Write a 6-8 page paper

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Business Finance

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Assignment 1: To Build or Buy
Due Week 4 and worth 240 points

Select a small business that you visit often (e.g., coffee shop, bookstore, sporting goods store, etc.). Write a 6-8 page paper in which you:

  1. 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.
  2. 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.
  3. Discuss the most appropriate form of ownership for your new business (assuming your current financial situation).
  4. Outline a business plan for your business. Visit http://www.sba.gov for tools and templates.
  5. 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; citations and 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 assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Analyze the nature of entrepreneurship, business ethics, and social responsibility in managing a successful small business.
  • Analyze a business strategy and supporting business plan for a small business concept
  • Describe and analyze the necessary activities and key decisions to start a small business.
  • 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.

Click here to view the grading rubric.

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Explanation & Answer

Attached.

Running head: TO BUILD OR BUY

1

To Build or Buy
Institution Affiliation
Date

TO BUILD OR BUY

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Introduction
Businesses are developed in different ways. While some entrepreneurs prefer to build
their own businesses from scratch, others prefer to buy existing businesses and to build on them.
It is very important to take all factors concerning business operations into consideration. Some of
these factors include the likelihood of the business to grow after being bought or even the
advantages that could be incurred as a result of building these businesses. Entrepreneurs are
faced with difficult times of making these decisions. Having a strategic plan is therefore very
important as it ensures that entrepreneurs make the right choices.
Strategy for the business
Nissin is a small coffee shop that I visit since I was a little child. This Coffee shop is
located on the outskirts of a small town where the population is quite dense. There are a number
of factors that have been used to describe this coffee shop including the fact that it is located on
the outskirts of town. Its jungle green color that is repainted from time to time is also a trademark
for this shop. There are a number of coffee shops in town but most of the time one will notice
crowds of people queuing to get the products and services from this coffee shop. This goes to
show that this is actually a good coffee shop.
The only surprising thing about this shop is that in as much as it has been able to attract
and retain crowds over a long period of time, the physical size and the outlook of this shop have
not changed in a long time. It is expected that as numbers increase, a business should also
expand on its space or even open up new branches to increase efficiency in serving its customers.
This is however not the case with Nissin Coffee shop and one can clearly say that something is
not right.

TO BUILD OR BUY

3

I would love to open up a competing business with Nissin Coffee shop. There are a number of
factors I would take into consideration while opening up this shop. Some of these factors include
the needs of the members of the public. In opening up my business, I would ensure that my shop
has a competitive advantage over Nissin Coffee shops by ensuring that I provide high-quality
products and services.
In setting up my business, I wo...


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