Feasibility & Marketing for small business Research Paper

Feasibility & Marketing for small business - Research Paper Example The location on Adelaide Street is ideal since there are few salons in the surrounding area. The street connects to other major streets in London, which makes the transportation of inventory and other commodities easy. The business site on Adelaide Street is a visible place just off the road with shopping malls on its opposite side. The malls increase traffic on the street, providing a better opportunity to reach out to more potential customers. The site for the business is 200 square feet, which is ideal for the various services that the business will offer. An additional 50 square feet is available as office space, enough to accommodate the managerial staff and business records. There is ample parking space of 280 square feet at the basement of the building. Considering the business viability of the area, this is a prime site. The business will incur site expenses at the rate of $9.50 per square foot (For Lease: Office / Medical / Clinic, 2014). For the total of 250 square feet, the business expects to spend a total of ($9.50) (250 square feet) = $2375. This cost is inclusive of building insurance and maintenance costs. The average annual expenditure on hairdressing and related personal care is $829 per household (Affairs, 2011). This expenditure forms 1.4% of the total expenditure of the potential customers (Affairs, 2011). These figures indicate a good market potential for salon services, which indicates that the salon business is an attractive opportunity in this area. The major direct competitors are Skin Care Nails and Spa, and Sheer Elegance Saloon and Spa. Skin Care Nails and Spa is a threat because of celebrity status and adequate resources at its disposal. Sheer Elegance Saloon and Spa has a wide variety of services and offers them at lower prices. The indirect competitors include Studio 83, which is 0.6 miles away, and First Choice Hair