Location, Location, Location Essay Example | Topics and Well Written Essays - 750 words

Location, Location, Location - Essay Example Once the business starts, that money can be spent on other income-increasing investments. The next important advantage is the tax advantages in the form of reduced AMT (Doosan Global Finance, 2008). However, there are disadvantages too. First of all, leasing gives no ownership, and hence, returning the product or upgrading the product as one wishes will not be easy. Even if the thing goes into disuse, it will not be possible to dispose off the same, and till the termination of the contract, one will have to pay according to it. The second point is that when the expenditure over a long period is considered, it will cost more than actually owning the property. However, considering the low initial cost, possibility of open credit sources, chances of relocation and modification, it is wise to have property leased of owned (The top 10 reasons, 2012). The very first advice for the friend is to have the mobile home as office instead of building a permanent structure. This is so because not building a permanent structure at this beginning stage has financial advantages. First of all, the cost is spread over a number of years, and this, undoubtedly, helps in controlling the problem of cash flow. In addition, if the decision is to use the mobile home instead of permanent structure, it is easy to get the best location as there is no extra expenditure involved. Another problem is the issue of undercapitalizing. Here, one has to remember the fact that many businesses face failure because of undercapitalizing the business. This takes place because they spend the money on not so important investment. Doing this, especially when there is uncertainty regarding future cash flow, is disastrous. What is required is the strategy of staging investment. In the first stage, the business should not invest in building a permanent structure. In fact, there are a number of benefits as associated with not constructing a permanent structure, especially in accounting terms. They are: it

Psychological (market segmentation) of Hong Kong Essay

Psychological (market segmentation) of Hong Kong - Essay Example 1998, 6) of people in the target market. On the other hand, Jakubiak et al. (1990) note that psychological or psychographic market segmentation is based on the research over specific characteristics of the target market: ‘sex, age, income and education’ (Jakubiak et al. 1990, p.15). In accordance with the above, the psychological market segmentation of Hong Kong could be analyzed as follows: In Hong Kong the high percentage of population (74.8%) is between 15 and 64 years old (Index Mundi 2011); men are approximately as many as women, with a slight superiority of women though. The entire population is urban, at least referring to the structure of the population in 2010 (Index Mundi 2011). The life expectancy of the population has been estimated to 82 years; women are likely to live longer reaching the 84 years while men tend to live up to the 79 years, at least at an average level (Index Mundi 2011). In accordance with a recent governmental report, in 2009 the population of Hong was estimated to 7 million. In the same report it is noted that in 2009 females were more than males, ‘889 males for 1000 females’ (Hong Kong government 2011). It is also mentioned that the educational level of the population has significantly improved the last 5 years; in 2009 the percentage of people attained a post-secondary educational institution reached the 25.7% - from 22.8% in 2004 (Hong Kong government 2011). As for the average income of local population, this was estimated to $17,500 – for the fourth quarter 2004 (Hong Kong Government 2004). Taking into consideration the above facts, the performance of Dippin Dots in the market of Hong Kong is expected to be significant; the specific product addresses a high percentage of the population – in terms of age and activities: from children in school to individuals at work. Women, who are likely to consume sweets more than men and who are the majority in Hong Kong, are expected to love