From there you may want the assistance of your accountant in developing a price structure that will not only be fair to the customer, but also fair to yourself. This means that not only must you cover all expenses but also allow enough margin to pay yourself a salary. One other thing to consider. Will you offer credit? _ Most businesses use a credit card system. These credit costs have to come from somewhere. If you use a credit card system, what will it cost you? _ Can you add to your prices to absorb this cost?
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Image Whether you like it or not, your service business is going to have an image. The way people think of your firm will be influenced by the way you conduct your business. If people come to your place of business for your service, the cleanliness of the floors, the manner in biography which they are treated, and the quality of your work will help form your image. If you take your service to the customer, the conduct of your employees will influence your image. Pleasant, prompt, courteous service before and after the sale will help make satisfied customers your best form of advertising. Thus, you can control your image, whatever image you seek to develop. It should be concrete enough to promote in your advertising. For example, "service autism with a smile" is an often used image. Write out what image you want customers to have of your business. _ _ Pricing In setting prices for your service, there are four main elements you must consider: (1) Materials and supplies (2) Labor and operating expenses (3) Planned profit (4) Competition Further along in this guide you will have the opportunity to figure out the.
_ How party many new services opened up in the last year? _ How much do your competitors charge for your service? _ Which firm or firms in the area will be your biggest competition? _ List the reasons for your opinion here: _ _ Section Two - attracting Customers - Service business Plan How to when you have a location in mind, you should work through another aspect of marketing. How will you attract customers to your business? How will you pull customers away from your competition? It is working with this aspect of marketing that many service firms find competitive advantages. The ideas which they develop are as good and often better, than those which large companies develop with hired brains. The workblocks that follow are designed to help you think about image, pricing, customer service policies, and advertising.
_ _ What is the competition in the area you have picked? The number of firms that handle my service _ does the area appear to be saturated? _ How many of these firms look prosperous? _ do they have any apparent advantages over you? _ How many look as though they're barely getting by? _ How many similar services went out of business in the area last year? _ Can empire you find out why they failed?
_ What are the terms of the loan or mortgage? _ _ Will you rent? _ What are the terms of the lease? _ _ Is the building attractive? _ In good repair? _ Will it need remodeling? _ Cost of remodeling? _ What services does the landlord provide?
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If you choose a remote location, will savings in rent off-set the inconvenience? If you choose a remote location, will you have to pay as much as you save in rent for autobiography advertising to make your service known? If you choose a remote location, will the customer be able to readily locate your business? Will the supply of labor be adequate and the necessary skills available? What are the zoning regulations of the area? Will there be adequate fire and police protection? Will crime insurance be needed and be available at a reasonable rate?
I plan to locate in _ because: _ _ _ Is the area in which you plan to locate supported by a strong economic base? For example, are nearby industries working full time? Did any industries go out of business in the past several months? Are new industries scheduled to open in the next several months? Write essays your opinion of the area's economic base and your reason for that opinion here.: _ _ Will you build?
The following questions will help you think through this problem. In selecting an area to serve, consider the following: Population and its growth potential, income, age, occupation of population, number of competitive services in and around your proposed location. Local ordinances and zoning regulations, type of trading area (commercial, industrial, residential, seasonal). For additional help in choosing an area, you might try the local chamber of commerce and the manufacturer and distributor of any equipment and supplies you will be using. You will want to consider the next list of questions in picking the specific site for your business: Will the customer come to your place of business?
How much space do you need? Will you want to expand later on? Do you need any special features required in lighting, heating, ventilation? Is public transportation available? Is the location conducive to drop-in customers? Will you pick up and deliver? Will travel time be excessive? Will you prorate travel time to service call? Would a location close to an expressway or main artery cut down on travel time?
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Section Two - attracting Customers, section Three - selling to customers. Section One - determining the sales Potential. In the service business, your sales potential will depend on the area you with serve. That is, how many customers in this area will need your services? Will your customers be industrial, commercial, consumer, or all of these? When picking a site to locate your business, consider the nature of your service. If you pick up and deliver, you will want a site where the travel time will be low and you may later install a radio dispatch system. Or, if the customer must come to your place of business, the site must be conveniently located and easy to find. You must pick the site that offers the best possibilities of being profitable.
What services do people ask for that you do not offer? What is it you are trying to do better, more of, or differently from your competitors? marketing, when you have decided what business you're in, you have made your first marketing decision. Now you are ready for other important considerations. Successful marketing starts with the owner-manager. You have to know your service and the needs of your customers. The narrative and work blocks that follow are designed to help you work out a marketing plan for your firm. The blocks are divided into three sections: Section One - business determining the sales Potential.
heavily into his sales. However, there was an increased call for quality repair work. Riley considered his situation, he decided that he was in the repair business. As a result of thinking about what business he was really in, he profitably built up his repair business and has a contract to take care of the servicing and repair business for one of the appliance stores. Decide what business you are in and write your answer in the following spaces. To help you decide, think of the answers to questions such as: What inventory of parts and materials must you keep on hand? What services do you offer?
For others, their business offers them a chance to contribute to their employees' financial security. There are as party many rewards and reasons for being in business as there are business owners. Why are you in business? _ _ what business am i in? In making your business plan, the first question to consider is: What business am I really. At the first reading this question may seem silly. "If there is one thing i know you say to yourself, "it is what business I'm." But hold. Some owner-managers go broke and others waste their saving because they are confused about the business they are. The changeover of barbershops from cutting hair to styling hair is one example of thinking about what business you're really.
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Many enterprising people are drawn into starting their outsiders own business by the possibilities of making money and being their own boss. But the long hours, hard work, and responsibilities of being the boss quickly dispel and preconceived glamour. Profit is the reward for satisfying consumer needs. But it must be worked for. Sometimes a new business might need two years before it shows a profit. So where, then, are reasons for having your own business? Every business owner-manager will have his or her own individual reasons for being in business. For some, satisfaction come from serving their community. They take pride in serving their neighbors and giving them quality work which they stand behind.