6 October 2009
A Successful Business
It’s a hot summer day; you are just dying for something cold and refreshing. In
the distance you can hear the sound of a horn or bells. That’s one of our employees,
coming towards your street with paletas.
The anticipated demand for out product is probably pretty big. We think the
demand will be big considering that there aren’t very many businesses in the area like
ours. We don’t really think that there is a certain gender that will demand the project; it
will be an even demand. When it comes to age we also don’t think there is a certain limit
since people of all ages should enjoy what we have to offer.
In the area that we plan on having our business we believe that the demand will be
high because the people in the area are used to the food carts. They are also Hispanic so
they are used to eating the type of food that we offer. To get people to buy what we are
supplying and be aware of our new business of course we will use advertising and word
of mouth to get people to come to our business. When it comes to incentives, the one that
we most likely will use is economic incentive. This is because in the state that the
economy is in right now, our company is cheap enough for people to afford. People will
want to come to our business because it will benefit them economically, less money
coming out of their pocket.
I don’t see any unforeseen consequences when it comes to our product. One that I
can maybe see happening is certain race groups won’t buy our food. It will be a certain
race or ethnic background coming to our business. I think this because our company only
offers Mexican food, so maybe people of a different background might not want to try it
or feel “welcome.”
We could use the internet for advertising, which could be positive since more
people surf the internet now. Since the internet has so many different social websites such
as MySpace, Twitter and Face book this could help our business grow. We could join this
websites, add people around our area and get more business.
When it comes to competition with our business, we believe that other small
businesses that offer the same things will be the competition. Like other paleta places
similar to ours and even small carts downtown like Waffle Bros. Since these other places
sell their products for a low price, then we will have to offer ours at a price lower than
The fixed costs are the things that are a one time buy thing. Like cooking supply
such as stoves, pots and pans. The variable costs are food, eating utensils and other things
that might run out or need more of. I’m not sure what the anticipated costs and revenues
Our business is definitely not a winner take all structure. We aren’t and don’t plan
on being a huge business that takes over other small businesses mainly because we are
one. Our business is more equal to other places and to the people. We aren’t ripping
people off or plan on two timing them. We don’t want to turn into a business with a bad
reputation, known for buying other places and putting them out of business. We want to
keep a good reputation to the customers and to the business surrounding us.
Within the first year we don’t expect our demand to be very high, since we are
going to be a new company. So we should have plenty to supply the customer with, since
the demand won’t be high. Once our business starts going and we get in more customers
to earn a profit we expect the demand to go up, and we will have to supply more. But we
should be making more of a profit because we will be supplying a lot more.
I don’t really believe that there will be many big incentive conflicts between the
owner and the labor. Since most of the workers at our business will be family members.
Our business Dimas Seasonal Foods will be successful because we supply people
with something they want, at a cheap price that people can afford. With the shape the
economy is in right now this is something that people want and need. In Freakonomics it
says that people when the demand is high people will get what they want. And that’s
what we plan on doing, the demand for cheap food is high and that’s what we have to