Setting Up Business: Importance of Market Research, Contracts, Segmentation, and Finance

This study explores the importance of market research, contracts, segmentation, and finance in setting up a business. It discusses the analysis of internal and external factors, the role of contracts in dealing with customers, and the sources of finance for starting a business. It also highlights the significance of ethical considerations in business operations.

Setting Up Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Market research analysis in the context of new business idea by using PESTLE and SWOT
analysis...................................................................................................................................3
Importance of contracts for business and dealing with customers.........................................5
Segmentation, targeting and differentiation strategy for competitive advantages along with
some elements of marketing mix............................................................................................5
Sources of finance for starting up business............................................................................6
Importance of ethical considerations for business..................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Setting a business is not an easy task as businessmen have to analyse some environmental
factors which can affect their performance and productivity of the company (Staniewski,
Szopiński and Awruk, 2016). This study is gong to show importance of analysing internal such
as strengths, weaknesses and external factors such as: political, social, economic etc. These
analyses help an organization in growing their businesses and accomplish their pre-determined
goals. This study will also show importance of business ethics and contracts in order to deal with
customers in an efficient manner. Target a particular group or region of people also help a
business in satisfying their needs and increasing sales.
MAIN BODY
Market research analysis in the context of new business idea by using PESTLE and SWOT
analysis
As a sport therapist it is important to provide excellent services to athletes or sportsmen
in preparing them by mentally and physically. Providing them first aid, checking injuries and
curing them in a timely and effective manner. For developing this area, a sport therapists wants
to expand his skills via starting up a business with new idea and for that he choose to open up a
counselling and therapy centre where sportsmen come and ask for therapy. At that centre athletes
can get some effective tools which can cure their injury and make them fit and prepare for their
sports. The main strength of this centre and business is 24*7 customer service or counselling
services are available in which sport therapist will go to the home of sportsmen who are in need
and suffer from any injury and require therapy. For expanding business, it is important to
analysis both internal and external factors which can have impacts on the performance and
expansion. Some internal factors include:
Strengths:
 The main strength of this business and sport therapist is it has an effective time
management skills.
 Having ability to cure people by giving effective massage by making an effective use of
tools is other strength (Kapoor, Tan-Koi and Teo, 2016).
Weaknesses:

 The main weakness of this weakness and sport therapist is he does not good at putting
himself out there in uncomfortable situations.
 Decision-making skills is not good which creates several barriers.
Opportunities:
 Ability to understand the mental side of injuries can give opportunity to improve brand
image of the business.
 To get opportunity of educating himself and increase knowledge by treating different
types of sportsmen (Bohari, Hin and Fuad, 2017).
Threats:
 Huge competition in this industry is the biggest threat.
There are some external factors as like internal which can have impact on the growth and sales of
this business. External factors include:
Political: There is a strong and favourable stability of politics which can be beneficial for
this business. On the other hand, there are some rules are developed by the government in the
context of health and fitness which can bind sport therapist to follow them and it can somehow
give some negative impacts.
Economic: In the context of sports industry it is stated that it is concentrated. There are
several companies who make sport shoe for providing comfort to sportsmen and it generates high
revenue. This effective economic condition can be beneficial for this business (OFFER, 2017).
Social: It is stated that people of UK are becoming more health conscious as they prefer
to use effective tools for preventing themselves for any injury. Different volunteer programmes
encourage them to use safety tools and this counselling business have some safety and other
therapy related tools. So, this factor cab increase sales of this business.
Technological: Technology is increasing day by day and due to health consciousness,
there are several companies who test equipments and put pressure of sport therapists and sport
tools companies to invest in technology and make their equipments more effective. So, it can be
said that it can increase sales of the company or increase overall operational cost.
Legal: The main law in this business context include health and safety law. By following
this law and providing services to people by following guidelines, sport therapists can prevent
themselves against any lawsuits or legal actions.

