Expert answer:Assignment 2: Expanding Your Business
Expert answer:Referring to the same business you either started or purchased in the first assignment, write a 6-8 page paper in which you:Outline a financial plan for your small business.Develop a guerrilla marketing strategy for your small business.Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning.Outline a plan for securing sources of debt financing for your second store.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; 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 page length.The specific course learning outcomes associated with this assignment are:Describe and analyze the necessary activities and key decisions to start a small business.Analyze the key financial management considerations in operating a small business.Develop a guerrilla marketing strategy for a small business.Analyze the role of pricing, credit, and equity financing in defining a business strategy.Use technology and information resources to research issues in small business management.Write clearly and concisely about small business management using proper writing mechanics.Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills.
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Running head: TO BUILD OR BUY
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To Build or Buy
DeAnna Gambrell
Dr. Fune
BUS 429
10/29/17
TO BUILD OR BUY
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Introduction
There are a number of factors that every entrepreneur needs to look at when entering into
a particular business venture. Entrepreneurs who go into business blindly are less likely to
succeed compared to those who have a blueprint of what they intend to establish as well as why
they intend to establish these businesses (Carayannis, Samara, & Bakouros, 2015). Good
entrepreneurs must establish the business objectives before they can start a business. Businesses
can be formed in different ways. Some entrepreneurs may opt to start their own business while
others may opt to buy already existing businesses. This decision is pegged entirely on the ability
of the entrepreneur to access the business, identifying the approach that may cost them less
capital as well as the kind of business that would help them fulfill their goals and objectives
(Praszkier & Nowak, 2012). Another consideration is whether it is hard to start a business in a
certain area bearing in mind the legal requirement as set out by the authorities.
Business Strategy
Swift is a small bookstore that I have visited from a very tender age. This is where I
learned to use crayons, to spell the word librarian among other things that were alien to me at
that particular time. This is also where I was thrown out a couple of times for yelling at other
children and other people who had come to use the serene library. Swift is located near one of
the largest colleges that we have in Tennessee. The strategic location of this bookstore is
probably one of the reasons why it has remained steadfast in its growth over the years, every
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afternoon; one would easily mistake this library for a graveyard. This is because of a large
number of people who make use of the store to conduct their studies and other activities.
The outlook of this bookstore changes every year and this is done by having the walls and
the face of this bookstore repainted using a different color every year. This practice has formed
part of the tradition and it has particularly attracted a large number of people who come out in
large numbers during the refurbishing of this bookstore. They say that reading is an interesting
art that is serene and that requires a lot of professionalism. This is not any far from the truth as
has been depicted by the activities that Swift Bookstore takes part in.
There’s only one surprising thing with this bookstore. Over the years Swift Bookstore has
not been expanded a single bit. The number of reading chairs and desks that were there when I
was a child are the same number of reading lockers that I see every time I look around this
bookstore. Other constituent colleges have been opened up in various parts of the world but
Swift Bookstore has remained the same over the years. While this can be attributed to the lack of
an initiative to grasp this opportunity, it is also a total failure on the part of entrepreneurs who
have failed to build up or expand this organization. This is a sign of a business which have
stagnated and the owners may somehow be reluctant to expand it. According to the numbers of
customers who use the store every day, the store should have grown over time and should be a
big bookstore today.
I would love to open up a new bookstore that will provide competition for the Swift
Bookstore. This is a hard choice to make given that the Swift Bookstore has been in operation for
the largest time and has been able to attract very many customers over the years. While this is a
major drawback for me and my new business plan, I choose to take it as a great opportunity to
showcase that every new entrepreneur has something fresh to bring to the market. In opening up
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my new bookstore, there are a number of factors that I will need to take into consideration. The
needs of the members of the public, as well as the niche that exists among the members of the
public, are important factors to look at in opening up my business (Carayannis, Samara, &
Bakouros, 2015).
Before opening up my new business, I will ensure that I have the relevant resources to
start up a bookstore. Starting a bookstore is not one of the easiest things to do. This is because it
requires a lot of capital to start up as well as to purchase the relevant material for the store.
Having a clear landscape of the business is also very important (Carayannis, Samara, &
Bakouros, 2015). This will ensure that I am aware of what I am getting myself into. Having the
right human resource is also very important in starting up my own business. Having the right
human resources ensures that the organization is able to propel forward in due time. Apart from
looking at the niche in the market, my organization will be sure to look at the locality of the
organization. This is because the locality of an organization has so much to do with the success
of the organization. My bookstore will, therefore, be located near a busy town where the
population is dense. This will increase the chances of success and profitability of this
organization.
Carrying out a SWOT analysis of the market and the chances of success of the market is
very important for this organization. This is because it will provide an opportunity for this
organization to identify its strengths, its weaknesses, its opportunities as well as the threats that it
faces in the industry (Praszkier & Nowak, 2012). Such an analysis would also help to facilitate
the strategy for an organization in one way or another. The SWOT analysis will help in coming
out with competitive strategies that will be used to counter my major competitor in the area
which is Swift. The analysis will also help the business to come up with ways of dealing with
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any form of weaknesses as well as outlining steps of tapping the available opportunities
(Carayannis, Samara, & Bakouros, 2015). This analysis, therefore, will form the foundation of
the success of the business.
