Shaved Ice Beverage
Costs:
Revenues are pegged to demand, which is seasonal, meaning that profits are not sustainable throughout the course of the entire year
Revenues might not be sustainable once the novelty element wares out
The company does not currently own any assets
Despite selling beverages, the product offering is quite specific
Benefits:
The product is extremely popular among all group ages and ethic formations
Globally increasing popularity and growing demand for shaved ice
Numerous benefits pegged to the location, such as the seven-month warm weather or access to a wide market
Will be the first such business in the city and the element of novelty is expected to generate increased demand; will also diversify product offering
Real Estate Brokerage
Costs:
The real estate industry is currently in a pit and investments in this direction might prove unsuccessful
Since it serves exclusively the higher income population, it will encounter high operational costs
The lack of diversification translates into the possibility of one or two slow months generating significantly negative results for the overall year
Increased costs with the human resource as the adequate employees must be selected and trained
Benefits:
The firm and it owner enjoy great...
eat reputation and the broker bases her plans on years of extensive expertise
Just like any other cyclic life, the real estate industry will pick up and the Real Estate Brokerage could be met with great development opportunities
Despite the focus on high income population, the company diversifies its approach through ongoing communications with sellers, buyers and agents
Truck Stop
Costs:
The company possesses no assets and it will be necessary to invest large sums of money to build the travel center from scratch
It will require the usage of vast amounts of resources and will take a long period of time before it commences to make a return on investment
It will have to comply with a wide series of regulations, including NAFTA, and these will even further increase the costs
Benefits:
Diversified product and service offering, meaning that the travel center will attract the attention of more consumer segments
Distinctive management for the two main branches, meaning that the two entities will be run separately, will reveal distinct responsibilities and financials
Demand for their services in on the rise in Dallas, and the competition is limited in the vicinity
In terms of the risks they generate, it could be said that, given the current economic state and the demise of the real estate industry, the Real Estate Brokerage would be…
References:
2009, Present Value, Investopedia, http://www.investopedia.com/terms/p/presentvalue.asp last accessed on September 3, 2009
2009, Shaved Ice Beverage Business Plan, BPlans, http://www.bplans.com/shaved_ice_beverage_business_plan/executive_summary_fc.cfm last accessed on September 3, 2009
2009, Real Estate Brokerage Business Plan, BPlans, http://www.bplans.com/real_estate_brokerage_business_plan/executive_summary_fc.cfm last accessed on September 3, 2009
2009, Truck Stop Business Plan, BPlans, http://www.bplans.com/truck_stop_business_plan/executive_summary_fc.cfm last accessed on September 3, 2009
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