Analysis on Coffee Shop Business

Option

Presented by:
XYZ
 Introduction
Here are the three options evaluated for the business:
1) Buying a Running Business
2) Buying a Franchise
3) Starting Own Business

After Evaluation and Analyzing

different Factors, it is suggested that
BUYING A RUNNING BUSINESS is
most suitable idea.
Buying A Running Business
 It is smarter and safer move as business is already running
successfully. Difficult procedure of setting a business from start is
already done. There is immediate cash flow running into business.
 It is ongoing business entity and already a strong base is set to
continue it according to our idea of business. Company has
financial history which is helpful for strategy making. Strategies
can make according to strong point of the previous management
which will continue. Weak points can be transformed into strong
point by implementing strategies accordingly.
 Running business also has a goodwill value which is not available in
case of starting a new business. Company will get existing
customers, suppliers, equipments and contracts. All these factors
make it a choose able option over starting new business
(Fitzsimmons, Noh, and Thies, 1998).
Buying A Running Business
 Buying a running business is financially suitable option Over
Franchise as Franchise option is costly and our profit margin
is narrowed due to on-going royalties and expensive
locations. Similarly any bad performance or scandal in any
other franchise will also give bad reputation to your branch
as well. However in buying a business, you will only be
responsible for your own deeds which give it an edge.
 In buying a running business, company will have liberty in
making decisions. Company can implement its business plan
and strategies; while in franchise, there is lack of freedom to
implement and control our own ideas because franchises run
according to idea of owner (Stern, and Wilma, 1996).
Buying A Running Business
 In case of running business, employees and management
already have the expertise in doing their job and there is no
need of going through training and costly job related courses.
It give a financial stability to the company. We can also take
their practical input about the areas which need
improvement.
 If talking about health and mental pressure, buying a running
business is best option because owner do not have to go
through tough tasks and procedures of starting a business to
running it as everything is already setup. (Stern, and Wilma,
1996).
Conclusion and Recommendation
 Considering all the factors it can be easily conclude that
buying a running coffee shop is best option which will give
liberty, relaxation and financial stability to the company.
 However, company should carefully evaluate the price of
buying business so that business can be acquired in faired
market value.
 It is also recommended to hire a professional business lawyer
in process of purchasing the business in order to avoid any
unwanted legal situation in future and to get a smooth
transfer of ownership.
References
 Fitzsimmons, J., Noh, J. and Thies, E. (1998), Purchasing
business service", Journal of Business & Industrial Marketing,
13(4/5):370-380.
 Stern, M., and Wilma R., (1996). The Best Way to Start a
Business …May Be to Buy One. WorkingWoman.