For this discussion you are asked to name two variables that are important to an area in your chosen business from our discussion in Week 1 (FILE)
Why would you want to analyze these variables? What could a regression analysis tell you about the relationship of your chosen variables?
I am thinking of starting a family-style restaurant business in Florida. Meals will be served and taken while in a business premise. Moreover, food delivery and take-out services will be available, involving a wide variety of services and cuisines models varying from cheap food to expensive. The business will involve 50 full-time employees and 30 contractual workers to cater for excessive demand during peak season, especially during the holidays.
Various statistics are relevant concerning small businesses and should be well analyzed before starting a business to help in making viable decisions about and guarantee sustainability. Seeking statistical data on the risk associated with the business is very critical. According to statistics in the article, 60% of restaurants face the risk of closing in their first three years in operation (Schmid, 2020). This data is critical to help in developing strategies that ensure the business can have sustainable operations at its initial stage when the risk of closure is too high. Understanding that banks are unwilling to finance restaurant helps the business owner seek other sources of extra financing like family, and savings to maintain the business in three high-risk years.
82% of businesses fail because of cash flow problems, which is sometimes associated with invoicing. Such data will help in understanding the best invoicing system to employ to address the problem. There is a 75% possibility of the business surviving the top 3 challenges; the economic uncertainty, regulatory burden and reduced customer spending, which is critical to understand for better survival strategies. There is 27% unlikeliness of getting the required finances; it prepares to consider various financing options to reduce the risk. 42% of new business fails due to lack of market need; this data is critical in guiding investors think about doing good market research to identify the right customer problem that needs to be solved, to ensure only-on demand product and services are introduced to the market.