Assignment 2: Expanding Your Business
Due Week 8 and worth 240 points
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.
Running head: BUSINESS DECISION Assignment 1: To Build or Buy
Professor Angela Harris
Bus 402: Small Business Management
31 October 2016 TO BUILD OR BUY 1
Introduction A small venture begins with a thought, and more often than not an extremely energized
specialist who endeavors to transform their fantasy into reality. Programming organization
Atlassian is one such business. Fellow benefactors, companions Scott Farquhar and Mike
Cannon-Brookes, began their business in 2002 as college drop-outs, working in a carport with a
few servers and $10 000 on a charge card. Offering programming utilized by a portion of the
world's biggest organizations, this young innovation group has developed from two to more than
800 representatives. It is right now esteem at $3.5 billion [But12]. There are also some of the
other small businesses which are around a person such as shopping malls, bakery, coffee shops,
Selection of Business
One of the significant choices that a private company proprietor must make is picking a
proper location for his or her business. Building up a Bakery as a counter business with a
focused technique to explore through boundaries set up by existing Bakeries is the current
arrangement [Ada13]. The underlying pastry shop has managed cakes, bread, croissants and
espresso, teas and different refreshments.
Business Strategy for Bakery Business
Once the owner decides the name for the bakery is chosen, and the sorts of things that
will be offered, the time has come to find a way to open the bakery. It is a procedure that takes
careful planning, however; when done accurately; it can yield significant returns and personal
satisfaction for that individual as a pastry shop proprietor. Notwithstanding arranging, finding a
specialty item, for example, veggie lover pastries, tasty bread or heated breakfast products can TO BUILD OR BUY 2 help the business succeed. This new business procedure includes a similar menu with other
cooked sustenance served at breakfast and lunch. The floor plan will incorporate a rail like a
pioneer to control the general population through the nourishment requesting line [Joh01]. The
pickup counter will be situated far from the requesting line to give clients fast access to sitting if
they have not picked their seating. The sustenance menu will rest on the divider over the
requesting counter in huge letters simple to peruse among an excellent foundation to include a
peaceful touch of solace while the clients make the most of their breakfast or lunch. The
refreshment counter will situate in a range far from eating clients yet close by to permit access to
water, espresso, and different beverages.
The area of the business will be in the inward city in a high thickness territory, all around
lit, with road stopping and clear walkways. The building outside will crisply paint with naturally
introduced windows permitting both clients within to see out and individuals going by the
unmistakable perspective of seeing inside. Expansive, bright neon lights will promote the
business around early morning and day. It will focus on the both serve and go customer?s and sit
down and take my time customers while also making the bakery dog friendly. The owner will be
interested in the likelihood of offering elements for those clients who might be intrigued [Liz13].
The point is to give an at home environment with a touch of fast food accommodation.
Decision Regarding Buying or Starting Business
Figure out whether you would want to buy an existing business or start new. Clarify your
reasoning. The choice of purchasing the existing business has some benefit like, having an
existing menu, all kitchen equipment, tables chairs, etc. But some questions need to be asked.
Would the brief changes lose cash for the new proprietors while the renovating is done or could
normal operations proceed? Then again would it be important to change the present type of TO BUILD OR BUY 3 ownership? Could purchasing the current business be changed over to the new dining floor
arrangements while still meeting fire codes? There are different types of options in the bakery,
and that also affect the decision of the buying an existing bakery or starting a new one. New
bakery-cafe franchisees regularly measure the contrasts between purchasing a contemporary
pastry kitchen and beginning another pastry shop bistro. Instead of one being superior to the
other, it is about which is the best match for the person that is looking to start the business.
Again, location will be one of the key elements to success. Easy access to the bakery will be a
must. Now, once a location is decided or buying an existing business, competition must be
evaluated. Checking what the surrounding bakeries or similar business are offering will be a
smart thing to do. That way you can determine how you can compete or provide something new.
Or, take a survey and see what the local demand is. Will purchasing an existing business be
cheaper than starting new? Will the existing business need any renovations, new equipment, new
image, etc? How are the sales of the existing business? With a new business, sales might start
off very slow and is that something you are ok with? The answer to these questions will help in
deciding whether to start a new business or buying an existing business [Joh01].
More proprietors are attempting to profit by taking a seat and feast choice. It is a
developing pattern in the bakery industry at this moment. These meal kitchens have a zone to
arrange heated merchandise and appreciate them in a little restaurant. With a small business
space, clients can stroll in and get prepared products. For the most part, bakeries offer various
distinctive items, from breakfast vanishes and doughnuts to treats, cakes, and pies. A few pastry
shops have practical experience in one particular item obliged a particular target gathering of
people. Decide business qualities and experience, and then survey the commercial center when
settling on what things to offer [But12]. For example, you wanted to open a cupcake pastry TO BUILD OR BUY 4 kitchen, however, there are various contenders offering cakes in the immediate area, how
determine how your cupcakes will be different than the rest. You may offer planner cupcakes
and suit unusual requests, or he could make Goliath cupcakes to separate yourself from the
competition. Staying ahead of the competition will be an on-going thing. Also, keeping up with
the customer demand.
