WILL YOUR BUSINESS MAKE A PROFIT?

WILL YOUR BUSINESS MAKE A PROFIT?

Keep in mind that we are still in the Bed and Breakfast business in Texas. You found an existing building or land and can grow faster than the Industry average. Porter’s Generic Model of Competition has helped you pin point an entry wedge with unique customers. 

Don't use plagiarized sources. Get Your Custom Essay on
WILL YOUR BUSINESS MAKE A PROFIT?
Just from $13/Page
Order Essay

 

For Students Using Readers

This lesson starts with a multi-piece diagram. I will cover more details of Michael Porter’s Generic Model of Competition in the lesson that follows. I can’t use the exact image due to copyright laws. Let me describe my adapted model above. Barrowed from the “Twilight Zone,” imagine if you will.

The model is anchored with a long slender rectangle in the middle of the page. The rectangle recognizes the importance of the end user and measuring the customer’s value proposition. On each side of the rectangle are two smaller boxes for a total of four boxes. Coming from each box is an arrow facing the slender rectangle. The boxes represent arenas where firms can compete. Arena one is located in the top right-hand side and represents the Ford Automobile position of broad market and low cost. I designate arena one as one dollar sign. Located in the top left-hand corner, arena two is a box representing the Mercedes position or broad market differentiated. Arena two is characterized by two dollar signs.

Moving over to the bottom right-hand corner, arena three is a box that represents the Ferrari position of narrow market and special. Keep in mind that this product or service is expensive. Arena three is characterized by three dollar signs. If we look to the bottom left-hand side of the page we see arena four. Here we very high-end products and services such as the Bugatti Chiron position of an extremely narrow high-end market. Pricing is afforded by only a few high net worth individuals. Four dollar signs.

 

Purpose

The purpose of this assignment is to test the money aspect of the business. This will determine if we have a business, a pipe dream, or a hobby. This assignment will explain the differences between 1) cost and price, and 2) customer vs target market. Remember that each box above has a unique cost structure, pricing, target market, brand image, supply chain, and customer expectations. Once again, we shop at Walmart for painting clothes for a reason.

 

Mechanics

Start with chapter 8 and then page 98-103 of the textbook . (Please submit assignment as Lastname.Firstname.Financial.docx.)

Use the Excel spreadsheet I provided below. You will need to change the numbers to fit your situation. I have also inserted the typical averages for certain categories (in the cells) as per the industry report. The numbers in the cells should change as you change the revenue number. There is no need for you to find these on your own.

Next, you must determine the average sale per customer for your B&B concept. i.e. Do you have variable pricing due to seasonal fluctuations? Are you open seven days a week? Then multiple that by the number of days you are open for business times the daily customer count.

 

Assignment

Now, explain to me in a Word document where and how the numbers were derived. Also, share if you will be above industry averages or below and how/ why. i.e. The ratios for a single location restaurant may be higher than the average due to economies of scale. The key is to be as efficient as possible in order to make a profit. Start-up cash will cover the start-up expenses and real estate. You will bring 20% to the table and ask for a loan for the rest. Second year cash flow should provide breathing room on expenses. The point here is to make you aware of what it takes to run a successful restaurant.

Your written report should be key boarded, utilize the American Psychological Association (APA) citation format. Submit two pages of explanation in Word, a works cited page, and the Excel spreadsheet. Use 12 point Ariel font, 1/4 inch indentions, use page numbers, headings (1-2-3), and single line and character spacing. I am expecting a professional report that (a) demonstrates a command and understanding of the topic, (b) uses sound presentation logic and well thought through justifications, and (c) displays use of appropriate graphs, charts, and tables. Please answer the questions below.

Turn in your Word and Excel files to Canvas for submission to  www.turnitin.com (Links to an external site.) . Do not send me assignments in PDF, HTML, Pages®, Word Perfect®, linked to Microsoft 365®, linked to Sharepoint.com®, or linked to Google Docs®. All submissions will be graded as to following instructions, content, punctuation, grammar, citations, and sentence structure. Late submissions will not be accepted (unless covered by University policy). Please answer the following questions in paragraph form.

