A Brief Strategy for a Business Concept That Would Directly Compete With the Small Business - Assignment Example

? To Build or Buy To build or buy a business is considered to be one of the most common topics amid people who aim to establish a business in the future. The paper aims to provide a detailed analysis on the various aspects that would help in understanding when is it right to buy or build a business. After analyzing all the factors it can be stated that in case of small business it is always profitable to buy a business rather than building it. Overview Decisions-making is considered to be one of the most essential parts for every organization or an individual. With the growing advent of advanced technological aspect within the present day organizations and increased level of competitors herein, it has become essential for every organization to take effective decision. Execution of inappropriate decisions in recent business scenario will create hurdle for the small business firms in case of sustainability. Strategic decision making is considered to be a process in which vital decisions are made through implementation of management tools available to analyze the problems. These problems can result from decisions that involve adequate risk and uncertainty. It is assumed that a decision taken strategically can overcome hurdles that may arise during the process of analysis, examining of methods for structuring and while forming the model decision dilemma (Williams, 2001). The paper intends to provide a vivid description about the feasibility of building up a new business or buying an established one. It also provides an in depth insight about various business concepts require for small business sustainability in the global competitive market scenario. Discussion 1. A Brief Strategy for a Business Concept That Would Directly Compete With the Small Business The implementation of strategic management, while framing vital decision in any business has become an important aspect for any commercial association. The vital reason behind the implementation of strategic management in one business is that, it not only helps a business in taking effective decision but also assist to mitigate the rising issues of growing competitiveness. Bookstore in America is measured as an essential part of an individuals’ life. However, with the advent of technological aspect in the academic sector has changed the interest of the civilians in the United States of America (USA). Bookstores usually act as an intermediate amid the people and the writer or publisher of a book. Considering the Bookstore sector business, establishment of the cafe cum bookstore will provide an accelerated growth and profit related to the small business set up. The advents of technology in one’s life have changed the way in, which the people used to complete their task decades ago. Therefore adapting the technological aspect can help in creating a business that would flourish and provide tough competitions to other book stores located in the market (Woodward, 2005). In this context, the proposed business would be a book store along with a coffee shop. Furthermore, it has been viewed that in present day, people get very limited time for relaxation as a part of their recreational activity, because of the accelerated competition, job-pressure and adaptation of busy routine. It has been observed that individuals’ like to spend their spare time in a cafe’ shop or watching movies with their friends and families as the part of the recreational activities. Therefore, establishment of a cafe cum book store would attract more individuals, who have moved out of their house for gaining knowledge or is employed as personnel. In this aspect the business would mainly target the aforementioned group of individuals’. They can come in the book store to gain knowledge along with some short of refreshments. Additionally it would also provide them opportunities to make few friends in the locality. Furthermore, the business would be technologically advanced. For instance the business would provide a Wi-Fi facility that would allow customers to access the internet from their mobile, i-pad or other network aided equipment’s. The business would also have an electronic data base that would contain soft copy of the books provided to the members. The bookstore further facilitates differential methods of helping its customers’ to access books from worldwide. However, it is worth mentioning that the book cannot be downloaded or copied as it would be a loss for the business if allowed (Woodward, 2005). It has also been viewed that people who are willing to read books just need to place their order online and can easily acquire it at their door step, even with a discounted price. Considering, this modern way of conducting business the book store would also have a separate online store where people would be provided with the opportunity of availing ancestral books that are not easily available online. This would not only provide tough challenges to other book store but would also provide a new dimension in the bookstore market (Woodward, 2005). 2. Whether to Build or Buy a Business The decision of building or buying a business is determined to be one of the most common topics of discussion amid many business gurus. Many people consider building up a business would provide them ample opportunities to acquire a new dimension in accordance with the business plan. On the other hand many people consider buying as their first option as the expenses that would be involve in establishing a business would be considerably low in comparisons to building a new set up altogether. However there are certain factors that need to be analysed before deciding whether to build or buy a new business. The first aspect in this area would be resources. This would involve the prices of goods and other factors that would be involved in setting up of the business. It is vital that an individual must compare their business with the resources available to support their business. The second aspect that must be analysed is the level of competitors in the present market. Analysis of the competitors would not only help in understanding the current situation of the bookstore market but would also provide suggestion whether building or buying a business would be profitable. The third factor is the demand for the business in the market. In this aspect gaining feedback from the people would help in understanding the importance of such type of business and would provide a clear image suggestion whether to build or buy a business (Capron & Mitchell, 2012). 3. The most appropriate form of Ownership for your New Business A business is considered to be a firm mainly involved in the exchange of goods or services through monetary values. There exist different forms of ownership of a firm depending on their sizes. The different forms of ownership basically viewed in small business are viz. sole proprietorship, partnership and limited liability partnership among others. In this aspect the business would be a sole proprietorship form of ownership as it is regarded to be one of the simplest and common forms of ownership usually adapted while starting a new business. The main feature of this form of possession is that it has no existence apart from its ownership. It also provides the facility of controlling the business independently by the owner. It is advisable that owner purchase insurance to cover the risk of running the business as the owner alone would be responsible to mitigate any risk that may arise in the future. The sole proprietorship form of ownership would also provide the advantage of making any new changes without the consultancy of others as the owner would be solely responsible for all the business operations being executed. Although, it is stated that the life of a business directly dependent on owner, however if the right of ownership is transfer to other person the business may exist if the new owner wish to run it (State of California, 2013). 4. Business Plan A business plan is considered to be a blueprint that guides a business to attain its goal. It is believe that several steps need to be followed before establishing a proper business plan. After considering all the important aspect that should be studied before establishing a business the first step that would be undertaken is to buy a business specially a bookstore if available for sale. The advantage of buying a business is that, it would help in building up a larger cliental base. The second step that would be done is to hire personnel, who excels in maintaining books in libraries, and are technologically advanced. This would help in maintaining the data base in a proper way in comparison to other employers. The third step would incorporate the study of the market by conducting various surveys. Furthermore, an advanced technology would be adapted to keep a track of the customers’ and to maintain a larger cliental base. This would help us in pursuing a better understanding of the demand for bookstore in the market. Additionally the business would also plan to expand by purchasing few more bookstores in other regions of the country, which would further help in brand awareness of the business. Considering the segment for ancestral books the business would also build contact with well-known personnel belonging to different religious practices in order to collect some of the books that are not available easily. The business also aims at acquiring of a large business place, which would further assist in the overall development of the small business being established (U.S. Small Business Administration). References Capron, L., & Mitchell, W. (2012). Build, borrow, or buy: solving the growth dilemma. The United States: Harvard Business Press. State of California. (2013). Forms of ownership. Retrieved from https://www.ftb.ca.gov/forms/misc/1123.pdf U.S. Small Business Administration. (n.d.). Build your business plan. Retrieved from http://www.sba.gov/tools/business-plan/1 Woodward, J. A. (2005). Creating the customer-driven library: building on the bookstore model. Chicago: American Library Association. Williams, S. (2001). Making better business decisions: understanding and improving critical thinking and problem solving skills. The United Kingdom: SAGE. Read More