Opening Small Private Business
Introduction
Businesses today operate in a highly volatile environment governed by various macro environmental factors. They need to continuously assess their relative position and identify the existing problem areas and opportunities which need to be addressed to sustain themselves competitively in the market. Currently, business managers in the private sector have been unable to exploit all the possibilities in the market environment. As a manager, one should identify these opportunities and do an analysis of their returns once invested into a sole trader. The objective of this research is to explore the key reasons behind the failure to exploit the available business opportunities, and thereby solve the problem by eradicating the hindering factors as well as using these viable business opportunities available to private and small businesses.
Establishing business strategies
For a plan of activities to succeed managers need to create viable business strategies so as to enhance the effectiveness of the set objectives. These policies define the approach to industry’s tactics and plans adopted to attract customers and achieve the set goals (W.D, 2009). In this business plan, the strategies guiding its operation include;
Pricing strategies- which need to be fair so as to attract customers and at the same time profitable to the trader. For example; Different categories of rabbits and their size should be priced differently in accordance to customers’ needs.
Product differentiation/ high brand formation strategies- this involves highlighting products superior features, styling, heritage, and pedigree. In our business plan, our products layout and design will be a user-friendly and cutting edge in the eyes of the clients so as to attract and retain users.
Marketing strategy.
Providing a high level of personalized service, this will be entirely different, unique and distinct from any other traders irrespective of their localities.
Brand recognition strategy- management of the business will build strong brand recognition and leverage the brand services so as to promote public relations, brand visibility and high standards of marketing techniques. In this project, the business will have a variety of rabbits classified well to suit customers’ needs.
Technological strategy- the management of small businesses should look forward to gaining a technical advantage over the large and well-established firms. These calls for deep research on the right technologies to be used and once adopted develop strategies for preventing competitors from gaining the same advantage (htt).
Selection of the project
Plans refer to the evaluation of capital and all resources necessary to achieve time-specific goals. For a business to be successful, managers must use projects. In this business, the management will open a small scale business of keeping rabbits. Currently, the keeping of rabbits is a business opportunity that has been overlooked by entrepreneurs despite the significant returns realized from investing capital in it. Choosing this project has been guided by passion, its promising returns in the foreseeable future, impressing information from the website and the closeness that exists between the business people to customers (Brewer, 2006). Venturing in this business will sound unique and different from other forms of activities, it guarantees less competition and thus the most viable business opportunity in the market.
Planning the project and its phases
A project plan is the key determiner to a successful business project and is the most important document that needs to be created when starting any project. It is very formal and made to control the execution of the project designed by a manager. A business plan follows phases as outlined below:
Phase 1: Identification of the risks
The business planning process starts with the identification of risks. This involves conducting of risk assessment, identifying potential hazards and perils that could disrupt the keeping of rabbits, consideration of any risk that managers imagine of including natural, human, and technical threats. For example; in this project, the risks involved may include theft.
Phase 2: Analyzes of the risks faced.
This step will involve performing a business impact analysis to gauge the impacts that will be caused by each of the potential threat. For every risk, determine the severity it will change the business operation in the long run. Managers should after in-depth analyzes consider what is necessary for recovery and how quickly these actions need to be taken.
Phase 3: Designing of strategies.
This step involves formulating strategies to mitigate risks and to recover steadily from the interruptions. Managers will be required to consider all requirements vital to protect the workers, all assets, and all functions taken towards the realization of the firm’s goals. Practitioners should, therefore, start comparing the current capabilities from information obtained on the website, and commence deciding on how to fill the gap. For example, recruiting of security officers to guard the business house, this is a good strategy to deter theft cases.
Phase 4: plan development and execution.
This involves the time to create a precise well organized and easy to follow documents. Managers are required to consider every person that will use the plan and document it in a way that will be more useful when the business is on the verge of failure. Then, the plan should be published, socialized and transferred to the staff that shall use it.
Phase 5: measuring business success by testing.
For a plan to qualify to be a plan, it has to be thoroughly tested. Managers carry tests ranging from a checklist, a walkthrough performed by them or the team working with them as if there were actual event emergency evacuation drills, and when ready a full recovery simulation test is carried. After each step, practitioners should make the necessary modifications in the business plan to keep it current.
Designing the project
This involves learning basic principles of animal science by owning, caring for, and keeping a proper record of the rabbits. Managers must design a slogan that they will use while marketing for their rabbits. To create a good project, practitioners must explore the knowledge of sound breeding, feeding, and management practices; investigate marketing and project expansion. Basically, of importance, managers are required to learn different breeds, varieties, and ideal weights of the rabbits, determine the use of the rabbit project, develop a rabbit care plan, learn proper feeding, identify rabbit equipment and uses, locate and name all the body parts of a rabbit, and learn about rabbit breeding programs before venturing into the business. Some examples of rabbit varieties include Californian white, hotot, harlequin, cinnamon among others. Another important aspect when designing the rabbit project is understanding their feeding programs and nutrition as argued by (Cheeke, 1987). The project eventually might bring together, successful principal farmers from various areas to establish a network that holds regular meetings to discuss rabbit project development issues and to reinforce individual leadership abilities through sharing project related experiences (Abrantes, 2008).
