...ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431 MARKET ANALYSIS AND THE FEASIBILITY OF ESTABLISHING SMALL BUSINESSES Azzam Azmi Abou-Moghli, PhD Applied Science University Ghaith Mustafa Al-Abdallah, PhD Applied Science University Abstract This study aims to explore the nature of relation and effect between market analysis and feasibility of establishing small businesses operating in the services sector in Jordan. Four independent variables were identified to market analysis: location, demand, price and competitors. The study population consisted of (163) cases and the researchers used a close ended 42-item questionnaire, with a (83.43%) reliability coefficient, as per the Chronbach Alfa equation for collecting the primary data of the study. Furthermore, two types of analysis were employed: simple regression analysis and stepwise multiple analysis. The study made a number of conclusions, most important of which is: there is a statistically significant relationship between the location, demand, price and competitors and the feasibility of establishing small businesses. Keywords: Market Analysis, Feasibility Studies, Service Sector, Small Businesses, Jordan 1.0 Introduction Market analysis of businesses is deemed as scientific tool to obtain relevant information about the realities of the proposed market. This will benefit the investor in showing the business feasibility to be studied and its preference over alternative investment opportunities, subsequently...
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...Small Business Idea Paper Introduction: Recently, the government released funds for persons willing for establishing a small business. This releasing funds’ concept will form many jobs, and the economy will be stimulated by it. For the owner of a small business, the first step is to determining which business form is best suited to his or her ideas. Furthermore, it is essential for the owner of business to evaluate implications of legalities and tax related to his or her business forms. The purpose of this paper is to define the advantages and disadvantages of the four different forms of business organization, including sole proprietorship, partnership, C corporation, and S corporation. The paper will define the different types of financial statements associated with each form of business organization. The paper will also define the consequences of Tax implications, Legal implications, and Accounting implications associated with each form of business organization. Furthermore, a business will be selected in the paper of which an explanation of the unique product or service will be provided. Sole Proprietorship: It is the easiest and general sort of business to establish. A number of assistances of this business include the decisions of firing and hiring workers, assessments of selecting the vendors, what equipment, and materials to buy and what directions he or she is willing the business to take. A drawback of this...
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...Small-Business Idea Paper There are plenty of ideas for a possible small business, but one must look past just the idea or hopes of opening a small business and think about the legal, tax, accounting, and other items that need to be addressed in establishing a small business. One of the first things to consider is, as what type of entity the company will be chartered or established, and what rules apply for the state in which the company is located. For the purposes of this paper, the potential small business owner will use the State of Colorado as the state in which the company will be headquartered and Colorado Springs as the city. The business that will be established is a high end pawnbroker in the north end of Colorado Springs. In establishing a business in Colorado Springs, Colorado, one must look at the local, state and federal ordinances and laws in establishing a business. The business owner must also decide on how the company will be registered in Colorado such as Sole proprietorship, Partnership, C corporation, S corporation, or an LLC – Limited Liability Company. This paper will show the advantages and disadvantage of each of these entities as it relates to a pawnbroker business, while also examining the different types of financial statements associated with each business entity and consequences such as tax, accounting, and legal implications. The final section of the paper will explain the reasoning behind the start up of a pawnbroker store, the classification...
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...With the natural passing of time a business enters into different phases of its life. “Like a person or a family, a company experiences predictable stages of growth, each with its own problems and opportunities.” (Vastine) In order for a business to capture the market it needs to go through the stages to gain popularity. Every business has its own set of guidelines and processes designed to function well. “As the business grows, its organizational structure is heavily influenced by function (people grouped with similar responsibilities), process (people involved in similar processes), product (people building a specific product) or projects (members of a project).” (Watson, 79) The first stage consists of growing the business. “ In a one-person operation, the owner does everything: sales, bookkeeping, marketing, production and so on. Many firms remain one-person operations indefinitely due to the owner's family obligations, financial constraints, or contentment with the status quo.” (Longenecker,27) This is the initial phase that every business goes through. It can also be referred to as the expansion phase as the business tries to establish its niche in the market. Stage two is all about growing and establishing the business. “So the owner assumes additional employee management duties such as hiring, scheduling, supervising, and payroll.” (Longenecker) This is the stage where the business owners start establishing their brand with their loyal customers. Overall, the growth...
