Business Ideas for New Entrepreneurs - MyAssignmenthelp.com

Question: Discuss about theBusiness Ideasfor New Entrepreneurs and General Competition. Answer: Introduction Coming up with a business idea is quite a task for an individual seeking to be an entrepreneur. With the current increase in the ratio of children to the old age, I took this as an advantage and utilized it in my business idea. However, the main challenge after realizing the idea, comes the implementation part. The current business structure we are in, business activities have been recorded to experience a major challenge when it comes to new entrepreneurs and general competition in the available consumer market (Matt, 2013). Through the research and analysis that I made in my home town, I believe this will kick off to major profits and even give back to investors. Marketing Plan This is an idea that cant be undertaken single handed as it comes with its potential challenges (Andy, 2011). My winning factor is to make sure the children in my society can access this kind of entertainment whenever and wherever. This would be a physical shop to purchase toys and also available are toys to pay and play with. Later on, I plan to introduce an online shop where I would be able to attract a bigger market. The market research group came up with an analysis that with this type of business, competition will be low as this idea has never been implemented by any business individuals before around my town with a major population being kids. Being a new idea, it is safe to say that it will take time for this idea to get its popularity as it will be the first time that I will be introducing the idea to this market. With time, the market structure will catch up (Kevin, 2010). A strategic way that I consider to use in marketing of my services is through media or the current soci al media networks. Having in mind that this business is meant to target the town am located in, using the current medias may tend to be the appropriate way to go by. As a marketing strategy, I also consider using customer satisfaction as ways of marketing our services. Customers are believed to be a good source of marketing means. Upon offering good services to one customer they tend to influence other people into using the services. With the above knowledge we have put in mind all the 4 Ps of marketing in mind that is price, place, product and promotion in place Im certain this product would sell. Competitive Advantages Being the first business idea to be implemented in the located geographical area, it has its wide range of advantages. With no other business to compete with, the customers available will rely on the services I will offer at all times. One of our main strategy is to offer quality customer service satisfaction and its availability at all times, with focus to create a good image picture of our services to our customers (Rashi, 2014). Increase in range of my services will not only affect the children as my targeted customers but also to the youths and adults as well. However, some of the fortunate kids are able to afford the improved toys for their own home use. I consider this too as a factor, and try to make the unfortunate ones feels comfortable with my services(Daryl, 2012). Financial Plan Looking to have a great business plan, first and foremost I have to organize a proper financial budget that will facilitate the smooth running of the business. Successful running of this business will lead to creation of more employment opportunities and also increased profits. General capital outline of the business is about $ 80,000.This will cater for the rental fee, the buying of the gaming systems and also the paying of the workers for the first months. Based on the current market structure, I target to a finance projection of about $120,000 in sales for the six months. Later, strategies on a projection of 20% increase in sales in every year for at about the first three years. Looking at a monthly salary of about $200 to employee, I am looking forward to work with about four customers care services providers. On my first start up, the few selected workers will go through training on the services and more staff will be added though out the year once our financial state will be secured (Terry, 2014). However, this success may only be possible if potential investors are involved. Owning half of the amount needed to start the business it is not yet enough to implement on the idea. 70- 30 % agreement in any profit gained to be distributed (Ken, 2013). The budget of a business idea that is in its early stage is mostly based on estimation. Financial ratios help an investor to make an informed decision by identifying the business strengths and weakness. Its critical to give a detailed report on the major expenditure thats been made on the long term assets. An investor would definitely want to understand whether the business they are venturing into in is; profitable, liquid and stable in the long run. Below I will have a few to explain my plan and hopefully get an investor willing to support the idea. Assets 50000 Liabilities 4000 Sales 20000 After tax Profit 10000 Expenses Rental fee for 1 month 2000 Salaries 1000 Ratios ASSET TURNOVER RATIO Its calculated when we divide net sales by average total assets. 50000/20000=2.5 This means for every dollar in the assets I will generate 2.5 and thus Im very efficient with the use of my assets. WORKING CAPITAL RATIOS This ratio assess the health of the company for an investor to understand its liquidity to cater for short term obligations Its achieved by dividing current assets by current liabilities 50000/4000=12.5 The above clearly indicates that this business idea can pay for its obligation any day any time. NET PROFIT MARGIN/RETURN ON SALES RATIO Its calculated by dividing net profit after tax by net sales 10000/20000=0.5 This typically shows the profit made by each sale measuring the sales retained by the company after expenses and taxes. Debt Ratio This ratio measures the financial leverage of the company/business. A business with higher liabilities than assets is considered risky to indulge in. This is a solvency ratio and the lower the ratio the better since it implies that the business is stable. Its acquired dividing total liabilities by total assets. 4000/50000=0.08 This ratio is relatively low and implies that I can easily repay any loan and I shouldnt be disapproved incase i need of one. Organizational Plan One of the critical things in an organizational plan is recruitment, it is important to note that the employment act will be adhered to by the hiring agency. Presence of an organization structure this business company is significant in defining how the activities are to be directed towards achieving of the business goals (Joyce, 2011). These activities present in my organization include, supervision of the work done by the staffs, coordination of the company' activities and also allocation of duties to its workers. Successful running this business, my organization group needs to be effective in its doings, flexible in its services and also innovative in its ideas in order for them to be at a much better advantage in their competition. Being the owner of the business, I will be the one in charge of its running. All the roles performed by managers in an organization, I will be the one in charge of implementing them. Investors play a role in the managerial position of the business as well. They have equal advantages as I have. They are entitled to provide any useful information that might assist me in the business success. In case of any challenge occurred, we are both entitled to experience them together. Staff members are important as one cannot be able to control and ensure that customer's need is satisfied, all by himself. Since it is a new business, strategies are focused on attaining full profit of the business before thinking of opening another branch to offer the same services. Conclusion An overview, the essay summarizes an exam of a business idea that yet to be implemented. Focusing on the major factors I have to consider before starting my own business which includes; financial records, organizational plan and the marketing strategy, of a business. Its key to note that for a business to be successful an investor is not only supposed to look at the financial ratio but also the location and regional differences. References Andy, B., (2011). The Idea Hunter: How to Find the Best Ideas and Make them Happen. London: John Wiley and Sons. Daryl, B., (2012). Better Than a Lemonade Stand. Simon and Schuster. Joyce, S., (2011). Business Ideas to make a Million Dollars. Trafford Publishing. Ken, L., (2013). The 100 Greatest Ideas for Building the Business of your dreams. Infinite Ideas. Kevin, D., (2010). Business Greatest Hits. Aamp; C Black. Matt, K., (2013). Creating New Business Ideas and Opportunities. Lulu.Com. Rashi, G., (2014). Money Making Business Ideas. Niir Project Consultancy Services. Terry, K., (2008). Small business Ideas. Terry Kyle.