Obtaining permission from government agencies
Starting a business operation is subject to regulatory requirements that may involve several state agencies. Although most common permits are mentioned in the relevant document, it is always advisable for a firm to contact the State Information Center at 317-233-0800, 800-45-STATE to discuss the most current requirements for any business individual. A crucial decision must be made, for example; the types of business structure that will best suit the owner business goals. This determines what should be done to form officially the entity, how tax laws are spelled and how taxes are paid, and many details that will affect the day to day operations of the business. To start a rabbit firm, guided by the primary goals of the meat supply, research, pets, show, and pets, the market vendor is required to obtain permission from the relevant wildlife authorities so as to keep the rabbits domestically. These requirements include licensing that gives him the right to run the business, insurance policies that secure his operations, and issue a public notice of the proposal.
To build a business site, you must obtain planning permission from the local authorities before starting the construction. The law requires that one need a planning permission that is well surveyed; this ensures significant development that avoids risks and penalties on the part of the businessperson.
Budgeting the phases and time durations
Every business project must have a budget that is well spelled in the plan of activities. In the context of management, the purpose of budgeting is to give a forecast of incomes and expenditures, tool for decision making and a means to monitor business performance. Different decisions are made at each stage of the budget process. A budget involves four phases, in this project, each step has its goals and time durations allocated to it.
Stage 1: Budget formulation
The manager formulates the draft budget based on the current economic conditions. There is a need to have supporting reports on what is formulated. For example; knowing the number of rabbits of different breeds to be kept, their cost from a reliable supplier and the returns expected from the decision made. For the sake of buildings, the cost of contractor should be put into consideration. This phase is projected to take a period of 3-4 months. Ensure that the budget estimates all the expenses expected to be incurred. Selection of best breeds is necessary as argued by (Clutton-Brock, 2009).
Stage 2: Budget approval
The legislative authorities are entitled to review the budget and once they find it viable, enact it into operation. This is guided by budget laws, reports and legislative budget committees. The budget must be reasonably cost effective. For example, selection of a contractor needs proper decision making so as to minimize the costs of operations. Budget approval should take a period of between 2-4months.
Stage 3: Budget executions
The management uses the available money as per allocations made in the budget law. For example; in the case of renovating the business house, there is a need to contract different contractors to know what services they offer and at what cost. Contractor 1: offers building services but at a high expenditure. Contractor 2: provides the same services at a moderately cost, while contractor 3: offers all services provided by contractor 1 and two at a cheaper cost and beyond that he has provided his academic qualification credentials. The management should contract contractor 3. two months are enough for the execution of the budget proposed.
Stage 4: Budget oversight
The budget accounts will always audit, and audit findings are reviewed by the legislature which requires actions to be taken to execute the correct audit findings. This phase requires time duration of 6 months. After all the requirements are met, the budget should be put under use by the management and work towards achieving the business goals.
Hiring workers
For small business owners, when starting the business need to be guided by tips to help them attract, screen and hire the right person for the job. This begins by defining the position and skills required for the job. According to (Joe Kennedy), too many times when a small business owner hires, he expects the new employee to shoulder everything that is not being done currently. “The Small Business Owner’s Manual”. Fred Steigold argues that small businesses are free to look at less traditional solutions when it comes to recruiting. This company needs a few numbers of workers since it is not very large, the number of recruits must be in line with the projected budget.
Another option is an independent contractor. If managers need occasional help, for example in bookkeeping, they may be able to hire some third part to handle duties from time to time as an independent contractor. This is cheaper since the contractor is paid only when needed, the practitioner does not have to add another person to the payroll. In a case of renovations in the business, masons are required to do the repairs; this only happens rarely. The process of recruitment should be continuous as per the technology advancements so as to be better off in the competitive market.
Execution of the plan
Every strategic plan requires implementation or execution components. Business managers should create a culture of the application by developing and reinforcing behaviors that affect culture. They can lay out key decisions, actions and capabilities needed for successful execution, support the model and execute the plan with sufficient incentives and controls, create structures and processes that support desired strategic and operating objectives, and manage performance as a change process in which agreement and commitment are sought and rewarded. The plan must lay out clearly critical decisions and actions required for making the strategy work. The interrelations among the factors must be well spelled and understood.
Perform time management program.
Time management program describes each of the time management procedures step by step explaining how to use schedule appropriately and time management record as and when spent.
Perform cost management.
