Abstract:This reaserch paper informs the reader on the many problems entrepreneurs face before and after entering the market and advices them on how to avoid these pitfalls and be prepared for the challenges ahead. The results show that a good business plan and idea, a functioning marketing team, a diverse work force and a continuous work for improvements are the qualities every successful enterprise needs to have. Step 1: beginning with that new and innovative idea (which marks the starting of everything). Step 2: following this idea with a detailed business plan (crucial for getting investitior and ensuring that the factors of production are used in the most efficient way). Step 3: Following that with creating and maintaining a “healthy” work environment for the employees and listening to the costumors and put their statisfaction as well as employee statisfaction as the number one priority. Step 4: creating and maintaining a positive image for the company. Step 5: adapting to the ever changing market through innovative ideas and upgrades of products and services.
According to Bloomberg, 8 out of 10 entrepreneurs who start a business fail within the first 18 months. Why does this happen? What are the challenges these businesses face resulting in their failure? To give a shorter answer to the above question, some of the obstacles that small and medium enterprises face have to do with the way how the resources are managed and the response to environmental stimulations. More specifically there are steps that we tend to overlook or skip altogether that make all the difference. Step 1: beginning with that new and innovative idea (which marks the starting of everything).
Step 2: following this idea with a detailed business plan (crutial for getting investitior and ensuring that the factors of production are used in the most efficient way). Step 3: Following that with creating and maintaining a “healthy” work environment for the employees and listening to the costumors and put their statisfaction as well as employee statisfaction as the number one priority. Step 4: creating and maintaining a positive image for the company. Step 5: adapting to the ever changing market through innovative ideas and upgrades of products and services. The business environment is very dynamic and it is difficult to keep up with everything none the less be ahead of the curve and come up with new and innovative ideas.
As stated in “The business book”(chapter 1 pg.22) “there is a gap in the market but is there a market in the gap?” Reading this we can already sense two obstacles in our way to creating a business. Firstly it is finding the gap in the market, having an idea that is only yours, something that nobody has tried and succeeded in before. Afterwards is making sure that this gap you found has potential. If it can suport the opening of a business and generate profit. One example is the “e toy.
com ” retail website founded in 1997 for selling toys. As we now are very familiar with online shoping back at the time the excictense of one website for selling only toys seemed too farfetched. After finding a promising business idea you need to work on a detailed business plan. Many people especially those who are new to the field get intimidated by this, maybe because they don’t know where to start.
Even though there is no set structure there are points that should be elaborated like: market analysis, organization and management, marketing and sales, product or service operation and funding and financial management. Explaining the idea thoroughly and at the same time making it easy for the reader to follow are the key qualities of a good business plan. Considering that the reader can be anyone who is interested in the company starting from the employees to potential investors you want to be able to appeal to everyone. But can a business run without a plan? In an interview mark zukenberg gave for “how to build a future” ……. He said that in the first few years of facebook they had no set business plan. So practically they just went with the flow.
It was when yahoo offered to buy facebook for a whooping one billion dollars price that the founders of facebook came together to discuss the future of this company. This marks a turning point for what is now, one of the leading social networks in the world. In the intervies zuckenberk admitet that because of the poor communication between the founders and the employees and their failure to convey their plans for the future ,they lost all their management team in a year. The employees serve as an image of the company and they are always in contact with the costumors therefore it is the managers duty and challenge to keep a good relationship between two or more employees and between a costumer and employee.
This is not easy as the working environment is prone to many misunderstandings and conflicts of any kind. What entreprenurers sometimes fail to notice is how broken their business is from the inside. A strong foundation is needed from the beginning in order to grow in the future. In this case the foundation are the employees themselves, their compatibility with the company (how much they relate and find themselves comfortable in it) and their team work (depending on their shared morals and values). In the same intervie zuckenberg gave for …… he stated that an entreprenurer should know who to hire and when to fire.
He said that even he has made many mistakes when it comes to hireing people but he was also quick to fix those mistakes. This may seem cruel but why keep an employee who is not fit for the company, who does not share the same values as his group members and as a consequence effect in their work quality. According to the oxford dictionary “marketing is the action or business of promoting and selling products or services, including market research and advertising”. As a field, marketing can be very sensitive as it can either make you or break you. A good example of marketing is coca cola and the way how they have associated the brand with the holidays in their advertisements.
That is way the first thing that comes to our mind when talking about this soft drink is the family getting together and celebrating. In a way they are not selling just a product but an experience. But in the past year we have also witnessed the negative effect that bad marketing can have in a business. The famous pepsi commercial and the h t-shirt both spiked contravercies and were accused of being racist and undermining the people of color. As a result their market share dropped drastically and they had to issue a formal apology to those affected by this negligence. In order to minimize the risk of offending a culture (in the worst case scenario) a way proposed in the “organizational behavior” book (chapter 2 page 33) says that hireing a diverse workforce helps the company have different viewpoints in certain matters and weight every option before taking action and maybe implementing changes.
Also this diversity can help on coming up with new ideas and innovations which will aid the companies adaption to the changes in the market. As it was mention before the business environment is very dynamic meaning that every product should keep a steady pace with the ever changing needs of the costumer. A continuous market analysis and getting feedback from the clients are the keys to remaining in the market. This is something that many new entreprenurers don’t take into consideration in the first year after entering the market. Yes it is difficult to plan and finally launch something new but that is just the beginning. The real challenge is remaining in the business for a long time. Some successful examples are the smartphone industry and how two of the major companies Samsung and apple keep bringing upgrades for their products almost every year.
These are some obstacles that many enteprenurers face before and after entering the market. It is important to know them so that we know what to expect in the future. To double check that business idea we came up with in the buss out of boredom, to never underestimate the importance of a good and detailed business plan, to consider our costumers as kings because they are and our employees as our biggest asset, to rethink that chatch pharese you were going to acosiate your product with- now realizing how harmful words, photos or simple actions can be, to never stop working, never think of staying in one place and to always improve our products. we can never be fully prepared for what expects us upon entering the market.
We just have to follow our reasoning and bet our money in the many decisions we make.