Unit 8 Starting a Small Business

UNIT 8 Starting a small
business

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Report the initial business idea using relevant criteria..........................................................1
1.2 Describe how to identify the target market...........................................................................1
2.1 Describe the skills needed to run the business successfully.................................................2
2.2 Identify the area that may require personal development.....................................................2
3.1 Describe the legal and financial aspects that will affect the start-up of the business...........3
4.1 Produce a proposal containing the essential information for the start-up of a business......4
CONCLUSION................................................................................................................................4
.........................................................................................................................................................5
REFRENCES..............................................................................................................................5
Books and Journals ....................................................................................................................5

INTRODUCTION
Small business are independently owned and operated business whose owner
independently control the operation and make decision. Further a small business employees are
fewer than 100 workers (Diaz-Briquets, 2019). They can be classified according their methods,
such as annual revenues, shipments, sales, assets or by annual profit. Small business provide
various services such as retail operation which include convenience store, small grocery stores,
bakeries and small scale manufacturing. This project is about opening a new business which is
sports shoes for young people. It explain detail information about new business idea and also
describe about how to find out target market. At last it covers about the basic skills which are
required to operate a successful business venture.
1.1 Report the initial business idea using relevant criteria
A business idea is a concept that can be used for financial gain by providing quality
services to the target audience. A new idea is based on the pyramid when it comes to the
business as a whole. The ability to come up with new business idea can be transformed into new
business idea where it is supported with investors and funding sources. Here the new business
idea is sports shoes for young people. The unique feature of this shoes is that it company is
using advance gel and air midsole technology which provide comfort and reduce the impact of
footsteps. In this modern world, people have become more health conscious where the company
have come up with new idea where they can provide comfort with health.
In shoe industry there is vast amount of competition as there are big players in shoe such
as Puma, Reebok and Adidas. There are some external force such as technology and legal factor
which may effect the profitability and growth of the company. So organization must follow all
the rules and regulation which help in generating goodwill and market share.
1.2 Describe how to identify the target market
To for identifying the target market company must figure out that who are the customers
and what they are looking for. As in this case company is launching sports shoes for advance gel
technology so company must target those audience who are conscious about their health.
Company should do proper research and market surveys to know the current trends and their
taste and preferences. Company musty also take feedback from customers so it will help in
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identifying the flaw and can make changes if required in shoe. Organization must keep track of
competition and make changes in order to satisfy the needs and wants of customers.
2.1 Describe the skills needed to run the business successfully
Many entrepreneur believes that to become successful experience and firm determination
is required. However entrepreneur develop a certain skills which help them to reach their desired
goals. Company must need nerve and patience to launch and run a new business. Here are some
skills which is required in to carry out business successfully.
Communication skills: It is important to be good communicator for entrepreneur.
Healthy communication with employees, investors, customers, creditors and mentors will help in
developing goodwill in the market (Colombelli and Quatraro, 2019). For new shoes company
marketing team should have effective written and verbal communication skills will help in
building good working relation with customers. This help to create larger customers base as
communication help in attracting more and more customers. It also leads towards profitability
and expansion.
Relationship Building: Having more friends and mutual relationship help in providing
potential for new opportunities in future. Company employees and managers must be active
within the community and collaborates with other business as much as possible. For the new
shoe company must maintain the relationship with customers and suppliers to gain more satisfied
customers.
Technical skills: These skills are refers to knowledge to accomplish the desired goal.
Company HR must hire employees who have technical skills which help organization to
