Small Business Administration - Assignment Example

I would most probably enter the retailing business as this requires little capital. However, I still see developing a business plan (even a very simple business plan) as essential to eventual success. A plan serves as a guide that will keep reminding me to stay on the path. Having a plan also helps when raising capital in the future. The major components in a good business plan are a statement of its mission (nature of business), why it is a good idea (its justification), its major goals and how much will it cost.4. The SBA provides crucial assistance, both in financial terms and management counseling, that can tide over a newly-established business in its initial years.

The two specific examples it helps is by providing technical educational training and also help the small businesses win government contracts. 6. I might prefer to become a franchisee because it offers a more secure way of running the business although it does not guarantee success. What franchising really does is improve my chances for success than would otherwise be possible if I attempt to start a business completely on my own. I think a fast-food franchise is a good idea to start a business such as a McDonald's or Kentucky Fried Chicken (KFC) outlet.

The benefits of being a franchisee are that I get access to the business experience of others while using just a little capital. I will also enjoy local advertising and in the national promotional marketing campaigns with minimal costs. The franchisor retains control of most business aspects such as standards to be maintained, earns royalty fees from the franchise granted and does not have to use its capital more extensively as capital requirements are supplied by the franchisee. It is like having your cake and eat it too. 9. Leadership provides the vision and direction by which to motivate workers.

It is important because leadership gives the key ingredient when pay is not enough to get workers motivated as money is not the only motivating factor based on Maslows five Hierarchy of Needs. When people accept employment, it is generally an unwritten social contract where the employer has expectations about how much work is done by each employee for how much work (Saunders, Percival & Vartiainen 152). When motivational leadership is lacking, the employer gets shortchanged. 10. Leaders are different from managers because leaders provide inspiration that a group of people can then use to motivate themselves to find solutions to problems.

In this way, leadership is different from management as the latter is concerned mainly with the implementation of the orders and directives from leaders. It is the leadership that provides the direction and vision necessary for any organization to attain its missions. I only partly agree with Gen. Colin Powells definition that leadership is the ability to motivate people as this is too limited. Leadership entails a much greater level of a person's entire intellectual and philosophical skills such as providing the vision for the whole group to adhere to. Gen. Powell likewise likened leadership to coaching which is only partially correct too. 11. The different leadership styles are autocratic (authoritarian), democratic or participative and (free rein).

I would prefer the participative leadership style because it brings out the best in people. In a way, I would also benefit because using this style will let people express their creative ideas which I can also use and enhance my leadership qualities. The least preferred leadership style for me personally is the autocratic as it does not work in these days anymore. People want to be always consulted on important matters that may affect them and being authoritarian does not lend itself to the consultation as orders are given in a top-down manner. 12. The five sets of needs according to Abraham Maslow's Hierarchy of Needs ranked according to importance (from lowest to highest in descending order) are:a.

Physiological - needs like food, thirst, hunger, sleep, breathing, sex, etc.b. Safety – such as physical or bodily security, employment status, health, property, etc.c. Love/Belonging – a need to be loved and to feel to belong because man is sociald. Esteem – people need respect, recognition, sense of personal achievement, etc.e. Self-actualization – the highest need of all that includes creativity, happiness, lack of prejudices, acceptance of facts, morality, etc. Maslow himself had accepted the fact that his hierarchy is not really complete but merely serves as a guide as a complete list of drives will get us nowhere due to the various theoretical and practical reasons (Maslow 252).

His hierarchy of needs can be used in business organizations as a tool for improving organizational performance via practical ways of using them as motivational tools for increased worker productivity. 16. Professor Victor Vrooms Expectancy Theory has practical application in a highly-competitive world because performance outcomes are tied closely to desired or coveted employee rewards in an organization. In particular, it is best suited to setting up individual goals because it can be tailor-fitted based on what a person perceives to be his or her desired reward for a good performance outcome or output.