Magical Healthy Goodies - Essay Example

She plans to receive orders and preferences regarding goods through wall postings and messages. The products will be delivered two days after the order is posted on Facebook. The proposed business is in its start up phase. At this stage the aim of the business is to earn as much profits as possible to finance the initial set up of the business. Another objective of the business is to create awareness about its existence and get many customers. She cannot afford to use expensive methods of advertising her products.

The business also aims to establish a reputation of always delivering goods on time and a reputation of selling good quality and healthy goods. The business cannot afford to pay the salary of too many employees. Ms Fatmah Hemdan has decided to appoint Ms. Alyaa Mohamed as her personal assistant and she would look after the entire business management. The business activity is a home-based business, named as Magical Healthy Goddies. Products offered are healthy and low calorie products like Cookies, Pastries and cakes.

Customization of products is also intended to be available according to the needs and demands of the customers. Ms Fatmah Hemdan has decided to use the social networking site, Facebook for marketing her goods. This hardly involves any expenditure and will help her to get her initial set of customers. After her goods become popular she can expect to get more customers through ‘word of mouth’ publicity. This company is a sole proprietorship. The main stakeholder in this company is the owner herself.

Ms Fatmaha has to be careful to avoid undercapitalization and has to ensure that the business has sufficient working capital. Ms Fatmah may take a loan from the bank to meet the initial start up and operating expenses. Banks may not lend seed capital and she might have to borrow from her close relatives. Therefore the stakeholders in the company would be