Achieving a competitive edge in a business allows the business owner to have a market share that will guarantee the sustainability of the business even in tough economic times. In a market where competition and the need to take the business to greater levels is a requirement, the proprietor must identify untapped opportunities in the same field.
The most appropriate strategy to facilitate competing in the new business is to acknowledge other people involved in the business face similar problems as yours and therefore, it is in order to come up with services and products that will attempt to solve the problems. It is also important to employ the strategy of noticing what the other businesses are missing. Potential viability of business may be based on what others are missing and the existence of a market for that particular service or product. It is also good to find out the reason why the product or service is missing with the other business and this forms a good basis of the objectives of a business plan (Sterman, 2000).
This will facilitate in making use of the opportunity of making a difference in that business. In trying to make a difference through social entrepreneurs, the goal will be identification of innovative solutions to the problems that are most pressing and challenging to the society. Success business will be determined by the eagerness to combine the concerns of social issues to the desire of making a good living for the business owner. It is important to merge the entrepreneur’s efforts of building a viable, sustainability of the business and the primary goals of the entrepreneur with the positive impact of the business in the industry.
Embracing the opportunities provided by the business to reach the full potential is an important consideration for the business owner. Majority of the people find their business boring, unchallenging, as well as unexciting. This is a wrong impression and it is usually good to have a feeling that work and play are synonymous in your business. The business should be perceived as an instrument for self expressions coupled with self actualization. Money earned from the business should not be conceived as the primary driving force in the business. However, the profits that are made from the business are a motivating factor in taking the business to greater levels of success. It is therefore appropriate to consider all possible methods of detecting the potential business opportunities and the thoughts and ideas are followed by action while capitalizing on these ideas.
To Build or Buy a business
It is important to appreciate the fact that although running a business can be a rewarding experience but initiating one can be stressful. In case of any failure in the business, possibilities of grave psychological blow, stress and anxiety are inescapable. Complete responsibility of the decision taken in this regard lies with the entrepreneur and the decisions made are important factors determining the success or failure in the business. A greater extent of dedication, tenacity as well as discipline is needed in the choice of buying or initiating a business.
Franchising in a new business is a preferable option that will cushion the investor from most embarrassments associated with opening a new business. In this case the franchisors and the
Franchisees are likely to benefit from this arrangement since they both have a motivation to work for a common goal of mutual success. Franchising should be seen as a way of giving an opportunity to both parties for a business partnership and they appreciate that franchisees’ success also leads to their independent success. Franchisees access a favorable opportunity of owning a business rather quickly and they are also able to reach a point of breakeven quickly because they identify themselves with popular brand, product or services at early stages of their business. The past experience of business inherent in franchisor is another important aspect of success which is another source of competitive advantage (Pande, Robert & Ronald, 2001).
Although a business can be rewarding when it is fully established, a number of challenges are associated with setting up a new business and running it to a point of breakeven. The first challenge relates income uncertainty since there is no guarantee that the income will be sufficient to meet the needs of the business owner. Some of the businesses can hardly give the owner adequate wages. During the early phase of business, the salary of the owner may not meet his financial obligation and a lot of savings are required to meet this obligations. A new business is also associated with risks of losing all capital invested in the business because the rate and possibility of business failure is relatively high and this is a source of emotional devastation. A new business also requires long working hours coupled with hard work. Most business entrepreneurs work for a long period without taking a vacation (Pande, Robert & Ronald, 2001). There is a possibility of developing burnout attributed to this working environment which will significantly affect the level of performance and consequently the profitability of the business is equally affected.
To avoid and minimize these embarrassing situations, it is appropriate to consider partnership ownership as the most appropriate form of new business. An agreement is made regarding sharing of all assets, liabilities, profits and losses arising from the business and this limits the agony of losing entire capital investment in case of failure. In the selection of a partner, it is important to consider entrepreneurial education of the partner as important criteria in selection. A number of advantages are associated with partnership in business. In the first place, business establishment is relatively easy and also less costly. The partners are also likely to complement their skills which consequently strengthen the managerial foundation of the business. Effective collaboration of equal partners is likely to create a synergistic effect and this is a possible cause of success of the business as compared to a business owned by one person.
