Free «To Build or Buy» Essay
Table of Contents
- Strategy for Another Business Concept
- Buy To Build or Buy essay paper online
- Business Definition and Vision
- Goal Establishment
- Customer Understanding
- Competitor Recognition
- Finance Consideration
- Realization of the Marketing Strategy
- Opening a New Business or Purchasing an Existing One
- Most Appropriate Ownership Form
- Business Plan
- Ownership of the Company
- Key to Success
- Related Business essays
Small businesses are the most critical players and contributors of strength to any economy around the world. Although, small businesses may not contribute much money, as large businesses do, they add a lot of support to people that, in turn, progress to initiate the large corporations. Small companies provide new opportunities to a variety of people in different economies, giving rise to more profitable enterprises, categorized into various sectors. A coffee shop is a form of small business with its essence in the market; an individual can make enormous benefits out of its expansion in the future. The company needs ultimately low investment capital, therefore, making it affordable and easy to set up. Many aspects, involving such a business, are identified and described in detail in the current paper.
Strategy for Another Business Concept
A different business strategy that is in a position to compete with a coffee shop should have a detailed business idea, proving that it is appropriate and suitable for further actualization. A coffee shop business can, therefore, consider the following strategy concept that has undergone a series of research and conceptualization, as a basis for predicting a probable outcome, as well as a longer time frame.
Business Definition and Vision
In starting a coffee shop business, the first step involves a critical description of the business, along with its view to enable a company’s clarified driving force (Kim & Mauborgne, 2015). It is essential for the business to consider its self-progress, its customers, as well as the products and services being offered to the customers to ensure a continuous growth and progress. Furthermore, it is important to consider the plan for defining the anticipated growth and available opportunities, which would take a competitive advantage in the entire market.
Goals are the key features that drive businesses for better future performance. Different companies have a variety of goals they usually set to accomplish within different time frames that may be reached within a few months or years. The coffee shop business would establish a combination of different goals that it aims to achieve before a specific time period, to enable a focused business operation. The primary purpose of the discussed business would be to emerge as a competitive lead in the industry for a maximum of the next five years, involved in the entire business operation. Additionally, the business is ambitious to attract and retain customers through the taste of the product that it offers, as well as the service it provides to customers.
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For the success of any business, whether big or small, customers will always remain as the fundamental driving force towards success of the business. Customers actually determine whether the business will progress successfully in the future, or if it will underperform. About this business concept, there will be a consideration of customers’ needs and every related service customers may require upon visiting the coffee shop. As such, the proposal will enable the business to grow internally, as well as its reputation to grow externally. Customers are, therefore, the primary target that this business aims to achieve and retain in the market. With the clients in place, the business should be able to give other priorities and values to all the visiting customers, whether new or existing ones. Furthermore, the business should judge their full requirements and, as such, be able to adequately provide, according to customers’ expectations and standards better than other principal competitors in the market.
As an addition to the strategy of this business, identification of the potential competitors would also play a significant role in enhancing the business strategy. The identification of potential competitors will act as a way of reducing the competitors’ presence in the market, and, as such, will access a wider part of the market (Kim & Mauborgne, 2015). All the attempts to identify and understand the competitors’ strategy and operations in the industry are, therefore, credible and are considered priorities that the business has to embrace for its better performance.
Financial concerns are among the key areas to consider for the coffee shop business, as a concept in the strategy.
Realization of the Marketing Strategy
In strategizing the concept of a coffee shop, identification of the marketing strategy is an imperative step that guarantees the efficiency of all operations to be undertaken by the business. According to Kim and Mauborgne (2015), without the implementation of a marketing strategy, there would be difficulties in the promotion and distribution of the brand name. The business should, therefore, make the identification of target markets, as a priority in marketing strategy, upon the business’ establishment. Additionally, there should be a proper selection of the target markets, which give the best possibilities of success to the business. Despite all these being in place, there should also be the identification of marketing tools and strategies, while, at the same time, the realization of methods to enhance that the business operates efficiently.
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With the above scenarios and rationale for the strategy, the business concept can be in a position to work towards coffee shop’s success. The business will be able to acquire competitive advantage from the strategy upon its complete implementation.
Opening a New Business or Purchasing an Existing One
About the coffee shop business, it would be better for an individual to consider opening a new business, rather than buying a franchise. Considering this option presents many growth opportunities for the business, as compared to other options. Furthermore, the choice has less investment spending than purchasing a company that already exists in the market (Samson & Daft, 2012). Also, through the new business, there is the emergence of an opportunity to understand all the trends that exist in the market, as well as knowledge and credible information about the business through a research process. Furthermore, opening a new business outweighs the purchase of an existing franchise, since the owner will be able to choose the exact location for the business, according to the market research. This indicates that the business will be able to select the best position for the area without powerful influence.
Considering that the customers’ needs and wants are subject to changes, opening a new business remains a better option than purchasing an existing one; this option is better in terms of the product’s taste, which is coffee, in this case. Customers will always prefer a shop that is convenient to access and the one that has the best customer service. Thus, opening a new coffee shop will attract customers, as they try to experience the new taste and new services. The owner of the new business would also be in a position to attract new business ideas that would later give the business a platform to extend; thereby, opening more stores in future (Samson & Daft, 2012). The new ideas will also present the business with innovative ways to conduct its operations in the industry.
