This website uses cookies to ensure you have the best experience. Learn more

Small Business Growth Essay

1162 words - 5 pages

Introduction Small business growth is the process through which small market enterprises transform to huge enterprises with high revenues. A business growth strategy is applied to transform a small business into a big one according to the organization`s goals. Transforming a business requires a change of organization structure and sometimes a change of business form. Additional financing is also necessary to increase the level of operation of a business. Customers have to be wooed through promotions to enable the business to maximize its profits.
Growth Strategy Strategy is a purposeful choice to be different. Business growth strategy involves selecting alternatives and tradeoffs that will ...view middle of the document...

Jayne makes all the decisions and runs the management of the business. Her management and people skills have seen the business achieve tremendous success. However, a partnership form of business would be the most appropriate considering Jayne’s expansion plans. Jayne has hired professional business consultants to assist her in initiating her new business. She can partner with someone who has different management skills from her. Together they can form a complete team with the required skills to start and run the business without utilizing professional business consultants. This will reduce start up cost. The new business will mean an increased level of operation (Mazzarol, 2005). The partner can work in other departments like accounting while Jayne heads the operations in the kitchen. Jayne will have more employees than the current number and the partner can assist in supervision. Also a partnership is easier to form compared to other forms of business like limited and unlimited companies (sbtdc, 2014). Financing Assistance Jayne has both equity funding and debt funding available to her. Equity funding involves the sale of a percentage of the business while debt funding is where one borrows the capital required (sbtdc, 2014). Sources of equity funding include; venture capital firms, private investors and friends or relatives. Sources of debt financing include business loans, personal loans, bank overdrafts and borrowing from other financial institutions. Debt financing would be the most appropriate funding for Jayne to realize her short term goals. Unlike equity financing, ownership of a business is not diluted in debt financing and thus Jayne will continue enjoying all the profits. Also debt financing is cheaper than equity financing and it is considered a short term source of funding (sbtdc, 2014). A personal loan is most recommended for Jayne because she can obtain a personal loan without collateral. This financing will enable her to transform her enterprise into a more profitable venture in the short run. A personal loan is repaid through monthly installments thus Jayne will not be overburdened by repayment of debt as it is spread over a period of time. Organization structure and Staffing Needs Jayne has six employees currently which is a fairly small number. Supervision is easy and tasks can be assigned on a daily basis. The expansion plan will change Jayne`s staffing needs as new job positions will be created. Jayne will require a bigger work force and she will need to hire according to expertise. The expansion will require tasks and responsibilities to be clearly defined in advance to enable faster execution. Jayne will also require full time employees as the current ones work from 10am to 2pm. Jayne will need to delegate some tasks because her work load as...

Other Papers Like Small Business Growth

Hr Case Study

518 words - 3 pages ”some chronic problem in managing the internal business process for updating existing product and services and creating new one” Third reason is the premature core abandonment that means “the failure to fully exploit growth opportunities in the existing core business” and “acquisitions of growth initiatives in areas relatively distant from existing customers, products, and channels” Finally, the fourth cause is the talent bench shortfall that is

Chad Frank And Kyle Carson - Precision Auto Detailing

1260 words - 6 pages with top-notch service by picking up the vehicles they cleaned including inspections before they are returned. The price of their service ranged from $100-$250. Because of the service they provided their business grew rapidly and had to purchase new detailing equipment. The majority of the profits made went back into the company but was not enough to sustain their rapid growth. After running into Carlson he wanted me to explain to him on what

Business Strategy

3621 words - 15 pages missions and visions into a more specific plan. They can be long-term, medium-term or short-term and must be measurable to gauge the success or failure of the execution of the plan. Examples of objectives for a business intelligence company would be - Have 40 consultants employed with and have 75% utilisation of their time within 3 years - Increase turnover to £10m within 5 years (Important business objectives, Small business Chronicle, 2015

Msme India

1728 words - 7 pages rendering of services. These will include small road & water transport operators, small business and professional & self-employed.The definition of Micro, Small and Medium Enterprises under the services sector is as below: | | * A microenterprise is an enterprise where the investment in equipment does not exceed Rs.10 lakh; | | * A smallenterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but