Financing of Bakery Business
New bakeries have various startup costs that contrast from those of other independent
ventures. Coolers, stoves and a very much supplied kitchen can require a significant
introductory investment. There are additionally potential business licenses for the planning of
sustenance, and advertising expenses. The proprietor wish to buy a new business, measures
these startup costs versus the expense of an existing business purchase. With a specific end goal
to make that assurance, survey private resources that can be added to the shop and figure out if
the proprietor can bear the underlying budgetary weight. Make a rundown of all advantages,
including checking, reserve funds, and speculation accounts, and also different resources, for
example, vehicles and land value. These are all contemplation of financial position. If the
proprietor cannot fund the business alone, maybe sales of outside speculators or application for
companies advance financing [But12].
Outside financing may constrain administration control or make long haul money related
commitments yet might be required to get the bakery up and running. As a significant aspect of
commercial strategy, the proprietor will plunge into funds. One of the numbers that need to be
looked at first is the startup cost. The proprietor should aggregate a rundown of hardware that is
needed to make prepared products. From machines; like, boilers and coolers to littler things like TO BUILD OR BUY 5 utensils and dish, ensuring to makes a full rundown of all that will be needed. All those items
will be a one-time hit; however, the proprietor will require cash to live on while the business gets
built up. The business will not make profits overnight. This will take some time. So, the
proprietor will need to be patient and plan accordingly. Possibly build a timeline that will help in
determining how much will be needed to sustain the business and when it will start seeing
The mission of the bakery is filling the need and changing the world one stomach at a time. The
vision is to open multiple shops and providing the best atmosphere and service. The bakery
started in my kitchen making small cakes that ended up turning into pastries and other baked
good. It continued growing and now is the time to move forward and start a business with an
ideal location being a downtown area where there is heavy foot traffic and focusing breakfast,
brunch, and lunch. Along with cakes, pastries, and other baked good there will be a full
breakfast to lunch menu.
The goal is to be the number one bakery in the area by providing the best breakfast,
brunch, and lunch menu with the best service. The objective is to meet the need of the customer
to the T. Along the way adjust the menu to meet the customer?s needs. Service will be one of
the most important aspects of the business and hiring the right people with certain people skills
will be key.
The target market will be everyone downtown. The bakery will provide a sit down area
and a grab-n-go counter. Also, Wi-Fi will be provided for those that want to relax for a bit and TO BUILD OR BUY 6 surf the web or for those that need to do work during breakfast or lunch. Providing a
comfortable atmosphere will be extremely important.
Baked goods will be made on a daily basis and will be made first thing. Only a certain
amount of donuts, pastries, cookies, and muffins will be made and will be sold until it is all gone.
This will help in making customers come early the baked goods. On-top of all the baked goods,
there will be a full breakfast, brunch, and lunch menu using the freshest ingredients from the
local farms and markets. The menu will constantly be adjusted to meet the customer needs and
to keep them wanting more.
The majority of the sales will be put back into the business. Making sure the equipment
is up to date, the décor is the best it can be, and ensuring happy employee will be one of the
goals of the bakery. This will help in making sure the customer gets the best experience. Once
the business is self-efficient and showing signs of profits, then the next step will be to expand.
Advertising will be mainly on social media. Having a social media page on different
sights will help get the world out quickly. But, ideally, word of mouth will help get the word out
even faster. The first 50 people will get free baked good on opening day. To start, on top of
social media, there will be a radio ad for the first month prior to opening and a month after
opening. There will also be flyers being passed out around the local area.
The goal is to be a sole proprietor. Saving up as much as possible and taking out little to
no loans to start the business. Buying an existing business will be ideal for me. I would make
sure all the equipment is in great working order and I would update whatever needs to be
updated. Being in a family of restaurant owners, I would have access to all their contacts and TO BUILD OR BUY
discounts. Also, some kitchen equipment will be donated if needed. I will also have a template
to go off of and it will help get the business on the right foot. 7 TO BUILD OR BUY 8 References
Butler, D. (2012). Business Development: A Guide to Small Business Strategy. Routledge.
John C. Palmer, R. E. (2001). Innovation and Competitive Advantage in Small Businesses:
Effects of Environments and Business Strategy. Journal of Small Business Strategy.
Liz Doherty, A. N. (2013). Making and measuring ?good? HR practice in an SME: the case of a
Yorkshire bakery. Employee Relations.
Werbach, A. (2013 ). Strategy for Sustainability: A Business Manifesto. Harvard Business Press.
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