U1 AOS2/KK4: Starting vs. Buying

Question 1

Purchasing an established business

PROS

Answer 1

• sales to existing cost generate instant income
• a good bus/history ▲ the likely hoof of bus success
  -many processes already established

Question 2

Purchasing an established business

CONS

Answer 2

• existing image and policies can be diff to change
• success of bus may have been die to owners personality
• if change bus too much could alienate customers meaning they shop elsewhere

Question 3

starting up a new bus

Answer 3

• finding a new location
• deciding services to offer
• marketing

Question 4

starting up a new bus

PROS

Answer 4

• the owner has the freedom to set up the bus exactly how they want
• build business organically

Question 5

starting up a new bus

CONS

Answer 5

• ▲ risk and measure for uncertainty without prev bus rep it may be more difficult to secure finance
• time needed to develop Customer base employ staff and develop relationships w customers