Introduction
Before starting a business, it is essential for an investor to take time and evaluate the chances of success of the business. There are internal factors to consider; these include his availability of capital and the expertise that one has. After that, there is the outside environment that range from competition, market potential, and the cost of operation verses the income (Livingston, 2003). This paper analyses a business in my locality that I believe was a good decision made by its entrepreneur.
Look Good Beauty Shop
I live in New York City and I am going to discuss the decision made by Look Good Beauty Shop. The shop is located at the heart of the town and thus it can be easily accessed to all people in the town whether they arrive by plane, bus or train (Hood, 2004). The shop stocks beauty/cosmetic products. Depending with the time and season of the year, it adjusts its stocks accordingly. New York is one of the most populated areas in United States of America. According to U.S. Census Bureau, Population Division, 2009, the population of the city stood at 19, 543,456 (U.S. Census Bureau, Population Division, 2009). Over fifty percent of this population is below the age of twenty five (Collins, 2005).
It is located in an area that is well accessible; it attracts a number of tourists and businessmen per year (John, 1998). Competition is an inevitable issue in business today except in few cases of monopolies, how well a business utilizes its available resources to overcome its competitors differentiates a successful business and unsuccessful one. There are numerous similar shops selling similar products however Look Good Beauty Shop location works for its advantage. The location that a company is located has either a positive or negative effect on the business. The more accessible a business is the more the business it will attain and thus results in increased profits (Ebbena & Johnson, 2006).
Customer service is another factor that the shop has looked into. Before one is sold a product, they have specialists in different beauty areas who advise a customer on the product to use. This has helped to boost customer loyalty. A customer is the most important thing that a business can have. Customers are the ones who determine the destiny of the business as well as the success of the business (ComScore Inc, 2010). A customer sensitive business makes deliberate measures to ensure that their customers’ needs are met. Best practice model of business management aim at ensuring that business processes surpass the expectations of the customer (Joby, 2003).
Conclusion
Starting up a new business is taking a risk; however if the decision is well thought there are numerous benefits that come up with investing in business. Before one is set to start there are short and long term parameters that he should consider to ensure that there will be continuity in the business. The future is unpredictable and so even the smallest details about something should be interpolated before starting up (Shane, 2003). From the above study; it has come clear to me that entrepreneurship is all about how well one can understand the future and plan on it. It involves a process of analyzing risks associated in a certain area and working in full recognition of their presence (Duening, Hisrich & Lechter, 2009). All mitigation factors should be put in place before the business is started. From the above discussion it was wise decision to establish it. If I was to buy a business in the locality, I would buy it without hesitation.
Reference List
- Collins, G. (2005). Michelin Takes on the City, Giving Some a Bad Taste.
- ComScore, Inc. (2010); Customer Experience Takes Centre Stage in Online Banking. (2010). Investment Weekly News, 425.
- Duening, N., Hisrich, D., Lechter, A. (2009). Technology Entrepreneurship. New York: Academic Press
- Ebbena, J.; Johnson, A. (2006). Bootstrapping in small firms: An empirical analysis of change over time, Journal of Business Venturing, Volume 21, Issue 6, 2006, Pages 851-865
- Hood, C. (2004). 722 Miles: The Building of the Subways and how they transformed. New York. Johns Hopkins University Press. pp. 175–177.
- Joby, J. (2003). Fundamentals of Customer-Focused Management: Competing Through Service. Westport, Conn.: Praeger
- John, F. (1998). Sacred Places: American Tourist Attractions in the Nineteenth Century, New York: University of Massachusetts Press, p. 123
- Livingston, J. (2003). Founders at work: stories of start-ups’ early days. Berkeley, CA: Apress; New York: Distributed to the book trade worldwide by Springer-Verlag New York
- Shane, S. (2003). A General Theory of Entrepreneurship: the Individual-Opportunity. Nexus: Edward Elgar
- U.S. Census Bureau (2009). 2002 Census of Governments: Volume 1, No. 1, Government Organization. U.S. Census Bureau, Economics and Statistics Administration, U.S. Department of Commerce, 2009. Web.