You have recently inherited 500,000 and are exploring investing your money in a new business. You have reduced your wish list down to 3 businesses...

Q3. You have recently inherited 500,000 and are exploring investing your money in a new business. You have reduced your wish list down to 3 businesses in Leavenworth. The 3 are: Car Wash, Donut/ pastry Shop or Flower ShopI have chosen a Pastry ShopDraft Answer:Economic conditions: The Taylor donut and pastry shop will enter a monopolistic competition with several local pastry shops (Dees and Imagine Cakes) plus several grocery bakeries (Wal-Mart, Dillions, and Price Chopper). My profit is going to come from what I can offer differently than my competitors. My shop is going to have to have a niche, I will promote early morning cereal buffet, and minimal baker’s dozen delivery (10 mile radius). I will have several donut selections made from wheat dough and covered in cheerios or dried fruits glued by a dried honey glaze.Fluctuations in specific industries. Seasonal fluctuations will occur as the seasons change, during the spring/ summer people will go for a more fitness orientated diet and the winter / fall people will go for cakes and pies. The fad diets will impact sales also, summer fad diets go for the starvation plan and then the fall diets will go with eat what you want (in moderation) but exercise. The overall economic status will also impact the disposable income customers have to spend on my products. My shop will have to have a 1/3 economic selection also will have to diversify. I will offer all day cereal buffet, lunch salad buffet, and will provide a delivery service to the disabled, retired, and regular customers within a 10 mile zone. I will also research into making work site deliveries, with a roving (patrolling) truck looking for school events and work sites. Competition and technological change. I will have to see what my competition is doing to ensure that I can keep up. I will have to open an internet hub for my customers, in order to provide an additional service which will keep my customers in my store buying my products. Changes in consumer preferences. Varity is the key. The trick is to ensure the ingredients are quickly inter changeable to produce other products. Also I need to ensure my business plan is changeable to fit my customers’ preferences. A spectrum of service from special need deliveries to the elderly and the disabled, plus to accommodate the health conscience , while providing the normal cakes, pastries and pies. Costs and expenses. The budget for the business will have to be strictly monitored. The variety projects will have to be limited not to provide a service which is not affordable to the customer when it is passed in the cost. Wages in Leavenworth have come under some pressure to increase the minimum wage, if this is the case , I will have to reduce the staff. The business will have to rely on my immediate family working for a percentage vs an hourly wage. " - Sent to Economics Expert Tutor on 12/6/2010 at 12:11am You asked:"Need a second opinion to my answer to the given question. Please let me know if I need to add or elaborate on anything else