Question

Owing to the challenging economic climate in South Africa, you and a group of friends decide to start
your own business. You decide to brainstorm a number of creative ways in which you can make
money. After much debate, the group eventually settles on one idea which appears to be the most
suitable. The idea is to open a hotdog stand outside the Mancosa Campus to cater for the needs
of the students and surrounding businesses.
After many arguments and butting of heads, you realise that not all of the members of the group
possess the entrepreneurial skills to execute this endeavour successfully. As a result, you decide to
take the leading role as you have the most business experience.
One of the major problems that the group faces is the fact that their lack of experience and business
knowledge hampers their progress.
After three months of planning, the business is launched and operates well for about one month.
This is largely as a result of peaked enthusiasm for the business to succeed. However, after the
initial month, the ‘cracks’ begin to show. There are frequent arguments amongst group members.
The profits are inconsistent in that you experience a high turnover in one week, but a very low
turnover the next. Business is constantly running out of stock during peak periods and this results in
inconsistent profit being made. The group members cannot seem to agree on anything and
eventually after another two months of business, you are forced to close down the hotdog stand.
Required:
Elements used in choosing location by developing a business plan for the above case study ?

Answer 1

Firstly, before commencing any business, one has to carefully plan and select the team members. The team has to be united and have business-spirit. The team must have transparency among each other and communicate freely. Also, when it comes to starting a food business, the menu should be versatile and be able to make their customers desire them. For example, they can have different flavors of hotdog every week or every day. Alternately, introduce some additional items such like fries, cheesy fries, spicy fries, cold drinks, etc. They can also have attractive offers for regular customers. Marketing via word-of-mouth is very important for a food business to be successful.

Also, it must be noted, that sudden spurs in profitability are not sustainable. Hence, the team must have patience for their business to grow into a successful endeavor.