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The first decision to make is from what level shall we establish our circus. Several different alternatives are as follows:
- A management buyout
- Establish from scratch
- Establish the circus as a subsidiary of a holding company
Among these alternatives it is decided that basic construction materials, and circus animals were taken over from an already existing circus with a cost of around $3,500,000, which is analzed in detail in the later chapters. The important thing at this particular level is that we reached this conclusion as a result of brief note in a reputable Australian circus' web site, where it was stated that 'anyone can have circus in exchange of $2,500,000'. This was the first spark in our minds and after making detailed analysis concerning the prices for cages, construction materials, costumes, decorations and other relevant cost items we decided to have an initial investment estimate of $3,500,000.
Another initial question was where to locate the circus (as a continent).
In deciding this the major alternatives that we have handled were Australia,
West Europe and America. As a result of detailed studies considering
existing market structures, the level of competition, future promising
sites, and other business requirements America is found to be the best
place for location. The existence of the real companies' web pages which
are mostly located in the United States was another reason so that we could
have our estimations more realistic and comparative with the industry practice.
You can find details of these researches in the upcoming chapters.
