Homework ( 25 word reply to each student response)

SoccerBoss
Category:
Economics
Price: $5 USD

Question description

Original question:

Your Own Business

Assume that you are going to start a small business of your own.

Describe the business and, utilizing the concepts of this unit and the earlier units, discuss:

  1. what costs you would incur;
  2. what competition you might experience;
  3. how you would determine the price you would sell your product; and,
  4. how much product you would produce?

Student 1 response

Hello Class and Professor,

If I were to start up my own business I would start up an accounting firm because I am very good with math.  When starting my own business I would need to receive a business registration and license which do have fees.  I would need to find a location.  With the location I would have overhead costs such as rent, utilities, and furniture.  If I were to choose to have a website I would also need to have a domain name, hosting services and designers.  I would also have equipment expenses.  I would need to buy computers, phones, copy machines, office supplies, software programs, and displays.  When I start up my business I need to advertise to obtain the clientele I need to advance my business.  I could hire a consultant, ad service, business cards and brochures.  I would also need to figure out my employee cost.  It cost to maintain my staff.  If I need to hire an independent contractor to do work in the location I need to figure that cost.  Also I would need to recognize the cost of the lawyer helping with all the paperwork. 

No business operates without some type of competition.  The competition I would have is the already established accounting firms.  The type of competition I would see if pricing, advertising, discounts and etc.  To be better informed about the other business I would need to check out their place, and talk to their customers.  I could look at their advertisements to see what the competition is emphasizing about their business.  I could purchase mailing lists and directories to obtain more clientele. With checking out my competitor’s website I could see what they are offering. 

Pricing the products would be through the use of cost-plus pricing.  The price would be determined by the cost of the accounting paperwork for my clientele.  I would need to do research to see what the price is going for.  Then conduct my price to make sure I am covering my variable expenses and making a little profit.

In order to know how much to produce I would need to look at the marketplace to see how much the accounting firms are charging and how much need they have.

Student 2 response

Hello Class,

I think that this is the perfect discussion because because I plan to open a small business when I’m done with school.  To start off before expanding I will be opening a personal fitness studio. The main costs that I will incur will be the cost of fitness equipment. I will not incur the cost of building rent because I already own a building that is 4000 square feet. Other costs that I would incur would include the cost of market research and consultants such as a lawyer or accountant (Beesley, 2015). I would business license, the cost of utilities such as electric and water. I will also need the internet for the business computer and a phone line put in to send and receive faxes. I already own several computers so that will not be included in the cost. To advance my business I will need to advertise so this in itself will be another cost which will include business cards, ads in the local newspapers, a window decal on my vehicle and brochures. Last but not least I will need business insurance because you never know what can and will happen. It is better to be protected. I may have to get a loan from the bank to payoff necessary business expenses until my business is self-sustaining (Beesley, 2015).

The competition that I would most likely experience is that of gyms and/or fitness centers that may offer a personal trainer within their facilities and other personal trainers who are already established in the area. When determining the price that I would charge for my services I could visit fitness centers and gyms that offer personal training and see what they would charge customers to do the same thing that I plan to do. I can also visit websites of my competitors and find out their prices. But because many individuals who want to lose weight or live a healthier lifestyle may not have that much disposable income, I have come up with the idea to implement pricing for my services on a sliding scale which will be based off a person’s income and lower than the price of my competitors.

Since I will be operating a fitness business I will be producing a service instead of a product. The amount of service that is provided will greatly depend on the demand from my customers. The more customers that I’m able to gain the more the services that I offer will increase.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UT Austin
PREMIUM TUTOR
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors