Select A Small Business You Visit Often, E.g., Coffee 591806

Select A Small Business That You Visit Often Eg Coffee Shop Books

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: 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. 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. Discuss the most appropriate form of ownership for your new business (assuming your current financial situation). Outline a business plan for your business. Visit for tools and templates. 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. The specific course learning outcomes associated with this assignment are: analyze the nature of entrepreneurship, business ethics, and social responsibility in managing a successful small business. analyze a business strategy and supporting business plan for a small business concept. describe and analyze the necessary activities and key decisions to start a small business. use technology and information resources to research issues in small business management. write clearly and concisely about small business management using proper writing mechanics.

Paper For Above instruction

Selecting a particular small business to analyze is a crucial step in understanding effective strategies in small business management. For this paper, I have chosen a local coffee shop that I frequent regularly, "Brew Haven." This coffee shop has established itself as a community hub, offering high-quality beverages and a cozy environment. My goal is to develop a competitive business concept that can challenge Brew Haven directly, analyzing strategic approaches, feasibility of opening a new venture versus acquiring an existing one, and the most suitable ownership structure, culminating in a comprehensive business plan.

Business Concept and Strategy

The new business idea I propose is a specialty coffee and beverage bar called "Urban Brew." Unlike Brew Haven’s community-centric approach, Urban Brew will emphasize superior product quality, technological integration, and innovative service models such as mobile ordering, personalized beverages, and sustainable practices. The strategic focus will be on targeting a broader demographic, including busy professionals, students, and environmentally conscious consumers.

The rationale for this strategy stems from current trends in the coffee industry that prioritize convenience, customization, and sustainability. Consumer surveys and industry reports reveal that modern customers are increasingly expecting quick, personalized service and eco-friendly options (Statista, 2022). Urban Brew will capitalize on these preferences by integrating advanced technology for order customization and optimized workflow, reducing wait times and enhancing customer satisfaction. Additionally, sourcing organic and ethically produced ingredients will position the brand as eco-conscious, appealing to younger demographics increasingly concerned about environmental impact.

Opening or Purchasing?

Deciding whether to open a new business or acquire an existing one depends on various factors, including financial investment, market knowledge, and operational risk. Purchasing Brew Haven could offer immediate market presence, existing customer base, and established suppliers, which reduces start-up risk. However, acquiring an established business might limit strategic flexibility, especially if the existing business has operational issues or a stagnant brand.

Alternatively, opening "Urban Brew" as a new venture allows for complete brand control, innovative operational strategies, and tailored customer experiences aligned with current market trends. If I have sufficient capital and entrepreneurial experience, establishing a new business might be more advantageous to capture a niche market more aligned with current consumer demands. Therefore, while acquisition offers a quicker entry with existing assets, the strategic fit and long-term growth potential favor starting anew, provided the initial investment is manageable (Kuratko, 2021).

Ownership Structure

Given my current financial situation and entrepreneurial aspirations, a Limited Liability Company (LLC) appears to be the most suitable ownership structure. An LLC provides liability protection, flexibility in management, and favorable tax treatment, which is advantageous for a startup with uncertain cash flows. This structure also simplifies tax reporting and compliance, making it manageable for a new small business owner. If the business scales, converting to a corporation could be considered to access additional funding sources, but initially, an LLC offers a balance of protection and flexibility (Lokanath, 2020).

Business Plan Overview

The business plan will encompass several core components. Market analysis indicates a growing demand for specialty coffee and sustainable practices in the local area, where competition includes Brew Haven and other cafes. Urban Brew will differentiate itself through high-quality ingredients, technological innovations, and eco-friendly operations.

Operationally, the business will require a prime location near urban centers or campuses, equipped with modern coffee brewing equipment, a user-friendly mobile app, and sustainable packaging. Staff hiring will focus on experienced baristas and customer service personnel committed to sustainability. Marketing strategies will leverage social media, loyalty programs, and community engagement events to attract and retain customers.

Financial projections suggest initial startup costs around $250,000, covering equipment, lease, marketing, and initial inventory. Revenue streams will include in-store sales, mobile app orders, and catering. Anticipated breakeven point occurs within the first 12 months, with projected annual revenue reaching $400,000 by year two. Funding sources might include personal savings, small business loans, and potential angel investors.

References

  • Kuratko, D. F. (2021). Entrepreneurship: Theory, Process, and Practice. Cengage Learning.
  • Lokanath, M. (2020). Small Business Management. Springer.
  • Statista. (2022). Consumer preferences in coffee consumption. Retrieved from https://www.statista.com
  • U.S. Small Business Administration. (2023). Starting a Business. Retrieved from https://www.sba.gov
  • Hayes, R., & Abernathy, W. (2018). Business Strategies for Competitive Advantage. Harvard Business Review.
  • Bloomberg. (2021). Sustainable Coffee Market Trends. Bloomberg Businessweek.
  • World Coffee Research. (2021). Industry Reports on Coffee Sustainability. Retrieved from https://worldcoffeeresearch.org
  • Investopedia. (2020). LLC versus Corporation. Retrieved from https://www.investopedia.com
  • United Nations Environment Programme. (2019). Sustainable Business Practices. UNEP.
  • Harvard Business School. (2022). Startup Business Planning Resources. Retrieved from https://hbs.edu

This comprehensive approach combines strategic planning, operational management, and market analysis, positioning "Urban Brew" to compete effectively in the local coffee industry while aligning with current consumer preferences for convenience, quality, and sustainability.

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