Starting a New Business and Then Expanding into Japan
This paper explores the process of starting an international business. The process involves starting a restaurant chain in the United States offering a Japanese-Asian fusion menu, and then expanding that business into Japan. For convenience, this Asian Fusion fast food restaurant business will be referred to as AF throughout this paper.
According to the U.S. Small Business Administration website, starting and managing a business takes motivation and talent. It also takes research and planning. In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business such as AF - but one can improve the odds of success with good planning, preparation, and insight. Although initial mistakes are not always fatal, it takes extra skill, discipline, and hard work to regain the advantage. Developing a business plan will force AF to think through some important issues that you may not otherwise consider (Starting Your Business, 2004).
The best strategy for a small business is to divide demand into manageable market niches. In this case, AF has already selected a fast food restaurant concept specializing in Japanese-Asian fusion food intended to attract a specific group of prospective customers. When organizing a new business such as a fast food restaurant in the United States, one of the most important decisions to be made is choosing the structure of a business. Factors influencing this decision for AF include legal requirements and restrictions, avoiding personal liability, the type of business operation, the need for additional capital, tax advantages and disadvantages, and plans for future growth and expansion - such as franchising.
According to Warren Fees in his book: ôAccountingö as it relates to AF and its plan for expansion into Japan, the business plan should include an examination of the complexities of fede...