Question

As for the sales forecast for Year 1 through Year 3, these are some important variables I will go to consider for sales:

Economy: The economic condition of the city, the province and the country are variables I need to consider for a sales forecast. If conditions are poor, people will spend less money on consumption. If economic conditions are great, then more people will have extra money to spend.

Competition: I need to consider the level of competition I have around me. If new competitors enter the market, that can affect my sales forecast drastically. The same goes for if my competitors drop out of the market.

Inflation: Inflation is something that effects every country, and effects the economic conditions. So, I need to consider trends of inflation (and inflation forecasts) in order to make a sales forecast.

Political Environment: I need to consider the political environment of the city, the province and the country. The political environment affects the economy and business law. If there is an election within my sales forecast period, I need to consider the potential outcomes of each election.

Seasonal Demands: I need to consider seasonal demands and trends because each season has a different demand for products. Summertime is going to require cold beverages, meanwhile winter will have a demand for hot beverages. Each season will also affect overall sales. People spend more money in the summer. A sales forecast will have to consider all these seasonal demands and changes into the model.

Where to obtain data: Government websites, Market research firms, Political experts, Stock Market data, Google Maps (search for competitors) or Drive around my area (locate competitors visually), City database, Economic analysts

Part 1

1.Are these considerations feasible? Would you change or add any considerations?

2.As a lender (someone who commits capital with the expectation of receiving financial returns) to this company, what are some numbers you want this entrepreneur to show you before you make your decision to invest your money?

The biggest challenges throughout the planning process is determining start up costs, determining inventory and determining the location of the store. The start up costs are a big challenge due to there being a number of variables such as how much inventory is smart to start off with, how much to pay in utilities (can easily fluctuate), and how much to pay in advertising the store to customers. Determining inventory is also a challenge because orders must be placed to keep up with inventory and determining a schedule for that is based on revenue, but during the planning process revenue can only be projected and not consistently known. Determining the location of the store is also a challenge, it is an extremely important decision that will make or break the success of the store. Calculating how many customers are nearby, as well as type of income (lower-class, middle-class, upper class, etc.) is also challenging.

The growth potential of my business is tremendous. I view after a few months, for there to be a solid foundation for revenue. The first few months may be tough because the public either doesn’t know about the store, or don’t have a trust built with the store yet. Once I am established, I see my store serving the community with well needed convenience products and establishing a

casual customer base. Once I’m established after a few months, I expect revenue to climb and stabilize. After a few years I expect to be financially in a great position. Some profits can be diverted to upgrades for the store, improving customer experience (maybe experiment with new and diverse products). After a few years, I see myself expanding by buying other Circle K franchises to open or try to buy established stores from owners. This would require saving up a lot of the profit but in the long run it is a great investment in my opinion.

Part 2

3.This entrepreneur mentioned some big challenges he/she would face when starting this business. Do you agree? Explain your decision

4.Evaluate the growth potential of the business. Would you agree with this entrepreneur’s vision? Why or why not?

hello chegg, please provide references from where you pick the data to answer these questions

Answer 1

Answers-

Answer Part 1:

The considerations that have been noted by you are feasible nonetheless; there is a little extent of expansion. You ought to likewise incorporate the statistical surveying for breaking down the flavor of the client, their particular interest of determination in the item, their qualities and discernment towards the nature of the items and their demeanor towards buying of the item.

You ought to likewise incorporate the information of the contender and that of the substitute items in order to know the viability of the contender and the substitute item and its piece of the overall industry.

Before loaning I might want to see the fiscal summaries of the company to investigate the company's gross and net benefits throughout the years and the exhibition of the company by examining its incomes and reserve funds. I would likewise investigate the obligations and liabilities of the company.

I would request business estimate and might want to know how much business, company is expecting later on course of time.

Answer part - 2

1. Truly, I unquestionably concur with the entrepreneur in light of the fact that the things he referenced are truly testing and furthermore troublesome in deciding at the underlying phase of business, and they are significant too on the grounds that without the arranging of these 3 things the business can not be begun.

The challenges he referenced which he would confront when starting his business are deciding beginning up costs, deciding stock and deciding the area of the store.

Deciding beginning up costs: It is actually a troublesome undertaking on the grounds that there are number of factors whose expenses should be assessed while starting the business.

Expenses incorporate

1. Advertsing costs

2.Research costs

3.Borrowing expenses

4.Equipments

5. Staff enrollment costs.

So it gets hard to evaluate the whole expenses.

Deciding stock: Inventory remembers the total rundown of stock for hand, crude material,finished merchandise and so forth so as to sell and gain benefit. At the underlying stage when the business is going to begin it is hard to decide the stock on the grounds that for deciding the stock the requests ought to be made so as to get a right gauge.

Deciding the area of the store: Again setting up the area of store is a significant choice. You have to settle on decision of the area based on the merchandise or administration you offer.

For eg, you can not offer marked garments in a town since individuals in town don't lean toward marked garments, so you will acquire a misfortune if the correct area isn't set.

So it is hard to decide the area also.

2. Growth potential of the business: It can be characterized as the capacity of an association to create enormous measure of profits,expand the business, increment manforce, manufacture a decent notoriety.

Indeed, I do concur with the entrepreneurs vision, since he knows very well that a business can't begin without a legitimate arrangement and he is likewise mindful that in the starting stage we don't acquire any benefit.

He has a long vision regarding his business , he expects that after the endeavors done in the starting he may grow gradually.

He isn't at all in hustle since he knows that a business sets aside some effort to grow, as a matter of first importance you have to assemble the clients and addition their trust, subsequent to setting up the clients he expects that the income will climb and he may begin gaining benefits.

After that , he may turn out to be monetarily solid inside barely any years and inevitably he may open new stores and grow the business, at that point after that he might have the option to purchase different establishments and manufacture a decent notoriety in the market.

Despite the fact that it is difficult what he think however the vision he has is right , on the off chance that he proceeds in a similar way, at that point he may make the progress without any problem.

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