mainly composed of farmers, owning an electronics store would probably not be the best idea. A more urban, dense, and expanding city would be much more suiting for an electronics store due to the heavy implementation of technology within the city. In essence, you must evaluate the value and need for your service or product within the local community in order to predetermine the potential of your business.
The economic environment and climate of your business is also vital to understand. Think about the location you would like your business in. Is it hot? Is it cold? Is it windy? Is it rainy? These are some of the many factors that can be especially crucial for clothing companies and restaurants to understand. When you notice a high demand in a particular clothing like raincoats, you must seize the opportunity and adapt to consumer needs. In the end, you are utilizing the surroundings to the benefit of your business.
I hope this article taught you some of the fundamental basics that are required to know when maintaining a successful business.
<Noah Won Chaminade High School 12th Grade