How can we evaluate the potential success of a new business? If Dave and Buster's is not as desired as we expect what could be another business possibility? If Dave and Buster's does not fit the IUP community, what company would not have the same problems?"
How can we evaluate the potential success of a new business?
The potential success of a new business can be evaluated by the reception the new business gets from its target audience. For example, in case of Dave and Buster's if a restaurant is opened at a new location, the number of persons in the area who represent the target audience of Dave and Buster's will determine the potential success or otherwise of the new restaurant. Dave and Buster's is targeted at adults. The existence of adults in the neighborhood who are interested in spending an evening dining at Dave and Buster's and playing games like "The 19th Hole", Iwerks, Simulator games, Virtual world, and Galaxian Theater. Currently, the reputation of Dave and Buster's is such that everyone knows exactly what type of food and games to expect. The opening of a new restaurant is preceded by publicity, and advertising.
Formally, the evaluation of the potential success or otherwise of a new business is done by carrying out a market research in the area where the business will be located. The potential demand will be estimated using market research. The direct costs and overheads in that area will be added up; the cost of supply will be found. An important part of the exercise is the estimation of the cost of labor in that area. Finally, the profitability or otherwise of the business will be calculated. This will give an accurate idea about the potential of the ...
Dave and Buster's is discussed very comprehensively in this explanation. The business possibilities are given.