The project cost management process steps a manager through the process, to ensure that all of the expenses of the project are accurately recorded and tracked. It helps in monitoring and reporting all the costs within the course of the project period.
Perform quality management.
This helps managers to improve the quality of team deliverables. It also helps in implementing a Quality Assurance Process, which boosts confidence in the quality outputs.
Performing risk monitoring.
Risk control entails identification, monitoring, and the resolutions taken to ensure successful completion of the project. Part of managing a project during the execution phase is to have an established risk management process.
Acceptance management.
This entails performance monitoring and issue controls as per the projects status. It involves implementing an execution plan to measure the actual performance as compared to the standard results. The real project schedule will need periodic reviews and comparisons to baseline intend to ascertain the effects it has on the rabbit business thereby take the necessary remedial actions. While the project manager is responsible for relaying the project status to the project team, the team is also expected to communicate back to the manager their findings.
Execution of the project plan
This ensures that the project activities are carried out in an effective and efficient way while ensuring that measurements against project plans, specifications, and the original project feasibility concept can be collected, analyzed, and acted upon throughout the project life cycle. It is also critical during the execution phase that managers support and monitor implementation of other relevant projects plans such as risk plans, communication plans, and procurement through daily interactions with the customers targeted and the project managers.
Contact management
A project communication plan is essential in the execution phase. The primary responsibility of project manager during the execution is keeping the stakeholders informed of the project status. Joint project reviews are an important way to bring visibility to all areas of the project. They offer a chance to discuss important issues and make managerial decisions on the project with input from several sources.
Risk status reporting
Another important aspect in the execution phase is status reporting whereby the project team, stakeholders, and managers should stay informed about the progress and the main activities required to successfully complete the project. The status report template should be used to communicate key information including:
- Current situation in the market
- Significant accomplishments for the period.
- Schedule of all activities done.
- Issues arising during the period.
Along with the status report form, the following may also be attached;
- Resolutions to assigned action items,
- Corrective action plans for expected problems
- Resolutions to assigned action items.
Post project evaluation review
This is an assessment of the projects results, activities, and processes that allow a manager to recognize the project achievements identify the techniques that worked and those who failed and ensured that those methods which worked are used in the future, and those who never worked are avoided in other projects to be done.
During the start of the project, the primary objective was to keep rabbits in large numbers for commercial activities. This was to entail meat production, enhance research, pets, shows and for pelts. This was driven by the fact that besides its economic value and viability, many entrepreneurs had failed to exploit the opportunity.
In the organizing and preparing of the project, all the team members were aware that the project will need a post evaluation review before it is put in use. Members kept records of issues, problems and successes throughout their project involvement in handwritten form. Findings should be filed for references when using the projects results to analyze another potential market opportunity in the future.
At the end of the project, surveying the key stakeholders like customers and members of the public to determine how they feel about the project. Whether the project addressed their needs and their assessments on the team and the project manager. The manager, therefore, should obtain a final list that shows all labor hours taken and a schedule report of the project.
Conclusion
In conclusion, young entrepreneurs should identify business opportunities in the market that the current practitioners have been unable to exploit and venture in them. There are many profitable business opportunities in the external business environment which need to be fully utilized. Creativity and innovativeness of viable ideas need to be encouraged, and all the necessary resources are offered to transform these ideas into opportunities. This is easy since starting small private enterprises requires less capital and a few legal formalities. Good examples of business opportunities include; starting of the carwash, weight reducing activities, keeping of rabbits and pottery, the supply of daily used commodities to clients’ homes among many others. People need to be educated on the importance of being creative so that the spirit of commitment is promoted while avoiding idleness and the high unemployment levels. This will motivate people to start small private businesses and thus help the economy of a nation grow. This is the high time for the young entrepreneurs to awaken up and transform their business ideas into reality by venturing in small business operations. This will, in turn, impact a lot in the gross domestic product of a nation, wealth of a nation and on the economic progress of a country as well as building a persona income. The government should support small businesses with subsidies, financial incentives, and tax exemptions so as to encourage the growth of small industries. Managers of small businesses should not overlook the keeping of rabbits businesses since its returns are high and guarantee the future expansion of earnings. Rabbits are prolific in nature, and their meat is highly recommended for medical purposes. If ventured into, this business can give high returns even to attract more businesspeople in it who realize the secret behind rabbit business.
References
- Abrantes, J. e. (2008). Genetic Characteristics of Rabbits. International Journal of Immunogenetics, 111-117.
- Brewer, N. (2006). Biology of Rabbits. Journal of The American Association for Laboratory Science, 8-24.
- Cheeke, P. (1987). Rabbit Feeding and Nutrition. Floride: Academic Press.
- Clutton-Brock, T. K. (2009). Female Mate Choice In Mammals. The Quarterly Review, 3-27.
- W.D, W. (2009). Retrieved from http://history.nasa.gov/apllfj/14days5-landing-htm