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Developing and Managing the Enterprise - Essay Example

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Summary to essay on topic "Developing and Managing the Enterprise"
A small and newly started business always faces a challenge of acquiring the required financial resources in order to successfully start the new business. Small businesses are considered as the backbone of any economy as due to their nature and penetration within the economy, they provide a necessary supporting link to the large businesses to effectively carry over their aims and objectives of reaching the customers…
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Download file "Developing and Managing the Enterprise" to see previous pages... Falling within the domain of entrepreneurship, small businesses need to have a good financial plan prepared in order to streamline the resources required to start a new business. For this purpose, a good financial plan is the crucial document which needs to be prepared wisely and as far as accurately in order to ensure that those who express their interest to finance the business must have a very clear idea of the resources required to successfully start the new business.
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This financial plan is being prepared for a small cookie manufacturing business involved in preparing and selling the same to a large chain store through its various stores located all across the state. Before attempting to present the financial plan, it is very important that the financial plan must outline some of the assumptions which would be taken into account while preparing the financial plan so that all the calculations made are justified.
Our proposed business is going to work in retail industry. Though the industry for cookies exclusively has not yet developed however since most of the time they are being sold mostly through the retail stores therefore on broader terms, this product belong to retail industry.
The recent trends in this business suggest that there is a growing trend in consumers shopping at the retail chain stores. Since these chain stores develop their own brand names as well as customer loyalty therefore the businesses which sale their products to these chain stores also get the exposures to their brands.
On the whole industry is very lucrative, have good margins however there is a growing stress being placed on cost reductions as large chain stores like Wal Mart tend to buy at low prices therefore virtually forcing the suppliers to remain within their cost limits. This fact can alone dictate that in future, due to cost reductions, the margins for this business may increase and efficiencies gained.

Customer Analysis
Customers in this sort of business tend to develop their tastes on some particular brands and they prefer to buy their own brands. Therefore a good customer analysis is very necessary for the success of the business. (www.marketwise.net, 2008)There are various brands available in the market for cookies and each have their own market share however what is important to understand is the fact that most of the transactions are done in cash ensuring that the business have enough liquidity available in their business. This not only ensure that business has its funds but also help the business to have less reliance on the external funds.
Further, it is of very important, ...Download file "Developing and Managing the Enterprise" to see next pagesRead More
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