Suppose you were going to open your own business what busine

Suppose you were going to open your own business, what business would you open and how would you use what you learned about demand and supply in running this business?

Solution

If i were to open a busines now, i will start with an online laundry service wherein people will be able to order for laundry services nd will be having different payment options available to them.

I think the business model will run as the business does not require much efforts from either side( customers and service providers). A few cleaning machines, a couple of employees, and you are good to go in case of OFFLINE store. Also given the changing lifestyles, demographic dividend shifting through younger generation, this business is supposed to work.

Demand and supply in this business:

Demand Forecasting:

In order to forecast demand i ll try and conduct an survey in the locality where i plan to establish the business.

Supposing that the population of the locality is 2000. assuming that the around 20 to 30 % of the people admit using the laundry services., then that akes the figure to 400 to 600 people and given their needs, u get to service atleast 1000 kgs of laundry per week. (if they get the services once a week).

Demand = 1000 kgs

Supply estimate:

suppose i start with 4 machines.

cycle time to wash: 2 hours

no. of loads per cycle = 7.5kgs

total cycles possible with a single machine = 4

laundry services by 1 machine per day = 7.5*4 = 30 kgs

laundry services by all the machines = 30*4 = 120 kgs

total laundry services in a week (keeping 1 day off) = 120*6 = 720 kgs

total supply = 720 kgs.

the hypothetical study shows a gap of 280 kgs between demand and supply and this supposes our bussiness to prosper as the demand is greater than the supply and there is scope of further expansion as well.