Apart from my savings, I have identified others sources of income that I could use as a
source of capital for my new bookstore. Some of these sources include cheap loans that are
being offered at favorable interest rates. These loans will be very important since they will allow
me to start and sustain my business. I can use my business plan as well as attach some personal
properties in order to secure the loan. The vision of my bookstore is very clear. This is to be an
epitome of good services delivery in the industry. This will also be done by ensuring that the
services that we offer are exceptional and unique. My bookstore will work around the clock to
ensure that it is different from Swift Bookstore and that it is able to compete favorably with this
bookstore.
Carrying out constant evaluation allows me to identify the needs of my organization and
identify a way forward in achieving the same. The evaluation also helps me put in place
measures that are geared towards achieving organizational success. This evaluation will be
carried out both internally and externally. An internal audit helps me identify the factors from
within that are good for my bookstore and those that are not. An external evaluation will also
help me map the way forward for my organization by looking at the external strengths and
weaknesses of my store. A good management system will be a big boost as it will help to control
the stock, track where the books are, and also help in the general running of the business (Gaggl,
2015).
The Choice to Buy or To Open a New Business
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As stated earlier, the choice to buy or to open up a new business can be quite critical in
the running of an organization. This is because depending on the choice of the entrepreneur, the
business is likely to gain mileage in its activities. While buying up an already existing business
may make more sense to one entrepreneur, it may not make sense to another entrepreneur. In my
opinion, it would make more sense to open up a new bookstore as opposed to buying up an
already established bookstore. I have my reasons for choosing to open up as opposed to buying
an already existing business. Entrepreneurship is about creativity and having an opportunity to
bring a birthed idea into reality (Praszkier & Nowak, 2012). This is exactly what most people do
when they start up their business. They put their ideas together to form something that is visible.
This is one of the reasons I wouldn’t want to buy an already existing business. Because the initial
ides belong to someone else who might have had an entirely different goal from me.
As stated earlier, the Swift Bookstore has been in existence for the longest time. This is
given that fact that it is a bookstore that I used from a very tender age. The only problem has
been the slow expansion rate bookstore. The reason I would want to open up my own bookstore
is to fill up the existing niche in the market. Having identified the needs of the market, it would
be very important to provide something new in the market that will help satisfy the customer
needs.
Old is definitely gold but old can be particularly boring when it has nothing new to bring
to the table. The opening of my new bookstore is likely to bring something fresh to the market.
This is starting from the way activities are carried out in the store, the variety of the materials
that are available in the store among other factors. My new bookstore, unlike the old Swift
bookstore, will allow customers to not only access material in hardcopy but will also allow them
to access material in softcopy. This will be done by introducing a new system in the organization
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that enhances fast access of materials by the customers from wherever they are. This will create a
new impression of my new bookstore as opposed to having to create a new impression about an
already existing bookstore.
Form of Ownership for My New Business
The preferred form of ownership for my new business is a sole proprietorship. While
partnerships and companies have been identified as having a higher stake in the business, I
would prefer to run my new business as a sole proprietor for various reasons. There is nothing
that like strikes my imaginations like being my own boss. Running this bookstore as a sole
proprietorship, therefore, gives me an opportunity to be my own boss. Apart from that, there are
a number of privileges that come with running a sole proprietorship. Transparency and
accountability is never an issue in sole proprietorship since there is no one to be accountable to
except oneself (Kuratko, 2016). At the same time, a sole proprietor is able to enjoy the full
benefits of their investment without sharing with anyone else. The decision-making process is
also easy since there is no consultation that is needed before making certain decisions.
Business Plan for My Business
A business plan is a roadmap that helps in guiding the activities of an organization. The
business plan for my business focuses on both long-term and short-term goals. This is because,
after the achievement of short-term goals, organizations crave to achieve other long-term goals
that have been set out in their plans. My plan is to ensure that the customers in the locality are
impressed with the kind of book collections that my bookstore offers. This alone will keep them
coming back for more and this is how my bookstore will eventually grow in lips and bounds.
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Ensuring that there is consistency in the growth of my business is also something that I look
forward to in the long run.
Conclusion
Whether to start or to buy an already existing business is a decision that very many
entrepreneurs and investors have to deal with in their transactions. Identifying what is best for an
individual is the only solution to answering this question. At the same time, evaluation on what
path is best to take is also important to avoid making mistakes and to ensure that personal
objectives are in line with entrepreneurial and investment objectives.
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References
Carayannis, E. G., Samara, E. T., & Bakouros, Y. L. (2015). Innovation and
Entrepreneurship: Theory, Policy, and Practice. Cham: Springer International
Publishing.
Gaggl, M. (2015). The relevance of buying center analysis in industrial markets.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice.
Praszkier, R., & Nowak, A. (2012). Social entrepreneurship: Theory and practice. Cambridge:
Cambridge University Press.
…
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