Factors That Can Influence a Business
There are many factors, both internal and external, that can affect a business. Not all factors can be controlled by the business owner themselves, which can be unfortunate in some cases. Here are just come of the factors that can influence a business.
Both global and local economy can affect a business. A market can fluctuate depending on many external influencers such as politics, terrorist attacks, wars and currency devaluation, to name a few.
An internal factor, such as finance, can also affect a business. A business can have low personal finance for a number of reasons, including low sales or buying in too much stock. If a business cannot secure a loan, then it may not be able to expand in the way that owners want it to at that time.
Everything from a heavy rain shower to a full blow hurricane can affect a business. If there is a particularly rainy or cold spell, people are less willing to go out and shop. This can affect business sales numbers. Similarly, bigger natural disasters don’t only prevent people from going to the shops, buildings could be destroyed or damaged as a result of it, meaning businesses may have to rebuild in order to continue.
Many businesses rely on location in order to keep themselves going. Thing such as zoning laws, road construction and housing developments can all affect a business. Change to the local infrastructure can either positively or negatively affect a business depending on the type of development and location. For example, a business could be affected negatively if a new shopping centre is built in the area, as consumers may be more inclined to go to the shopping centre as there is more variety and more chance of finding what they’re looking for.
Laws are adapted and change all the time, this can affect businesses greatly. For example, the new sugar tax that has been taken on in Scotland has forced many soft drink companies to reduce the amount of sugar in their drinks, in order to keep their products at a reasonable price.
Consumer trends have always been around, but as technology progresses, so do many things. Thanks to social media, trends can now be bigger than ever. Celebrities also now have more influence over what people buy, many celebrities choose to promote products (for a hefty dollar) and this majorly influences consumers. For example, when Kylie Jenner said she filled her lips in with lip liner sales rocketed. When she finally admitted to getting lip fillers, the number of girls under the age of 25 getting lip fillers rose dramatically.