Small Business Management Case Study: Analysis and Recommendations

This assignment presents a case study involving Frank Rainsford and his son, Robert, focusing on the decision of whether to open a new restaurant or invest in the existing family business. Robert, with a marketing degree and experience in web development, proposes a new restaurant venture, but his father, Frank, who has decades of experience building his current restaurant, has reservations about the financial risks and the challenges of building a new customer base. The analysis emphasizes the importance of leveraging existing customer relationships, conducting market research, and adapting to market trends. The solution suggests Robert focus on enhancing his father's business, utilizing his skills to improve marketing, diversify the product offerings, and stay competitive. The case highlights the benefits of a partnership, emphasizing the need for continuous business updates to retain and attract customers. The assignment provides an opportunity to evaluate business strategies, risk management, and the significance of experience in the small business context.

Running head: SMALL BUSINESS MANAGEMENT
Small Business Management
Name of the Student:
Name of the University:
Author’s Note
Course ID:

1SMALL BUSINESS MANAGEMENT
Table of Contents
Answer to Question 5:.....................................................................................................................2
References:......................................................................................................................................3

2SMALL BUSINESS MANAGEMENT
Answer to Question 5:
Investing in one organisation is better rather than to invest in multiple organisations.
Since an individual has limited timeframe, it is crucial for that individual to use the time to
optimal level. Frank has spent almost half of his life in forming his own restaurant. The person
has experience of more than 30 years in the profession, which has increased his knowledge base
of the customers. If a new restaurant is planned to be initiated, it needs new market research,
costly investment and increased risk of financial loss (Hatten 2015).
Hence, instead of starting a new restaurant, Robert needs to go with his father’s
restaurant. Moreover, it is not feasible to incur time in market research and advertising, when
there is a readymade alternative available to him. Instead, Robert could use his skills in his
father’s business to enhance its image and keep it in line with the market trend. Robert needs to
study his existing customers effectively and initiatives are to be undertaken for diversifying the
business further into the market. Therefore, by partnering with his father, Robert needs to make
efforts for updating business continuously so that old customers could be retained and new
customers could be drawn in numbers. Moreover, Robert could think of adding some new
products to the business that would add more revenues to the fund resulting in a new business
perspective (Scarborough 2016). Moreover, Robert could conduct research regarding the
products and prices of the competitors for making their products the best in the market. Finally,
Robert is required to use his marketing skills to the utmost level for making his father’s
restaurant a successful business, since he would always receive support from his father to
become successful in his career. In this way, Robert could minimise the concern of his father.

3SMALL BUSINESS MANAGEMENT
References:
Hatten, T.S., 2015. Small business management: Entrepreneurship and beyond. Nelson
Education.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.