What is the use of the Population & Household statistics summary in a business plan for a Full Service Restaurant?
The population and household statistics summary section of the business plan for a Full Service Restaurant like A Touch of Tuscany gives the reader of the plan a very good birds eye view of the target market of Westchester County, New York. While there are other sections of the business plan that deal with other aspects of the target market for A Touch of Tuscany. This section presents a quick summary view of what the target market demographics for Westchester County look like.
The following is some of the information that we provide in the Population & Household statistics summary table for Westchester County and New York:
What do the population estimates cover and how is the analysis relevant for A Touch of Tuscany?
The population estimates cover the population in the targert market of Westchester County from 1980, 1990, 2000 and the most recent available estimate. We also show the change in the population from 1980 to the most recent estimate in percentage terms. The reason we provide this analysis is that we feel that it demonstrates just much the target market has been shrinking or growing compared to the State in which the target market is located. Some may even make the argument that we should compare the local target market population metrics to national measures of population changes, but we think that is very difficult to look at national metrics and then overlay the local metrics, since there are many national trends affecting the national population estimate. In the event your business is national in nature, then by all means include the national market demographics as your metric.
If we are able to find in the table that the population in the target market of Westchester County is actually shrinking or not keeping up with the state's population growth rate then it raises a flag. Why are people migrating away from this target market but are not migrating away from the State? Could it be the tax regime, or the lack of affordable housing, cost of living etc? If we find folks leaving a target market it could also be due to a decrease in the quality of life measured by crime statistics, or due to a gradual decline in the quality of the school system measured by test scores of the schools in the target market. Many times we have found that a couple of key employers left the local target market and with that went the jobs that used to sustain the local economy. Since folks tend to go where the jobs are, they left the target market after the employers left and that resulted in a decrease in the population.
Why are the population trends for Westchester County so important?
The amount of people in the target market of Westchester County determines the size the target market for A Touch of Tuscany Thus in Westchester County, if you have more folks leaving the target market then coming in, the total market for A Touch of Tuscany just shrank. This of course means that competition just got a lot tougher than it used to be simply because other businesses in the Full Service Restaurant will now have to fight with A Touch of Tuscany for a shrinking pie of the target market. If this trend were to continue, only the best businesses would survive. It is said in business that a rising tide will lift all ships and thus if you are in a good economy with plenty of disposable income in the hands of the customers that make up your target market, you stand to do well. On the other hand if you have a slow or slowing local economy and are having to fight for every sale with your competitors in the Full Service Restaurant, being profitable will be very challenging.
What is the civilian Labor force of Westchester County and how does it relate to its population?
The civilian labor force of Westchester County is the official count of how many folks are working in the target market. Again just like the total population, this number has a significant bearing on the total amount of customers you have who are in the prime purchasing demographic profile - namely people with jobs! This however does not apply to all businesses. For example if your typical customer is someone of working age then of course the larger the civilian population, the better are your chances of being successful in your target market. On the other hand if your target market is retired folks, then the size of the civilian labor force does not mean much to you; what you will want to see is how many retirees there are in your target market. The distribution of the ages of the target market will have a lot more significace to you.
What is the significance of Median Household Income and Income per Capital for A Touch of Tuscany?
The median household income and the income per capita in the target market of Westchester County, New York are key for a business like A Touch of Tuscany. They have a direct impact on product or service pricing, positioning and branding. If you are selling a high valued item in a target market that has a middle class household income and per capita income, you are going to have a very tough time generating sales especially if you have stiff competition and don't have any novelty in the items that you are selling. For example if you are in the food business in Westchester County, New York you must understand what is the most that folks in that target market will be willing to shell out for a meal before you price out the menu and spend money on interiors, equipment and anything else. Getting your pricing and positioning wrong can be the worst mistake a business owner can make and therefore we recommend that you understand these metrics about your local market well.
What impact does the povery rate in Westchester County have on the business plan for A Touch of Tuscany?
Poverty rate is a reflector of social problems in the target market. If you are planning to open a business that may have a retail presence in a target market that has a very high poverty rate, make sure you also check the crime statistics for the locality, since you will almost certainly have to deal with much higher business and property insurance and security costs, than if you were to locate in an area that had a comparitively lower poverty rate. There are many businesses that may not be able to pay the higher costs of insurance premiums and have their businesses exposed to the risk of theft, fire and water damage simply because many insurance companies do not want to take on the risk of insuring businesses in high poverty and crime ridden areas. On the other hand, as a business owner that is well known in the local community, you may be able to take advantage of the fact that other businesses do not want to locate in your target market and you could capitalize on that by offering products and services that nobody is ready to offer.
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