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...The pros and cons of establishing a business presence in social media outlets. With the bizarre growth in the use of social media in the recent years, lots of businesses are introducing social networking sites in their marketing strategy. Social network is one of the most trendy marks on the technology scales nowadays. Sites such as Instagram, Twitter, Facebook and lots of blogs and podcasts have made it easily for the businesses to communicate or interact with their customers on a one-on-one basis. In other words, we can call it as a E-Business. E-business is described as the use of computerised system for business purposes and it is usually with the web technology. E-business refers to a deep definition of e-commerce, it is not just the part of buying and selling goods, but also servicing clients, cooperating with business partners, and controlling electronic business within the management. (UKEssays, 2013) After that, before we establish a business presence in social media, there are several things that we have to acknowledge and deal with. All of it have the positive and negative characteristic and the business should examine each of the sites to find out which of the sites will be the most profitable for the businesses. So, one of the advantage of establishing a business presence in social media is they can build a brand loyalty. Social networking will let the businesses to get attach with their clients in immediate ways. This action can build up a...
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...A Feasibility Study of Establishing a Pawnshop in General Santos City CHAPTER I INTRODUCTION This chapter discusses about the background of the study, rationale of the study, objectives of the study, significance of the study and definition of terms. Background of the Study Too many people are in difficulty today due to economic or unstable economy people may find an alternative way to find a solution to their problems, many of them go to the houses of the creditors owing money to be able to meet their needs even in a small amount, but sometimes they cannot borrow money because they have not paid their first loan. So, people will go to other areas to take instant cash. Some will apply a bank loan, and wait for an answer only to be able told that they are denied. That’s why people will go to their local pawnshop for much need help. Pawnshop brokers are seeing people from all walks of life pawning everything that has value that will put the cash they desperately need in their hands when they need it. (www.business.whatitcosts.com) 1 1 Pawnshop is a store which offers loans in exchange for personal property as equivalent collateral if the loan is repaid in the contractually agreed time frame, the collateral may be repurchased at its initial price plus interest. If the loan cannot be repaid on time, the collateral may be liquidated by the pawn shop through a pawnbroker or secondhand dealer through sales to customers. (http://www.businessdictionary.com) As a result...
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...the knowledge of employees which will lead to a corporation focused on supplying the customer with what is needed, managers equipped with solid decision-making abilities, and employees who believe that he or she are an asset to the business. It is the executive manager’s responsibility to establish a clear vision for the corporation and place a specific focus on understanding stakeholders needs. In an effort to support these requirements agendas and regulations will be developed to maintain and enforce business ethics within the organization. It is vital for an organization to establish a firm code of ethics for employees and managers to agree and adhere to equality within the organization (Wheelen & Hunger, 2010). Establishing a universal understanding of ethics and expanding the knowledge and of ethics will strengthen the corporation socially by enforcing respect toward everyone, respect for the organization and a corporation working together to form a universal business. Ethics are the morals, values, and beliefs of individuals it is the right and wrong behavior and believes of individuals. The importance of establishing and maintain an ethical business is to prevent various types of litigations against the company; protecting the business, stakeholders, managers, and employees. Smart corporations operate proactively rather than reactively, preventive measures such as human resources training modules, computer-based training (CBT), employee handbooks, and semi-annual...
