To Build or Buy - Essay Example

? To Build or Buy TO BUILD OR BUY Starting a personal business requires a lot of planning, which involves setting up of strategiesthat will ensure the success of the venture. The planning and strategies will certify that an individual has all the knowledge about the necessary tools and skills before he or she invests in a personal business. Good preparation and business analysis helps to avoid losses and failure of the business. One of the best businesses to run is a sporting goods shop. I personally prefer this kind of business because I have been in close observation of a particular store in my area. In order to run a similar business and attract customers from the other already established stores, one needs tactics and strategies to succeed. One of the main strategies is to start the business and sell goods according to the market trends (Mooney, 2011). In the current world, many things change in the sporting arena, and individuals should take note of these, before deciding on the type of stock to have at the shop. A particular change is the popularity of certain games like football and rugby in the community. Some items from popular games will guarantee an individual better sale as compared to items that are associated with a different game. For instance, rugby and football (soccer) have many supporters as compared to the other games. This shows that there is a higher likelihood for a company or supporter to buy clothes and sporting equipment in bulk from the shop as compared to the other shops. However, it is equally important to stock the shop with all types of games clothing and equipment. To add to the above idea, there is also the need for one to look for buyers of the products at the shop manually (Mooney, 2011). To do this, one will need to draft letters and drop them in various schools requesting a chance to supply gaming clothing and equipment. If at all any of the applications goes through, this will assure the owner of the shop of selling bulky goods, which will turn in more profits for the business. The other strategy to consider is to look, for tenders, to supply gaming clothing and equipment in clubs and the different organizations having teams (Mooney, 2011). This may include visiting tournament and gaming competitions to talk to team managers for the chance to supply the goods to them. Another good strategy for running the shop is to have a variety of good for the same product. This may help to convince a potential customer to buy any of the variety of the goods available in case the specific item he was looking for is not in stock. Having a shop stocked with a variety of goods also attracts customers. This is because they have a variety of choices to choose from according to their tastes and preferences. To add to this, it is important that the business is known in the society since it is a new venture. To do this, there is a need to carry out a campaign to enlighten individuals on its existence. This can be done through posters, radio announcements, promotions, and all other types of advertisements. Carrying out promotions and advertisements will be very essential in carrying out the advertisements as they involve the public as a whole. The promotions carried out by the business will create a good business image, which will enable the business to gain customers trust and loyalty. The advertisements will also easily catch people’s attention thus resulting in increased sales at the business venture. As for this line of business, it is good for one to start a new business altogether instead of buying an already existing one. Essentially, an already existing business may have a bad history throughout its existence, which may work against business development and improved sales. Starting a new business allows one to start new links and customer connections with different people who have an interest in the business. One will then have the power to know how to deal with the different parties whether to strengthen the link between them or to weaken it. It will also help one to know how to deal with different situations in the market. This is because one will have the opportunity to see the customer reactions when the business is still new and how it progresses as changes happen in the market. Starting a new business also is good as it equips one with the required procedures before a business starts running. This will help a business owner to know where to run in case a problem crops up. In the current financial situation, in the market, I prefer a partnership form of business. With a partnership, the capital contributed will be higher as compared to a sole proprietorship form of business. A partnership is also good as it enables people to reason together before making a decision and hence come up with better ideas of running the business. With a partnership, it is also easy to run the activities and errands of the business efficiently as the parties can share activities to be carried out throughout the week. Having two people at the business is also good for the establishment of links and connections with different sporting corporations and clubs (Barrow, 2011). This is because different people in the society have different reputation and respect thus having two different people is advantageous. Therefore, having two people increase the chance for many people having trust and confidence in the business resulting from the different leaders. For such a new business venture, a detailed and skillfully crafted business plan needs to be made. In starting this business, the main objectives will be to provide quality supply of sporting clothing and equipment. This will be achieved by the importation of quality good and stocking of a variety of goods for the customers. To add to this, the other objective will be to help the business to grow within the shortest time possible so that it can expand or even open other branches in other parts of the country. The other objective of the business is giving quality services to the customers, and working, with the sport corporations and clubs, to ensure that talents are natured among the teenagers. This will help to improve the community’s economy and to enable more youths to gain income through games. The set objectives are attainable and considerable. This results from the idea that few businesses deal in the same line of goods. From a keen research on the existing businesses running the same goods, it was also realized that the businesses did not use the same strategies as set down by our business plan. To add to this, there are few businesses dealing in the same line of goods. This gives us an upper hand to start and stabilize our business in the shortest time possible. The two partners in equal ratios will provide the capital of the business. The profits and any benefits accruing from the business will be shared according to the ratio of their capital contribution. Any expenses incurred by a party while on business errands will be refunded to differentiate the business assets and personal assets. In case of dissolution of the business, the parties must follow the legal procedures as required by law. The assets of the business will be shared according to the agreement or according to the legal set laws (Barrow, 2011). During the business operation, it will be important to be on the watch out for any changes in the market and customer preferences and tastes (Barrow, 2011). This will be important to give guidance as to what kind of gaming equipment and clothing will be needed for stocking. It will also be important to start campaigns during tournaments in the sporting centers to make the new business venture known to the community. The two partners will solely run the business. This means that running costs will be cut down, as there will be not need to look for, any person to assist in selling at the shop (Mooney, 2011). However, if the business becomes busy, there might be a need to employ one who will deal with the selling of goods. If the business becomes busier, it will need two assistants and so on. The two partners without discrimination will make decisions on the running of the business. This will ensure smooth coordination between the two partners and continuity of the business (Mooney, 2011). Rent and transportation services are the main running costs that are expected in the first months of operation. This figure might increase or reduce over the years due to the changes taking place in the company and business in general (Mooney, 2011). This is because we can decide to expand the business while operating from the same building, or might decide to buy or construct our own building to cut the rental-running costs. In conclusion, it is important that a business plan be made in order to determine if a business is a good one for execution or not. It is also important to take a keen study on the current market structure and needs in order to decide in which type of goods you can venture into. This is essential to help one not to fail in managing the business in case he ventures in one. It is from the market research and statistics that one can decide, on the amount of capital, to invest in the business. Thus, the market research is very essential in ensuring success of a newly established business. References Barrow, C. ( 2011). Starting a business from home. London; Philadelphia: Kogan Page. Mooney, C. (2011). Starting a business: have fun and make money. Chicago, IL: Norwood House Press. Read More