Read full blog post at: https://www.todhost.com/blog/small-business/151-starting-a-new-business-basic-considerations-and-success-factors

Quite often, people start new businesses only to find that much of the decisions they have taken regarding their marketing, human resources, finance, and accounting had been based on wrong information or a weak understanding of the challenges ahead. In this post, we take a general look at what should basically be considered before starting a small business. We also examine the layout considerations necessary for launching a business website. We start with the basic marketing considerations necessary for new business analysis.

1. Basic Marketing Considerations

There are two basic justifications for the establishment of a new business. The first is an expanding market; the second is the existence of inefficient firms. As a business owner, looking out for these two considerations may be very challenging and difficult especially if the indices for measuring market expansion and inefficiency are not well known to you, not clear, or difficult to determine. In less developed economies, statistics on market expansion, new entrants, buyer behavior, and company performance are virtually non-existent. Yet, business owners must decide on these issues before they start.
One way to go about it therefore is to conduct primary research. Such researches should asses the business layout and physical environment, the customer’s assessment of the business and their propensity to switch, the possible reason why they could switch, their assessment of the product quality, if the product is imported, then the customer’ perception of the country of product origin must be made relative to quality, durability, and warranties.
It is also important to conduct detailed studies into the pricing policies of existing businesses, determine any previous price wars and what sparked it up, determine customers’ perception of the current pricing mechanisms, and evaluate one’s own capabilities relative to competitors. This assessment might enable decision on which market to serve profitably without any serious collusion with major competitors.
The business owner must also decide on how to cope with the promotional needs and to distribute products efficiently. He will need to choose among the legally allowable promotional methods or a contribution of promotional techniques. However, it must take into consideration the cost of promotion and its impact on overall performance. Decisions relating to the distribution policy have to be taken with reference to the behavior of customers and competitors’ distribution practices. There is a growing increase in personal and home delivery service. If middlemen have to be used, choosing them will be influenced by their ability to meet producer’s. distribution targets, their ability to provide adequate customer support, and handle such problems as cognitive dissonance, rejections and other complaints.

1. Corporate Positioning and Layout Considerations

The concept of “CORPORATE POSITIONING” had being widely used in the areas of external communication, corporate imagery, and market leadership. Sometimes its presentation through advertising creates a gap between the message and the customer perception based on real life experiences. Layout design is one way of harmonizing customers’ perception with the business positioning strategy.
A business that is well located and sited has some clear advantages. Its chances of getting sales from primary demand are higher. Secondly, It could rely on its layout strategies to win loyal customers. This concept is however strongly related, though not exclusive, to retailing. Site analysis is important especially in retailing because the site must first be accessible. Marketing studies have shown that automobile traffic is not a true measure of a site’s value otherwise all retailers would be located on major roads. Pedestrian traffic are also very important. Personal interviews, store traffic studies, and a survey of transportation facilities can provide valued information in these areas. Parking space is an important aspect of site consideration, its importance seems to be increasing as more shops now value and seeks to have parking spaces.

Read full blog post at: https://www.todhost.com/blog/small-business/151-starting-a-new-business-basic-considerations-and-success-factors