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...STAGE 2 BUSINESS AND ENTERPRISE Task description: Report: Business in Australia Core Topic: The Business Environment Assessment Type 1: Folio Due Date: 4pm on Wednesday 26 March 2014 ______________________________________________________________________________ Senario: John Smith plans to start a new business to provide ICT consultancy services to the organizations in different industries. He has $200,000 ready to be invested in the new business. His friends, Graham Arnold and Andrew Chen, are interested in joining the new business and are willing to invest, but all of them are not sure of the business model for collaboration. John has talked to you, a business consultant, for advice and a consultancy report. This will help his consideration and his discussion with Graham and Andrew. Task: You undertake some research and prepare a business report. Based on their situation, you analyse and evaluate two or three specific types of ownership structure that you think are suitable, outlining their advantages and disadvantages. You then make recommendation of ONE most appropriate ownership structure based on your findings. You also advise him on legal requirements for establishing the new business under the recommended ownership structure. Your business report consists of: * Cover page * Table of contents * Executive summary * Relevant types of ownership structures * Recommendation * Legal requirements...
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...another person without having to obtain permission from the other members. b. Members are liable for only a limited amount of the company’s debts. c. A company has a legal existence distinct from its owners. *d. A company is only entitled to raise small amounts of cash by issuing shares. Correct answer: d Learning Objective 1.1 ~ summarise the nature and attributes of a company 2. In Australia, the Corporations Act 2001 is administered by the: a. Australian Securities Exchange. b. Australian Accounting Research Foundation. *c. Australian Securities and Investments Commission. d. Securities and Exchange Commission. Correct answer: c Learning Objective 1.1 ~ summarise the nature and attributes of a company 3. The two main types of companies permitted to be registered under the Corporations Act 2001 are a: a. private company, and a proprietary company. b. public company, and a trade union. *c. proprietary company, and a public company. d. proprietary company, and a partnership. Correct answer: c Learning Objective 1.2 ~ discuss the different types of companies which may be formed under the Corporations Act 2001 4. According to the Corporations Act 2001, a small proprietary company is one which satisfies at least two of the following tests: it must have consolidated revenue of less than $25 million, consolidated gross assets of less than $12.5...
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...Table of contents Introduction 2 1.0 Pros of establishing a business presence in social media outlets 3 1.1Use company’s existing user base to exquisite new customers 3 1.2 Establish company’s global presence 3 1.3 Cost efficient 3 1.4 Helps to improve the company products and services 4 1.5 Increasing company revenue 5 2.0Cons of establishing a business presence in social media outlets 5 2.1Lack of control over your company’s marketing or advertising messages 5 2.2 Potential infringement issues of copyright or privacy 6 2.3 Difficulty to define and measure the return on investment and conversion rate 6 2.4 The amount of time use to maintain company presence in the social media. 7 2.5 The shortcoming to accurately time ads. 7 3.0 Discuss in what ways could social media possibly help jump-start a small company’s business in a competitive market? 8 4.0Evaluate how would you forecast the future of social media as an opportunity for business? 11 4.1Popularity of new social media feature like video message 11 4.2 Dominant of business to business (B2B) content marketing 12 4.3 New and improved social search 12 References 13 Introduction As stated and illustrate in the case study, an outstanding social media presence assist company in building business’s reputation, establishing trust between company and their customers, and most important to helps company gain profit most likely above average revenue in the speed of light. Businesses and companies...
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...Introduction A small business is defined as a business that has a low sales turnover as well as a small number of employees (Dee , 2011). However, the definition of a small business varies from industry to industry and the state. It is one of the businesses that are easy to establish and operate as it is flexible and decision making is easier as compared to running a large business. For any business to function effectively in it should have an effective marketing strategy in place. Therefore, this paper seeks to analyze a small business, the products that it offers, its pricing strategy and the terms that the business apply when dealing with its customers and suppliers. The business is a boutique that specializes in fashion and design products. The main products that the company specializes in are; clothes both for men and women, handbags, shoes, and perfumes. Fashion and design industry are a very competitive industry as the products that are offered in this industry are close substitutes, and the cost of switching from one business to the competitor is very easy. The business value proposition is, for customers who aspire to be unique our brands will offer that to you at a pocket-friendly price. In our store on average, the price of clothes range $20, handbag $40, shoes $13 and perfumes $132. These are the prices on average from the products that our business is offering. Based on the market...
