Business 402-Small Business Management
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 the business the way it should. The Business is making a profit of $2000.00 dollars a month on average after paying all expense. However, I feel the business can generate $5000.00 a month on average if he markets the business. The current owner never advertises for the business in the area. However, because of the location most of the advertising came from word to mouth, which is a good thing.
Island Style serves a variety of hot and cold tea and coffee, they use only 100% organic fair trade coffee and espresso beans (Island Style Bagel and Tea, 2010). They also freshly roast all coffee beans locally. So you get the true magical flavor of every bean. It is truly amazing. Also Island Bagel feature a huge selection of loose leaf teas, they also has a variety of savory tea and Bagel, assorted sweets, and freshly baked scones which served with different types donuts and a little of Island Devonshire cream (Island Bagel and tea, 2010). Determine if it would make more sense to open the new business you describe or to purchase the existing business you selected. Explain you reasoning. My Business concept is to keep the existing concept but add more variety and products to the business and expand the square footage by expanding the business over the next building since it is not occupied at the moment. This will give each individual a quiet study space next door which will have free Wi-Fi and comfortable tables and chairs for them to study. Also I will have a lounge area for students who want to study in groups. Reservations must be made at least 24 hours in advance for larger groups of students or working professionals. I will continue to offer the hot and cold beverages and add health and organic breakfast and lunch with homemade pastry at a reasonable price. I also will target all of the university student and staffs by offering them discount with reward card. Also I will hand out flyers to all nearby business in the area and advertise in the local newspaper biweekly. Moreover, I will extend my Business to cater for all events such as gaming tournaments, art show, special events and more. If you are a loyalty customer you will receive additional discount on all catering. Since this a newly develop area any new Business open in the area will receive additional discount on all catering. Since this is a newly develop area any new Business open in the area will also receive a free lunch for a day for employees and staff.
My Intention is to bring back what Island Bagel and Tea was intended for, which is to hang out for tea, coffee and Bagel, connoisseurs, poets, writers or anyone who enjoys a great beverage (Island Bagel and Tea, 2010). This area lacks community togetherness and I intend to provide a warm and friendly atmosphere for everyone to come and meet each other. Hence, we will add other thing, which is to have a poetry night and single night, this will give the working professionals a place to come and unwind or relax for a few hours and meet someone new. The purpose of Island Bagel is to cleverly blend postmodern looks and warm colors to create a comfortable spot that welcome the community ( Island Bagel and tea, 2010). Our...