Business Report Sample Assessment PDF

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Business Sample two-page report on hypothetical business....

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To: William From: Business Consultant Executive Summary: This business report will outline relevant information entrepreneurs need to start a personal business. It will outline necessary skills entrepreneurs should possess for high rates of business success. Two different establishment options that are available when forming a business will be identified. This report will examine the legal considerations that need to be taken into account when establishing a personal business. This report will discuss; entrepreneurial skills, establishment options and legal considerations. This report will allow for the business to have a higher success rate, and easier entry into the market. Important Skills that Entrepreneurs Possess: -

Owners need to be motivated Owners need to be optimistic They should thrive in Challenges and enjoy problem solving situations. They need to have access to relevant information. They need to be adaptable to the external environment which includes; economic, financial, geographical, social, legal, political, technological and institutional factors. The Market and Competitive situation also needs to be adapted to.

Entrepreneurs must be able to; - Build a strong customer base through good soft skills; as a good reputation is crucial to business success. If these points are followed through, the business success rate will be extremely high, as approximately 80, 000 SMEs fail per year it is necessary to employ these skills. Identifying reasons for business failure will allow business owners to achieve better success as they are able to rectify mistakes.

Some common reasons for business failure are: -

Poor management of financial activities Lack of management competence/experience Inflation/Economic Conditions Poor recording keeping Failure to apply external advice. Poor Marketing Plans Staffing Problems

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Partnership Problems Illness.

Out of all the skills mentioned the two most important skills an Entrepreneur should possess are: -

Motivation; Personal drive, determination and desire to achieve goals. Entrepreneurship; They need to start, operate and assume the risks for a business. They should have good people skills, be organised, be adaptable, have confidence in their abilities and be willing to take risks.

If these two skills are employed; the chance of having a successful business is extremely high. Establishment Options Available: There are different establishment options available to William; -

Setting up a business from scratch. Purchasing an existing business.

Setting up a new business seems like William’s preferred establishment option but he also has the option to buy an existing business or franchise. Setting up a new business from scratch: -

Some conditions are more favourable for starting a new business than for buying an existing operation. It is recommended to start a new business: If you have a new product or innovation, if you identified a gap in the market, have a product/service that is not in the market.

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Advantages of starting a new business from scratch: - Owner has freedom to set up the business how they wish. - They decide the pace of growth and change. - There is no goodwill for which the owner has to pay for. - If funds are limited, you can start on a smaller scale. -

Disadvantages of starting a new business from scratch: - Higher risk and measure of uncertainty. - Time is needed to set up the business, create procedures, develop a customer base, employ and train staff. - The start up period may be slow, which will make it harder for the business to generate profits.

Buying an existing business: This option can also be considered. -

When an existing business is purchased, the business is already operating and everything associated with the business is included in the purchase;

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Stock and equipment Premises Existing customer base Staff Location Reputation and goodwill

You should consider why the existing business was for sale before you purchase it. Advantages and Disadvantages of purchasing an existing business: Advantages - Sales to the existing business are instant income. - A good business history increases the likelihood of business success. - A proven track record makes it easier to obtain finance (loans). - The seller can train. - Their is equipment - There are existing employees. Disadvantages - The existing image of the business can be difficult to change, especially if the business has a poor reputation. - The success of the business could have been due to the previous owner’s skills. - There may be hidden problems. - It is difficult to assess the value of goodwill. - Employees could be resistant to change. Legal Considerations to be aware of: -

When starting a business there are some considerations to be aware of: Licenses, Permits, Approvals and Authorities must be taken into account by SME owners. Businesses that fail to obey the laws risk losing customers and their reputation, being fined or losing the right to continue trading. - 1. Business Name: - Businesses need to register their name with the Australian Securities and Investment Commission (ASIC), except when the name is that of the owner then it is optional. - Registration of a business name prohibits anyone trading under a similar name. - 2. Zoning: - Local governments control zoning regulations.

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They are able to restrict the location of businesses. Zoning Regulations create areas where land can be used for certain purposes - residential, industrial, recreational, commercial. 3. Health Regulations: - Health regulations are imposed by the local government under the Public Health Act 2010. - It is primarily for SMEs that deal with food; so these regulations will be applied for this business. - The requirement standards include: - Temperature of food storage. - Kitchen Layout - Staff Clothing - Time the food is kept - Food handling 4. Other Regulations: - Competition and Consumer Act 2010 - It is a law that protects both consumers and businesses. - Protects consumers from deceptive practises. - Regulates trade practises of businesses. - Deals with product safety, warranties, price and quality.

Recommendations:

Yours sincerely, Management Consultant...