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...LEGAL ISSUES IN BUSINESS ORGANIZATIONS Legal Issues in Business Organizations Toya M. Smalls Student ID: 000295300 LIT1 Task 310.1.2-01-06 June 28, 2013 Legal Issues in Business Organizations A business can be organized in one of several ways and the form its owners choose will affect both the company’s and owners’ legal liability and income tax treatment. It is important that the business owner considers these different forms of business organizations: sole proprietorship, partnership, and corporations. Various legal structures are available to assist business owners with the organization of their business. These legal structures make provisions for the business’ liability, income taxes, continuity, control, profit retention, and regulatory requirements. Each organizational structure differs and possesses advantages and disadvantages. The first important decision that a business owner will make is selecting an organizational structure that will capitalize advantages and curtail disadvantages for their business. Legal Issues in Business Organizations Sole Proprietorship A sole proprietorship consists of one individual doing business and is the most common and simplest form of business to establish. · Liability: Sole proprietors have unlimited liability, which is a clear disadvantage. They are personally responsible for the obligations of the business, including the actions of employees representing the business. · Income Taxes: A sole...
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...Business Entities, Laws, and Regulations Trudy E. Hartis BUS/415 November 20, 2011 Mark Rorem Business Entities, Laws, and Regulations A business assumes limitations and liabilities when building the structure of the organization. There are several types of business entities, hiring an accountant or attorney can help you decide what type of business structure best fits the need of the organization or business that you want to establish. Sole proprietorship, is a form of business with the least amount of legal formalities and the owner assumes sole responsibility for finances and operations of the business. “C” Corporation, are separate entity from its owners. Providing shareholders protection from liability and debts. “S” Corporation, similar to a corporation and is exempt from federal income tax. General Partnership, require an agreement between two or more individuals or entities to own and operate a business. Limited Partnership, form of business that offers some of the partner’s limited liability. Limited partners contribute capital and have limited liability but assume not active role in the daily business affairs. Limited Liability Partnership, LLP’s is organized to protect individual partners form personal liability for the negligent acts of others partners or employees not under their direct control. Limited Liability Company, LLC is a combination of the corporate and partnership forms of business (Types of Business Entities, 2004)...
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...provider of an, IT department for a small business may seem costly, it is well worth developing to help a business reach their goals. Businesses, who seek to use a consultant IT service department can expect to operate their business more effectively. Consultant IT services provides businesses with software applications and the essential tools which improve a business operation by decreasing the business financial liability but increasing their flexibility and revenue. “Make sure that the IT investments go toward projects that earn the company the most money” (Rainer, & Turban, E (2008). Information systems, second edition, para. 1. Generally a small business like the size of Club IT would need to look at software applications, data storage capability and business IT consulting services in determining the viability of hiring a consulting IT department. Currently Club IT information resources include a small informational gateway from the Internet the worldwide communication network and Intranet a private network. In determining if Club IT should obtain an IT service provider if the role of such provider would strengthen their private network and achieve the outcome of cost effectiveness, data effectiveness, managerial effectiveness and sustainability The goal is to determined through the use of informational software application resources and clearly define that Club IT would benefit and can take advantage of restructuring their business by applying the resources identified...
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...internal control is a business practice, policy or procedure that is established within an organization to create value or minimize risk. It is broadly defined as a process effected by an entity's board of trustees, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: • Effectiveness and efficiency of operations • Reliability of financial reporting • Compliance with applicable laws and regulations • Safeguarding of assets Principles and procedures of internal control clarify their purpose in the following areas: · Establishing written control procedures and employment responsibilities to include selection and training of employees. · Maintaining adequate records and separating record keeping. · Asset control, limiting access to assets, conducting surprise checks, and dividing the responsibility for related transactions. · Rotating jobs, using machines for control, establishing standards, evaluations, bonding employees, and required vacations. · Using external audits, providing audit trails, numbering all control documents, and a continuous system review. · Control of product inventory. · Specific controls required for cash receipts and cash disbursements. · Setting and evaluating performance standards with actual results. Problems Unique to the Hospitality Industry Business Size Almost every hospitality operation can be described as a small business and small businesses are usually...
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