Assignment#1: To Build or to Buy
by
Professor;
Business 402-Small Business Management
01/29/2013
Assignment # 1: To Build or Buy
Craft a brief strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail. The Business strategy which I would use would be to purchase an existing Bagel and
Tea shop located in the heart of Rockville city. The business is called Island style Bagel and
Tea shop. Island Style is surrounded by lots different types of business, schools and it pretty much a great location. The shop use to be an ice cream shop and the owner just could not run
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Our freshly roasted coffee, to the finest imported espresso beans, huge selection of loose leaf teas and create every drink with love and attention
(Island Bagel and tea, 2010). I believe that it would be better to buy an existing business, despite it may involve risk.
However, I can minimize my risk by purchasing an existing business rather than to create a new business. When buying a business require a great deal of analysis and evaluation to ensure what meet my needs and expectations. By exercising my patience and taking all necessary time to research a business before buying it, are essential to getting myself a good deal. The good thing about buying an existing business is one of the fastest pathways to ownership. (Scarborough and zimmerer, 2012).
Hence, by purchasing an existing business saves time and energy also by buying an existing business you get a business that already generating cash and also a profit. Location is critical in purchasing an existing business that already generating cash and also a profit. Location is a critical in purchasing an existing business, a location that provides a significant competitive advantage may be the reason enough for you to decide to buy instead of building. There are plenty of advantages of buying an existing business. The business I am buying is a successful business and this business will continue to be
Super regional shopping centres started to appear in the UK in 1990’s. Bluewater is in its maturity stage and could remain there for some time if it can continue to update its stores and keep a low vacancy rate. One thing that the centre does well, is disguise empty retail space by making it an attraction in itself. An example of this is the wall piano currently in the space where Zara home used to be. It stops the centre from appearing rundown and maintains spectacle and
Expanding the business and adding more property agreements with 3rd parties and creating international property chain to make the business gain geographic diversity.
d. Is it more beneficial to continue leasing the business space or to buy the building?
1. If you get it right, there can be many good reasons why buying an existing business could make good business sense. Remember though, that you will be taking on the legacy of the
also can have risks; as the owner you cannot bring others into the business, so the
3. What are the demographics of the location and are they feasible to support such a company?
There are so many options available as to how they can structure the new business. The appropriate business entity for any individual(s) will depend on their particular facts and circumstances.
Before deciding to purchase a business, in this case one must weigh the pros and cons of purchasing an existing business. If I were interested in hardware and construction, this would definitely be an
As you see there are definitely pros and cons when deciding if renting or buying is right for you. When you rent, you don’t have the responsibility of maintaining the home, you aren’t worried about improving the interior or exterior of the dwelling, you don’t have to pay taxes on the home, and you aren’t faced with the possibility of losing the capital put into the housing market, or the possibility of foreclosure if a mortgage payment is missed (Should you rent or own). But on the flip side, when owning a home the equity in the home can be converted into money if refinanced or sold. Over the years, if kept well, real estate property increases in value and therefore this asset will up in value the longer the property is held (Should you rent or own).
Here are five business actions that take into account both the market value and the strategic value for a specific buyer looking to take complete ownership or buy into an already
When someone makes the decision to buy or rent a home they must consider the advantages and disadvantages of each. In buying a home the primary advantage is that you actually own it. You can do whatever you want with it. Also, you are building equity as the years go by. “People today have problems saving for their future” (CNN Money, 2014). However, when they buy a home, the
If they don’t franchise Mike Bellobuono and his team risk being locked out by the competition but as mentioned in the case Mike decided to invest in Bagelz because he felt that Bagelz had several distinct competitive advantages. An external threat in the future could be the franchise company Bruegger’s Bagel Bakery. The company has units all over New-England and it is one of the 50 fastest growing U.S. restaurants (ranked number 22 on the list). According to exhibit A Bruegger’s Bagels has during 1992 and 1993 established 20 stores and the company has increased the average sales per unit by $75,000.
Aim for a small business can "Survival", to survive in the market and look for profits.
Businesses are established with the sole reason to provide a product or service to a customer with the intend to make a profit. The amount of time, effort, and resources spend should generate a profit. Then, the profit depends “on its effectiveness in performing these activities efficiently, so that the amount that the customer is willing to pay of the products exceeds the cost of the activities in the value chain” (NetMBA.com).
The company has to decide between the two locations based on their virtues, availability and higher margin of profit.