The Business Lifecycle - Personal Statement Example

The Business Lifecycle I once viewed business as something trouble free and an easy source of money and I always thought that money is all I needed to start up one of my own. While doing research on the same, I realized I was wrong and that business is not for the faint hearted or the lazy bones that refuse to use their God given ability to think and come up with creative ideas. I have come to learn that every business requires some form of investment and a ready market to which its output can be sold at a profit. The investment here is not only in form of cash, but also time and energy. Infract, most of the great investors or people who have made it big in business today will confirm that time and energy are the most fundamental investments in any business .This is because for cash to be turned into an output for sale, a substantial amount of time and energy have to be spent in the production process. My research on the subject has shown me that many businesses that are now thriving are doing so not because of the large initial capital they had, but due to the dedicated, hardworking and creative staff they had. Dedication here is not only in terms of how they undertook their duties with diligence but also how much time they were willing to spend on their jobs to ensure best results. I have been very keen on how businesses are started and what entails the whole start up process and I have found out that one of the most important issues to be tackled is the legal issues. I was thinking like there was no problem provided that the business I’m intending to start is a legal one, but to my surprise, my research has shown me otherwise. Company law, a book by CR, Datta, clearly shows that there are a lot of legal issues to be looked into before a business is allowed to operate. Some of them are the registration of the business name, application for health and sanitary permits and seeking permission for building premises to be used by the business. The business should also adhere to Acts and statutes governing what they practice. A look in to the Horizon Electronics business plan also confirmed the same to me since they have clearly documented their adherence to the relevant regulations, registration and drafting of contracts. In my research and coursework, I have also learnt that a business has to undergo various stages before it is termed as mature. Charlie Gilkey in his book the business life-cycle offers an overview of stages of a business life cycle. He names them as the inspirational stage where an entrepreneur has a business idea but has not yet implemented it, the entry stage where then entrepreneur has decided to start a business and is actively building the market, the growth stage where the entrepreneurs have a business plan and are growing their revenue streams with new clients and customers, the crucible stage where the demand for goods and services outstrip the entrepreneurs ability to meet them, and finally the cruise stage where the entrepreneur has found solutions to the problems and is moving ahead (Gilkey, 2010). In my view, business requires a lot of hard work and sacrifice especially in its initial stages of development. This is because I have come to learn that there are many challenges associated with this stage of a business. One of the major challenges is that of finding a market for your output. It is a fact that without a market for the output, the core objective of doing business: making profits will not be attained. A proper market research (an organized effort to gather information about customers) should therefore be performed before the business is commenced. I tend to believe that it is very essential for this to be done keenly because it also gives an outline on how to market the product. Market research also provides information about the prevailing market trends in the industry and the current market prices for similar goods. This is important because it enables the entrepreneur whether the venture is profitable and provides a guideline on the pricing of the products. I consider Horizon ElectroniX Limited market research satisfactorily carried out because the report in the business plan shows clearly that all important aspects such as the target market and competitors were keenly looked into. One important thing that comes to my attention is the SWOT (strengths. Weaknesses, opportunities and threats) analysis carried out on the rival company, Maplin Electronics. In my view, the detailed analysis done will enable Horizon electronics to be able to grossly capitalize on Maplins weaknesses and improve on their strengths in order to stay on top in the market. I consider how a product is distributed to be another key element in a business. The distribution channels used can determine the success or failure of a business. A lot of factors like the cost of using the distribution channel, the reliability of the channel and its efficiency should therefore be considered before a choice is made. The strategy employed by Horizon ElectroniX limited in my view is best, considering their kind of product. Basing on my day to day experience with electronics, it is a fact that it is important that the sale of electronics be accompanied by after sale services like demonstration on the use of the product. In my view therefore, the best method of selling electronics is personal selling as employed by Horizon Electronics. Their business plan clearly shows how they will employ an on location sales team to carry out presentations and concentrate sales on niche markets. It was once all very easy and simple to me, but day by day, it occurs to me how the simple things may be complex after all. Business to me was just all about trade and making money, but the truth about the saying there is no gain without pain has now dawned on me. The research has greatly expanded my thinking on what a business is and what entrepreneurs have to go through before they can start earning from their businesses. I have a greater insight on business now than I have ever had before. Reference Gilkey, C., 2010. The Business lifecycle: An Overview. London: Oxford University Press. Read More