Principles of Starting a New Business Essay
Principles of Starting a New Business
The formation of a new business is a challenging endeavor when the fundamental areas of focus in managerial incompetence, neglect, weak control systems, and insufficient capital is not mastered. Therefore, a careful analysis of the areas is needed to sufficiently evaluate the operations specifics of the new business to determine what effective measures to implement (Armstrong and Kotler, 2007). The new business with an associate to partake in a cookie gift basket provides a wonderful partnership agreement that levels the responsibility field of handing the operations.
The agreement will outline the borderline to which jurisdiction each partner will cover, in order, to present a well organized business. The new business will acquire three managers to actually supervise in the store that covers the different shifts for maximum coverage and leadership. In addition, the three management team will have a unique personality that loves the initiative of business of specializing in selling cookies. This will bridge a synergy with the actual partners/owners of the new business to achieve its quest for ultimate success.
The employees selected will be chosen by all level management personnel that will present a commitment to weed out unacceptable individuals that does not have the type of personality traits needed. Those traits are relevant to present the enjoyment of serving customer’s through-out the day and render the best customer service, in order to generate positive word of mouth. In addition, to secure a successful start of the new business certain areas of focus will be reviewed and address to provided the preferred results. Direct Action Plans To Areas of Focus For Success
Managerial Incompetence or Inexperience The partners of the new business have over several years of banking and financial experience to start the new cookie business. The partnership agreement will be stimulated to hire experienced managers that have related skills and knowledge of the industry. The directive in the partnership agreement will outline the fundamental requirements from potential managers to have a college degree, previous work experience, and professional references that will be vetted to ensure the personality is on track to the synergy of the new business.
The directive will also outline measures to ensure no failures of an incompetent manager or bad decision making that costs the new business financial harm. The measures are to begin an assessment of the situation from the manager level to identify all details of the issues. The assessment period will provide a needed communication model that provides senior management and managers to discuss the issue in a leadership environment. The outcome of the assessment phase will provide which direction to proceed in applying the next step to remedy the situation.
If the issue is with an employee, the manager will apply the correct application to address the issue with the employee. The manager will follow up with the partners to have the sufficient next step of documentation and any additional notation concerning the action taken with the employee. If the issues are with company policy that a consumer is debating to change, the partners will approve the updated policy and communicate to all staff to follow suit. The overall focus of the action plan is to streamline an orderly process that follows the channel of command aspect within the new business.
In this approach of steps, the process to involve the communication model through the resolution of the issues will eliminate the potential costly errors to the business. Neglect The objective to assure that the new business does not neglect imperative areas of focus that entails; employee satisfaction, customer service, hiring practices, and the pursuit to keeping costs down. The directive is to addressing incidents proactively by following the steps that includes; project risk management reporting, communication model, and the strategic management protocol.
The project risk management reporting will be a weekly reporting with all management personnel to identify and discuss for immediate implementation to reduce such neglect (Robbins and Coulter, 2005). The communication model will be illustrated in order to streamline the findings of the reporting for management to implement what decisions and conclusions for the best remedy. The communication model will also provide a written documentation mechanism that outlines what was covered, how the strategy plan will be implemented, and any additional criteria to roll out for employees.
Next, the follow up session is performed with management to showcase the incorporation of all prior decisions on needed corrections to accomplish the desired results. Weak Control Systems The control systems that are apart of the commitment to assure the new business a success will cover two team leaders to monitor quality management (Evans, 2007). The measures will start with routinely check points on processes that assist in identifying weak control systems. The reporting by the team leads, in which one lead for every five employees, to then address the identified weak issues to then be presented to management.
The next step for the team leads will take initiative to solve issues that can weaken the control units from quality, direct marketing to customers, to the under-performance of sales clerks in which the team lead will follow the directive to seek management for any additional assistance. Insufficient Capital The goal of the new business is to establish a winning coalition of a talented team working together to control costs that can jeopardize the capital (Scarborough and Zimmerer, 2006).
The strategic plan of action is to develop and sustain an internal cash management system from the senior management level to the managers. The most known factors for business failure are due to insufficient cash flow and poor cash management creates insufficient capital (Wild, Wild, and Han, 2006). Therefore, the internal system to manage and identify the cash flows and balance sheets of the new business that will be one of the main objectives to cover in the weekly communication model.
The next measure is for the management to use the weekly review and within 48hours access any improvements to keep amounts of capitol in balance – that guarantees a financial stable business. Distinguish the differences between the major forms of business organizations and be able to know and identify the characteristics of each. There are three main forms of business organizations that an individual or group can formulate, in which offers many different aspects. The sole proprietorship is an easy start up, profit incentive, and total decision-making authority.
The partnership organization is also easy to establish with more than one individual, division of profits, and much larger pool of capital for the business. The corporation organization can be a limited liability of stock holders, ability to attract more capitol, and transferable ownership that offers a wide range of possibilties for expansion. The decision to go into business stems from the objective on how it will be proceed to run the operation in the desired form of a business organization.
University/College: University of California
Type of paper: Thesis/Dissertation Chapter
Date: 8 November 2016
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