Is there scope for a new business in your area?, intro

... are good getting the new outlet established. ? A new business has a better chance of success in a market which is not brand name dominated as it is not at a major disadvantage, in this way, to larger companies it may have to compete against. ? This sort of outlet is such that not all the services it can provide ultimately need to be in the new salon and can be added when enough retained profit or further credit or capital can be raised once the performance of the business has been assessed. This also provides the business with plenty of potential for growth and is less of a risk than setting up a large development all at once in case the venture is a failure as more money has been lost.

The disadvantages of entering into this market in Cumbria are:

? Though the human resource required is not large the staff required need to be specialists in the field therefore they may be difficult to find in an area with a small population like Cumbria. If the staff take a lot of the small amount of the money made by the business in its early years it may make the business have more difficulty in surviving. ? This market is not popular with as many social groups; it appeals mainly to women. This means that the business has a smaller target market therefore the amount of customers which can possibly attend this is lower, the target market is smaller and the turnover this can generate is lower. ? Because Workington and Calisle are not particularly well off areas and health and beauty is a luxury service the number of customers is likely to be lower there for turn over generated is lower, less profit can be retained limiting both the chances of the business´s chances of survival and opportunities for expansion. Though in Keswick this disadvantage may not apply and the demand is likely to be much higher as the public there have more to spend on luxury goods. ? Because there is no competition in Cumbria this means that no similar businesses have had great success therefore it will take a special health and beauty business to succeed where others have failed. Because no others have succeeded it suggests that in Cumbria this is not a good market to enter. ? As this outlet has objectives to expand either large premises will be needed at first increasing the amount of capital required to start the business or when the outlet wishes to expand premises will ...