Strategies for Success for a Small Company Term Paper
- Length: 5 pages
- Sources: 5
- Subject: Business
- Type: Term Paper
- Paper: #73664128
Excerpt from Term Paper :
Small Business Growth
Achieving the desired organizational growth is a dream most organizations aspire to realize. Organizational growth entails an increase in the total productivity, sustainability, and competitiveness in the marketplace. Organizational behaviors such as the adoption of the desired culture, leadership style, and effective management of the employees ensure the realization of the desired organizational growth. However, environmental factors such as the adoption of the new technology, constantly changing consumer demands, and stiff competition make the realization process a challenge. Despite these, adoption of the most effective interventions often enables organizations to achieve their objectives (Neale & McElroy, 2004). Therefore, this research paper analyzes a case that involves a small business owner (Kelly) who plans to expand her business.
Kelly should take some steps while organizing and prioritizing her business growth strategies. Mrs. Kelly should consider involving the employees of her business in the planning and prioritization of the desired business strategies. Involving them facilitates the adoption of strategies that favor the perceptions of each of the employees. It also makes them feel valued and important to the performance of the business. As stated by Dlabay & Burrow (2007), involving them acts as a motivating factor and ensures creativity and innovativeness. Mrs. Kelly needs to assess the current environment of her business to identify factors outside her business that might affect the performance of her business. Assessing the business environment will enable her to identify the potential competitors, threats, and opportunities' to exploit to ensure its performance. As such, she should perform economic forecasts, market trends, and formulate assumptions on the effect of these factors on the potentials of expanding the business. Mrs. Kelly should also focus on the strengths, weaknesses, opportunities, and threats facing her business as it plans to expand to a new market. Considering these factors provide her with the insights of the business needs and potential actions she should employ to enhance performance (Neale & McElroy, 2004).
In addition, she should define the goals of her business. Defining the goals provide it with the direction of the services that should be provided to the clients, future needs, and customer segments served by the business. Building consensus with the other stakeholders within the business will facilitate the realization of the desired performance standards. Consensus also aids in the development of an action plan required to guide in the implementation of the strategies. The action plan aligns the objectives and tactics with the organizational vision. She should also develop a budget plan for her business covering the current and future business needs. Coordinating the desired strategies and developing contingency plans follows where the plan and issues affecting the performance of the business are addressed (Shaw, 2008).
As seen from Kelly's business, the common business forms will suit her. The small size of the business makes the general business form suitable for the business. When compared to other business forms such as corporate, employment, and financial form that are relatively expensive to acquire, general business form is cheaper. The business is more of a sole proprietorship business than corporate or company business. The few employees and individual ownership of the business make it a general business form. In addition, the small size of the business translates to fewer risks encountered by the business owner. As such, it makes the business become a general business form. Varieties of business forms that are applicable for use in this business include the general contract for product form, release of liability, and non-disclosure agreement best suits the business. As such, combining factors such the size of the business, its size, and the number of stakeholders makes it general business (Shaw, 2008).
The success of Mrs. Kelly's business relies on financial support from a variety of sources. The demands of the business make it appropriate for her to acquire financial support from commercial banks. Commercial banks offer different financial services to small and medium size businesses. Basing on the expansion needs of the business in the case study, commercial banks can provide Mrs. Kelly with short and intermediate term loans alongside long-term loans for future financial growth. Short-term loan gathers for activities such as acquiring the required goods and relocation into a new business location. Mrs. Kelly can also acquire financial support from friends, family members, and relatives. Such sources are effective for providing financial support for meeting the most urgent business needs and short-term business requirements. Mrs. Kelly's personal savings can also act as a great source of financial support for her business. The savings accrued from the past activities can be used to finance a new business and expand the existing business (Neale & McElroy, 2004).
In addition, Mrs. Kelly can obtain financial support from grants from the government. The government provides grants to different business depending on their financial needs. However, obtaining grants can be a complex process as it involves steps that make its acquisition a challenging process. I would advise Mrs. Kelly to obtain financial support for her business from commercial banks. Commercial banks are more effective and convenient as compared to the above stated sources of financial support. Acquiring financial support from commercial banks takes a short time as compared to the other methods of acquiring financial support for the business. In addition, the legality and the charges levied by the commercial business are relatively as compared to the other sources of financial support. Depending on the performance of the business, commercial banks can provide additional financial support; hence, recommendable for Mrs. Kelly. Alternatively, she can consider seeking financial support from her friends, relatives, and family members because they are readily available and convenient (Cinnamon & Helweg-Larsen, 2006).
It is highly expected that the staffing needs of Mrs. Kelly's business will change. There is a high possibility for an increase in the number of employees required to run activities in the two businesses. The establishment of new business in a new location necessitates the recruitment of extra employees to handle the increasing work demands and ensure the effective running of business activities. The expanding nature of the business makes it a general partnership form of business entity. It is highly recognizable that the business is in its initial stages of development. The few employees and nature of the services provided to the consumers shows how the business is a medium one. In addition, the earlier analysis showed that the business is in need of financial support. As such, considering the business as a general partnership business makes it easy to acquire financial support from the commercial banks. However, she is required to establish a new business in partnership with another businessperson to qualify as a general partnership business. Other benefits of the general partnership form of businesses such as minimization of risks, incorporation of different skills, and sharing of losses makes it effective for the business (Arriola, 2012).
The best way applicable for her to train, orient, and organizing her new staff is using mentors to guide the new employees. Using mentorship programs within the business will facilitate effective incorporation of the new employees into the business. It reduces the challenges the employee often faces such as lack of support in the workplace, challenges of executing the assigned duties, and resistance to adopting the required organizational change. As such, each of the new employees should be assigned a mentor who guides in the undertaking of different activities. However, Mrs. Kelly should consider providing regular training opportunities to mentor, and employees to build on their expertise and experience. Consequently, the use of mentorship will indirectly promote teamwork and the establishment of the desired organizational culture (Dlabay & Burrow, 2007).
Notably, consumers will experience significant challenges with the change in the location of the business. However, adopting effective strategies are effective in minimizing the challenges faced by the…