Assignment No.

2
Registration No. 518135690

Market Place – Makandana Junction

Suitable Small Businesses as below:

1. Ladies/Gents Saloon with dress making
2. Restaurant
3. Cake & Pasty Shop
4. Book shop with communication
5. Pharmacy

Self-Analysis, Preference & Familiarity

First of all we need to analyze what we can do before choosing the business. Most small
businesses fail because of poor management and the owner’s inability to manage resources.
Before we start researching the feasibility of our idea and the market our plan on entering,
need to evaluate our own talents, desires and goals. Also need to consider our willingness to
take risks as well as the amount of time and energy we’ll need to make the business a success.
Also need to Review our financial, personnel and marketing skills as well to ensure we have the
necessary background to make a success of our new venture.

If we have any familiarity about above mention small business need to give preference for that
business. If we have any relations who is working for above mention business we can get ideas
like product knowledge, investment required, production process, Market etc. Considering
these factors we can prioritize & decide what business is the most suitable for start.

Market Research

Then we need to do the analysis of the market. We need to check the demand for the product
or services at the said market place. Also need to assurance of an adequate market, market
must be large enough to enable the entrepreneur to capture the share market and need to
drag consumers with a good profit. To thoroughly understand what we’re getting into, perform
an extensive market research project to determine the feasibility of our business. In addition to
gleaning statistics of trends and current customer buying patterns, we need to know who are
our customers, where they are located and what kind of competition exists in the area.
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Registration No. 518135690

Opportunities for the business

Before start the business we need to check what kind of opportunities we can find from said
area. If there are Few or week competitors, Growing demand, scarcity of product in the locality,
availability of technical knowledge, availability of skilled labours we can decide what is the best
business we need to choose.

Strengths

We need to find our strengths before choose the business. If we have Managerial experience,
relevant technical experience, product knowledge, Family support, accessibility to market, good
reputation of partners, sociability skills etc. Those are some of worth strengths to start a
business and need to analyse with all business opportunities.

Weaknesses

Finding weaknesses of the business and business owners we can choose a suitable business.
Weaknesses as follows: Lack of distribution network, shortage of working capital, Strong
competitors, Lack of consumers, poor technical knowledge etc. Before choose the business
need to compare with said 5 businesses.

Availability of Raw Materials/Technology/Skills

Before start the business we need to do an analysis of adequate Raw Material locally & the cost
for materials are reasonable, Raw material suppliers cost & Quality, seasonality etc. Also we
need to analyse the availability of technology & skills. Technology is depend on production,
level of investment & product quality. Technology is used to be efficient & effective. Also need
to think about managerial skills, technical skill, people skills when selecting a business.

Financial Components

After analyzing about Preference, Familiarity & investment required to purchase the existing
business or franchise or the start-up costs you’ll need initially, evaluate your own resources.
Part of a financial assessment includes the amount you have in personal savings to add to the
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Registration No. 518135690

initial investment. Banks typically require entrepreneurs to come up with a portion of the
investment to show good faith and willingness to take a risk with the lender. Assess the
financing available through the seller, investors and lenders when evaluating your chances of
succeeding.

Risk Assessment

A complete evaluation of a business opportunity includes a risk assessment. An honest

appraisal of the potential risks inherent in your new business can help you prepare for possible
problems and decide whether the risks are worth the investment. Details you need to consider
in the risk assessment process include factors that could negatively affect your business, such as
the general state of the economy, weather events and your competition's competitiveness.
Internal considerations should include your own health, the level of credit available to you and
the number and type of employees you’ll need to hire to run the business efficiently.

Ease of Implementation
When starting a business need to check on Ease of implementation as projects can be
implement easily because the inputs are readily available. Need to check whether we can
implement the business within a short period. If the business operation can start within a year
after the training that business will be suitable for starts.

Profitability

When starting a business we need to measure profitability of the business. Profitability is a

matter of perception or prior knowledge which may be based on our readings, experience or
observation from other competitors, suppliers & consultants. There are 4 ways of measuring
the profitability.
1. Net Profit Margin
2. Gross Profit Margin
3. Comparative Expense Analysis
4. Profit by Segment
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Registration No. 518135690

Cost/ Benefit
When starting a business need to analyse our costing for the business and what are the benefits
we can get from the business. Benefits like profitability, risks, investment requirement we need
to analyse.

Support

Finally, evaluate the amount of support you expect to receive from your family and the
community. You’ll most likely spend an inordinate amount of time in the initial stages of
opening your new business, which could affect your family relationships. Outside hobbies and
commitments may need to be curtailed for some time. Attitudes and cultural preferences in
your community can impact your ability to grow and sustain your business. Evaluate your
standing on all these fronts to ensure you’ve got the necessary support to be successful.