Small Business Proposal Essay Sample
Entrepreneurs wishing to start a business have to consider many factors beforehand. Factors such as management techniques, financial planning theories, working capital management, total quality management, and value of risk management are inevitable (Fink, 2005, p. 34). Employing these factors leads to a very successful business. Profits increase significantly because of proper management as well as increased productivity. The meeting of customer needs occurs because of implementing total quality management skills. Good management ensures the survival of the business even in times of recession. A person wishing to venture into new investments should be an efficient manager and lead their business to greater heights.
Amanda and Philip, both 30 years old, is a newly wedded couple who have recently bought a condominium together. The couple hopes to have children in the near future. Amanda works at a department store during the day and attends night classes at an art college. Philip, a qualified computer technician, is currently not working due to layoffs. The couple would like to start their own small business of selling art supplies. They do not know how to start a business. The couple has a managed to save a total of $30,000 in a joint account. A company that has proper management can be earning the couple an income in these harsh economic times. They require a stable source of income to sustain themselves. Starting a business has some steps and factors for consideration.
There are important factors that deserve emphasis when starting a business. The parties wishing to venture into business should be well versed in management techniques. These ensure the efficient administration of the company enterprise.A successful business must have an organised manager. Financial planning theories should also be at the fingertips of those wishing to start a business (Harvard, 2011, p. 67).These methods help to guarantee a financially stable business. It would be very unfortunate to run a company that only accrues losses and debts. The management of working capital is a significant factor as well, which ensures continuity of an enterprise. The assets and liabilities of a firm should balance properly to avoid losses. Weighing the value of risk management and continuity of the company success are also useful factors for consideration. A smart businessperson should tell quickly tell the risks involving a particular investment. Taking a deeper look into these factors explores all that is necessary for starting a business enterprise.
Management techniques refer to the skills used in the process of effective and efficient management of a business entity. The success of a company depends on the manager's competence.A manager has responsibilities that must be taken seriously for any business entity to prosper.The person intending to manage an enterprise should be ready to bear the cross and work extra hard for positive results.An efficient manager has to have these skills to run a business smoothly. Management techniques involve the following qualities.
Focused: A good manager has to focus especially on the set goals of that business investment. They should always remember what their target is for any particular financial period. Each fiscal year should have a different goal, and achievement of the set goals should occur before the game time. A focused manager steers their firm to a prosperous financial period.
Open-minded: A manager that considers him or her as efficient should always be open to new ideas. They should be ready to listen to ideas as they come and employ their judgment where necessary. They should never ignore a bright idea. These new concepts may end up boosting the business to higher levels.
Motivated: Managers should be motivated towards running the company and ensuring it succeeds. The will to manage should come from within them and not forced on them. A motivated manager serves as a good example to the firm's employees who in turn work even harder. The result is a productive company with a hardworking people.
Persistence: An effective and efficient manager needs to be persistent. They should never give up any circumstance. Persistence is a key factor especially when the business is having a little season. A persistent manager can not only succeed but also give employees in the firm a sense of direction. A persistent manager ends up overcoming the odds and raising the enterprise to a higher level.
Risk-taker: Good managers should not be scared of taking risks. They should trust their instincts but also ensure that they do not make a mistake. Investment ideas are examples of risks. One may not know if the idea will bear a successful business. A wise manager should opt to consider taking the risks because only then will the business grow. The risk should not have higher chances of failure as compared to the success.
Total quality management
Total quality management is a management system that mainly focuses on providing customer satisfaction at all costs. A customer is the most important person when it comes to any company. A customer plays a big role since the life of the business solely depends on them. All employees are supposed to give the client a priority in whatever they do. If a client complains, the workers should ensure proper listening of their grievances (Morris, 2011, p. 129).Correction of mistakes and errors is mandatory to avoid any further complaints. The satisfaction of a customer means that a firm is on the path to prosperity. Also, all employees should be committed and aim to achieve similar objectives. The process of production should be persistent to ensure quality output production. Compromising the quality of output should not occur.The business should focus on improving its product and services to meet consumer expectations at all times. An increase in number of customers in a company leads to more sales, which translates to profit gain.
Financial planning theories
Starting a business requires capital in terms of money or assets. The person willing to venture into business should have ample sources of finance. Sources of funding may include, saved money, retained profits from a previous business, borrowed funds from friends and family, and even obtaining loans. Knowledge of the cost of starting the company is necessary. The knowledge is important for it tells the entrepreneur how much money they need to add to what they already have. An expensive project may require one to take a loan from a bank (Fink, 2005, p. 211). The entrepreneur should know the expected revenues and profits. The bank may use the information to gauge ones’ credibility. Knowledge of information like the demand for the product is inevitable. The businessperson should know how the demand curve is, the times with high demand and low demand as well. The knowledge of the demand pattern helps the entrepreneur to plan and prepare when such times draw nigh. The aim is to ensure maximum sales occur during the peak season.
Management of working capital
Management of working capital refers to the relationship between a firm’s short -term liabilities and short-term assets. It guarantees the continuity of a company’s operation and ensures the satisfaction of both future expenses and immediate debts (Morris, 2011, p. 133 ).The management of working capital entails handling cash, accounts and inventories. An entrepreneur should aim at avoiding losses and debts at all costs. Increased deficits may lead to a firm becoming bankrupt and thus shutting down. Proper management of accounts should occur, and accounting for every amount of money is inevitable. Persons willing to venture into business should pay keen attention to the management of working capital.
Value of risk management
Risk management involves the studying of risks that help to envision potential events that may occur. It includes risk analysis, control, and assessment. Risk management is an essential factor that eliminates or minimizes undesirable risks (Harvard, 2008, p. 100).An entrepreneur should aim at avoiding any unacceptable risks in all their transactions. The management of future events occurs by employing risk avoidance and risk assumption techniques.
Employing these factors in starting a business enterprise is a superb choice since it has several advantages.
Increased productivity. A properly managed business will have better productivity than a poorly maintained one. The main reason for this is that the enterprise is well- organized and led.An increase in productivity indicates that a company is growing.
Less conflict at the workstation. Proper management ensures respect amongst employees and their boss. The result is a peaceful working environment.
Increased profits. Applying these factors leads to increased profits in a business. The advantages gained are a proof that the company is running efficiently.
Anticipating prospective events.Applying the risk management technique equips the entrepreneur with the ability to prepare for any expected future event.
Working capital technique helps to ensure steadiness of the business in meeting its operational costs.
Knowledge of financial planning theory provides that the entrepreneur have enough money to start a business. Capital is an essential factor in the starting of a company.
Financial planning theory also equips the entrepreneur with knowledge of demand in the new company and the profits that accrue.
Implementing total quality management ensures customer satisfaction in the business, and the result will be more sales of the output. Demand for the product increase significantly.
Financial planning theories ensure that the business has adequate finance and that it does not get bankrupt. A business needs to have ample finance in case of any emergencies
Starting a business requires the consideration of all the factors in this proposal. They are the key to a very successful business. A person wishing to venture into business for the first time should try out the discussed methods if they want to have a successful business. There are very high chances of having a smooth Sail in starting a business after going through all the steps required. Failure to follow all the steps may lead to a very short-lived investment with nothing to show for it at all.
Fink, C., Ahern, M., Schlessinger Media., & Fink Productions. (2005). Starting a business. Wynnewood, PA: Schlessinger
Fifty Lessons (Firm), & Harvard Business School. (2008).Starting a business. Boston, Mass
Morris, M. J. (2011). Starting a successful business. London: Kogan