First Time Entrepreneurship In The Retail Business
Dreaming about own business and its planning are two different things. To our opinion, business planning may be considered as craftsmanship to introduce great ideas into the practice. If one is willing to be successful in business and in entrepreneurship, he or she needs to make detailed planning, which would include all aspects and specific of future project.
In retail business, planning is a very important tool in organizing productive work of the shop and also in time, sources, logistics and human resource management.
In our research we would like to stress on the importance of business plan development for the Boutique of the Upper Class opening and managing.
The business plan would have the following directions:
- Planning and management: starting the business, preparing the board meeting and outlining the general resolutions of the store;
- Legal aspects – establishing the business firm, protecting own ideas and assets and partnership dissolving;
- Human resource – developing all aspects of fruitful collaboration with employees- beginning from hiring program, including the loyalty and bonuses program, workforce managing and also the hiring procedure developing;
- Financial and accounting aspects- involving the monetary funds, managing of finances and insuring them; sales and marketing – attraction of new clients, developing and practical implementation of marketing campaign, collaboration with mass media, distribution channel expanding, marketing research and tendencies analyzing;
- Logistics and operations – delivery system development, equipment purchasing or leasing; internet and technology- web site development and its promotion, development on-line shopping system and it maintenance;
- Credit and collection;
- Real estate agency services using – finding the hall for the shop and its renting or purchasing supporting. (www.biztree.com)
According to the standards of United Nations Industrial Development Organization (UNIDO), our business plan would contain the following sections:
- Resume of the Project (brief description of the Boutique of the Upper Class);
- Description of the Firm and Field of Activity- we would consider the general information about the firm; financial and economical indexes of its activity; the management structure and office; the fields of activity; production, which would be presented in the boutique; perspectives of its distribution; the branch of economy and its prospects; partnership and social activity.
- Description of Production: we would generally outline the stock- accessories for all ages and backgrounds. The stock would include the following directions: earrings, bracelets, rings and necklaces.
- Marketing and Production Distribution. It would help the potential clients to become regular customers. It would include the description of the main competitive advantages of production, presented in Boutique. Also, the pricing, distribution scheme, advertising and marketing campaigns would be described in this section.
- Production Plan. In this section we would outline the general principles of work in the boutique. Halls, placement of equipment and personnel issues would be presented. The production delivery and its wholesale purchases is one more point of the section.
- Organisational Planning. In this section we would consider the obligations of each employee, the management tools, the legislation support, the salary completing: salary rate plus bonuses for high sales rate.
- Financial Planning. The main aim of this section is to show the main points of financial data. The constant expenditures for production purchasing; calculation of goods prime cost; the expenditures budget for the project realization; necessity and the sources of financial investment; the table of expenditures and incomes, the capital flow and the forecast balance – these are the main points of financial planning section.
- The orientation and effectiveness of the project. In this section the project meaningfulness, the efficiency indexes of its realisation would be outlined. The deep analysis of the project susceptibility would be carried out.
- Risks and guarantees. In this section the entrepreneurial risks and possible unpredictable circumstances would be outlined. The guarantees of monetary investments returning for partners and investors would be also positioned (http://www.unido.org/).
After completing the business plan, it is necessary to look for business partners, who would provide the goods wholesale and delivery.
The staff of boutique should include the shop assistants, accountant, loading workman and janitor. It is very important to organize the work of the staff properly – to clarify all obligations for every employee, to provide the basic ethical requirements and dress code for staff, to organize the personnel teaching and controlling over obtained skills practical application.
Human recourse factor is very important in those fields of human activities, which are related directly with communication. In organising the Boutique work it is very important to stress on the quality of service, provided for its clients- wealthy people, who are ready to pay not only for high quality accessories but also for luxurious environment, where these accessories are sold and for perfect service, provided by the shop assistants.
Also, in our case it would be important to organize the distribution network- to involve periodically non staff promoters, who would distribute the advertising leaflets, dedicated to some sales or to the new collection, presented in boutique.
Every business project has got its pros and cons it is very hard to evaluate them, but each aspect of running business should be explored and developed by the entrepreneur in order to succeed in the competitiveness, presented by the current market.
To our opinion main positive aspects of the First Time Boutique of the Upper Class owning and managing is its audience- wealthy people, who are ready to give a solid amount of money for high-quality and unique thing and for good service; also, it is possible to become a trendsetter and that would attract a wide audience of people who are willing to be up-to date and who have monetary funds for that purpose.
The main negative aspects of owning such boutique it is possible to consider the following: high competition on the market, additional expenditures for creating luxury interior of the boutique and high requirements for the staff and dependence on the human factor.
