Analysis for a retail store

Let's say that you and two partners want to start a company that specializes in special occasion gift baskets for individual and corporate clients. You want to have a storefront in the local shopping mall or shopping area, as well as a virtual storefront on the Internet. You each have $1000 to invest in this business, but you will need more start-up capital. One day you remember that you have a distant relative who might be willing to fund your gift basket business, so you decide to write a letter to your relative, explaining what type of store you want to open and request the financing for the additional start-up costs of your store.

Note: You will be using the scenario of this store for other projects in this course.

Since you intend to open a retail store in the local shopping area, you will need to visit that area to determine what degree of competition you will face in the immediate future. You will also need to consider the other environments in which a business must work (legal, social, and economic) and how these environments will impact the start up of your business.

In your letter to your relative, you must include the following:

· a description of the retail store you will open

a summary of the competition and explanation of how your store

· will differentiate itself from the competition

· a summary of the demand for your product(s) in this location-why will your business be successful?

· a summary of the legal, social, and economic issues that will face your business.

Complete your assignment following the business letter format available in the sample letter that follows.

Sample of Letter

Salutation

Dear Ms. Overlie:

First Paragraph-Introductory Paragraph

This paragraph should do simply what it says-introduce. Introduce yourself or reacquaint the recipient with who you are. Try to establish some rapport or attempt to remind the recipient of rapport you once had with friendly, warming, welcoming statements. Keep in mind your purpose and do not become too verbose; keep it somewhat short, and ultimately, you want to introduce why you are writing to the recipient. One way to do this is to develop 3 to 4 points you want to get across to the reader and use the introductory paragraph to do that. Then each subsequent paragraph would address each of these items. (remember paragraphs should be a minimum of 2 to 4 sentences)

Second Paragraph-Body Paragraph

This paragraph should be a detailed description of the type of store you want to open, you and your partner's experience, your short- and long-term goals for the business, and an explanation of why you need the additional financing from the recipient, how they will benefit from your venture, and how you plan to reimburse him/her.

Third Paragraph-Body Paragraph

This paragraph should also indicate the following:

· A description of the retail store you will open.

· A summary of the competition and explanation of how your store will differentiate itself from the competition.

· A summary of the demand for your product(s) in this location. Why will your business be successful?

· A summary of the legal, social, and economic issues that will face your business.

Last Paragraph-Request for Action

This paragraph should thank the recipient for his/her time and consideration; it should also encourage him/her to finance your new business venture. Reiterate your appreciation and reassure the recipient of your confidence that this venture will be a good one. Indicate how the recipient can obtain more information if needed. Ask the recipient to act!

Complimentary Closing

Sincerely,

Your Name
Your Title