Planning a Business – Part 2

Welcome back to our 4 part series on Planning a Business. This is an extract of what goes on in one of our planned workshops in the “Blogging for Business” course.

2. Research

Research is very important when it comes to setting up a business. Our second area of planning the business can be broken down further

  • Target market / Customers
  • Location
  • Legal Requirements

Target Market / Customers

Who is your target market? Who is most likely to want to purchase your products or services?

If you are planning to open a coffee shop, you might be tempted to say, well anyone who likes coffee – while that might be true, it doesn’t necessarily help you define your business.

Look at other similar businesses to your idea? Are there any local to you? What can you tell by observing them?

Depending on your location such as a shopping centre A typical consumer may be 40+ female, working part-time or retired who likes to have somewhere to have a break. Or if located near a university, a typical customer may be under 30, student who needs a quick fix.

Both of these customers are going to have different needs and expectations. The older customer is going to want somewhere comfortable to sit and relax, maybe catch up with friends or out with the partner or even with the grandchildren. While the second customer is likely to want something in a rush that they can take with them or something they can eat/drink while multitasking such as on the phone, laptop and would enjoy free wifi

There is also the financial capability of your customer. Customers – in general, only have a set amount of money available for them to spend. It would not be viable to set up a high end fashion shop in an area of poverty and low income.

So how would you define your target market? Who do you imagine would come into the store on a regular basis – Would they need to come in regularly (this would depend on the products / services you are offering)?

Age:

Male / Female:

Working / Studying / Retired:

Income:

How you define your target market is going to have an impact on the location, products / services you offer, your price point and your marketing.

Location

The location of your business in an important consideration. Depending on the type of industry you are in. If you are planning a retail premises consider

  • Shop size
  • Shop frontage
  • Parking spaces
  • Warehouse and distribution

 

Shop size

How much floor space will you need for your store? How much room is there for the displays, shop counters, change rooms, storage rooms, staff room, computer or service room, conference rooms. You may also need to consider aspects for your business such as storage of cold and frozen foods, staff change areas, etc.

Shop Frontage

What does the front of the building look like? Is it clean and welcoming? What about the gardens and surrounds?

It is often a requirement in retail rentals that the business owner is responsible for insuring the glass windows of the store as these can be frequently broken into.

Consider the shop signage, particularly if you are sharing the premises with other businessess such as a shopping centre. What type of signage will be available to you? Where can it be placed? How visible will it be to the street or people walking in the vicinity?

You may also like to take the street itself into consideration. How attractive will your store be to those walking past? Are they likely to stop and come in to browse?

Legal Requirements

Undertaking a business requires many different types of legal aspects on Federal, State and Local level. You should always confirm with a business consultant asto what your requirements are.

Local council, for example, may control the number of car parks that are required for your customers, and they may also limit the number of vehicles in your street if working from home.

Some legal requirements you should consider researching include

  • Australian Tax Office
  • Australian Business Register
  • Second hand dealers (if applicable)
  • Food & Services Industry

 

Case Study

Jasmine wanted to open a jewellery store to buy and sell old jewellery. As she would be dealing with second hand goods, Jasmine had to apply for a second hand dealers licence through the Victorian Justice Department.

 

Next: Part 3 Gathering the information

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