Her husband helped her with a bit of the amount required for capital but the she was forced to take loans from a few of her relatives, which she did not want to do at the beginning, so as to get the business on its feet.
Being a sole proprietor is difficult for her as all the decisions rest on her shoulders. There are jobs she has had to turn down due to personal and family responsibilities which she would have considered if she had a partner. Another disadvantage which she finds in running a sole proprietorship is that her medical insurance premiums are not directly deductible from business income. It can only be partially deducted so as to make adjustments to the income.
Felicia believes that it is important to sell what they actually market. That is why she only agrees to take jobs that she will be able to cater, that is, deliver what she promises to her clients. In this way, nobody feels shortchanged at any point. She also pays her friends for the hours they help her so as to ensure that she can count on them at another time.
Felicia's strategy for gaining and maintaining new business is to deliver on the promises she makes to her clients. She also makes sure that she is always on time and follows the agreed menu choices to the letter and consulting her clients should there be any necessary changes to be made. She believes that by making her clients happy, she will be able to attract new clients through word of mouth or by referring her to her friends. The key to running a successful business is perseverance because there are times, especially at the beginning when business is slow. It is at this time when an individual is bound to give up but by holding on through the hard times, they are able to learn from their personal mistakes and correct them, thereby making them better business persons.
Felicia thinks that she would prefer to be in a partnership with someone who can...
She hopes that she will be able to get another partner in order to increase the business capital and therefore enable the business to run smoothly and eliminate future financial problems. When asked what she would do differently, she said that she would have waited and saved up a bit more before starting her business so as to avoid taking the loan. She would also have wanted to have taken professional culinary courses broaden the variety of cuisines she can prepare. She plans to take culinary classes in the future so as to broaden her client base and also bring in a partner on board so as to help with the running of the business. She is talking to another friend who has been helping in catering and is currently trying to come up with the capital.
After my interview with Felicia, I think that the possibility of investing in her business is slim due to the business being only part-time. If it was a full-time business, I would consider being an investor in this business.
References
Zahorsky, D. (2003). Sole Proprietorship: the Right Business Structure? Retrieved October
19, 2010, from http://sbinformation.about.com/od/ownership1/a/soleproprietor.htm
APPENDIX A: Interview with a business owner
Questions
1. What is the type and nature of business?
2. When was the business was established and the reasons for establishing the business?
3. How did you come up with the funds for the capital?
4. What challenges are you facing as the owner?
5. How many individuals does the business employ?
6. What are the key to success from your perspective?
7. What is your position in ethical behavior?
8. Who are your clients?
9. What future does the business have?
