The business I choose is a local catering business for sale in Jacksonville, FL.
Asking Price: $110,000
Gross Revenue: $391,191
Cash Flow: $50,686
included in asking price
FF&E: $50,000 included in asking price
I’m an excellent cook and even a better baker. The method I would use for determining the current value of the business is the adjusted balance sheet method. The adjusted balance sheet method determining a company’s value because it involves adjusting the book value of net worth to reflect the actual market value. I would negotiation the asking price based on the current market of catering. If the business didn’t have down payment for future events I would use it to say there’s no guarantee they would become actual orders. I would contact the SBA for a small business loan.
Select a small business that you visit often (e.g., coffee shop, bookstore, sporting goods store, etc.). Write a 6-8 page paper in which you:
1. Craft a brief (1-2 pages) strategy for a business concept that would directly compete with the small business you selected. Explain the rationale for the strategy in detail.
2. Determine if it would make more sense to open the new business you describe or to purchase the existing business you selected. Explain your reasoning.
3. Discuss the most appropriate form of ownership for your new business (assuming your current financial situation).
4. Outline a business plan for your business. Visit https://www.sba.gov for tools and templates.
5. Include at least two (2) references outside the textbook.
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