What is the use of the Annual Spending by Race analysis in a business plan for A Touch of Tuscany?
Understanding your industry and also the purchasing trends of the customers is key for any business to succeed. If a small business owner like Jack Gordon does not fully understand how much money is being spent annually by folks nationally on his or her industry segment, he will not be able to come up with a sensible marketing strategy for a small business like A Touch of Tuscany The analysis of annual consumer spending by race on the Full Service Restaurant is an excellent analysis that gives the reader of the business plan a clear idea of what folks from White, Black and Asian races are spending annually.
How should the results from the Annual Spending by Race analysis be interpreted by a small business owner like Jack Gordon?
The results of the annual spending by race analysis can be interpreted in many ways. Remember, this analysis focuses on what the annual spending by Race is annually, on the particular industry segment in which the small business operates - like Full Service Restaurant - as opposed to the annual spending by race on all items. Thus the analysis is very powerful since it gives business owners like Jack Gordon a clear insight into how folks of different races are spending their disposable income in the industry segment where a small business like A Touch of Tuscany operates.
When looking at the race - this analysis is divides the population into three major categories - White & others, Black and Asian. Hispanics are not classified as a separate race since folks from all races can claim Hispanic heritage. Thus annual consumer spending nationally on a industry segment like Full Service Restaurant shows the difference in the spending patterns of each race. Further, this analysis also covers 5 years worth of data and so business owners like Jack Gordon are able to see just how the spending has been trending over the past 5 years.
In the event the analysis reveals that 5 years ago, Asians were spending the least amount of money on the Full Service Restaurant and that number has been dropping to the point that they are now spending much less annually on Full Service Restaurant it may have serious repurcussions that should be understood by a business owner like Jack Gordon. If you are in the food industry and you find that Asians are now spending a lot less money on food away from home then they used to, then it may be explained by the fact that in the past five years many newer eat-at-home asian recipies have found their way into the supermarkets resulting in Asians eating more at home than they used to. Likewise if we find that in the Automotive Repair busienss Black folks tend to spend a lot more than do White folks but in the past five years that number has remained roughly the same or has gone down, then it may mean that they have been changing their purchasing patterns and are now buying brands that are more reliable or are moving away from used vehicles to newer vehicles that require lesser automotive repair work.
Should a business like A Touch of Tuscany adjust its marketing strategy based on the Annual spending by race analysis?
Every small business like A Touch of Tuscany must take a careful look at the results of the Annual spending by Race analysis and pay particular attention to the changing trends in the patterns of consumer spending on their particular industry segment. Even in the case of manufacturers and wholesalers who do not deal with the retail public, it is very important that they understand the purchasing trends of the end client since it indirectly impacts them. If for exmaple you are a supplier to a local asian grocery stores and you find that Asian spending on groceries is picking up, you may stand to benefit from this pattern and choose to expand your business and add more trucks, equipment and personnel to take advantage of this trend.
A marketing strategy is based on the understanding of your market place and like most other strategies and tactics it should be subject to change. Using the annual spending by race analysis is one way to give you and edge in understanding an industry segment like Full Service Restaurant when compared to your competition who may not have as keen an understanding as you. Thus if you are in the fast food business and you know that your target market is predominantly Black and at the same time, the annual spending by race analysis tells you that Black folks are now spending fewer dollars on fast food than they used to five years ago - you may choose to start offering healthy alternatives along with fast food in your establishment. Your competitor may or may not be able to pick up on this trend and therefore you stand to gain tactical advantage over them in this analysis.
Why choose a time period of five years for the annual spending by race analysis in a business plan for A Touch of Tuscany?
We feel that five years is a fairly good interval of time over which a small business owner like Jack Gordon should measure the changing spending patterns of consumers of different races on his or her industry segment like Full Service Restaurant. A time period of more than five years may not make sense since consumer tastes do change over long periods of time, and likewise a time period of less than five years may not adequately capture the nuances of changes in consumer spending by race on an industry segment likeFull Service Restaurant.
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