Essay on Small Business Plan

The first one and the most influential factor is a competitive analysis. Among competitive analysis strengths the major one is a low level of competition. There are only a few competitors that operate in the same area, and their product ranges are not alike.

It’s critical to define the possible areas where boutique’s strengths were not fully used.    Competitive opportunities are combined with internal factors such as strategic goals and innovations. It is both external and internal environment combination. Company’s opportunities include:

  •  Online access to the shop’s products and delivery of ordered items to the neighboring towns and villages will make this small fashion business even more profitable;
  • There is an opportunity to suggest shop’s client another services ”“ for instance, a café or a salon. It will make their visits more pleasant, they will last longer and these additional services will help to increase customers’ loyalty;
  • Advertising in local media is advisable in order to increase boutique’s popularity and its brand knowledge among the local community.

Threats mean the possible damages for the business. Among the possible threats of a small local boutique are:

  • The rise of existing competitors;
  • Appearance of new competitors on the local market.

Legal, domestic economic and social factors are important for this fashion shop. The threats include, for instance, a high level of unemployment, which decreases demand for fashion and design items and changes people’s life style.  Among the economic factors, there are such variables as rate of inflation and the level of domestic interest rates that may influence the success of the small local business. Among the possible threats of a small local boutique the possible financial troubles could be named as well (for instance, these threats may be caused by tax policy changes or credit rate increasing).

Among the social and cultural elements that should be considered for a fashion business the ethnic and social differences could be mentioned. Different ethnic and social groups usually have different tastes in fashion and design; therefore shop’s owner should define local customer demand in style and design and follow it.

Obviously, internal factors that have an impact on the small fashion business are: strategy, strategic capabilities, processes, and resources.

Small shops usually easily adapt to change, due to the nature of the small business (as there is no huge organizational structure that is so hard to change).

Processes such as delivery schedule and supply chain are designed especially for a small fashion business. This shop has only a few reliable suppliers of the cloths and design items.

Strategic capabilities for the small fashion boutique include the following strengths:

  • Availability of clothes and décor items ranges;
  • Affordability of products;
  • Good choice of vintage items (it is impossible or hard to find the same items in the other shops)
  • Comfy atmosphere and pleasant staff;
  • Special discounts for students and retired people are offered by our shop (it helps shops’ administration to demonstrate its respect to local community).

The strengths and opportunities for the type of small local business were reviewed prevail over possible weaknesses and threats. Company’s competitive and strategic capabilities are quite strong, but there also some elements of it that need to be improved.

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