business P

PART I

I plan to start a cosmetics shop in downtown. The shop will deal with the sales and distribution of cosmetic products. Having looked at the market and the number of cosmetic shops in the area, I determined that there is need to have a cosmetics shop that will sell the herbal products. Most of the shops in the area deal with organic products. There is huge market gap for the herbal products which will be serve both genders but most of the products will be designed to meet the needs of women especially the spa going women.

The target market for the products is therefore the spa-going women in the area. The business will employ various tactics such as selling the products in low prices, having a display pane on the shop, giving free samples to the users and having interactive social media platforms. These strategies will allow the company to have an extensive customer base and the directors will enjoy the profits.

Part II

i. A feasibility analysis is important to the business because it helps the businesses owners to determine the gaps in the market and how the business will enter into the se gaps and make profit in certain business gaps.

ii. When an entrepreneur takes their time to write a business plan, it saves money in the short run because the business owner invests only what they have budgeted for. In the long run, the business plan saves money because the owner is focused on the cash flows and hence money is not lost.

iii. An executive summary serves the purpose of giving insight to the business. It serves as a summary to the whole business plan as it captures all the information within the business plan.