This paper involves the selection of business I frequently visit. A brief strategy for a business concept that would compete with the small business I selected will be given. An explanation of the policy will be paid. A decision on whether it makes more sense to open the new business I described or to purchase the existing business I selected will be given. The most appropriate form of ownership of the new company will be analyzed. An outline of a business plan for my business will be discussed.
The small business premise that I frequent is a fast food joint located in the upcoming suburb. I go there for quick meals. The number of such companies is minimal in the area, and they do not provide top notch services and meals. There are several strategic concepts that I think are important to consider when buying or starting a business. A business strategy is an action plan which identifies long term directions and helps to guide how resources are utilized to accomplish the goals of the company with a sustainable competitive advantage. The first concept is positioning. This is the space that an entrepreneur wants to occupy in the mind of the customer .when they think of the business brand.
Positioning should evolve with the firm and the market place as it remains consistent over time. Second, a mission is very essential. This is the core purpose of the reason one starts the business. The mission should rarely change with time. Next is the vision which shows what the organization does. It verifies more on what the business does to accomplish the task. The business should also have values. These are the principles by which the business is run. These business values should be communicated to the customers. Voice is also essential as it shows how one represents the business. It magnifies how one talks to the customers. Voice is critical to apply consistently. The business should have laid down objectives which show what one is seeking to accomplish within a period. These objectives, however, change frequently over time. Tactics should be embraced which show the specific programs that are put in place to fulfill the strategies to accomplish the goals. The tactics should keep changing to keep up with what one has to get done for the business. (Joseph, 2014).
Other strategies that one should keep in mind is first, analysis of the demand for running a business. Analyzing the expenses incurred in running a successful business helps one get the primary request. Analyzing the existing business market and determining the value it creates for the clients is essential. An individual can evaluate the scope of particular activities in the industry. The second business strategy is to determine the cash flow which is needed to set up the business. A company which goes through financial constraints regarding low liquidity finds it hard to engage in its operations fully. An entrepreneur must have a major plan to accommodate the business with sufficient cash flow. The business plan should be designed in a manner that it is appealing to investors who can invest in the firm. Thinking further in a strategic way is important in a business planning process.
Another important business strategy is looking at the political, economic, social, technical, legal and environmental factors. The market is always unpredictable, and the economy can change frequently. A business strategy should have factors that analyze all these factors to ensure in case of changing times the industry will cope and not close down. Keeping in mind that competitors are also changing tactics every day to be the best and addition of others in the industry should be well taken care of those factors. The last strategy that should be considered is by carrying out a SWOT analysis.
This analysis stands for strengths, weaknesses, opportunities, and threats. The entrepreneur should be aware of the strengths they possess as they start the business. This helps map the reason they are engaging in the firm and their clear advantages over their competitors. Knowledge of the weaknesses helps someone know the areas that need to have an analysis and come with solutions on how to tackle the weaknesses before they take a toll on the business. The opportunities should be analyzed so they can have a clear image of untapped areas where they can engage and create a business. Clear opportunities ensure that all resources are exploited and build new markets. Threats are the factors that may affect the business either in the long run or shortly. Being aware of the risks gives the owner an advantage of keeping tabs with the business and knows where it is headed. It also gives the owner have precise techniques to tackles any threats in case they appear in the course of doing things.
A feasibility study helps one to determine whether the business idea they have will work. The feasibility study can cover three broad areas namely; market analysis, financial viability and operational issues. (“Feasibility study vs. business plan – Canada Business Network,” 2014). My idea of a new business would be to open fast foods joint. The company will adopt a self-service concept that will require at least two employees at a time. The costs of the products sold in common will differ due to the quantity. All items for sale will have a fixed amount. A digital cash register operated by one employee will be used to calculate the cost to the customer who then hands it over to another employee who packs the items purchased by the client in the required quantity.
