Unit F: Finance

Practice


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  1. Jules is considering opening a hair salon in her home. Although Jules would not be allowed to keep her customers from her current salon, 20 of her clients are also friends who would want Jules to continue cutting their hair. Jules is confident she can find more clients by word of mouth, putting up signs, and advertising using social networking sites.

    Her home is located in a city suburb and is accessible by vehicles as well as LRT and bus. When driving around the subdivision, she has not seen other storefront or home-based salons.

    Discuss whether Jules has proven her business is feasible with regard to the following factors

    1. location
    2. market (number of customers)
    3. competition


Jules is considering opening a hair salon in her home. Although Jules would not be allowed to keep her customers from her current salon, 20 of her clients are also friends who would want Jules to continue cutting their hair. Jules is confident she can find more clients by word of mouth, putting up signs, and advertising using social networking sites.

Her home is located in a city suburb and is accessible by vehicles as well as LRT and bus. When driving around the subdivision, she has not seen other storefront or home-based salons.

Discuss whether Jules has proven her business is feasible with regard to the following factors

  1. location
  2. market (number of customers)
  3. competition



  1. Moving from downtown to the suburbs definitely will affect the feasibility of Jules' business. However, she understands that she needs to find a new client base when opening her home-based salon. If Jules advertises her business, the location will not matter. Since her home is located near city transit, customers should have easy access to Jules' home salon.

  2. Jules is aware that her current client list will decreases if she starts her own business. Since everyone needs a haircut or hair styling, Jules can find new customers in the surrounding area of her home salon.

  3. Jules should research to determine if the community has any other salons. If the subdivision is new, plans may exist for a salon to be opened nearby, however, if she starts the business quickly, she might find customers who would like a salon close to their home.