Properly Run or Manage a New Business - Essay Example

Your full full July 25, Service Strategy for a New Business Running or managing a new businessproperly is somewhat a more difficult task as compared to starting a new business. A business owner needs to consider many factors during the initial years of the business in order to make the business successful and profitable. Some of the core factors include cost of running the business, proper budgeting technique, hiring of employees, and products and services to be delivered to the customers. A good service strategy developed for the initial years of a business puts a very positive impact on the business forever. The reason is that if a company becomes successful in attracting a large number of customers in the initial years, it provides a sound customer base to the business in the future. Being the new owner of a bakery in town, I need to develop an effective service strategy for the first year of the business in order to give a good start to my business. During the first year, I will not only focus on the service strategy which I will use to provide excellent services to the customers but also I will arrange two months training course for my employees in order to make them perfect in their jobs. The main services, which I will provide to the customers, include selling bakery products from the counter, taking special orders over the phone, and event catering. In this paper, I will discuss some of the most important factors, which I will consider to make my business successful. Budgeting Proper budgeting is the most important activity for a running a successful business. Without proper allocation of budgets, a business can even sink in the very early stages. About budgeting, Pollick states that budgeting is the planned distribution of funds to different departments of a company. Proper budgeting is the key towards success of a company. Properly planned budgeting will help me control overspending in less productive areas and allocate more capital for profitable aspects of the business. I have done proper budgeting for the first year of my business. I have planned to make efficient use of all financial resources in accordance with the budget. The amounts of budget, which I have set for different expenses, are shown in the table. Budget Allocation for All Expenses Expenses First Year Cost Employee salaries (5 employees) $120000 Food material for bakery products $240000 Telephone bill $3000 Electricity and gas bill $5000 Advertising and promotion $12000 Auto and transportation $10000 Maintenance of catering equipment $3000 Employees Employees are the key parts of a business. Efficient employees can make a business successful whereas employees with lack of experience or less professional education can never prove themselves productive for the business. I have planned to hire such employees to work for my business who will be proficient in making a variety of bakery products. Meeting the orders within their deadlines and satisfying the customers through quality are very critical for the success of a bakery during the initial years of a business. The service strategy, which I have developed for the success of my bakery, will depend a lot on my employees. For catering service, I will ensure complete customer satisfaction through providing them with excellent services, such as, nice setting of chairs and good waiter service for the guests. To me, a good employee in a bakery is one who can make delicious products for the customers. I will ensure good taste and quality in every product of the bakery in order to satisfy my customers. I believe that cooking experts can play the most vital role in making a bakery successful. Price and quality of the bakery products are the two factors, which need a lot of concentration of the bakery owner. Customers never come to buy the products of such bakery where the prices are high and the quality of the bakery products is low. Therefore, I will not only keep the prices reasonable as compared to other bakeries in the town but also I will hire professional cooks to make delicious bakery’s products. Equipments and Costs I will arrange the most suitable supplier to supply catering equipment and the required food material. During the first year, I will keep the service costs low for the customers so that I can establish a sound customer base for the coming years. I will also arrange high quality catering equipment for the customers regardless of the cost because customers are impressed when they experience a high quality catering service for their special events. Advertising and Marketing Implementation of an effective marketing strategy is also a key towards success of a business. “The goal of advertising is very direct - make the viewer buy a product or service” (Duenas). To develop a good first year service strategy, a business owner must know how to integrate advertising and marketing techniques in the strategy. Being the owner of a bakery, I have developed a well-structured advertising strategy to promote the products and services of my business. During the first year, I will make use of billboards and newspapers to advertise my bakery’s products and catering services. I believe that if the advertising techniques become successful for my business during the first year, I will not need to do heavy expenditures on advertising and marketing of my bakery in the later years. Through newspaper advertising, I will make people aware of special discounts on the placement of special orders. I will introduce the scheme of giving free $25 card to the customer who makes purchases of $100 or more. I think that schemes like this and other shopping discounts will really help me attract a large number of customers during the first year of business. Summing it up, a business owner needs to consider many factors during the initial years of the business to make the business successful. Proper assessment of the factors like cost of running the business, budgeting, hiring of employees, and company’s products and services are very important for a business owner. Therefore, I have designed a well-planned service strategy for the first year of the business considering all of these factors in order to make my business a professional success for me. Works Cited Duenas, Joaquin. “The Importance of Advertising.” Ezinearticles.com, 19 Oct. 2010. Web. 25 Jul. 2011. Pollick, Michael. “What is Budgeting?.” Wisegeek.com, 10 May 2011. Web. 25 Jul. 2011. Read More