analysing the market activities to buy and sell stocks and other financial instruments. It also help
company to figure out financial activities which are designed to understand the market
effectively.
2.2 Identify the area that may require personal development
To be successful individual must know there strength and weakness for self awareness
and it will help in cultivating the habit of reflection. Being aware about area improvement
provide path to gain success in a right manner. Here are the strentght of thee company explain
down below:
Strength:
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The company have innovate idea that they are launching shoes for young people with advance
gel technology which bring out the comfort. Company is also thinking to build AI system to
track the footsteps of person. This can be consider as strength for the company on which they can
sell the product.
Weakness:
The weakness of the company is that they are less organise as they are launching new
business. Company are not aware of standard of quality due to many players in shoe industry are
SME. As they are operating at small level and they sister establishment which lack in testing,
designing and technicals services.
3.1 Describe the legal and financial aspects that will affect the start-up of the business
The legal as well as financial aspect are important as they decide the growth and
profitably of the company. Rules and regulation must be followed by the organization to avoid
the risk and uncertainty in future. Here are some legal aspect regarding start ups:
Health and safety law: It is important for a company to make sure that company make
sure that all the safety norms must be use for making shoes. HR must avail all the safety
equipment like mask, gloves to workers to avoid risk while making product.
Licensing: A licensing is a permission from the authority to own product or to carry out
trade. For the new shoe company management must take license from the state body to operate
business in a ethical manner.
Financial aspect :
Start up cost: The start-up cost is the cost which incurred by initiating new business fro,
scratch. For opening new shoes company at small scale requires 10000 pounds at a initial stage
to run business smoothly.
Operational cost: This is the cost which occur while making the product for customers.
Company must make sure that employees use resources effectively to not increase the price of
the product which help in gaining larger market share and profit.
Cash flow: This help in creating the value for the company as well as for shareholders.
For shoe company, finance department should generate positive cash flow, with help in creating
long term profit for organization.
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4.1 Produce a proposal containing the essential information for the start-up of a business
Executive summary: In this report company is launching new sports shoe for young
people who are althelites. They have come with new advance gel and air midsole technology to
provide comfort to people.
Business type: This is an footwear and fashion industry which provide quality shoes for
their customers (Alsos, and et. al., 2019). They understand the requirements of individual and
make product which help in satisfying the comfort of consumers.
Product and service: The company is dealing at small level and provide innovative
shoes with improve gel and midsole features to create comfort for people while running. The
company is also using AI feature to keep the track of steps while running.
Funding: Company cab avail funds from different investors such as bank and angel
investors. Company need around 10000 pounds at initial stage to start a business.
CONCLUSION
From the above mentioned report it has been concluded that small business required
unique idea for fulfilling the demand of the customers and also help in gaining competitive
advantages in market. For new business company must develop business plan which help in
making effective decision for expansion and growth in future.
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REFRENCES
Books and Journals
Alsos, and et. al., 2019. Effectual exchange: from entrepreneurship to the disciplines and
beyond. Small Business Economics, pp.1-15.
Colombelli, A. and Quatraro, F., 2019. Green start-ups and local knowledge spillovers from
clean and dirty technologies. Small Business Economics, 52(4), pp.773-792.
Diaz-Briquets, S., 2019. Migration, remittances, and small business development: Mexico and
Caribbean basin countries. Routledge.
Donckels, R. and Miettinen, A., 2019. Entrepreneurship and SME research: on its way to the
next millennium. Routledge.
Drofiak, A. and Garnsey, E., 2019. The Cambridge High Tech Cluster: resilience and response to
cyclical trends.
Heyman, F., Norbäck, P.J., Persson, L. and Andersson, F., 2019. Has the Swedish business sector
become more entrepreneurial than the US business sector?. Research Policy, 48(7),
pp.1809-1822.
Marzocchi, C., Kitagawa, F. and Sánchez-Barrioluengo, M., 2019. Evolving missions and
university entrepreneurship: academic spin-offs and graduate start-ups in the
entrepreneurial society. The Journal of Technology Transfer, 44(1), pp.167-188.
Van Diermen, P., 2019. Small business in Indonesia. Routledge.
Yong, K. and Hassan, R.A., 2019. The Relationships Between Social Media Marketing and
Entrepreneurial Success: A Conceptual Study on Homestay Business in Sabah,
Malaysia. Review of Integrative Business and Economics Research, 8, pp.25-33.
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