To Build or Buy a Small Business

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402 Small Business Professor, Ricardo Toye| To Build or Buy
|
Week 4 Assignment 1|

Cornelius Gaskins
1/22/2013
|

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.

“It Bakes Good,” with a delicious flavor that is sure to please. Watching customer’s satisfaction

is the goal.

Developing a Bakery as a counter business with a competitive strategy to navigate through

barriers set up by existing Bakeries is the plan at hand. The initial bakery is deals with

pastries, breads, croissants and coffee, teas and other beverages. This new business strategy

involves a similar menu with other cooked foods served at breakfast, lunch and dinner from

soups, salads, potato dishes, sea foods and beef dishes. The floor plan will include a rail like

leader to guide the people through the food ordering line. The pickup counter will be positioned

away from the ordering line to give customers quick access to sitting if they have not already

chosen their seating.

The food menu will sit on the wall above the ordering counter in big letters easy to read among

a picturesque background to add a serene touch of comfort while the customers enjoy their

meals. The beverage counter will be located in an area away from eating customers yet close by

to allow access to water, coffee and other drinks.

The location of the business will be in the inner city in a high density area, well lighted, with

street parking and clean sidewalks. The building exterior will be freshly painted with freshly

installed windows allowing both customers on the inside to see out and people passing by the

clear view of seeing within. Large colorful neon lights will advertise the business at night and

day.

The Bakery will operate as a Partnership. Three Partners will initially start the business although

others may join at a later time. It is projected that the initial investment of the partners will be

enough to start and operate the business for at least six months while additional investment

capital can be sought after and obtained.

This plan is looking to find a niche in the current business district to both serve eat and go

customers while providing doggie bags for the same and catering to those customers who want to

take their purchases home. I will be open to the possibility of selling ingredients for those

customers who may be interested.

The rationale behind this new business is to appeal to the customer base having cooked food on

the menu that is freshly cooked served on china and eaten with silverware. The aim is to provide

an at home environment with a touch of fast food convenience.

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.

The option of buying the existing business has the appeal of adding the menu additions and the

dinning room modifications to this business. Would the temporary modifications lose money for

the new owners while the remodeling is done or could regular operations continue? Would the

business changing from the existing business to a Partnership have an impact on the bottom line?

Or would it be necessary to change the current form of ownership?

Could buying the existing business be converted to the new dinning floor plan while still meeting

any fire codes for customer access to safety in the invent of a fire? Considering that both

businesses would exist in similarly...
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