Overview Starting a successful small business takes a lot of time and effort, and there are various factors that need to be considered to ensure the success of the business. This report analyses the factors that need to be considered when starting a small business such as developing a strategic plan and having a marketing strategy.
Background
Betty and Bill want to start a mobile coffee café that would sell Egyptian desserts and coffee. Being college professors, they do not have a good idea of how to start a business. The first step in developing the business is writing a strategic plan.
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Strategic plan
A strategic plan is a document that is used in companies to determine its direction. Having a strategic plan is vital because it gives a sense of direction and provides an outline of measurable goals (Food Truck Empire, 2016) . The plan is considered to be a tool that can be used in guiding the day-to-day decision of the company and is also useful in evaluating the progress of the company. In addition, it is useful in changing approaches as the business is moving forward.
Challenges facing a new Business
Starting the business can lead to financial and personal rewards in the future for the couple. However, there is the likelihood that they will face challenges in the process of starting the business. The first challenge that they are likely to face relates to their lifestyle. As the business is starting, they will need to focus on making it succeed which means that other areas of their life are likely to suffer (FoodTruckr, 2013) . Their lifestyle is likely to change and they may experience stress which can even have negative effects on their health. Their personal relationships including marriage are likely to suffer because of putting more time into the business.
The next challenge is time management because they are likely to feel that they need to do everything themselves so that the business can be successful. There is also the risk that they would concentrate on things that do not benefit the business and neglect the vital business functions. Using personal finances to start the business is also a challenge because the couple may not have enough money to help the business go through the first difficult months of the business (Newtek, 2013) . Finally, considering that this is a small business and it is just starting, the couple may avoid extra expenses such as getting health insurance so that all the finances can be used in the business. The strategy is risky for the business because they are not covered in case of an accident.
Strategic Human Resources Planning
For businesses to succeed, there is need to hi re the right people to perform the necessary tasks. However, it is vital to follow the law during the employment process such as the anti-discrimination laws. Title VII of the Civil Rights Act that was enacted in 1964prohibits any form of discrimination in employment that is based on ethnic origin, color, race, or gender. The Age Discrimination in Employment Act or ADEA prohibits employers from discriminating workers who are of the age of 40 and above. The Americans with Disabilities Act or ADA prohibits any kind of discrimination against workers on the basis of their disabilities. However, it is worth noting that independent contractors are usually not covered by these laws.
It is vital to understand and comply with these laws to avoid any form of legal action against the business on the basis of discriminating against workers. Complying with the laws will also ensure that the business has a good reputation for being a good and fair employer.
Effective Communication
Good communication is vital in any work environment because of the many benefits that it brings to the business. The business would benefit from making sure that there is effective communication among the workers because it will help in building a team. Honest and effective communication often binds employees together and increases the level of employee loyalty.
Effective communication also has the advantage of making sure that there is no confusion in the work environment. Unclear guidelines and confusing instructions are often bad for the business. Effective communication gives managers the opportunity to make things clear to ensure that employees understand what is expected of them. When employees understand their responsibilities and duties then things are able to flow smoothly.
Marketing
To ensure that the business is a success the couple needs to market the products so that they can capture the attention of the public. Considering the fact that this is a small business, the best marketing strategies are those that are inexpensive. Some of the inexpensive marketing ideas that can be used include turning the employees into ambassadors. The workers are part of the community and have various contacts. They can invite their family members and friends to the business. In other words, they can market the business through the word-of-mouth.
The couple can also promote the café as a socially responsible business by making sure that it protects the environment. It is possible by making sure that wastes are disposed of responsibly. Currently, customers want to be associated with businesses which take care of the environment and this act would not add much cost to the business.
In conclusion, it is evident that starting a business does not only require the financial capability but also requires the development of a strategic plan that provides the direction of the business. Other things that are needed include understanding the challenges that would likely affect the business, the best marketing strategies that the business can use, and the importance of effective communication.
References
Food Truck Empire. (2016). The complete breakdown of food truck operation costs. Food Truck Empire . Retrieved from Food Truck Empire: http://foodtruckempire.com/how-to/costs/
FoodTruckr. (2013, 10 01). 50 Food Truck Owners Speak Out: “What I Wish I’d Known Before Starting My Food Truck” . Retrieved from FoodTruckr: https://foodtruckr.com/2013/10/what-i-wish-id-known-before-starting-my-food-truck/
Newtek. (2013, 02 26). 7 habits of great small business owners . Retrieved from Forbes: https://www.forbes.com/sites/thesba/2013/02/26/7-habits-of-great-small-business-owners/#7c1523f334b3
