This report is about Asma who has left school. She would like to start her own day care nursery. She has had experience by working in a day care nursery for the last four years. I will be advising Asma in a report form on the three following areas: Business plan, market research and pricing strategy. Investigation 1: Business plan. A business plan is a vital a business has a clear idea Of what they are going to do- that’s what business plans are used for. You have to know why business use business plan and what it contains. From my own knowledge a business plan is a written document that describes your business.
It covers things such as, strategies, sales, marketing and financial forecasts. Asma should use a business plan because a business plan helps you to: clarify your business idea spot potential problems set out your goals measure your progress In a business plan you need to include at least seven sections: 1 . personal details 2. mission statement 3. objectives 4. product description 5. production details 6. staffing requirements 7. finance Having looked at Asma’s business plan she has only included one Of the seven which is finance. If she was to send her business plan it would not be accepted.
This is because she needs to include little things such as personal details which are very important. She has miss out a lot of important details which are needed. Such as product description this is; including details of the market and competitors. This should explain how the firm will achieve product differentiation. It should describe its marketing strategy using the 4p’s. All her statements should be supported by field or desk research. Although Asma has included finance she hasn’t gone into to detail as she should have. Finance includes how much money is needed to start up a business.
There should be a cash flow forecast and a projected profit and loss account and balance sheet. There should also be ratios to show any banker the likely return of their investment. She has included the aims of the business but she has not explained at all, she explained really briefly. This point should be explained in detail because this is the main point that will be seen by the people. She’s included competitors but it doesn’t make sense. Her hobbies and interest’s is not needed, she said that sh‚s interested in making money but not her actual hobbies are included.
The things that Asma has included are; aim of a business, experience, ompetitors, hobbies and interests, market research, personality and finance. This is not enough because she did not explain in much detail each are along with not including the main seven accepts needed in a business plan. In my opinion I think that she does not really need to include business this is because it’s not that important. For the business plan to be successful in my opinion she needs to include the above points. Investigation 2- Asma’s market research methods -is when a business gathers information whether there service or product will be bought.
Market research is really important before a business begins roduction. This is so that time, money and effort are not wasted on products etc. , which the people might not buy. Market research is important because it will help you succeed in opening a business. It will guide and help you in marketing strategies and business decisions. It will show all customers’ needs and often help you discover new ideas for products or services. Asma will need to carry out primary and secondary research. Primary research: Primary research means collecting first-hand information. There are different types of primary.
They are: surveys, consumer panels and testing and bserving If Asma wishes to open a day care nursery in spark hill, then she has to make sure that she has done her market research. Without any market research, it is most likely that her day care nursery will fail to open and succeed. Market research. strongly recommend Asma to use the survey method this is because it is the most common way of collecting information. They are usually in the form of questionnaires which are then looked through or guarantee forms for products. The advantages of surveys: 1 . The questions you design can be exactly on what you want to provide in the business.
This information is later analysed. 2. All the correct information is collected when you use a survey in an interview. The disadvantages of surveys: 1 . The questions have to clear otherwise the people will not be able to understand. Therefore the later on analysis will be incorrect. 2. Collecting survey is very time consuming and is expensive. Many smaller businesses will not be able to afford this type of research. 3. If the surveys are used through postal services. It can be ignored and thrown away. 4. Using the telephone service may annoy people by being disturbed at home. Another primary research method is interviews:
Advantages: By using this method Asma can collect people’s opinions. The can have confidential talks with them. The questions are structured on how the interviewer would like the interviewee to answer. Also in ensures that questions are fully checked. The disadvantages are it can be difficult to obtain reliable information because the interviewee could be lying Secondary research: It already exists, so it saves time. It is often cheaper than doing primary research. It may allow you access to data you could not otherwise get. Disadvantages: In some cases, it is very expensive (scanner data, e. ) You may have less control over how the data was collected.