Creating An E-Commerce Business ✓ Solved

CREATING AN E-COMMERCE BUSINESS 7 Creating an E-commerce

An Idea for a Prospective Small Business “The whole idea of starting up a business requires some considerations to be sure that you are ready. According to Entrepreneur.com, It’s easy to feel ready much earlier than you actually are, and it’s equally easy to let fear hold you back long after you should have jumped. I can understand what is meant by that statement, so they have listed 15 signs to help you know. I felt the current wave of the natural hair and skin care products would be a good idea for a small business. It is important to start something that you are genuinely passionate about since much of your time and money will go into it.

The last few years have been amazing seeing a positive trend of women as well as men embracing their natural beauty. The small business idea will be a black-owned hair store specializing in natural hair and skin products. The store will be named Natural Hair Goals located here in Huntsville, AL where there aren’t many natural hair care product options. The staff would comprise of people with a background working with natural products so that they can help recommend products for customers based on their needs. The versatility of the staff would help with the customer base because there will still be something for everyone.

In my town, most of the hair stores close around 7 pm, but from my experience, that seems to be a bit too early. The main issue is on the weekends when people are getting ready to go out with friends and need last minute hair items. For this reason, it seems necessary to have later hours available. Key Competitor’s Strengths and Weaknesses There are not many stores centered on natural hair products, but there are retailers who sell some of the more popular brands. These retailers are Classy, Target, Walmart, Ulta, and Sally Beauty to name a few that have started making a mark in this industry.

Retailers such as these are competitors for what I would be trying to do with the store. For example, one of Target’s strengths is selling natural hair and skincare products similar to what my store would have. A weakness of this retailer is that the selection is on a much smaller scale than what Natural Hair Goals would have. According to Retail Wire, each participating store will have a Target Beauty Concierge, a highly-trained, brand agnostic beauty enthusiast to answer guests’ questions in-store about cosmetics, hair care and skin care. Due to Target making this change, it places it as one of my top competitors.

Some strengths of my store would be the variety of products to choose from when coming to the shop. The store will have samples of new items given out during check out. Staff at Natural Hair Goals will know of different hair types and be able to suggest products for a hair care routine that will work for your hair type. Also, skincare routines would be important because not everyone has the same type of skin. Embracing these natural routines will be easy with on-site staff who are knowledgeable in those areas.

Weaknesses to opening up this business would be trying to break into an industry owned majority by Koreans. A lady by the name of Karen Coffey opened up a black-owned beauty and hair store named Bella Beauty and Hair. There has been an article written about her experience on a website called MPR News. She described her experience as challenging because she feels due to Koreans dominating the hair industry, the suppliers have not been fair in partnering with her in receiving products. Coffey stated, "All of it is run by Koreans. A lot of them don't make it easy for blacks to get in. I didn't know it would be this challenging." She is not the first to make this type of statement from what I have researched so far. Having this type of difficulty could be a weakness if not thoroughly investigated and considered before getting into the industry. There are some loopholes and ways around getting hair and skin products without only going through those type of retailers.

Natural Hair Goals Company Mission Statement Our mission at Natural Hair Goals is to provide a friendly atmosphere where you can enhance your individuality by embracing your natural beauty without breaking the bank. We have professionals here for all your hair or skincare questions no matter how simple or complex. We take pride in ensuring high-quality products to be fully stocked when needed most. Our staff is highly trained professionals with a background in various hair care so our customers can shop with confidence in their purchases. Each shopper is sure to love their products, but if for some reason something is wrong we do have a return policy to suit your needs.

Business Ownership Type For the ownership type for this Natural hair store, it will be a Sole Proprietorship. This type has been chosen because I prefer to be solely responsible for my business. There is a lot of hard work not to mention financial investments that would be required which is why I would instead choose to enjoy the profits of my labor. The thing about being solely responsible for the business means knowing a little bit about all aspects of running it alone. I would need to file the store on my tax return. If sued for any reason, it means the money would be coming out of my pocket also.

Having money coming out of my pocket isn’t ideal, but I feel it is worth the risk with the chances of having a successful business overall with an immense amount of profit. I initially considered a partnership, but that would be too challenging for the vision I have set for the store. It would be highly frustrating trying to get two people to always agree on everything without any issues. Having a business is said to be pretty stressful in the beginning, so the last thing I would need is to be continually trying to work out agreements with someone else about what I want to happen with my business. There is a requirement for registering the business name then getting a license after that it is pretty much set up. I know I would have to have all the contracts set up in my name then be mindful of debt since it is possible to be sued and personally liable, so that is something else I considered. Overall a sole proprietorship would work best for the vision I am going with, so I have no reservations towards my decision.

Paper For Above Instructions

Starting an e-commerce business, particularly in the natural hair and skincare products market, presents a compelling opportunity. The growing awareness around natural beauty and a growing consumer base that is increasingly inclined towards organic products illustrates a strong market potential. For anyone interested in beginning this venture, thorough research and careful planning are vital steps for success.

The increasing demand for such products is evident in trends indicating more consumers seeking natural ingredients in their personal care items. This trend is particularly strong among black women and men, who are increasingly turning to products that cater to their unique hair and skin needs. The Natural Hair Goals store proposed seeks to fill a gap in Huntsville, AL by providing a platform where customers can find a diverse array of products tailored to their needs.

One significant factor contributing to the success of a sole proprietorship is the owner's passion and dedication to the business. By drawing from personal experiences and knowledge about the natural hair industry, the owner can create a store that caters specifically to the community's needs. This dedication not only informs product selection and customer service practices but establishes a brand identity that consumers can connect with.

Market analysis is crucial for understanding the competitive landscape. The main competitors are large retailers such as Target and Sally Beauty, which offer a limited selection of natural hair products. An independent store such as Natural Hair Goals can compete effectively by providing a curated selection, expert staff knowledge, and personalized customer service. These strengths provide a competitive advantage, allowing the store to differentiate itself.

Additionally, the store plans to implement longer operating hours, catering to the community's needs during evenings and weekends when customer foot traffic is significantly higher. This strategy positions Natural Hair Goals as a convenient option for last-minute shoppers and those who may not have been able to shop during the day, potentially increasing revenue.

Operationally, a key aspect involves establishing strong relationships with suppliers that align with the store's values. Identifying suppliers that offer quality, ethically sourced products can mitigate issues faced by other black-owned businesses in securing product availability and diversity. Forming direct relationships may help bypass challenges posed by larger corporations dominating the market and create a more sustainable business model.

Furthermore, staff training and product knowledge development will be central to Natural Hair Goals' mission. Ensuring that employees are well-trained in hair and skincare product usage will empower them to assist customers effectively, fostering a knowledgeable and trustworthy shopping environment. Product demonstrations, sampling events, and beauty workshops could further enhance the customer experience while also advocating product education.

Lastly, an investment in online marketing strategies will significantly benefit the business in reaching a broader audience. Creating a user-friendly e-commerce website and leveraging social media platforms will allow Natural Hair Goals to attract customers beyond the local community. Collaborating with influencers within the natural hair and beauty space can substantially increase brand awareness and customer engagement. Building an engaging online presence fosters trust and loyalty among consumers.

References

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• Ryan, T. (2013, June 3). Do Beauty Consultants Make Sense for Target? Retrieved from Retail Wire.
• Sapong, E. (2017, April 25). Roots of Tension: Race, Hair, Competition and Black Beauty Stores. Retrieved from MPR News.
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