BUS 402 WEEK 4 DISCUSSION - 100128

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BUS 402 WEEK 4 DISCUSSION "Business Decisions" Please respond to the following: • Identify a type of business you would like to own. Next, evaluate two (2) advantages and two (2) disadvantages of buying an existing business compared to those of starting the new business from the ground up. State your decision and explain your rationale. • In buying or starting the business above, you determine that you do not need external financing. Discuss why you should write a business plan, and select one (1) element in the plan that you think will be the most difficult for you. Next, identify three (3) techniques you can use to overcome the challenges. Justify your selection of these techniques. NOTE: MORE THAN ONE ANSWER POSTED CHOOSE ANY
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I would like to own a boutique. There are many advantages and disadvantages of buying a business that is already established versus starting a new one from the ground up. One advantage for buying an existing business if the immediate cash flow that you will receive once owning the business. Since the business has been open and successful it increases the probability of profits you will receive. The second advantage is the background pieces that have already been laid out, such as the business plan, financial statements and procedures. This will save not only time and money by not having to create these on your own but also will be less of a risk compared to starting fresh. One disadvantage is the updates that may need to be completed due to the business being older, this ranges from structural updates as well as updates to the policies and procedures. If you were starting a company from the ground up these items would be easily taken care of. The second disadvantage of buying an established business is the employees who are already employed with the company. They may not mess well with the path you have set for the company or you may walk in to find that the morale is low. This would then increase the time you would need to spend to rehire new employees. Also, by getting rid of the bad apples and brining in new talent it causes fear amongst the seasoned associates who stayed even through the changes. Overall, with all of advantages and disadvantages there are I would chose to start my business from the ground up. This is mainly due to the fact I could make it my own and gain a valuable skill-set that I can utilize in later ventures if needed.  

A business plan is utilized as a tool that helps you ensure that your company is ran the way you originally set it up and it, ensuring that you keep the path you intended in the beginning. It also lays out your objectives and strategies. The one part of the vision plan that would come easy for me to write is the mission and vision statement; however, the hardest element would be the marketing strategy. Even though this is one of the most important elements to the business plan, I am not fond of anything relating to the marketing side of the business. Due to this I would not have the energy or the drive to make it what it should be. If I were to try to overcome this challenge I could do so by enlisting the help of an employee or a business partner that has a strong skill-set in marketing. If this was not an option