Is outsourcing really helps business?

Help with a Business Plan?

• For a class we are learning about how to write a business plan, but I don't understand a few of the parts. Here are the details: We are designing a movie theater/arcade/clothing store business all in one 50,000sqft building. It's located in a small town with roughly 4,500 people mostly elderly and unemployed. What would be our major assets for the business? I have the clothing and equipment so far... For the life of me I just don't understand what purchasing and outsourcing issues would be. Can I get some examples and explanations? Please keep in mind that I'm a high school student. Anything info helps! I would appreciate it so much! Thank you :)

• Answer:

  The customer base you describe above is not very promising for a thriving business operation. 4,500 people is a small town and they have little to no money (elderly, unemployed). An upscale (or high fashion) clothing store is out of the question, and you should only look at very moderately priced merchandise, possibly of Chinese manufacture; or a second hand store. Outsourcing is a term used for transferring the manufacture of goods or of services abroad, to countries where the labor is much cheaper, such as India, Bangladesh or China for example. http://www.wisegeek.com/what-is-outsourcing.htm http://www.alibaba.com/product-gs/245806392/Chinese_clothing.html http://www.cinema-equip.com/home.html