Your research tells you that households earning $55,000 or more are most likely to be interested in a new shoe store. Households earning $25,000 or more are likely to visit coffee shops. would have a larger potential customer base. is geared toward individuals with more disposable income.
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Your community has a total of approximately 100,000 households. What percentage of households would be potential customers for The Shoe Hut? What percentage of households would be potential customers for Star's Coffee and Teas?
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Based on the survey data, what can be concluded about the market for coffee shops in the area? According to the survey data, which business likely has the least supply in this town?
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The Shoe Hut will require about for the first month of business. Star's Coffee and Teas will require for inventory and equipment alone. has a lower barrier to entry.
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will require a less costly investment in labor. will require less capital in the long term. will probably require upgraded equipment and greater capital over the next five years.
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Now, use your research to decide which business is the best choice for this community.Explain your choice in two to three sentences, using factual evidence to support your claim.
The Shoe Hut is the best business choice because the community has less competition for custom sporting goods, while survey data shows greater demand for these products than for additional coffee shops. It also requires less startup and maintenance capital because it needs less equipment, can operate in a rented building, and can initially be run with fewer employees.
Which factors did you discuss in your response? Check all that apply.
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