A business established under partnership has a broader capital base that will create a larger capacity of borrowing based on the assets of each partner. The importance of this is based on the fact that most business fails due to undercapitalization (Juran Institute, 2001).
Coffee shop business plan
In designing a business plan for the new Coffee shop business, the following considerations are made:
The Coffee shop will provide daily necessities to regular customers and offer an alternative of escaping daily stress and offer a comfortable place for meeting with friends. There is a high demand for high quality beverages served under a good environment
The Coffee shop will meet the following objectives
- Become the Coffee shop of choice in the market
- Generate profits within two months of establishment
- Maintain a gross margin of 75%
- Keys to Success
- The design of the coffee shop will be visually attractive to clients and offer efficient and reliable services
- Train the staff members on the best practices of running the coffee shop
- Employ marketing strategies that will lead to attraction of loyal customers
Creating unique, relaxing and comfortable environment for socialization of clients as they enjoy their coffee and pastries
2.1 Company Ownership
The coffee shop will be owned under partnership with two owners each having equal capital share
2.2 Start-up expenses
- Legal expenses $350.
- Consultants fees of $300
- Insurance premium of $240.
- Rent expenses $440.
- Premises remodeling $1000.
- Other start-up expenses 250
2.3 business Locations
A 250 square feet premise rented in a commercial building
The Coffee shop will offer the most excellent tasting beverages of coffee and pastries to the customers. The Coffee shop will also diversify in espresso drinks, refreshment beverages, sandwiches, salads, coffee beans and tea. Customers will also be given magazines to read during their stay in the coffee shop.
3.1 Product Description
The Coffee shop will have a menu on the basis of espresso and coffee drinks which will include cappuccinos, lattes and mochas among others. Soy milk, skimmed milk or whole milk will also be offered with these beverages
Consumption of coffee is on continuous growth with customers expressing their desire well prepared coffee drinks and good service
4.1 Market Segmentation
The marketing activities in the Coffee shop will target working populations in the neighborhood and students in nearby universities
4.2. Market Needs
The consumers are in need of high quality and offering unique and exotic products is a good opportunity fo this business
4.3 Industry Analysis
The consumption of coffee and related beverages has indicated a favorable growth rate in this region. This has been favored by the local climate characterized by long seasons of rainy and chilly weather that favor coffee consumption
The coffee shop expects to face competition from already established business offering the same services. However, the feasibility study conducted reveals that most of the customers favor smaller establishments and this will be complimented by offering lower prizes for similar services that will put the business at a competitive position.
4.3.2 Buying Patterns
The taste of coffee offered to customers, pleasant atmosphere and speedy services areimportant factors of their buying pattern and these attributes will be implemented in the Coffee shop.
5 Strategy and Implementation
The marketing strategy for the Coffee shop will be focused on attracting new customers, enticing them to more spending and retention of customers already attracted to the business and establishment of loyal clientele base
5.1 Competitive Edge
The quality of services offered in an ambient environment at competitive prizes will differentiate the Coffee shop from competitors
5.2 Sales Strategy
Sufficient employees will attend to the clients and division of responsibilities will facilitate for speedy and efficient delivery of services to the clients.
The ownership of the business will be under partnership with equal participation in the day to day running of the business.
6.1 Management Team
Two managers will be employed to work in shift with the responsibilities of overseeing the business operations
Juran Institute. (2001). The Six Sigma Basic Training Kit: Implementing Juran’s 6 Step Quality Improvement Process and Six Sigma Tools. McGraw-Hill.
Pande, P. S., Robert, P. N. & Ronald, R. C., (2001). The Six Sigma Way Team Fieldbook: An Implementation Guide for Process Improvement Teams. McGraw-Hill.
Sterman, J. D. (2000). Business Dynamics: Systems Thinking and Modeling for a Complex World. Irwin McGraw-Hill.