Some of the foods available at the joint will be sausages, coffee, snacks, tea, fried chicken, and French fries. Nonalcoholic drinks like sodas and purified water will also be on sale in the joint. The inventory will be purchased from a distributor and equipment will be acquired from local vendors. The market analysis will be carried out to obtain a demographic and population data which will aid the search for the perfect location. The ideal place for this business would be in the upcoming suburb of the city occupied by middle class or higher income earners. The survey in potential areas will be aided by at least four adults, four teenagers and four children into what types of businesses they would like to see upcoming in the area. The space of the firm would be at a rented brick and mortar store room.
I prefer opening new business premises because it will lure customers due to the variety of foods it offers, unlike the other companies. The service is also very well organized to cater for all clients enhancing convenience. The building housing the business is modern unlike other like businesses which are contained in dilapidated houses and other iron sheets make up the walls. This will ease the movement of people from their homes to urban centers in search of food of higher quality.
Ownership of the business will be through the sole proprietorship. Due to the savings, I have made over the years; I will be able to finance the business through raising the required capital. If the amount is not sufficient, I can access a bank loan to reimburse the figures.
BUSINESS PLAN FOR MY BUSINESS
The name of the fast food joint is Fun Times. The company is located in the suburbs of Runda fourteen kilometers from the city Centre. This business is noble in this area because it will alleviate the poor services that citizens in the area receive from other fast foods joints. This business is out to offer a variety of expensive foods of high quality. The start of this business is timely too because it increases convenience because the people in the neighborhood will not have to drive to the city to get excellent food variety. They are all one step away. This business comes in as the best alternative to ease the series of complaints from the people on the services they receive. Health is also at the epitome of our priorities to ensure the clients do not complain about their health after consuming products from the business.
Fun times is a fast food joint that serves a variety of quick bites to save time on cooking. Beverages are also part of the stock which is accompanied by snacks. Nonalcoholic drinks such as sodas and mineral water are served cold and warm. The major market needs that the business will seek to satisfy this competition and convenience. The business is out to give value for money spent by fast food joints customers. The business targets the middle class and the high-income earners. The firm also seeks to offer quality outside catering services to the numerous organizations coming up in the area. The company will employ the services of qualified personnel to enhance efficient operations which will bring value to the customers.
The industry in the area is not flooded, and major growth is going to be witnessed shortly. Through this business, the purchasing power of the clients will be cyclical since they will need fast foods to cover for their busy schedules. Going by the figures and the quality of the product this business will churn, I foresee a significant market share edging our close competitors with a big margin. The company will offer competitive prices for the products on sale and discounts will be given during important days like during national holidays and anniversaries.
Organization and management
The business will be a sole proprietor type of business. There will be someone in charge of all the other workers who will supervise them in handling their duties since the market is not that huge.
The services given by the firm will be to help the customers in that neighborhood have easy access to quality and affordable food, drinks, and snacks. There are no existing or pending patent fillings nor copyright filings. In the future, plans are underway to carry out research on how to develop the business into a star rated enterprise and even open more subsidiaries in different locations.
Marketing and sales
The company due to its small nature at the moment will employ public relations strategies to increase referrals as well as feedback so that we know where to improve. To improve marketing and publicity, all products will be packaged in branded bags or polyethylene.
In future, I wish to expand the business to reach a larger audience and do facilitate that; I will require a loan from a financial institution. I would also want to make acquisitions of other businesses in other areas to add the fast food joints portfolio.
In the next five years, I would prefer to see the company having the capability to offer outside catering services in at least four counties or five major corporations. (“How to Write a Business Plan | The U.S. Small Business Administration | SBA.gov”, 2017).
Feasibility study vs. business plan – Canada Business Network. (2014). Canada Business Network. Retrieved 27 July 2017, from
Joseph, J. (2014). The Entrepreneur’s Simple Guide to Business Concepts. Entrepreneur. Retrieved 27 July 2017, from
How to Write a Business Plan | The U.S. Small Business Administration | SBA.gov. (2017). Sba.gov. Retrieved 27 July 2017, from