Business Venture Essay
Books are an important part of a person’s life, to some people books are their companions and to others a way to spend time. During a year 130,000 new or revised versions of books are released. So when opening a bookstore one should find the right place to open a store and sell the right kinds of books. A used book business can be as a business where all kinds of books; old, used and even books in bad condition are sold. And where the bookstore even buys old books from it customers to resale them again.
The bookstore that we want to open would be called Reread It. My two partners and I would start up the business. The bookstore would be located near the State University and the area it would cover would be somewhere around 2000 square feet and the store would be leased. The bookstore would contain fictional books, children’s literature, non-fictional books and textbooks as well.
This bookstore will be a buy and sell place, where the books would be old or used or second hand would be sold but it would cost our customers less than they mostly spend. The books would be purchased from garage
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Apart from buying and selling books the customers will be provided with something extra, which other bookstores in the vicinity do not provide and that would be for example if a customer is looking for a particular book and is not able to find it, Reread It would locate that book for the customer free of charge and provide it to him or her for a reasonable cost.
My partners and I would be contributing $10,000 each for starting up the business. After going through everything that would be needed or acquired we found out that we were only $30,000 short from the start up capital goal. The plan is to go to the banks and ask for loans or grants, whichever the bank can provide us with. The expenses that would be incurred would be: furniture $15,000, merchandise $25,000 other miscellaneous expenses like rent, electricity etc would be another $20,000.
Now that there is a vision and what kind of business we want, we just have to tend to some legal issues at hand like to have a formal partnership i.e. everything should be written down and in order and signed so that in future there are no problems arising. The second legal matter is that to register the name of the store to make sure that the name is not already taken up and also to make sure that it would not be duplicated without the permission from the owners of the business. Then there are two types of licenses that would be required for the business and those would be 1) a local business tax receipt and 2) a certificate of use from the county.
When setting the goals for the bookstore a SMART approach would be used that is the goals would be specific, measurable, achievable, realistic and timely. A specific goal is better than a general goal because it is more attainable. When setting a specific goal 6 “W” questions (why, who, what, where, when and which) have to be answered. The specific goal of Reread It is to open a buy and sell bookstore near the State University.
A measurable goal is a goal when the progress is being monitored and measured that whether you are on track or not towards reaching the goal that has been set. To open a bookstore somewhere around $60,000 approximately would be needed. The amount $3,000 would be the owners equity and the rest would be provided through a loan or a grant or through investment.
Books that are going to be kept in the bookstore would contain, as you know fiction, non-fiction, textbooks and children’s literature. The bookstore would have over 10,000 books and since it is going to be in the same shopping strip as a satellite library branch it would become easier to locate a book for a customer which is not available. And how would we know that we have reached our goal; it would be only then when the customers would come to us for buying and selling of their books and when they would consider the bookstore as a reliable one and that it would provide them a friendly service.
When talking about an achievable goal it should be kept in mind that how that goal is going to be attained. One has to overcome financial problems and then develop such as attitude, ability or skills so that the goal is easily achieved. And this goal can only be achieved when the employees of the store are friendly and helpful with the customers. And the bookstore is able to locate books that are not available in any bookstores around the area. (Aaker, 2001)
The goal has to be realistic one that is it is not such a one that is not possible to attain. The goal here is to make the business a successful one, to generate profit and provide the customers with the books they acquire. A realistic goal would also include the number of books the store can keep according to the space. To make sure that the store is not over crowed and give a rusty look.
Last but not least the goals should be done on time there should be a time frame because it there is no time frame then it would not be possible to achieve any goals and the business would not be successful. The time frame for the bookstore is that it should be up and running within 6 months.
Long-term goals are also important for a small business like a bookstore business. The long term goal for Reread It would that people would keep on coming back to the bookstore to relax and unwind from their stressful lives and for the business to grow with time and to generate profits, because is not growing with time and not producing any kind of revenue then it is consider that it is dying. Here since the key word is to grow and it is only one main long term goal the management will keep a check to make sure that the business is on its track and will keep on measuring its performance until or unless the goal is not achieved. (Aaker, 2001)
It is always good to remember that things change and the business long-term goals should be set in such a way that they could adapt with time. For example the bookstore was first opened only as a buy and sell place then the store made some sitting arrangement for its customers so that they could get some peace and quiet from their busy schedules then the store introduced eatables and it became a combo of a café/bookstore where the customers would be provided with good service and a good experience. Reread It would give a sense of warm, friendly, cozy feeling to its customers where they could curl up with their favorite author and have a good time. It’s a place where the customers can catch on their readings and listen to music and have a good experience. (Morgan , Levitt & Malek , 2008)
Since the business has to adapt with time changes the management has to remember not to neglect it’s long-term or any other goals related to their book business. As the business is growing or evolving therefore the goals also change accordingly for example the bookstore became a combo of café and a bookstore.
Running a small book business is difficult than running a big publishing house the reason being that the management of the small business gets caught up day to day operations and overlook their long term loans. Therefore Reread It management is going to make sure that there is balance and the store would evolve or change with time and with its customer’s preferences.
The strategies that would be needed to implement these goals would be, to make the goal as specific as possible that is to open a buy and sell bookstore near a university because it would help the students in locating the books they want for their studies. To make sure that the book business is on track that is its main purpose is to buy and sell books and then the other kind of entertainment like poetry reading or calling a band to play music and not the other way round. And to make sure that the goal is easy to attain and the resources that would be needed for the bookstore are also available. And to make sure that there is a time frame for the business because it is not easy to achieve the goals without a time frame. (Morgan , Levitt & Malek , 2008)
After implementing the strategies a SWOT Analysis would be conducted so to measure the strengths, weaknesses, opportunities and the threats for the bookstore. The strengths of Read are that it is near the State University, it is on the same shopping strip as a satellite library branch, it provides students with a 10% discount on books. The Reread It will also introduce e-commerce, where the customers will buy their book through the Internet and the books will be delivered to them at their doorsteps.
The weaknesses of the store are that sometimes the staff is not friendly or helpful with the customers. And the store keeps some very expensive books that no one is going to purchase and the store does not have much variety of books. The opportunity for the bookstore would be that to do poetry or book readings because it would attract new customers and students. There should be some sitting arrangement as well so that the students can come in and have a place to study and as well as relax. The threat for the store is the other bookstores in the area that might provide the same products as Reread It.
Aaker, D.A. (2001). Developing Business Strategies, Wiley
Morgan , M., Levitt , R.E. & Malek , W. (2008) Executing Your Strategy: How to Break It Down and Get It Done, Harvard Business School Press