Small Businesses Path to Prosperity - Assignment Example

Business Profile Magazine Article Small Businesses Path to Prosperity Finding a unique African artefact in New York is virtually impossible as most are duplicates mass produced using cheap materials. Faced with the challenge of finding quality and original African artefact, Patrick an avid art lover decided to change the landscape by importing specially made artefacts from all over Africa. We interviewed Patrick a young entrepreneur who went out of his way to invest in African art and in the process founded Mudhut an art dealing company. When 10 years old Patrick first saw a life sized sculpted elephant from Kenya outside a Tours and Travels bureau in New York. Bambara masks Patrick was hooked to African art but finding similar African artefacts in New York was virtually impossible with the available artifacts grossly overpriced. Disappointed by lack of sufficient African art artifacts to buy in New York, Patrick an art enthusiastic saw an opportunity and he decided to invest in African art. A successful business executive, Patrick followed his heart and with a lot at stake he founded the Mudhut Company. With a sizeable capital from personal savings and a strong and unrelenting will, Patrick sold the idea to his immediate family members, who whole heartedly supported his idea. With no similar businesses and little information on African artifacts, Patrick travelled the hard road of informal market research and he found that he could have a ready market only if he started. With determination and perseverance, Patrick started to import art artifacts from Africa. Initially, customer demands were few and spaced out but with persistence his investments started paying back. His astute negotiating skills, made his business survive the initial stages of inception. Patrick initially thought that his savings were enough to start the business successfully but the huge costs of importing the African artifacts and transport logistics made him re-evaluate his financial position. He had to rent a large space to stock, display his products, and employ qualified personnel to handle his art gallery. His savings were not enough; the only viable option for him was to enter into a partnership. Luckily, his dad agreed to his suggestion and they entered into a full partnership. Finally, the business started albeit slowly. The MudHut Company was unlike any other in New York; it personally handled all customer demands going to painstaking lengths to explain the history, origin, and the culture associated with the artifacts. With numerous pictures of different artifacts in their art gallery, customers were able to order items of their choice at ease. This flexibility won the hearts of many art lovers who became loyal customers. The quality and diversity of their African art buoyed their business towards success and they soon had enough resources to start an aggressive marketing campaign. Initially, most of their new customers came from customer referrals and networking with other art galleries but soon the company started advertising through yellow pages and through face book and twitter. This created a lot of awareness and soon people were ordering many different artifacts that warranted a change in business strategy. Patrick was sourcing art products from various renowned art suppliers in Africa, but the diverse customer demands he was getting forced him change his approach. Against many odds, he traveled to Africa to seek new suppliers and new products. The trip was an eye opener as he was able to find local art industries that exceeded his expectations. His business experience again made him make killer deals. At a slightly higher cost, he found an art supplier who could collect artifacts from various countries and ship them at a single point. This arrangement saved his company lots of money and time. The MudHut impeccable public relations policy made most customers satisfied and with a good customer base the business stabilized one year after inception. With more time on his hands, Patrick was able to track the business progress through product turnover and overall sales and this enabled him to make long term strategic planning to increase their company’s portfolio. The immense success of the MudHut made Patrick and his Dad open another branch in another part of town. With their strong business skills focused solely on customer satisfaction and quality products, their second venture picked up rapidly. With a good supplier from Africa, MudHut soon started receiving large orders from other art galleries around New York. The business had broken even and had surpassed Patrick expectations. MudHut had established itself and was now a respected authority in African art. With a deep passion for art and a strong desire to succeed, Patrick and his dad had made it where few could have treaded. Patrick attributes his success to the flexibility in decision making and ability to restructure the business rapidly according to market trends. With no bureaucracy, small businesses only contend with insurance costs, taxation, and access to new information and technology. To maintain its customer base and attract more customers, the Mudhut established a renovation and restoration department. At a small cost, the company renovates and restores old and aged African artefacts. The company is developing a resource canter where art lovers and students can learn about the various African artefacts tradition, their culture and the history associated with them. Art is rich in diversity and we can all learn a bit of history from it. A noble chair Interview Questions Q 1 - Give us a brief overview of your business. Mudhut Company deals with African art; we import and sell African artefacts to individuals as well as corporations and art galleries. Q 2 - How did you get involved with this particular business? From an early age, I was fascinated by the sheer artistic beauty of African art especially sculptures. When I could afford to buy them, I could not find the variety I wanted and so I figured there was a big market gap in African art. The rest is history. Q 3 - What lead you to choose this particular product? I have a passion for African art because of its uniqueness and style Q 4 - Work did you have to do before you started your business? I did a lot of market research and actively sought trustworthy suppliers. Getting good suppliers was the most difficult thing as I was new in the business and unknown. But with good personal and business relationships, I developed a good business relationship that is the foundation of the company. Q 7 - What goals did you set for yourself and the business? I wanted to be able to supply African art to art lovers in New York at a reasonable price. The business would provide financial rewards and independence. I just wanted Mudhut Company to be able to survive and establish itself in the art industry; by being able to supply varied African artefacts from all over Africa. The fact that we have branched and entered into restoration and renovation means that the business has reached a level I had not anticipated. Read More