Reference no: EM133165573

John and Heidi have given you the following information - "We have always had an interest in organic coffee and food and we believe this is a rapidly expanding industry. Opening our own shop has always been a dream - and we believe that it will not only provide an attractive income - but also improve our quality of life. As we live in the Sutherland Shire of Sydney, we would ideally like to base our coffee shop in this area - possibly in a shopping precinct, a mall, or even an industrial area. We have also thought that locating near a school might be beneficial. We believe the demographics of the Sutherland Shire are just right. We have estimated the cost to set the store up and cover the first month's expenses will be $80,000. We intend to borrow this from the bank as interest rates are really low. We are also concerned about the assets that we own personally (mainly our house) - and want to do our best to make sure the business doesn't put these at risk.

We keep hearing that lots of businesses fail within a few years. We want to know why and how we can avoid this as well."

Challenges of the establishment phase and how to respond to them (3-00 words)

Provide a brief overview of the Business Life Cycle (BLC) and what the establishment phase is. You need to identify three to four challenges of the establishment phase of the BLC that relate to TRB. Provide why and/or how these challenges could impact TRB and make suggestions about how the business can overcome these challenges. Your suggestions should be practical and ideal for a small business starting up to implement.