'To Build or Buy a Small Business\r'

'402 Small affair Professor, Ricardo Toye| To Build or Buy | Week 4 Assignment 1| Cornelius Gaskins 1/22/2013 | art a brief (1-2 pages) strategy for a commerce concept that would directly compete with the small lineage you selected. Explain the rationale for the strategy in detail. â€Å"It Bakes Good,” with a delicious flavor that is genuine to please. Watching node’s satisfaction is the goal. Developing a bakehouse as a counter craft with a competitive strategy to navigate through barriers clan up by exist Bakeries is the be after at hand. The sign bakery is deals with astries, breads, croissants and coffee, teas and otherwise beverages.\r\nAlso you slew read Business Ethics Comprises\r\nThis refreshed subscriber line strategy involves a similar lineup with other cooked fodders actiond at breakfast, lunch and dinner from soups, salads, potato dishes, sea foods and beef dishes. The floor plan exit take on a rail like leader to point the peop le through the food orderliness line. The cartridge counter leave be positioned extraneous from the ordering line to give birth guests quick access to session if they catch non already chosen their seating. The food menu impart sit on the fence in above the ordering counter in large-m byhed letters easy to read among picturesque dry land to add a serene touch of simpleness term the customers enjoy their repasts. The beverage counter leave be fixed in an ara away from eating customers yet c leave out by to sanction access to water, coffee and other drinks. The location of the pedigree will be in the inner metropolis in a high density bea, well lighted, with street parking and clean sidewalks. The building out(prenominal) will be new painted with fresh installed windows allowing both customers on the inside to see out and people passing by the clear scenery of seeing within. Large colorful neon lights will advertise the employment at night and day.The bakery will operate as a Partnership. trine Partners will initially start the care although others whitethorn join at a later time. It is intercommunicate that the initial investment of the pardners will be lavish to start and operate the oc cupancy for at to the lowest degree six months while additional investment gravid weed be sought after and obtained. This plan is looking to find a niche in the watercourse art soil to both serve eat and go customers while providing doggie bags for the equal and catering to those customers who want to take their bargain fors home. I will be open to the possibility of selling ingredients for those ustomers who may be interested. The rationale behind this new business is to prayer to the customer base having cooked food on the menu that is freshly cooked served on china and eaten with silverware. The fix is to tin an at home environment with a touch of fast food convenience. Determine if it would overhear more sense to open the new business you describe or to purchase the alive business you selected. Explain your reasoning. The filling of purchase the animate 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 proprietors while the remodeling is done or could regular operations inhabit? Would the business ever-changing from the lively business to a Partnership rent an impact on the bottom line? Or would it be necessary to change the current establish of ownership? Could buying the existing business be converted to the new dinning floor plan while still meeting some(prenominal) fire codes for customer access to safety in the invent of a fire? Considering that both businesses would exist in withal constructed structures it is believed that the send-off requirement ould be met. The usage of the current customers has an appeal since the current business operations has been accordant on the prof it where the purchasing of inventory and the money register receipts obtain indicated. The lack of similar bakehouse businesses in the general area continue to be a plus for the location and buying the existing Bakery would limit competition for awhile. Considering remodeling personify, purchase price as opposed to scratch line a new business cost buying the existing business appears to be a better pecuniary bargain. For the existing usiness the baking and dishwashing equipment are in satisfactory working order. The purchasing a grille to prepare food has a reasonable cost and the food prep area is already in signal. The dinning area will require the purchase of tables and chairs that would have to be bolted to the floor during remodeling. Comparing the requirements for initiating a new business as opposed to buying an existing business, the buying of the existing business has the better appeal based on how the later is up and running. eyepatch the new business has some hur dles may exist as far as the teach of the uilding foundation, plumbing, electrical systems and the roofing condition and whether the business is prudent for repairs or the building owner. It is important to note that the existing business could have problems that cannot be seen but has to be investigated to be discovered. Problems such as ill-will between the suppliers and a customer as well with other attached businesses. â€Å"Jump starting the cash flow will have better potential due to existing operational elements such as customers, inventory and equipment already in place. ” (http://www. sba. gov/content/buying-existing-business)Discuss the most appropriate knead of ownership for your new business (assuming your current mo straighten outary situation). Considering the new business Partnership as the take form of ownership and considering the current form of ownership employ buy the owner of the existing business, both very has nothing to do with what form one ow ner prefers over what form another owner prefers. severally form has both advantages and disadvantages. The most noticeable look up over owner a business is financial obligation responsibility, what can be taken from the owners to cover liabilities and cannot which measurees hould be a major concern. â€Å"You report and redress taxes on a compact like you would in a sole proprietorship; you and your partner salary income taxes on singular shares of the profits, but no tax is paying(a) on the confederation. You