- Find a place to buy machines and stuff with the lowest price and highest value that they can get.
- Lack of experience ( for example: do staff training without the experience of the previous owner).
- Customer might not trust the store because it is a new name on the market so the store can be lag of customer at the first time store open.
Buying an existing hair salon
Pros: - Less money to spend to develop store brand name and location; the store can already be recognized by its old customer so the store does not have a lag of customer.
- Already have the process to train the staff and operation process for the business to run immediately.
Cons:-Might have existing problems; the existing store can have a problem so the owner has to sell it for a low price, it can be the location problem, a problem with the brand, customer problems ( bad service, bad customer feedback, etc)
- Less advantage to build a new idea of operating and keeping up with hairstyle trends.
Why would a supermarket want to lease space to an outside operator rather than run a business, such as dry cleaning, itself? What would be its risks in
Because: - The supermarket can still earning money from leasing without the risk of opening a new small business; less staff - decrease the money on paying staff.
- People can enjoy going back to the supermarket that can develop their brand name because it can offer a different kind of services that can save time and money for the customer (it is convenient for customer so they do not have to go anywhere else to do their work)
- Increase the sale of the supermarket ( for example when people come to a supermarket they mostly looking for grocery but when you need to go to a dry cleaning, a bank or a mobile shop in a supermarket without the demand of grocery at first, you can have an idea of buying something from the supermarket when you are there because it just right a front of your eyes)
Risks: - Because there are other businesses running inside a supermarket so there will be fewer items that the supermarket can sell which will affect their brand name( people can likely go to the supermarket to use other services rather than buying items from the supermarket
- The supermarket has to be responsible for any situation that comes from the outside operator that happens in their store ( for example a customer experience an insect in his/her Starbuck cup of coffee that were bought in Safeway store)
- There can be problems come up on lease agreement (for example leasing price and benefit)