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Message: <blockquote data-quote="I Budd 123" data-source="post: 133985" data-attributes="member: 8177">Political- Depending on where the beans and other materials are sourced, so will need to consider whether we have a trade agreement post-Brexit and the impact if we do/don't, and whether there are any trade restrictions in place. - Gvmt announced corporate tax raise would go ahead so will need to factor that into the costs of business. - Labour laws are strong and require high standards so may need to consider automation to reduce costs.Economic- Supply chain issues after covid and due to China's covid policy so will need to consider bulk buying and whether and factor in the costs of storage.- High inflation and high interest rates mean that loans to buy premises/materials will be extremely expensive. May need a different source of investment. - However, commercial real estate is struggling recently so rent may be cheaper.- Who are competitors and how are competitors doing now? Starbucks has reported record revenue despite rising costs. Social- January health kick and savings trend may mean that this is a bad time to open a shop. Moreover, agile working means less customers in central London. Consider a mobile business.- People more likely to shop smaller local business following covid. Technological - Automation can help reduce costs and spending on employees e.g. coffee vending machine. - Could consider buy now pay later financing.Legal- Ensure branding etc does not breach any IP. - How are employees to be employed? As workers, employees or ICs. Unlikely to be the latter, but consider how contracts need to be drafted and the protections required for each kind.Environmental - Ensure packaging and materials are environmentally friendly. Danone is being sued over plastic pollution and Shell lost a case for not doing enough to stay in line with net zero goals. Strengths: The city is full of people needing coffee and during a  time when costs are very high coffee may be a 'treat' a lot of people can afford when they cut out more expensive ones. People often prefer (at least in theory) the idea of independent coffee shops.Weaknesses: Unlikely to have much funding so will need to rely on debt. No clear USP.Opportunities: Could do a subscription service as Pret's seem to be going well, or a mobile service. Threats: Highest rate of insolvencies since 2009 particularly due to inflation and supply chain issues so the market isn't in the best shape for a new business. Also investors do not seem to have much appetite for risky businesses atm.</blockquote>

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