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Assignment 2: Expanding Your Business
Due Week 8 and worth 240 points
Referring to the same business you either started or purchased in the first assignment (See attachment for first paper written), write a 6-8 page paper in which you:
- Outline a financial plan for your small business.
- Develop a guerrilla marketing strategy for your small business.
- Discuss the most appropriate location for a second store (an actual street address). Explain your reasoning.
- Outline a plan for securing sources of debt financing for your second store.
- Include at least two (2) references outside the textbook.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
- Describe and analyze the necessary activities and key decisions to start a small business.
- Analyze the key financial management considerations in operating a small business.
- Develop a guerrilla marketing strategy for a small business.
- Analyze the role of pricing, credit, and equity financing in defining a business strategy.
- Use technology and information resources to research issues in small business management.
- Write clearly and concisely about small business management using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills.
The small business that I selected for this assignment is ATL Clippers Barber Shop that I visit frequently with my nephews. The barber shop is in the Midtown area of Atlanta, Georgia. There are schools, a supermarket, retail locations, and other diverse sorts of organizations in the surrounding area. ATL Clippers was recently sold as the previous owner chose to leave the territory to seek different business opportunities. Contrasting ATL Clippers with similar organizations the new owner offers aggressive costs, and business is going admirably right now. By and large, the hair parlor is currently producing about $2,000 in profits every month after costs. It is my belief that the present business could make twofold what it is delivering. The proprietor needs to fuse some promoting and new advertising systems to include coupons like bring a new client in via referral to get a hair style and get your next hair style half off or even free.
I want to call attention to a few reasons that I encountered disappointment as a longtime client of ATL Clippers. I have frequently run into irregularity of the actual working times versus the posted business hours, and costs change intermittently. I now tend to call ahead of time to verify that the hairdresser arrived even with a scheduled appointment, so I don’t waste my time or gas heading over there. The costs at the barbershop are sensible in contrast with different shops in the region, though, as I mentioned, they sometimes change without explanation. This vacillation of costs makes it extremely troublesome at times to budget for my nephew’s haircuts.
We will settle these issues in my business by executing a technique for a business idea that would contend straightforwardly with the hair salon. I would finish the key administration process, which incorporates nine stages. The stages include:
· Build up a distinct vision and make an interpretation of it into a statement of purpose.
· Vision and statement of purpose: “To help clients feel better about themselves through an astounding appearance”. The statement of purpose “To give quality administrations while effectively fulfilling the necessities of our clients”.
· Survey the organization’s qualities and shortcomings.
· I would do an appraisal of the organization’s merits and shortcomings. A portion of the organization’s qualities are a strong client base, costs are standard in the area, and it is productive year round. Shortcomings that I see include not opening on time, not following posted opening and closing times, and over the top wait times because of just having one specialist on duty for walk-ins.
· Research for problems confronting the business as well as the opportunities.
· A few of the issues or problems confronting the business are that some shops in the area offer lower costs, have more representatives working at any given time, offer shorter wait times for walk-ins, and they provide more stimulation while waiting for your appointment time. A few opportunities are aggressive costs that can develop your client base, flexible working hours which are helpful for customers who have odd working hours, and quality administrations and items.
· Recognize the basic components for achievement in the business.
· Key elements for success are advertising the business so that potential clients know about what services you are putting forth, and the menu of alternatives. Likewise dealing with the benefits and costs appropriately will be a colossal variable while working the business.
· Break down the competition.
· You should know your competition and you should know the business. Knowing your opposition’s qualities and shortcomings will put you at an advantage, making you effective, expanding benefit, and growing your client base.
· Create organizational objectives and goals.
· Create organization objectives and targets Goals are long-run characteristics that the firm tries to achieve. Destinations are quantifiable and more exact they ought to be particular, measurable, assignable, practical, convenient, and recorded. Objectives are attached specifically to the vision and statements of purpose. My organization will likely fulfill the requirements of the clients. My destinations will be to give quality administrations to clients by welcoming them when they stroll through the entryway, keeping up a clean work area and waiting room, and having an uplifting disposition.
· Formulate key alternatives and select the proper procedures.