On the one hand, having an opportunity to freely choose a business location helps an individual to expand the business to other regions in the market effectively and efficiently. On the other hand, purchasing the business that already exists in the market may not give a definite guarantee due to the state of the business’ infrastructure that would require renovation and more repairs. At the same time, when a person buys a franchise, it would take a significant amount of time and attention to learn how the new business operates, as well as learn its strengths and weaknesses in the market; this means that it would also take some time to come up with practical strategies for the business progress onwards. If a person has little or no experience of the industry, acquiring an existing company would, therefore, be the best option. This will enable them to learn all that pertains to the specific business without having to incurr many losses.
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On the same note, many people prefer starting their businesses from scratch, as they believe that doing this can pay huge dividends, when they get to understand the risks involved. This is because chances present substantial loss opportunities in business upon misunderstanding and lack of proper implementations. Purchase of the existing companies is usually associated with fewer risks, compared to the introduction of new companies because the existing business is already experienced with various market operations. Current business has already established brand names, as well as the customer base (Samson & Daft, 2012). Purchasing a company can be much more expensive than developing a new business. With the existing business, the buyer has to incur the cost of the current concept, the customer base, while, at the same time, pay for the brand name that identifies the business.
Moreover, starting a new business presents fewer risks to the operations because the owner will not have to face any hidden problems upon progressing with the services. However, purchasing a business that has been operational for a while may raise a number of hidden issues that would later harm the business performance. Hidden issues include severe debts and customer dissatisfaction that would shift the customers away from the business. From this point of view, establishing an entirely new business to the market presents itself as a much better idea than purchasing an existing business. Establishing a new business will result in smooth operations and available opportunities, aimed at attracting new customers, as well as retaining them through a variety of marketing tools and techniques.
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Most Appropriate Ownership Form
Ownership of the new coffee shop business is based on a sole proprietorship, given that there is no separation from the business and the owner. The owner has the option of running the business with a different name. Additionally, with this type of business, the owner and the business are inseparable, due to its natural way of forming and separating (SBA, 2014). As a sole proprietorship form of business, the coffee shop requires a minimal amount of capital to start and to maintain, giving room for further expansion with time. The minimum amount of money that it would take to start such a business ranges from about $209, 810, an amount that the owner can efficiently manage.
Furthermore, this business is more affordable, since it does not require many legal documents that can be difficult to obtain. The process of getting the license for the business and begin the operations is somewhat natural due to the small area for the business and the few staff involved. The owner can, therefore, run the business as the manager with close inspection of the way the business progresses. As a result, this will give an opportunity to understand the market, as well as come up with new ideas that would increase business performance. All the income and expenses, associated with the business, become an easy process that can be filed as the owner’s tax return (SBA, 2014). The sole proprietorship form of coffee shop business also relates to the business loss in the event of a reduction in the number of customers, while the owner gets to enjoy a deduction that an off-set personal income brings.
When the business makes any profit from the operations, the owner can receive full credit, as well as the possibility of an active increase in income. In this case, the owner of the business would incur full responsibility for any taxes due, as a result of business operations. Moreover, the sole proprietorship also becomes responsible for any sues in the market. Another fact of this form of business is the personal exposure to all business operations in an unlimited manner. The assets of the owner can, therefore, be taken as a way of paying any outstanding obligations from the company.
A business plan plays a role of a management tool, which can be used as a referral in ensuring that a company is always on the projected course in meeting the goals and targets that are set upon its establishment. The plan helps the business to reach all the desired milestones with time and make the business successful. The business plan for this coffee shop is set to increase growth and profits overtime for the undertaken operations. About this concern, the business plan for the coffee shop follows the outline below.
The summary of the company: as the name suggests, the coffee shop business sells coffee to the customers, as the primary product. Additionally, the company offers other beverages, including soft drinks and snacks upon customers’ requests. The coffee shop takes an approximate area of 2,300 square feet, a location that is close to a university in America (SBA, 2014). As a small type of business, the coffee bar start-up cost is affordable and accessible to manage, totaling up to about $209, 810.
Ownership of the Company
The coffee shop business is established in the form of a sole proprietorship, giving the business a simple interface that can be well managed to grow into a more significant business with time. Additionally, the owner is a simple person, belonging to a family that is business-oriented. The person aims to start the business, as a way of proving his talent, while, at the same time, serving the customers. The person will undoubtedly manage and grow the business efficiently, considering that he is well qualified and educated in business. The business, therefore, has a window of expanding from a small business to a profound large business within the course of time.
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This business has a specific advantage of taking the lead among all competitors in the industry, like a new coffee business. Among other purposes, there is a puapose of acquiring and securing more customers, as well as getting more profits than all the potential competitors in the market.
Key to Success
Outlook presentation of any business says a lot about the business. Customers will always make their way to activities that are well designed and maintained, both inside and outside, in addition to the products by the company. The coffee business shop design should be visually attractive for the customers. With the appealing look, the operations involved would be efficient and effective, thereby attracting more customers. Moreover, employees would be given thorough training and updates to ensure that they prepare quality coffee and customer service (SBA, 2014). Marketing strategies would also provide an establishment of a solid base for loyal customers, while helping to maximize sales from the business.
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