APA 7th Edition: The Basics of APA In-text Citations | Scribbr ? – YouTube (Links to an external site.) Shape, arrow  Description automatically generated

Headings and subheadings tutorial: APA 7th edition format – YouTube (Links to an external site.) Shape, arrow  Description automatically generated

Headings (apa.org) (Links to an external site.)

 

RESOURCES

 (Links to an external site.) Finance Your Business – MGMT 3850/4100: Entrepreneurship & Business Planning for Entrepreneurs – Guides at University of North Texas (Links to an external site.)  (unt.edu) (Links to an external site.)

B&B MGMT Financial Feasibility Assignment Spreadsheet (1).xlsx  Download B&B MGMT Financial Feasibility Assignment Spreadsheet (1).xlsx

Browser searches.

 

Financial Feasibility Analysis (level one heading)

 

Level two headings follow.

Capital Requirements 

How much cash and securities do we need to get started? We will bring 20% with us for a loan.

Estimated Earnings 

Can we beat the Industry averages in the IBIS report? What do the numbers look like? Do we lose money at first while developing the company? What expenses do you have? Are your expenses higher or lower than industry averages? How did you accomplish this?

2020 MGMT Financial Feasibility Assignment Spreadsheet (1).xlsx  Download 2020 MGMT Financial Feasibility Assignment Spreadsheet (1).xlsx

Return on Investment 

Can we beat the Industry average? What is the normal return on an investment like this? How soon do we expect to make a return on investment?

Remember that you can estimate your expenses using the IBIS industry report. Start with your room count, percent of occupancy, and estimated sales. Then estimate your expenses using the averages listed in the IBIS report.

Essay Writing Pros
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

Our writers have been trained on how to handle papers placed by our clients. The writer must read and understand before embarking on writing the papers. In case of any issue that needs clarification, writers are encouraged to ask the client or support.

Professional and Experienced Academic Writers

Our team comprises of the best writers and editors. We do thorough vetting during recruitment to make sure that our writers have the knowledge and experience we aspire in the team.

Free Unlimited Revisions

Our aim is to give the client the best outcome. If for some reason you are not satisfied with the wok done, you can ask the paper to be revised or rewritten. This will be done to your satisfaction with no extra charges.

Prompt Delivery and 100% Money-Back-Guarantee

We have writers who work round the clock. This helps in making sure that all our clients’ papers are delivered on time. If we have issues with the deadline, we will ask for extension. If its not possible, the money is fully refunded.

Original & Confidential

Our clients’ confidentiality is highly respected. We can never disclose our clients’ details to third parties. In the same regard, we strive to give our clients 100% original papers. We do not tolerate plagiarism from our writers.

24/7 Customer Support

Clients can reach us any time of the day, and any day of the week. There is a live chat, email or phone numbers to help in ease of communication.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

You should never be worried about your papers even in the middle of the night. Our team will work round the clock to deliver.

Essays

Essay Writing Service

We have an able team that can deliver your work in the shortest time possible. The academic level or the type of work should never be a hindrance. Our highly competent support team is always around (24/7) to give you any assistance you may need.

Admissions

Admission Essays & Business Writing Help

Do you need to be admitted in your dream institution but find it challenging to write an admission essay? Our team is in a position to write the best letter that will guarantee you an admission. We do as well write the best business proposals and reports.

Reviews

Editing Support

Writing can be fun and enjoyable when everything has been done right. Writing is not just enough without proper editing and proofreading. We have a team of editors that ensure everything falls in place, whether its issues to do with grammar or referencing styles.

Reviews

Revision Support

Once the paper has been done and submitted, that is not the end of it. You can always ask for amendment or improvement if you feel something has not been done right. Our team of writers and editors will gladly assist you to your satisfaction. Revision is free of charge.