After twelve (12) years, your business is wildly successful with multiple locations throughout the region. You are now ready to think really big. You want to purchase a huge competitor. (Note: You determine whether the competitor is a privately or publicly held company.) To expand, you will need additional capital from the debt or equity market, or both.
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. Use one (1) of the valuation techniques identified in Chapters 10 and 11 to calculate the value of the competitor you wish to purchase.
Assignment 1: Your Business Venture
Tracey Echols
Professor Joseph Arbeiter
FIN 317: Financing Entrepreneurships
January 19, 2020
A business venture that I am interested in pursuing is a Rage Room. A rage room is considered an LLC, which is a Limited Liability Company. Limited liability means that the owners of the venture are not personally responsible for the LLC’s debts or lawsuits. (Johnson, 2020) The members of an LLC do not have to use personal money to pay the company’s debts if lawsuits or bankruptcy is filed. (Johnson, 2020)
A rage room, which is also known as an anger room is a place for people to vent their anger and rage by destroying objects in a room. (TRUiC, 2020) Clients break objects by throwing them against walls and other surfaces, or by smashing them with tools, such as a sledgehammer. (TRUiC, 2020) The rage room would be in the downtown area, close to businesses so that people could come by during lunch if they are having a hard day, or right after work. The location is also close to bars, restaurants, and a college located in the downtown area. The customer base is businesspeople, college students, and teens. The closest competition for a rage room in my area is 93 miles away.
This type of venture interests me because there are a lot of people that deal with stress on their jobs, in school, and with their families. Therapy is a great way to deal with issues, but not everyone can afford therapy. A rage room is a great way to spend a minimal fee in a safe environment and go in a room and release anger and stress. It is not a substitute for therapy, but it can be an outlet. I am also interested in this idea because it would only cost about $5,000 to get started. (TRUiC, 2020) I would need to rent a building, purchase safety equipment, and find a source of cheap items that can be destroyed. This idea also interested me because there isn’t one in the city that I live in, which is a metropolitan area that is currently experiencing a period of growth. I think that if I were able to open one locally, then it could be quite lucrative, with minimal risk, for me personally, and for anyone that I were to partner with.
References
Johnson, H. R. (2020, January 19). What is an LLC (Limited Liability Company)? Retrieved from legalzoom.com: https://www.legalzoom.com/articles/what-is-a-limited-liability-company-llc
TRUiC. (2020, January 19). How To Start A Rage Room. Retrieved from TRUiC: How To Start An LLC: https://howtostartanllc.com/business-ideas/rage-room
