To Build Or Buy: Select A Small Business You Visit Often

To Build Or Buyselect A Small Business That You Visit Often Eg Cof

To build or buy, 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

Choosing a small business I frequently visit, such as a local coffee shop, provides an excellent foundation for exploring entrepreneurial strategies, ownership structures, and business planning. The purpose of this paper is to develop a comprehensive plan for a competing business concept, analyze whether to build or buy, and determine the most suitable ownership form based on current financial circumstances. This analysis aims to demonstrate the fundamental principles of small business management, including strategy formulation, ethical considerations, and operational planning, supported by credible external sources.

Business Selection and Market Analysis

The selected existing business is a popular neighborhood coffee shop known for its quality brews, cozy ambiance, and loyal customer base. Its success is characterized by high foot traffic, consistent revenue, and strong community engagement. To compete effectively, our proposed business would adopt a differentiation strategy emphasizing organic and locally sourced coffee products, sustainable practices, and enhanced digital engagement to appeal to environmentally conscious and tech-savvy consumers.

This strategy aligns with current market trends favoring sustainability and personalized customer experiences. According to Kotler and Keller (2016), differentiation allows small businesses to carve out a niche and command premium pricing while fostering brand loyalty. Implementing eco-friendly practices and leveraging social media marketing can further establish a competitive advantage, drawing customers looking for ethically responsible establishments.

Build or Buy Decision

Deciding whether to build a new business or purchase the existing coffee shop hinges on several factors, including financial resources, market entry barriers, and growth ambitions. Buying an existing business offers immediate cash flow, established customer base, and operational systems, reducing startup risk. Conversely, building from scratch allows for tailored branding, operational design, and the flexibility to innovate without legacy constraints. Given the current market maturity and average startup costs, purchasing the existing coffee shop appears more advantageous for rapid market penetration and leveraging existing infrastructure, assuming the purchase price aligns with valuation metrics.

Research by Schilit (2017) emphasizes that acquisition can provide strategic advantages, such as market share and knowledge transfer, whereas startups offer greater control over brand and product differentiation. Therefore, if the target price reflects fair market value and aligns with financial capacity, acquisition is the preferred route.

Ownership Structure Considerations

The most appropriate ownership form depends on financial capacity, liability concerns, and future growth plans. For a small venture with limited personal funds, a sole proprietorship or LLC offers simplicity, tax advantages, and limited liability protection. An LLC combines pass-through taxation with liability protection, making it attractive for small businesses seeking flexibility and risk mitigation. If seeking to attract investors or expand rapidly, a partnership or corporation might be necessary, but these structures involve more complex compliance requirements.

Given typical financial constraints and the desire for manageable compliance, establishing an LLC is recommended due to its balance of simplicity and protection, supported by resources like the Small Business Administration (SBA) (2020).

Business Planning and Implementation

A detailed business plan underpins successful execution. This plan should include an executive summary, market analysis, organization and management structure, product line or services offered, marketing and sales strategies, funding requirements, and financial projections. For example, the marketing plan would focus on digital advertising, community events, and partnerships with local suppliers to reinforce the shop’s eco-friendly brand. Financial projections should include startup costs, operating expenses, revenue forecasts, and breakeven analysis, supported by historical data and market research (Bryan, 2020).

Utilizing tools like the SBA’s business planning templates ensures thoroughness and clarity. Additionally, conducting a SWOT analysis helps identify strengths, weaknesses, opportunities, and threats, facilitating strategic adjustments prior to launch.

Conclusion

In conclusion, developing a competitor to a favorite local coffee shop involves strategic planning rooted in market analysis and consumer preferences. Buying an existing business offers expedience and established customer bases, while the most suitable ownership structure is an LLC that balances liability protection with operational flexibility. A comprehensive business plan is essential for guiding operations, securing funding, and achieving growth. This process reflects core entrepreneurial principles vital for small business success, including strategic positioning, ethical sourcing, and informed decision-making.

References

• Bryan, M. (2020). Business Planning for Small Businesses. Journal of Entrepreneurial Studies, 15(3), 45-60.
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Schilit, N. (2017). Strategic Growth via Business Acquisition. Harvard Business Review, 95(4), 102-109.
• Small Business Administration. (2020). Choose Your Business Structure. https://www.sba.gov/business-guide/launch-your-business/choose-business-structure