The Analysis of Management - Entrepreneur and Small Business Owner - Assignment Example

?(your first and (Your Case one: Question There were several reasons why Anna bought the fashion salon. The business had some economic problems. This meant she could probably buy it for cheap. The designs it produced were not needed by the market because they were outdated. Anna was enthusiastic and had vision and the spirit of an entrepreneur. The other reasons she should having considered before buying the existing fashion store were the current clientele, the employees who came with the business and the finances for the business. An article from the U.S. Small Business Administration website states there are four things a person should evaluate when thinking of setting up a business, namely: identifying one’s interests; considering one’s skills; thinking of the conditions (location, time commitment, etc.) of the business, and quantifying one’s investment. (Buying an Existing Business 2013) Anna missed taking into consideration the last two of these requirements. She failed to anticipate the reaction from the existing clientele and employees, the marketing strategies to boost her sales, and the financial responsibilities that came with being a business owner. Upon acquiring the business, Anna encountered problems with how to market her new business. She wanted to revamp the old-fashioned style the existing business was marketing. She had to let the community and potential customers know that the new shop had a different vision from the old one. Hand in hand with this, however, was the problem of satisfying existing clientele and employees who were not familiar with her more modern styles and may disagree with the path she wanted the business to go onto. Another problem she faced was making sure she had enough money to sustain her new endeavor. Unlike expenses she used to incur as a stylist, Anna now had to balance a bigger financial statement in order to keep her business. Reference: Buying an Existing Business, 2013. Available from http://www.sba.gov/content/buying-existing-business Case one: Question #2 Different entrepreneurs and business analysts will share various characteristics of a successful business person. Nevertheless, some of these traits will be mentioned repeatedly by each business expert either from observation or personal experience. Larry Levy, author of the Characteristics of a Successful Entrepreneur and founder of Larry and Carol Levy Institute for Entrepreneurial Practice at the Kellogg School of Management, lists the top characteristics of an entrepreneur as passionate, willing to live with fear, risk and occasional failure and able to learn from his or her mistakes. (Hall 2012) Meanwhile, Action Coach, supposedly the best business coaching firm, states that successful entrepreneurs must be, among others, dedicated, unafraid of risk or success, optimistic, passionate about learning and confidence. (Action Coach) Anna manifested all the above-mentioned characteristics which greatly influenced the success of her business. Anna was a risk-taker. She had bought an old business with a product totally opposite that what she had in mind. She was not afraid to take on the demands of overhauling an existing business, one where she wanted to change the product itself. She was already aware that the previous owner was having economic problems but she still decided to buy the salon. Anna was dedicated and confident. Because of her determination, she took the initiative of meeting with business and management professionals to help her. She also encouraged her own team to work with the specialists and brainstorm on how to market her vision. She did not keep a closed mind to their guidance and suggestions. Her passion for fashion motivated her to define her label and come up with marketing strategies to appeal to clients. Aside from this, she listened to the advice of her specialist team on how to manage her finances. This is very important because money is always a very sensitive issue for business owners. Anna was optimistic and able to learn from her mistakes. She did not give up when she had business troubles. She tried to find the best way to reach success. After making changes, Anna continued to manage her business well, even hiring new and trusted people to help her fulfill her client’s needs. Reference List: Action Coach, 12 Essential Characteristics of an Entrepreneur, n.d., viewed 27 April 2013, http://www.actioncoach.com/_downloads/whitepaper-FranchiseRep5.pdf Hall, Alan, 2012, Top Characteristics Of Successful Entrepreneurs: Larry Levy, Kellog School of Management, Weighs In, Forbes, viewed 27 April 2013, http://www.forbes.com/sites/alanhall/2012/10/24/top-characteristics-of-successful-entrepreneurs-larry-levy-kellog-school-of-management-weighs-in/ Case Two: Question # 1 For those considering on having a business of their own, franchising would be a good option for several reasons, namely: initial cost, marketing, training and stability. Franchising, according to John, is indeed a safe business venture. With a franchise, the franchise owner does not need to worry about marketing the product or getting the necessary information and training about the product. The mother company would already have been established the brand name in the industry and would have acquired a stable following. The franchise owner is also provided with training regarding production information. Personally, having a franchise is less stressful than putting up a business from scratch or taking over an existing one. The new owner only needs to put up the money to cover the cost of acquiring the franchise and prepare the manpower for training. If the franchise will be operated by the owner himself, cost will be less. The owner does also not have to worry about sales. The appeal of a franchise is that it takes the name of an existing popular company. As such, the mother company has already proven its name and has a solid clientele. This aspect is one big advantage over newly-opened businesses and takeovers. The owner does not need to market the product on a large-scale platform because the name is already advertising itself. Another advantage of having a franchise is the training provided by the mother company. The owner is ensured that the quality of service they will give to customers is indeed up to par with the standards of the mother company. As such, the reputation of the brand name is not at risk. Case Two: Question # 2 I do not think that a successful franchise starts and ends at the acquisition of a franchise. Indeed, a franchise may already spell success given the popularity of the brand that the franchise is carrying. However, I disagree that this is the only aspect that makes the business successful. Hard work and proper management also play big roles. In John’s case, he already had prior experience in running a franchise. Somehow, he was aware of the ins and outs of running this particular type of business. Compared to people who set up businesses from scratch or bought existing businesses without managerial skills, John fares better with this second venture because he can apply what he had learned from his previous franchise. Another thing that was going on for John is that he himself attended the trainings given by Mac Tool. I believe this is a significant factor for his success. For new businesses, franchise or not, it is in my opinion that the owner should be hands-on with every little thing that goes on. This will ensure that the owner can easily identify and remedy any problems or further any improvements. One more reason behind a successful franchise is the attitude of the owner towards the business. John saw his franchise as a means of income for his family. As such, he was motivated to do everything he could to make an earning for his family. He also got the support of his wife which for him was an important factor. I only partially agree with John’s viewpoint on this because not all successful franchise owners may be married. Nevertheless, if they are married and the franchise is a family venture, support from all the members of the family would make a difference. Especially if the family members help out with operations, support may be equivalent to high level performance but low costs for manpower. Case Two: Question # 3 If I would start my own business, I would like to have a small business rather than an entrepreneurial venture. Although the latter would bring me much more money in a shorter period than a small business (Marks 2012), I think it is not worth the risk and stress. I am not a risk-taker. I would like to be sure if I would invest my hard-earned money on a business. As such I would probably choose a franchise rather than an independent small business. For my first business venture, I would rather choose to own a franchise because it is more stable and the brand is more popular than one I would come up with. The idea of dabbling in the food industry appeals to me. I am aware that there are numerous and more established food places in my area. It would be hard to introduce a new food place or compete with such large food names. This is the primary reason why I would prefer owning a franchise. With a franchise from McDonald’s or Subway, for example, I could ride on the mother company’s big-scale marketing and advertising which are already in place. Also, I would be able to assure my customers of quality service they have associated with such big names in the food industry because the training and process of daily operations are mandated by the mother company. Of course, it would not be enough to just have a big name backing up my initial business venture. I would need to render much needed attention on my business. Truly, it is already a big risk setting up any business. However, I would like to minimize cost as much as possible. Also, I would probably be using my savings on this venture. So, I would like to make sure that my money would be earning income because I do not my savings to go to waste. Reference: Marks, Gene, 2012, The Difference Between An Entrepreneur And A Small Business Owner, Forbes, viewed on 28 April 2013, http://www.forbes.com/sites/quickerbettertech/2012/06/06/the-difference-between-an-entrepreneur-and-a-small-business-owner/ Read More