Business Proposal
Business Proposal-Small Business Information Technology Support
The goal of this proposal is to demonstrate the probability of success for a business that provides information technology (IT) support to small local businesses. The proposal will show the economic analysis of the business and market structure of the company. It will also demonstrate the elasticity of the service in the market and provide data to regarding costs and revenue.
Identify the Market Structure for Small Business IT support and Two Reasons Why it would be that Structure
Small IT business support in Colorado Springs would be a monopolistic competition market structure. Some of the characteristics of monopolistic competition are the firms produce similar products or services, firms are able to freely enter the industry, firms are profit maximizers, and all the firms have some market power, which means none are price takers (Investopedia, 2013). Colorado Springs has thousands of small businesses and most of them utilize computers in some aspect of their business. Many small businesses utilize computers for tracking inventory, sales, managing distributors and customers, and accounting practices to name a few. This makes it a very lucrative business venture for competitors who can provide this type of support.
Many of the services an IT support company would provide are the similar which is one reason this market would be classified as monopolistic completion. The companies would provide support in some of the following areas: general computer support, computer backup solutions, and software support. Other areas they could provide support would be pulling cable for drops, network communications, and telecommunication support.
In a monopolistic competition market structure, any business can start up and take a part of the market share. Anyone can create a business that provides IT support to small businesses. The startup costs could be minimal to extremely high depending on
The goal of this proposal is to demonstrate the probability of success for a business that provides information technology (IT) support to small local businesses. The proposal will show the economic analysis of the business and market structure of the company. It will also demonstrate the elasticity of the service in the market and provide data to regarding costs and revenue.
Identify the Market Structure for Small Business IT support and Two Reasons Why it would be that Structure
Small IT business support in Colorado Springs would be a monopolistic competition market structure. Some of the characteristics of monopolistic competition are the firms produce similar products or services, firms are able to freely enter the industry, firms are profit maximizers, and all the firms have some market power, which means none are price takers (Investopedia, 2013). Colorado Springs has thousands of small businesses and most of them utilize computers in some aspect of their business. Many small businesses utilize computers for tracking inventory, sales, managing distributors and customers, and accounting practices to name a few. This makes it a very lucrative business venture for competitors who can provide this type of support.
Many of the services an IT support company would provide are the similar which is one reason this market would be classified as monopolistic completion. The companies would provide support in some of the following areas: general computer support, computer backup solutions, and software support. Other areas they could provide support would be pulling cable for drops, network communications, and telecommunication support.
In a monopolistic competition market structure, any business can start up and take a part of the market share. Anyone can create a business that provides IT support to small businesses. The startup costs could be minimal to extremely high depending on
References: Economic Profile. (2013). Retrieved from Colorado Springs Regional Business Alliance: http://www.coloradospringsbusinessalliance.com/economic-development/business-climate/economic-profile-20130417133602 Investopedia. (2013). Retrieved from http://www.investopedia.com/ McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, Problems, and Policies. New York: McGraw-Hill Irwin.