Free Enterprise
What do choice and opportunity have to do with how people run a business?
Goal:
Goal:
Have you ever heard of free enterprise? It is the freedom private business owners have to use the market to decide what prices, products, and services they will have. A free enterprise system places few restrictions from the government on businesses.
Business owners can...
- Own private property.
- Make personal choices or decisions. (For example, they can decide what products they'll sell and what prices they'll charge.)
- Engage in competition. (They can have the best prices to attract customers to a store vs. another store.)
- Make a profit. (This is the gain after all of the expenses are subtracted from the total amount received.)
- Consider consumer preference. (Allow consumers to decide the types, quality, and quantity of goods.)
If you used this free enterprise model to open an ice cream shop, you have the freedom and opportunity to make the important decisions about your business.
Your Business Plan
 |
Choices
Because you as a business owners have the freedom and choice to decide what to sell, this ice cream shop will specialize in serving ice cream sandwiches. Customers can buy ice cream sandwiches made with cookies, waffles, brownies, crispy rice treats, or donuts. You will offer 20 flavors of ice cream to put on the sandwiches. Competition
As a business owner, you will need to make your prices competitive with the market and offer the best prices. Since your concept is unique in selling ice cream sandwiches, you need to pay close attention to the demand. You may not have as much competition because no other businesses are doing what you're doing. This means you may not need to make your prices too low to attract customers. Customer Preference
You will allow customers to decide the types of ice cream sandwich options you carry, as well as any add-ons they prefer. Add-ons include things like sprinkles, whipped cream, and fruit toppings, and you plan to charge more for each add-on to help increase your profit. Knowing what the customer wants and is willing to pay is important when making decisions about your business. Profit
Because your ice cream shop is unique and since you are choosing ice cream flavors, sandwich types, and add-ons based on customer preference, you have the opportunity to make a profit as long as you pay attention to the supply and demand. Location, Location, Location
You are now the proud owner of Sweet Frozen Sandwich Treats. |
 |