Small Business Are Risk A Versed

Week

Themes covered

16

Innovation is important for both new and big companies. Innovation can give different benefits to every type of company. Benefits include competitive edge, increased revenues and huge customer base. However, there is difference big and small business innovation.

In big companies, important decisions regarding innovation and creativity take time. This can be due to complex structures and cultures of such businesses. However, small companies can take quick innovation decisions. Small businesses can move faster as compared with big business concerns. Risk is associated with innovation and creativity. The management of small companies easily accept challenges and risks. On the other hand, the big companies are risk averse and make risky innovation decisions after long thinking process. Small companies have scarce resources. These resources can be human resources, monetary resources and time. Due to lack of resources, small companies may not be able to focus on costly innovation process. On the other hand, big companies earn revenues from many years and have efficient resources to handle the costly innovation processes.

Example for big companies innovation:

Apple is one of the leading brand and is highly innovative as well. The research and development of Apple is very fast.  It has changed music business model and developed iTunes and iPods. It has totally changed the nature of mobile phones by offering highly innovative iPhones.

The best example for small business innovation can be of Artesian Solutions. This company is highly innovative, develops software by using unstructured data rather than structured one and targets specific types of companies to fulfil their needs.

17

If I was starting a new business then most essential thing I would require is money or funds. There are different fund providers that can help me in starting my business. First of all, I will select the fund provider on the basis of my business strategy and idea. I will collect information that either a specific fund provider appreciates such kind of ideas or not. After selecting the fund provider I will use my communication skills to convince the manager of fund provider to provide me monetary funds. I will produce a business plan by incorporating different aspects in it including marketing factors, financial aspects, working, benefits which will be gained by customers and sustainability. I will try to start a sustainable business which will have no harmful effects on the environment and the products will be green products. I will share my ideas, thoughts, numerical estimations and benefits of my new business for community to convince the fund providers.

As per my view, Entrepreneur Interview is the interview that is conducted between entrepreneur and other person. One party in the interview must be an entrepreneur. Entrepreneur can conduct the interview him/herself for hiring the people or dealing with different stakeholders for new business start-up. It is useful in entrepreneur interview to use practical and real examples rather than just talking about ideas. For example, an interview between entrepreneur and fund provider company/person must be practical, full of analysis and practical research. The fund provider can be impressed by the entrepreneur by exchanging facts and real calculations, but, not only relying on the new business ideas and its benefits.

18

Different factors must be kept in mind by the entrepreneurbefore launching a new businesses. These factors include different types of benefits which can be gained by the customers out of business. Benefits can be standard benefits, company benefits as well as differential benefits. A specific and useful strategy is also required in launch of business. The strategy must be effective, useful and capable to earn revenues for business. Money, assets, resources are required in launch of a new business. Different sources of funding can be availed by entrepreneur including saving, equity, loan.

It is highly useful to make an effective Entrepreneurial Marketing Plan and then making it successful because it can lead towards attainment of goals and objectives. This plan can be made successful by focusing on effective strategy, planning, monitoring and control.

19

It is highly useful for the entrepreneur business concerns to focus on that strategy which can lead towards growth and development. Growth and development is not easy and entrepreneurs can face different issues regarding Growth. There is huge risk associated with new products and new markets. When both the product and market are new then the growth risk is highest. Risk is also high in case of launch of new product in the same market. There is a risk that either the new product will be successful in the new market or not. The growth of same product in new market is also not certain. If a product is offered in the new market then there are risks/uncertainties that either new product will attract customers or not. Growth can also be effected due to strategy adopted by the business. Most effective strategy must be selected so that new business or product can grow in the market.

Family firms are highly useful way of doing business. A firm can be considered as a family firm if its members are linked with each other thorough blood relations or marriage. If a husband and wife are running a business concern then it is considered as a family firm. In family firm, characteristics like flexibility of work time, family culture, understanding, stability, long term planning, quick decision making, emotional attachment with firm, caring attitude, loyalty are present. The responsibilities of the members in family firms are carefully managed and delegated. The owner personally knows each and every member, about their strengths and weaknesses. Thus, he/she can easily delegate tasks to the members which they can easily manage. The business culture in family firms is similar with the family culture. The working environment is highly flexible and members comfortably work in the family firm. In family firms, entrepreneur interviews are informal and least important.

20

Family firms are highly useful way of doing business. A firm can be considered as a family firm if its members are linked with each other thorough blood relations or marriage. If a husband and wife are running a business concern then it is considered as a family firm. In family firm, characteristics like flexibility of work time, family culture, understanding, stability, long term planning, quick decision making, emotional attachment with firm, caring attitude, loyalty are present. The responsibilities of the members in family firms are carefully managed and delegated. The owner personally knows each and every member, about their strengths and weaknesses. Thus, he/she can easily delegate tasks to the members which they can easily manage. The business culture in family firms is similar with the family culture. The working environment is highly flexible and members comfortably work in the family firm. In family firms, entrepreneur interviews are informal and least important.

21

Family firms are highly useful way of doing business. But due to presence of several factors these firms may fail also. The reasons behind the failure of family firms can be maturity of the business, age of business, poor management, external factors (economic, social, political, environmental or legal), non-availability of resources, lack of skilled workforce, intense competition, poor strategies, check and balance. I can cope up with the issues or causes of failure of family firms by using my managerial skills. It is time to change the strategy for family business. Certain changes are required and training should be provided to the workforce to make the business successful. If location is the cause of failure then firm must be shifted to another location, where it can attract more customers. The external factors cannot be controlled by these can be managed by improving internal strengths and availing opportunities. Improvement in products and processes can be done to cope up with the issues. I can focus on product or process innovation for success of family firm. I can meet fund providers for getting funds and resources for running the business. I can use my personal saving to solve the issues regarding lack of resources.

22

Yes, I think am capable to lead the team. The basic requirements for leading a team are present in my personality. I have a charismatic personality and people easily get influenced by me. I possess managerial skills, time management skills, communication skills. I can lead a team and delegate tasks to the members and coordinate with them on regular basis by using coordination skills. I am a good problem solver, can easily manage the issues/difficulties of subordinates. By focusing on conflict management strategies, I can easily resolve the issues among subordinates. I will try to keep the team towards success and achievement of the objectives.

It is highly useful to focus on the Entrepreneurial Marketing Plan to make the entire business successful. Marketing is the main section of any business concern, helpful in attracting the customers and earning revenues for the business concern. If the marketing plans become successful then there are high chances of business success. Time is an important resource and must be effectively managed for success of marketing plan. The steps in marketing plan including SWOT analysis, allocation of resources, customer research, forecasting, competitor’s analysis, financial planning and marketing strategy must be designed on the basis of ultimate marketing objectives. Proper check and balance must be there for making the marketing plan successful. Another factor which is highly useful for the marketing management is that it should design objectives parallel to the strategic aims/objectives of business concern. There must be a link between strategic business objectives and marketing objectives for making the marketing plan successful.