Business Report

Rajaa El-chami

Business Report

Executive Summary

A delicatessen is a shop that sells ready-to-serve foods such as cheeses, cold cooked meats, and salads. An entrepreneur from south-east Asia plans to establish a business in this type of industry in Australia with a cousin already living here. The purposes of this report is to compare the establishment options for opening up a delicatessen, discuss the factors contributing to a successful business and explain how an entrepreneurs cultural background might contribute to a successful business.

Establishment Options

There are two main ways of setting up a business:

* Establishing a new business

* Purchasing an existing business or franchise

Establishing a New Business

Establishing a business is a high risk option and requires more than just starting to sell a product or service. With this option the business owner has complete authority on what decisions to make.

.The advantages include:

* The freedom to set ones goals

* To direct the business in any path the owner chooses

* The freedom to make any decision with regard to selection of product, staff, policies and procedure, location, types of funds and choosing employees and suppliers

The disadvantages include:

* The owner cannot predict how well the product or service will perform due to no history to look back on but according to Joe and his cousin’s experience working in a delicatessen this may not be an issue as they may have an idea of how popular a product is

* Non- established customers neither reputation which takes time to develop

* During this time it is possible to not receive any income which may cause financial issues considering the owner might have spent a considerable amount of money to implement the business

* Building a good relationship with financial organisations that limit funds to entrepreneurs, especially those just starting out

Purchasing an existing business

Purchasing an existing business is...