To Build or Buy
Course: BUS 402
January 29, 2012
My business strategy is to purchase an existing tea and coffee shop which is located a mile away from where I work in Ashburn, Virginia, the business is call Sakasa tea and coffee. Sakasa is located next door to George Washington University and directly across is a chick fil a and a small hotel also it is right off a major highway so it has a great location. The reason the owner is selling is because of health issue and as a result, he cannot run the business the way it should. The business is making a profit of $2000.00 dollars a month on average after paying all expense. But I feel he can generate $5000.00 a month on ...view middle of the document...
Reservations must be made at least 24 hours in advance for larger groups of students or working professionals. I will continue to offer the hot and cold beverages and add healthy and organic breakfast and lunch with homemade pastry at a reasonable price. I also will target all of the university students and staffs by offering them a discount with a reward card. Also I will hand out flyers to all nearby businesses in the area and advertise in the local newspaper biweekly. Moreover, I will extend my business to cater for all events such as: gaming tournaments, art show, Special events and more. If you are a loyalty customer you will receive additional discount on all catering. Since this is a newly develop area any new business open in the area will received free lunch for a day for employees and staff.
My intention is to bring back what Sakasa tea and coffee was intended for, hangout for tea or coffee connoisseurs, poets, writers or anyone who enjoys a great beverage (Sakasa tea & coffee, 2008). This area lacks community togetherness and I intend to provide a warm and friendly atmosphere for everyone to come and meet each other. Which bring me to one other thing I will do is to have a poetry night and a single night. This will gives the working professionals a place to come and unwind or relax for a few hours and meet someone new. The purpose of Sakasa tea and coffee is to cleverly blend postmodern looks and warm colors to create a comfortable spot that welcome the community (Sakasa tea & coffee, 2008). Our customers come for our exceptional drinks and friendly surrounding. But more than friendly atmosphere, great music and cozy comforts. Our freshly roasted coffee, to the finest imported espresso beans, huge selection of loose leaf teas and create every drinks with love and attention (Sakasa tea & coffee, 2008).
I feel it will be better to buy an existing business, despite it may involves risk. But I can minimize my risk by purchasing an existing business rather than to create a new business. When buying a business require a great deal of analysis and evaluation to ensure what meet my needs and expectations. By exercising my patience and taking all the necessary time to research a business before buying it, are essential to getting myself a good deal. The good thing about buying an existing business is one of the fastest pathways to ownership (Scarborough & Zimmerer, 2012). By purchasing an existing business saves time and energy also by buying an existing business you get a business that already generating cash and also a profit. Location is critical in purchasing an existing business, a location that provides a significant competitive advantage may be the reason enough for you to decide to buy instead of build.
They are plenty of advantage of buying an existing business. The business I am buying is a successful business and this business will continue to be successful cause of the client-tells. A business that has been...