There are certain challenges in this industry, it needs to be identified, evaluated, and alternatives should be developed accordingly. It is also recommended that Mike should have a dedicated and expert team of professionals which would comprise of the perfect blend of youth and experience with the right attitude and talent.
The business that has been purchased by Mike is situated at Sunnydale, Illinois, a mid-sized city with a busy downtown business district and a large university. In the same area of the city, another shop also thrives, named Queequeg’s Coffee. It is a large national chain of coffee. The biggest competitor for Mike is expected to be this coffee chain.
The Sunnydale falls within the periphery of the California Rules and Regulations Act. The business setup needs to follow this act for its successful operations. Since, Mike is going to take over the business; he needs to comply with certain general issues regarding the business rules and regulation of the locality. The general query would be of identifying the business that he is taking up, is complying with the legal regulations or not. It is also to be seen if the business is driven by the benefit of the enforcement of the regulation.
Mike needs to find out the tenure of the business and that of the license and their compliance with the regulations of the local authority. The tax provision should also be considered before going in with the business. It needs to find out from the tax authority, the tax related to the income of the business and other relevant taxes like water tax, local taxes that are compiled with the regulations. Any outstanding amount regarding the payment of the tax is due or not is to be verified and if so the period and the amount should be calculated.
The next important issue is that of the location and the tenure of ownership. It must be checked if