While Mr. Schwartz had a very marketable product, much more planning was needed before he took the actions to open his pizza business. Robert Schwartz location, finances and forecasting proved to be a mistake. However, Robert excelled at promoting his pizzas and also setting the atmosphere for the restaurant. There are many things Mr. Schwartz learned from this experience.
First, he should have taken more thought to his location and flow of traffic. The location he chose, while near the local university, is hard to get in and out of. This will cut down on some of his business. Robert should have taken more time to choose the right location with ease of traffic. Location, location, location is the key! Because Mr. Schwartz was in a rush, he did not pick the most ideal location or do enough searching for a more convenient location.
Also finances proved to be a difficult task.
The loan Mr. Schwartz was hoping for failed to go through. This left him in quite a tight spot. He did not have the twenty thousand dollars he was hoping to use for marketing. Mr. Schwartz was short on money and had to do everything around his business, including the accounting, bookkeeping, dishwashing and promoting. He took his knowledge and experience and came up with his own marketing for a much lower cost. Robert decided to make pizzas and deliver them to the local fraternity's and sororities. He let the product speak for itself. After giving the groups free samples, Mr. Schwartz informed them that if they come in groups to Pizza Hop they will receive ten percent off.
Robert tried to do some long range forecasting for his business as well. Long range forecasting is extremely hard to predict. However, if you make a...