Build or Buy
Business 402-Small Business Management
Assignment # 1: To Build or Buy
Craft a brief strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail. The Business strategy which I would use would be to purchase an existing Bagel and
Tea shop located in the heart of Rockville city. The business is called Island style Bagel and
Tea shop. Island Style is surrounded by lots different types of business, schools and it pretty much a great location. The shop use to be an ice cream shop and the owner just could not run …show more content…
On the other hand, when things have gone well, it is very important for me as a new owner to change slowly and continue the relationships with customer, suppliers, and staff which have made the business a success (Scarborough and et al,
2012). Also having a good relationship with the previous owner will help because the business has a successful history and I will need the current owner to stay on board for a short period of time for consulting. This will allow the seller to introduce me as the new owner to the customers and suppliers. Also establishing a credit often previous owner already has established trade credit with suppliers. The Business may have a proven track record with the old owner, which gives me leverage in negotiating favorable trade credit term (Scarborough & et al, 2012). This will be beneficial to both me and the supplier; I will get the credit, while suppliers continue to provide services for me. In the end no supplier wants to lose a good customer.
Discuss the most appropriate form of ownership for your new business, assuming you current financial situation. The most appropriate form of ownership for me would be Limited Liability Company
(LLC). It is a hybrid structure that features elements of a partnership and corporation. The advantage it offer and its flexibility the LLC is the fastest growing form of business ownership.