The Challenges of Putting up a Party Supplies Business
Small and medium enterprises like party supply businesses are more niche-based or focused on specific and relatively small market. The customers of these businesses are generally local patrons or a particular group of people. There are many challenges that are being faced by small and medium enterprises but there are also some advantages compared to larger corporate type businesses. Small and medium enterprises tend to have direct and better grasp of the needs of the customers. These businesses are also able to respond more quickly to the changing demands of their particular market demographics. On the other hand, the businesses in this sector oftentimes find it difficult to reach larger demographics and become aggressive in terms of competitiveness and expansion.
Many of the small and medium enterprises that are only starting up also tend to be more vulnerable to the risks of bankruptcy. The competition tends to be hard if the target market is already saturated or not well-defined. It is hard to attract new and loyal customers if they are already patronizing other more established businesses. However, this obstacle can be hurdled if a new small or medium-sized new business has something unique to offer that is advantageous to the customers in terms of price, quality of product and novelty of solution.
Categories of challenges
The challenges of establishing a new party supplies business can be summarized into the following categories: financial, operational-logistical (supply flow, inventory storage and shipping), promotional, and maintaining customer loyalty.
Financial aspect -- arguably, this is the most important aspect when starting any business. Entrepreneurs who start party supplies businesses initially have to find capital to finance the business. Depending on the target inventory and scope of operation, the initial capital could come from personal savings, loans or from other people’s investments. A proper business plan and feasibility study must be conducted to determine the viability of the business. A business will only be viable if it has sufficient earnings to cover the overhead costs and also provide reasonable profits. Professional accounting services would be necessary.
Operational-logistical aspect -- the day-to-day transactions of a party supplies
business will only be efficient if the operational-logistical aspect is well-organized. This includes supply flow, inventory storage and shipping of products to customers. These factors could be made more cost-effective and efficient with the help of computer software applications such as database and inventory tracking systems. Using online ordering system will also make the transactions more convenient for the customers. A party supplies company is basically a specialized retail store. So, it is crucial that the ordering, billing and shipping challenges should be properly addressed. The operational-logistical aspect involves having the right inventory based on the customer demands. It would be a good idea to have a comprehensive inventory that covers most of the types of parties and holidays such as Australian Day, birthdays, anniversary and Christmas.
Promotional aspect -- a new business has significantly challenging problem of reaching out to its target customers. It has the need to be known to its potential patrons. The promotional aspect could include traditional advertisements in the tri-media, namely, radio, TV and print ads. On the other hand, it could also include online promotions such as using social media, blogs, forums and websites. Promotional strategies could also include discounts and loyalty special offers. Hence, the promotional aspect has two main objectives of creating product awareness among the target customers and motivating these customers to buy. Although everybody can be considered as potential customers since everybody celebrates holidays and special occasions, a party supply business can be more effective if it targets a narrower demographics in terms of location. It is less costly to promote products to customers who are within a cohesive geographical area such as a city. It would also be more affordable to ship products.
Customer loyalty aspect -- once the name or brand of a party supplies business is established, there is a particular reputation attached to it. Many customers would be loyal to a particular brand because of the reputation. This is the most difficult aspect to achieve primarily because of competition. It is relatively difficult for a new business to stand out among the crowd, not unless it has something uniquely beneficial, new and interesting to offer to its target customers. Maintaining customer loyalty is crucial to any business. One of the strategies to maintain customer loyalty is to make the buying experience convenient and dependable.
What we do
We are one of the most reliable retail suppliers of party needs in Australia. Here at AZParty.com.au, we take care of our customers and we make sure that we have all the party supplies and accessories that they need. We have a very comprehensive inventory that covers a wide range of party celebrations -- from weddings to anniversaries, from Christmas to Chinese New Year, from mardi grass to Oktoberfest celebrations. We continually update our inventory in response to the growing needs of our customers.
We will provide update you with the latest information about the available products in our inventory. You may bookmark our website, http://www.azparty.com.au/, and browse the categories if you are looking for some party supply that you need. You may also contact us through email or phone as provided in the website. If you want to get regular updates, you may like our Facebook fan page: https://www.facebook.com/azpartyonline.
AZParty.com.au offers very affordable and top quality products for a variety of parties. We have balloons, decors, plates, cups, plastic cutlery sets, napkins, masks and much more. We also offer free shipping and a 30-day return option. Very few other online retail party supply stores offer the same.
You may bookmark this blog to read new posts on a regular basis. Aside from product updates, we will also provide tips on how you can make your party celebrations awesome and memorable. Whether it is a themed party or a more traditional and formal party, you can be assured that we have you covered. We have the A to Z of party needs.