Environmental: There are several environmental conditions like weather conditions
which can affect the ability of U s physical therapy in delivery of services. It is important for this
business man to follow and evaluate relevant environmental standards before operating business.
So, from the above analysis, it can be said that sport therapist can make plan after
analysing each factor in detail manner and grow his business (Achinas and et.al., 2019).
Importance of contracts for business and dealing with customers
A contract refers an agreement between 1 parties of between customers and businesses
which create a legal obligation in order to perform activities in an efficient manner without
hurting anyone. It creates mutual obligations enforceable by law. There is an increasing
importance of contracts for businesses when they deal with customers. It consists of all terms and
conditions that detail the rules to fulfil a particular contract.
In the context of sport therapists and health service counselling field it can be said that
making a contract is important because sport therapists support rehabilitation and treat sporting
injuries with making an effective use of physical techniques. There is a requirement for sports
therapists to protect patient and do not hurt more by using ineffective techniques. If a sports
therapists uses ineffective techniques, tools for curing sport men then it may have to face some
problems or legal actions as well. So, it can be said that contracts plays an important role as it
prevents both parties from legal actions and any type of injuries (Haapio and Siedel, 2017). Uses
of contents, liability of physical therapy and its licensors, accuracy, reliability are some terms
and conditions which are mainly added in sport therapists contracts which help them out in
dealing with customers.
Segmentation, targeting and differentiation strategy for competitive advantages along with some
elements of marketing mix
Segmentation
Businessman will provide services to the customers and which will have different
categories such as injuries in different part of body like lags, back, solders etc.
Targeting
Main target will be sportsman because they suffer from the injuries and problem during
the sports activities, so they will be the main target of the business.
Differentiation

Customers can take consultancy from the therapist if they are facing any problem, and
they will get proper suggestion for and tricks to take therapy from businessman (Schlegelmilch,
2016.).
Marketing Mix of therapy counseling center
Product
product will be services which will provided by the therapist, sports person will take
proper consultancy from the therapist for their physical therapy. They can tell their problem, and
they will get proper guidance thorough video call.
Price
Charges will be affordable so customers can be satisfied and businessman can gain
customers locality. Customers will also get discount and offers if they will be regular customers.
Place
Business will be operated from home and if customers wants to take personal therapy
then they can come to the clinic and address will be provided to the customers.
Promotion
Businessman will use social media platforms to promote their business, and they will
target sports person for their business.
Sources of finance for starting up business
Starting up a new business is not an easy task as there is a requirement of investing in
tools, techniques and other important things. As a sport therapist, an individual wants to open up
a counselling and therapists centre for allowing people to get effective suggestions and therapy at
affordable prices at their home. There are several sources available from where an individual can
take help of finance for starting up a new business such as:
Bank loans: Bank loans is the best way and source finance as it provides short, mid as
well as long term finance. The only condition of getting fund and finance from this source is to
promise to bank to repay the bank loan and its interest in generating revenue. Banks offer
flexible loan payment options which can make easier for businessmen to repay loan (Balaban,
Župljanin and Ivanović, 2016).
Crowd funding: It is the new and effective sources of finance by which a businessman
can take fund. A popular site of this source is Kick starter. In this type and source, small amount
of money is being collected from many volunteers or people via internet.

So, from above discussed sources of finance, it can be said that, sport therapist can open up its
counselling centre in an efficient manner with the help of bank loans and crowd funding. By
generating a revenue and increasing sales it can repay the amount, bank loan and its interest.
Importance of ethical considerations for business
Ethics plays an important role in business or performing business activities. It is the
moral judgement and concern which shows a business man about the difference between right
and wrong actions. These ethics helps them out in preventing themselves against any law suits
and improve their brand image as well. Some examples of business ethics are: honesty, integrity,
fairness, respect and loyalty. When a business man maintain loyalty and become honest with its
customers then customers keep trusting on the brand and retain with the company for the long
run. It can help them out in promoting their services and products by word of mouth or mouth
publicity. There are several benefits which this new counselling centre or business can get. One
of the main benefit is improving brand image. In this context, it can be said that it is an important
asset for an organization and also one of the difficult task to rebuild it if once it lost (Moosmayer,
Niemand and Siems, 2016). So maintaining it with the help of following codes of ethics is
important. Ethics vary from industry to industry but basis codes of ethics help all type of industry
in increasing sales. Some benefits which company can get by following ethics include:
 Employee can make better and effective decision by following codes of ethics in a timely
manner.
 Company can safeguard customers rights which can boost trust and loyalty among them.
CONCLUSION
From the above study it has been concluded that analysis of internal and external
environmental factors played an important role. These analyses with the help of Porter's 5 forces
and SWOT model helped an organization in analysing factors in both positive and negative
manner and then changes its business strategies accordingly to take competitive advantages and
growing business. It has also shown the importance of contracts in business as it helps companies
in protecting themselves and the 2nd party from legal actions and providing effective services.
Lastly, this report has discussed increasing importance of business ethics in dealing with
customers and expanding business in efficient manner.

REFERENCES
Books & Journals
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Balaban, M., Župljanin, S. and Ivanović, P., 2016. Sources of Finance for Entrepreneurship
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Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
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Haapio, H. and Siedel, G.J., 2017. A short guide to contract risk. Routledge.
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