Because designer stores are not huge, no large premises would be needed to set up this business therefore reducing the amount of capital needed in order to begin this business meaning that: this type of outlet would be more attractive to investors and that all retained profits would go towards improving the business instead of paying for the premises.
The brand and the social group to which a designer outlet would appeal to mean that a large of profit could me made from not a large amount of sales therefore as the only designer outlet in the area a new outlet would receive all the sales of designer clothes indicating that a large profit is to be made. The disadvantages of the new outlet being opened in the clothing market are: Designer clothing is expensive and appeals mainly to the better off section of the public thus making the target market smaller limiting the amount of customers that can be brought into the outlet.
Conclusion the chosen market Of the markets that I have considered I have concluded that the clothes shopping market provides the highest chance for a new retail outlet to be successful. Therefore I will construct a business plan for a new designer clothes-shopping outlet in Burnley for some of the following reasons: Of the markets I have investigated the clothing market is the only market which provides an essential good or service therefore it has the largest target market therefore has the potential to obtain the highest turnover and therefore has the highest chance of success.
Land is one of the most expensive start-up costs when starting a new business and as the other two markets will ultimately require large premises whereas a clothing outlet does not whereas due to its nature a designer outlet can generate just as high a profit from small premises. Specialist staff is not required to run this type of outlet therefore recruiting is easier and a lower wage bill results in lower running costs for the business. The least amount of capital is required in order to start this business in terms of land and machinery.