In order to understand psychological aspects of running business, we have investigated the questionnaire, fulfilled by Lynda Woodridge - a business owner of BMW Motorcycle shop in Georgia, located on Cobb Parkway. The following questions were asked:
1. What made you want to become an entrepreneur? How where you able to convince yourself it would work? Lynda (L): Being an entrepreneur was my dream from the young age, because such activity gives an opportunity for complete realisation of all plans and willing. It leads both to the personal and professional development and gives an opportunity to the creative potential application. I didn’t have to convince myself that it would work, because I have used my deep knowledge in this area, obtained in the college and also I have got experience, that helped my professional development.
2. Have you had previous experience in this field you are in now and what made you choose this one? (L): I have personal experience in this field due to a small business I used to run in New Jersey with a partner of mine. I have 10 years of customer service skills and retail skills as well. I was back in school learning all the basics information about becoming a business owner and doing my own face to face research. Deep knowledge of entrepreneurial activity: its theoretical fundamentals and all aspects of running own business have added me a competitive advantage and also that allowed me to prevent many unpredictable situations, caused by the lack of knowledge.
3. What was your support system like when you told people around you that your where staring your own business, did you get the push your where looking for. (L): I have few entrepreneurs in my family and they give me great advice to keep pushing for making my dream to become reality. Sometimes it’s hard when you don’t have the support system to give you that extra drive, knowing that one day it will all be worth. That all keeps me motivated enough.
4. What does it take to ensure that your business is successful when having other competitors around? (L): The success of the business can be measured by the following characteristics: revenue, constant clients and the ‘good name’ of the company. To my opinion the BMW does not need the additional advertising. My Shop provides high class services for its clients and we do everything in time and with the highest quality. The revenue rate is also high. Finally, the main success factor in our work is getting pleasure of what You are doing and to have a positive attitude towards carried out activities.
5. What can you tell someone that’s wanting to be a business owner but don’t know where to start as far as making their dreams reality. (L):To my opinion it is better to choose those activities and fields, where to operate, which are well known for the future businessman. The field of activity should be interesting for the entrepreneur. Also, one should make marketing research in order to see and pros and cons of the chosen business. The deep knowledge of entrepreneurial activity theoretical basis the key success factor in our work.
Taking in consideration the above said, we have made the conclusions for the newcomers in entrepreneurial activity. In order to occupy leading positions on the market and to get the high revenue, it is necessary to be educated in different fields or to collaborate with the experts of these fields: economists, experts in marketing, management, HR, finances and law. It is possible to collaborate on the freelance basis for that will save costs on official job placement.
Finally, after well-grounded preparation for the work and thorough study of the current market, it is possible to implement the business plan into the practice. Being skilful and having deep knowledge on the retail field will give your business positive outcomes.
For sure, some time would be required to join the ranks of the market and to perfect staff’s skills, but after achieving good results it is very important to keep the positions and to provide the clients with declared quality of goods and services.
We hope that mastering this course work would make the positive impact on getting started own business and would help in understanding all do’s and don’ts of the chosen field and activity. To our opinion that will help on the difficult way of becoming a great knowledgeable business owner one day. The information, needed to proceed to the next level, the confidence to believe that anything is possible once are the main success factors in beginning and running own business
The author is much interested in the retail business. One believes that with her passion for fashion will work excellent. The main idea of the project is having one day own accessory boutique for all ages and backgrounds. It would offer a variety of what people are looking for in order to keep them hip and glamorous all year round: carried earrings, bracelets, rings, necklaces.
To our opinion in order to be successful in retail business is achievable goal, because it is considered to be one of the fastest growing segments of the economy. It may seem that owning and managing the retail store is easy, but in real life it requires deep knowledge in all aspects of economy, management, marketing and law. Different documents and forms are to be fulfilled correctly, taxes are to be paid in time and staff is to be motivated constantly.
If the owner of retail store does not take in consideration the human resource factor or business planning, one will have significant loses.
After reading the interview with successful business lady, it is possible to make a conclusion that it is not late to get additional knowledge even after having 10 years experience in this field. Having own business means own responsibility.
For sure in most of cases own business brings higher profits that being employed for some company, but still it makes the owner to be all the time in vitality, to be willing for personal development and achieving new goals. Scientists have defined the manager's syndrome, when one is constantly thinking about earning money, getting additional sources, clients, monetary funds etc. It is possible to assume that majority of contemporary entrepreneurs have got this disease. To our having a target to be successful in business does not mean being crazy about work and money. The businessman activity is to be well-planned and the life values are to b constant and they should not be oriented on material world only.
Owning and managing boutique means constant marketing research and world trends exploring, because fashion is not constant and it needs creative approach. If the owner is responsible, skilful and creative personality, it is possible to succeed in the retail field of economical activity.
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