Evaluate the likely value of each of the following to David before making his decisions: a) Primary market research b) A business plan
Evaluate the likely value of each of the following to David before making his decisions:
a) Primary market research
b) A business plan
a) Primary market research is research that you conduct yourself by gathering information directly from an original source. Some examples of primary research may include surveys, questionnaires, or a focus group. Primary research would be useful for David’s business, as it would enable him to get accurate research that is specific to his own needs. As a result of this, David will be in a better position to assess whether or not opening up his salon would be a good decision. He will know this, as if all the research portrays a negative reaction to his salon, he will know not to open it. Furthermore, if the research is positive, it will tell him what prices his potential customers would be willing to pay and what kind of service they would want. As a result of this, David’s salon is likely to be more successful, as his business will be more suited to his customers needs, providing that he pays attention to the results of the research.
Although, primary market research can be very time consuming, as David would have to first carry out the research and then spend time assessing it. This time could arguably be better spent planning his business. Additionally, the primary market research would be expensive. The money David would spend on this research could be spent on something more useful. Instead of wasting so much time and money, David could alternatively use secondary market research that others have already carried out. He could get this from the internet, but would probably have to pay for it and it will not be specific to his potential market.
b) A business plan is a formal document that plans things, such as cash-flow, and sets out the businesses goals and milestones. It can be very useful for planning and monitoring the business. It can also be useful for forecasting whether the business is likely to fail and therefore see if
a) Primary market research
b) A business plan
a) Primary market research is research that you conduct yourself by gathering information directly from an original source. Some examples of primary research may include surveys, questionnaires, or a focus group. Primary research would be useful for David’s business, as it would enable him to get accurate research that is specific to his own needs. As a result of this, David will be in a better position to assess whether or not opening up his salon would be a good decision. He will know this, as if all the research portrays a negative reaction to his salon, he will know not to open it. Furthermore, if the research is positive, it will tell him what prices his potential customers would be willing to pay and what kind of service they would want. As a result of this, David’s salon is likely to be more successful, as his business will be more suited to his customers needs, providing that he pays attention to the results of the research.
Although, primary market research can be very time consuming, as David would have to first carry out the research and then spend time assessing it. This time could arguably be better spent planning his business. Additionally, the primary market research would be expensive. The money David would spend on this research could be spent on something more useful. Instead of wasting so much time and money, David could alternatively use secondary market research that others have already carried out. He could get this from the internet, but would probably have to pay for it and it will not be specific to his potential market.
b) A business plan is a formal document that plans things, such as cash-flow, and sets out the businesses goals and milestones. It can be very useful for planning and monitoring the business. It can also be useful for forecasting whether the business is likely to fail and therefore see if