· This step is to assess key arrangement choices and after that set up a course of action that is intended to accomplish the organization’s central goal, objectives, and targets. Counting expanding deals in a specific section (either by developing the part or taking an offer of the opposition). Likewise by infiltrating an entirely new area (either by promoting so as to reposition the item for that fragment or the item as it as of now exists).
· Translate key arrangements.
· Responding to client input is basic whether it’s negative or positive and being adaptable.
· Establish Accurate Controls.
· The arrangement builds up the principles against which execution is actual performance measured. The proprietor must distinguish and track key execution markers and make a restorative move on the off chance that they are not met.
It would bode well to buy the current business because there is a sparing in cash, time, and vitality when purchasing a current business. The routine procedure of examining and making strategies for success and models is as of now finished. Likewise, on the off chance that you require financing to buy the business, it is easier to acquire since the loan specialists will probably fund a business with a demonstrated reputation.Likewise, everything is incorporated into the buy, particularly in a turnkey or an establishment business. It is to a considerable degree valuable for a purchaser to acquire the base that has as of now been set up by the former proprietor. Doing this incorporates the clients, as well as the workers, suppliers, frameworks, and hardware. It is a decent plausibility that the former owner offers some help and knowledge that will make for a less difficult move.Since this is a current business, income ought to start quickly, as opposed to not beginning for some time such as in a fresh new startup. A current business is likely delivering an average wage and has a considerable customer base built up, hence augmenting the odds of achievement by the new proprietor (Startup Nation).
The most suitable possession for this business would be the sole proprietorship since it is overseen and claimed by one person. Sole Proprietorships are simple, and you can frame one rapidly. For my money related circumstances, this is the ideal type of possession. By and large, business people can acquire business licenses from the state, area, and neighborhood governments and start operation for the most part in a solitary day. The proprietor is in charge of all business exchanges and deals with the business. The proprietor is likewise in charge of all liabilities and obligations brought about by the business. A sole proprietor can offer it when he or she sees fit and can possess the business for any term of time. A sole proprietor as the no one but proprietor can pass a business down to his or her kids, and there are no particular business charges paid by the organization.
Diagram a strategy for success for your business
My rivals would be the four hairstyling salons in the territory at present and every one of them with more than one hairdresser. My hairstyling parlor will offer a beautician to serve ladies and will be a family friendly environment. My business will be somewhere the whole family can get hair styles, or complete their hair. Additionally, I plan to make it a child-friendly environment with computer games, TV, and play zones in the waiting area.My business operation hours will be Monday through Friday from 9:00 am to 7:00 pm and Saturday and Sunday from 10:00 am to 4:00 pm.
The following is a quick synopsis of my strategy for success:
· Rent $1,500.00 a month.
· Employee compensation $1,200.00 a month.
· Supplies and stock $3,000.00 a month.
· The current the business produces $2,000.00 month to month.
Workforce
There will be two representatives including the proprietor. All representatives will have insurance including the proprietor.
· Property insurance $200.00 month to month.
· Business insurance $200.00 month to month.
Money Related Data
· Loan application business is offering for $80,000.00.
· Capital hardware and supply list.
With the acknowledged offer Seller will leave all apparatuses and instruments expected to work the hair salon with a one-month supply of stock.
Asset report
· The vender must have all past obligation ponied up all required funds before closing or at closing table.
Breakeven investigation
· Buyer will have an aggregate of $50,000 in real money to cover all costs for six months.
· The current business is making a benefit of $2,000 month to month.
Three-year synopsis
· Seller will give three years of money related information.
· Seller consented to give verification of every single month to month exchange inflow/outpouring.
· Seller will likewise give evidence of assessments paid.
Conclusion
My business technique is to purchase a current business instead of begin another business. My new hairstyling salon is a family friendly environment where the entire family can get their hair cut at a reasonable cost while not jeopardizing quality.
References
· Scarborough, N. M., Wilson, D., & Zimmerer, T. (2009). Effective small business management: An entrepreneurial approach. Upper Saddle River, N.J: Pearson Prentice Hall.
· The Advantages of Buying an Existing Business – StartupNation. (n.d.). Retrieved February 01, 2016, from
http://www.startupnation.com/articles/the-advantages-of-buying-an-existing-business/
· Advantages and Disadvantages of Sole Proprietorships. (2007, June 5). Retrieved January 31, 2016, from
http://www.nytimes.com/allbusiness/AB4113314_primary.html
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