report your share of the profit get during the tax period that ends within the year cosmos reported (by December 31or June 30). This is done whether or not profits are actually distributed. The rate of tax is the same as for the individual, and the income is reported on an individual 1040 form (Schedule E). A partnership return has to be filed with the IRS for nformation purposes only (Form 1065). You and your partner are own(prenominal)ly liable, including pers onal assets, for debts and judgments. Creditors can collect from either you or your partner †even if you did not necessarily contract the debt. ” (CIS/0939/pdf) â€Å" restore proprietorships and partnerships are easy to set up — you dont have to file any special forms or pay any fees to start your business. Plus, you dont have to follow any special operating rules. LLCs and corporations, on the other hand, are almost always more expensive to earn and more difficult to maintain.To form an LLC or corporation, you must(prenominal) file a document with the nominate and pay a fee, which ranges from about $40 to $800, depending on the state where you form your business. In addition, owners of corporations and LLCs must elect officers (usually, a president, vice president, and secretary) to run the company. They also have to honor records of important business decisions and follow other formalities. If youre starting your business on a shoestring, it might sustain t he sense to form the simplest type Of business — a sole proprietorship (for one-owner businesses) or a partnership (for businesses with more than one owner). One note has to be involved regarding the Partnership which is the dissolution procedure side by side(p) the quitting or death of a Partner. Following the essay sale of the quitting partners share of the business or assay sale to the current partners who may or may not be able to afford the price, the initial Partnership business has to be dissolved and a new Partnership established with the exclusion of the introductory partner that left the partnership. Thus both buying an existing business as well as forming the rigt form of ownership both present issues that has to be considered by the new owners.Considering the Partnership dissolution picture a Partnership still can be entered into with each original pertners with ca n engagement on how any quitting partners share is dispursed. Outline a business plan for you r business. Visit http://www. sba. gov for tools and templates. The initial feasibleness try on for the business seems to have passed certain test through the current numbers produce by the existing Bakery. The location is good, customer interest in the product is proven while competition for Bakery goods comes from large retailer in limited quantities contrary he freshly sunbaked items or freshly cooked menu dishes. It is estimated the initial investment cost little the estimated earnings would yield between a 7 to 9 per centum return. Each member of the partnership has a hand in the formulating of the business plan. The initial delimitate of the business plan will include the following elements: Simple business plan outline Executive Summary: The Bakery is designed to provide customers with freshly baked goods while also self-aggrandizing them the opportunity to have a sit-down meal or and grab a cup of coffee with a pastry.Having conducted a feasibility claim on the succ ess potential of this business in the location chosen it was found that potential customers enjoyed the products exchange by the previous bakery and enjoy the option of lounging while eating a restaurant dah meal. The objective is to provide customers with a competitive products located their homes. To earn a 7 to 9 percent return on the initial investment during the first year. The mission of the Bakery is to provide customers with freshly baked goods that they enjoy eating minus the plastic wrap up brands sold in the big box retail outlets. Company Description:The store location is neatly situated in a business district catering to a wide range of business on a busy thorough do it moments from the residential area in every centering from the Bakery. This location is already familiar to most of the customers from the antecedently owned bakery. The operation of the Bakery is from 6am to 10pm. Orders can be called in on the phone or set(p) on the internet site at www. It Bakes G ood. net The store policy for payment of gods is cash and credit entry card only. Product or Service: The main products of this Bakery are freshly baked pastries, croissants, donuts, breads and cakes.On the menu freshly prepared menu foods includes sea food dishes, soups, sandwiches, Beef , chicken and pork dishes. The main benefits customers get a line from the store is freshly baked goods, the option to place orders ahead of time by phone or on the internet or within the store. mart Analysis: The location has proven to be useful for the previous bakery. Its customer base remained loyal to reverting to purchase goods as well as exploitation the bakery to prepare special occasion dishes for natal day parties, anniversaries, and other customer defined events. system and Implementation: Be specific. Include attention responsibilities with dates and budgets. Make sure you can track results. Web programme Summary: For e-commerce, include discussion of website, development costs, o perations, sales and marketing strategies. heed Team: Describe the organization and the key management team members. Financial Analysis: Make sure to include at the very least your intercommunicate Profit and Loss and Cash persist tables. Strategy and Implementation Summary SWOT Analysis Strengths Weaknesses Opportunities ThreatsCompetitive boundary line Marketing Strategy gross revenue Strategy Sales Forecast Management Summary Personal Plan Financial Plan Important Assumptions Breakeven Analysis project Profit and Loss Projected Cash Flow Projected Balance Sheet Business Ratios Considering this is just an outline a few of the elements were addressed to give an idea of what the plan entails. Of course there are the remaining elements that have to be explained. (http://www. cals. uidaho. edu/edcomm/pdf/CIS/CIS0939. pdf) http://www. sba. gov/content/buying-existing-business\r\n'