Paper Example. Purpose and Rationale of the New Relocation

Georgia is a state that suites businesses like Beanisimo Coffee because many companies in the state are big businesses; hence, they also have many employees. Many people thence have relatively high disposable income, and there are sufficient amenities in all the major towns and neighborhoods. These working people, therefore, stay with their families. Coffee shops such as Beanisimo Coffee would have enough customers consistently. Also, the state's government has set up favorable conditions that businesses can thrive extensively through sale tax returns and minimum wage requirements which positively impact the returns on investments of the company. Lastly, Georgia has been ranked seventh in the United States for having a good business environment.

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Georgia is a vast state that is home to many profitable businesses, and it should be the headquarters to Beanisimo Coffee for the following reasons;

It is home to companies like Coca-Cola among many other major companies, hence many potential customers who have high disposable income.

The minimum wage requirements in the states are favorable to returns on investments of the company. The minimum wage in the state is lower than the national average, hence making it an attractive investment area (U.S. Department of Labor, Wage and Hour Division, 2020).

Since annual revenues are one of the considerations for the relocation, the relatively low sales tax in the state of Georgia is favorable to the company as well. With a low sales tax, prices charged for the coffee products can be low, hence optimizing sales, which in turn maximizes revenues.

Relocation Research

Standout Source 1: Researched July 1, 2020

Guta, M. (2019). Best states to launch a start-up revealed. Small Business Trends. https://smallbiztrends.com/2018/07/best-state-to-start-a-small-business-2018.html.

Standout Source 1: Researched July 1, 2020

U.S. Department of Labor, Wage and Hour Division. (2020). State minimum wage laws. https://www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 1/7/2020.

The words used in the research are Relocation, Beanisimo Coffee, national average, diversification, business environment, minimum wage, labor force. One of the criteria used was that the sources must met related to the topic in question. Another key criterion was that the sources must be older than 2017. Being older than 201 ensures that only the most recent and relevant data was in use.

Why Atlanta Georgia?

A three-series criterion was in use to choose Atlanta as the new home of Beanisimo Coffee headquarters. The criteria are discussed below as follows.

The Criteria used to choose Atlanta as New Headquarters

Criterion 1: Ability to optimize revenues due to the presence of favorable sales tax returns

The state of Florida has a tax rate return of 6%, which Georgia has 4% (Cammenga 2020). The sales tax rate is a massive advantage for Beanisimo Coffee since it will allow the business to retain more money through a reduction in tax returns. It will also charge low prices for its coffee products hence optimizing revenues.

Criterion 2: Minimum Wage Requirements

According to the U.S. Department of labor (2020), the labor requirements in the state of Georgia are lower on an hourly basis compared to Florida. Beanisimo Coffee will enjoy better economies of scale in terms of labor as it grows gradually. Therefore, relocating the headquarters to Atlanta will ensure that the company access affordable labor in large numbers. According to the Department of labor, the minimum hourly rate is $5.15, while Florida's is $8.56.

Criterion 3: Availability of Labor Force

The implication is that the Georgian government has put into place measures to help start-up businesses thrive better in forms of sales tax rates, minimum wage requirements amongst others. The figure also shows that until the employment rates increase to higher levels, Beanisimo Coffee shall have enjoyed cost-cuts through minimum wage requirements and sales tax rates.

References

Guta, M. (2019). Best states to launch a start-up revealed. Small Business Trends. https://smallbiztrends.com/2018/07/best-state-to-start-a-small-business-2018.html. Retrieved 1/7/2020.

U.S. Department of Labor, Wage and Hour Division. (2020). State minimum wage laws. https://www.dol.gov/agencies/whd/minimum-wage/state. Retrieved 1/7/2020.