A few common barriers to entry I found when it comes to opening a foodservice operation are location, economies of scales and entrenched competitors. Starting with location, location is such a crucial part to the success of a business. An excellent location consists of being readily access able to car and pedestrian traffic, is surrounded my business that would support. For example, a restaurant being surrounded by builds with office worker is a great example. As well as having a good amount of parking. It is harder for newer restaurant to obtain this sort of location, but even if you manage to get a nice location. You will most likely be bombarded with high rent and mortgage costs. Which is hard pay for when initially starting your business. …show more content…
Which is hard for new restaurants because the older restaurants have loyal customers. Which will make it harder on the newer restaurant to obtain any client. Even if they have lower cost. People stick with what they already know and love.
List the steps necessary to overcome barriers to entry. Small businesses cannot stand up against larger corporations because they do not have to funds nor the manpower need to compete, which leads to barriers of entry. There are strategies for small businesses that can help overcome the barriers of pushing out the products to mass amounts of people. With these following steps, you can beat the barriers of entry. Firstly, are economies of scale, which is when bigger businesses have the ability to produce more items hem smaller businesses do. Which makes it harder for the smaller businesses because that means they having to work twice as hard to get out their items out in the market.
Secondly is having the financial stability needed to go start up a business and keep it afloat. Most small businesses get loans and venture capital form investors to help start up their business, but in order to obtain such money they first need a solid and convincing business