|Type of paper:||Research paper|
|Categories:||Strategic management Business plan Business strategy|
A small business needs a strategy to grow and also have a better chance of achieving success. The business owner needs a plan that will enable the management of the business, how to take care of the financial issues, and also how to create a good marketing strategy of the work that will be beneficial. Six strategies are listed as the key for small businesses (Hayek, 2016) which are; (a) investing in the market, (b) focusing on the current customers, (c) hiring and firing employees according to the values, purposes, and missions of the business, (d) investing enough time far from the business, (e) boosting the email of the market and (f) having passion towards the company. With these elements, the business should be able to pick and grow successfully.
Challenges of Managing a Small Enterprise
According to the national federation of independent businesses, ten biggest challenges are faced by small businesses. The federation has researched from 1975 to list the ten as most significant challenges (Williamson, 2000). They are;
Every year, the government regulation rules become tighter. The government is majoring mostly in conserving the environment, and according to the clean air act of 1990, every business owner is expected to disconnect the air pollutants, which is mandatory. Vehicles are the major pollutants of the ozone layer due to the smoke they produce, and the small business owners might not have the best vehicles that will not pollute the environment and also the lack of knowledge.
Federal Income Taxes
Every business owner is expected and required to know their state tax rate to avoid the damages that may incur while paying them. The tax rate is increasing rapidly, and currently, in the United States of America, the price is 15% on every fifty thousand dollars, which might be very high for small business owners (Taneja et al., 2016).
It is very challenging to manage the health care of employees in a small enterprise. As much as healthcare is essential for employees, it is costly, and the business covers it.
Record-keeping regulations might be costly for a small business, and it is very infuriating for owners who do not like bookkeeping.
The outcome of the economy is not well known by anybody. A small business needs to be protected in case of major purchases in order not to make unwanted risks.
A startup business owner should be very passionate about whatever they are selling and dedicate enough time to it. Sometimes the sales might be frustrating or take longer, but with passion and patient, the business will succeed.
Every owner of a business should have a clear track of their finances. Most of the small companies have the problem of keeping track of their flow of money, the money that is in use, and the money that is received.
Hiring of New Workers
The cost of hiring goes high every time, making it a problem for small businesses. Small business needs employees, and the costly process in very challenging.
Quality to Growth
A small business owner should have standard systems in place in order not to go short on demands when the business booms. The quality should be maintained at all costs to sustain the business.
A business owner should not depend on a few customers who get almost half of the supply. Sweeter deals should be cut to other small scale clients as well as enlarging the client base to stay afloat in case the significant customers decide to leave.
Features that all Successful Small Companies Sharron Suggest
- They are risk-takers; they are supposed to take risks in investing in what they see profitable.
- Have focus; they should have goals that they are looking forward to achieving
- Have the success drive in them; they should always be at work and thinking on ways to elevate the business
- Should be able to separate family and work; one should be able to have a plan of working hours and family hours to work smoothly and not fail on one
- Self-reliant and self- motivated; one should be able to do everything without depending on anybody
- Be ready to ask help from the veterans and experts; one should learn from the best, should not pretend to know everything
- Invest in technology; in the century we are living at the best business are operated technologically
- Invest also in marketing; marketing us the heart of the company, good marketing helps in the growth of a business
- For a business to prospers, the owner should always listen and be open to change.
- They are enthusiastic, passionate and confident; they should be role model and inspiring to their workers
Local Business Research
Medifast is listed among the best local businesses in the USA.it is a weight loss and nutrition company that is in Baltimore, Maryland (Vargas Sandoval et al., 2019). The company uses technology and which helps them to interact with customers as it is direct to consumer type of business. The use of the reseller and franchise strategy to sell products which help in marketing (Vargas Sandoval et al., 2019). With over two-thirds of Americans being overweight, the company has a huge room to grow. The company should work on branding itself to create awareness to people and make more people know about the company and what they do. The company should also employ a multi-channel strategy where it will use a different channel to reach its consumers.
Taneja, S., Pryor, M. G., & Hayek, M. (2016). Leaping innovation barriers to small business longevity. Journal of Business Strategy.
Vargas Sandoval, O. J., Albarracin Londono, Y. A., & Navarro Madrid, N. (2019). Medifast:" Ayudamos aliviar tu dolor".
Williamson, I. O. (2000). Employer legitimacy and recruitment success in small businesses. Entrepreneurship Theory and Practice, 25(1), 27-42.
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