In today’s economic society creating and investing time and money into a new business is very risky to say the least. A couple of things to look at are market structure and elasticity of the product or service. In this business plan I have decided to create a business that surrounds a service versus a product, the service that I plan on providing is a personal advocate to nursing and rehab facility residents. The service will include being a personal confidant to the resident and family as well as a medical advocate to the family.
The market structure for this type of business in a Pure Monopoly due to the fact that Alabama does not have personal resident advocates that I can locate by looking into the local and state businesses. Every medical facility has what is called an Ombudsman and their role is to be and advocate and an investigator for both the state and the resident but there are no individual businesses that off this type of service.
This type of service could be considered both an elastic good and not, a raise in price could cause a large decrease in the demand because the family could easily rely on the ombudsman but if the family decides to rely on the ombudsman they run the risk of not having a person that is solely on the side of the resident and family. In terms of elasticity it could work in my favor or work against me, I will just have to stay flexible and allow my pricing to stay flexible as well.