Build Or Buy Assignment: Select A Small Business You Visited

Build Or Buy Assignmentselect A Small Business That You Visit Often E

Build or Buy Assignment Select a small business that you visit often (e.g., coffee shop, bookstore, sporting goods store, etc.). Write a 6-8 page paper in which you: 1. Craft a brief (1-2 pages) strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail. 2. Determine if it would make more sense to open the new business you describe or to purchase the existing business you selected. Explain your reasoning. 3. Discuss the most appropriate form of ownership for your new business (assuming your current financial situation). 4. Outline a business plan for your business. Visit for tools and templates. 5. Include at least two (2) references outside the textbook. Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. · Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Paper For Above instruction

The decision to build or buy a competing business within the context of a small business environment involves strategic considerations that are both financial and operational. This paper proposes a comprehensive approach to establishing a new enterprise that directly challenges an existing small business, such as a local coffee shop, focusing on developing a strategic plan, evaluating whether to build or acquire, determining the optimal ownership structure, and outlining a detailed business plan.

Strategic Planning for Competition

To develop a competitive strategy, it is crucial to analyze the strengths and weaknesses of the existing coffee shop. Assuming the selected business has established a loyal customer base, a prime location, and a reputation for quality, the new business plan will aim to differentiate through superior service, menu innovation, and targeted marketing. For example, offering organic, locally sourced products with fast, friendly service can provide a unique value proposition. Leveraging technology, such as a mobile ordering app and loyalty rewards program, can enhance customer engagement and streamline operations. The rationale behind this strategy is based on differentiation and customer experience—key factors that can attract customers seeking higher quality or more convenient options than those offered by the existing business.

Build vs. Buy Decision

Deciding whether to open a new business or purchase an existing one involves evaluating economic, strategic, and risk factors. Opening a new business, or building from scratch, allows for complete control over branding, design, and operations tailored to specific market niches. Conversely, purchasing an existing business can reduce startup risks, provide immediate cash flow, and offer an established customer base. In this case, if the target small business has strong community loyalty, purchasing it might offer a faster route to market penetration. However, if the existing business has operational inefficiencies or limited growth potential, building a new enterprise might be more advantageous in the long term. My reasoning suggests that purchasing could be beneficial if the existing business aligns with a strategic vision for expansion and differentiation, but building from scratch may be preferable if customization and fresh branding are priorities.

Ownership Structure

The most appropriate ownership form for the new business depends on the financial situation and risk appetite. A sole proprietorship offers simplicity and full control but exposes the owner to unlimited liability. A partnership can distribute risks and resources but requires clear agreements. An LLC (Limited Liability Company) presents a balanced approach, providing liability protection similar to a corporation while maintaining simpler management and tax flexibility. Based on a moderate financial position and desire for liability protection, establishing an LLC would be optimal, as it offers personal asset protection and flexibility to manage ownership shares among partners or investors.

Business Plan Outline

The comprehensive business plan will include the following key sections: executive summary, business description, market analysis, organizational structure, product line or services, marketing and sales strategies, funding request (if applicable), financial projections, and appendices. Utilizing available tools such as SBA templates or business plan software will facilitate detailed planning. The market analysis will assess local demand, competitor landscape, and customer demographics. Marketing strategies will focus on digital marketing, local community engagement, and loyalty programs to attract and retain customers. Financial projections will project capital requirements, revenue streams, profit margins, and cash flow forecasts essential for attracting investors or lenders.

References

References

  • Barringer, B. R., & Ireland, R. D. (2019). Strategic Entrepreneurship: Creating Value for Individuals, Organizations, and Society. Pearson.
  • Lussier, R. N., & Kimball, D. C. (2017). Entrepreneurship: Starting and Operating a Small Business. Cengage Learning.
  • U.S. Small Business Administration. (2021). How to Develop a Business Plan. SBA.gov. https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan
  • Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2020). Entrepreneurship. McGraw-Hill Education.
  • Scarborough, N. M., & Cornwall, J. R. (2018). Essentials of Entrepreneurship and Small Business Management. Pearson.
  • Zimmerer, T. W., Scarborough, N. M., & Wilson, D. (2018). Essentials of Entrepreneurship and Small Business Management. Pearson.
  • Strategic Management Insight. (2022). Build vs. Buy: Which Strategy Is Better? https://www.strategicmanagementinsight.com
  • Byrnes, J. (2020). Small Business Management: Launching and Growing Entrepreneurial Ventures. Cengage.
  • Investopedia. (2022). Business Ownership Structures and Their Advantages. https://www.investopedia.com
  • Kuratko, D. F. (2021). Innovation and Entrepreneurship. Cengage Learning.

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