Management Structure

1647 words - 7 pages as Ben; the new owner of the business role is to make decisions and undertake much of the work whilst the employees take on carrying out specific tasks. However, this structure limits the growth of the organisation as Ben has an overload of responsibilities. This makes it harder for him to manage and control. On the other hand, Power culture model created by Charles Handy would be another example that best describes Ben’s business structure

Entrepreneurship

3352 words - 14 pages Metal Products 15.8%, Food and Beverages 12.8%, Wood and Wood Products 11.6%, and the other sectors 16.8%. CURRENT SCENARIO OF GOVERNMENT SUPPORT AND STATUS OF Entrepreneurship & Small Business IN PAKISTAN Entrepreneurship & Small Business are accepted as life blood for different countries in development so in Pakistan too. Therefore, it is better to treat SME sector as an important tool for economic growth of developing countries

Technology

254 words - 2 pages Kingdom and has identified it as a million dollar industry under the development in the field of the information and communication technology and transportation. The members of Nottingham Pro believe that as a result of such development, the traditional grocery supply chain will no longer be viewed as a barrier between the consumers and the suppliers. On the contrary, it offers a differentiated business strategy for growth. In order to keep pace

Business Studies As Lvl Book Ms Pg 16

1169 words - 5 pages enterprise. These benefits would include employment creation, as because an entrepreneur would not be able to do all of the tasks alone, they would employ people too. Economic growth can also be affected when there is an increase in number of businesses. This is because when more business will increase the gross domestic product of the country, it will lead to increase in living standards for population. Moreover, there would be innovation and

Development, Problem, Prospects And Progress Of Entrepreneurship Development In Narayanganj Sadar Upazilla: A Short Case Study

4916 words - 20 pages /she knows how to make people happy to work for him/her due his/her dynamic leadership. 9. Systematic planning and monitoring An entrepreneur plans for whatever he/she expects in the business. He/she does not leave things to luck. He/she plans by breaking large tasks down into small once and puts time limits against them. Since and entrepreneur knows what to expect at any time he/she is able to change plans and strategies to achieve what he/she

Discussion Questions

2634 words - 11 pages developed skills and knowledge, or he could seek for a market need and use that opportunity to start off a business, hence, opportunistic entrepreneur. Therefore, with the business knowledge, an opportunistic entrepreneur might operate a business in a more sophisticated way, whereby he or she would lead and gives authority in a way that would help future business growth, and be more detail in terms of accounting, marketing, etc. 6. As defined in

Eunterpreneurial Leadership

1504 words - 7 pages formation, growth and success of small business nationwide. SCORE members are trained to serve as counselors, advisors, and mentors to aspiring entrepreneurs and current business owners (SCORE, 2001). They offer many counseling services such as; marketing ideas, financial resources, and business plans. Entrepreneur education is the tool that is most useful to small businesses because it teaches how a wider scope on how to gain access to

Related Essays

Private Business Organization’s Success Depends On Employee Overall Performance

9437 words - 38 pages caused great concern, as a productive economy is reliant on the birth of substantial numbers of new enterprises and the growth of such firms. The importance of this question is more important due to the government determined that during the third five year social and economic development planning move toward more small business and privatization of economy in industrial part. Establishment of small business also provides more job opportunities for

Chad's Creative Concepts Essay

290 words - 2 pages specialty designed furniture production. The problems concern external operations and internal operations of manufacturing. Chad's Creative Concepts has to set priorities to schedule different orders. Orders for low running and high running furniture pieces are being accepted because sales have increased. Chad's Creative Concepts has not increased the amount of equipment or capacity needed to handle the business growth. Low running and high

Entrepreneuership Essay

1293 words - 6 pages "As manager’s adviser to a possible new firm, set out the entrepreneurial new business lifecycle to help the business owners develop a strategic plan, also the options and challenges they will face in the growth and development phase ,and later on , when pursuing a “going global’ focus." At the beginning, what is Entrepreneurship? Entrepreneurship is strategic thinking and risk-taking behavior that results in the creation of new

Entrepreneurship Essay

606 words - 3 pages . We had a chance to have an interview to a mini giveaway and school supplies shop located at Bart Mall, in front of our school which is Holy Angel University. We chose him because a lot of students go there to buy their school needs, and they had the ability to start a business with a small amount of capital and we are to ask some questions about. Starting a business in these days is hard because we all know many people are trying to enter into