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SMALL BUSINESS ENTERPRISE UNIT 33 LECTURER: WALTER-J DAVIS

SMALL BUSINESS ENTERPRISE UNIT 33 LECTURER: WALTER-J DAVIS. WEEK 1. OBECTIVES OF A BUSINESS. Make Profit Create a Success Brand Create Employment Be Market Driven

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SMALL BUSINESS ENTERPRISE UNIT 33 LECTURER: WALTER-J DAVIS

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  1. SMALL BUSINESS ENTERPRISEUNIT 33LECTURER: WALTER-J DAVIS WEEK 1

  2. OBECTIVES OF A BUSINESS Make Profit Create a Success Brand Create Employment Be Market Driven Contribute to GDP Create Wealth Be Socially Responsible Practice Good Human Resource Management See Additional Reading http://www.entrepreneur.com/article/38292-1

  3. FACTORS THAT AFFECT BUSINESS PERFORMANCE • Government Policy and Legislative Framework • Location of Business and its Units • Cash Flow • Lack of Appropriate Competency • Changes in Business Operating Environment(Social, Legal, Techological) • Changes in Physical Environment • Improper Management Techniques • Lack of Effective Communication

  4. KEY PERFORMACE INDICATORS (KPI’s) • Key Performance Indicators are quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization. Is the Business Plan on track Are Revenues on Target for the period? Did the business grow and if so by what percentage over what time? How many persons did the business employ over the period? Did you make any additional investments into the business during the period See Additional Reading: http://www.klipfolio.com/resources/kpi-examples-top-sales-metrics

  5. Constraints on Small Business A constraint: is a factor that limits or holds back the possible success of a plan. The Business Plan needs to be realistic, so it is important to set out in detail the constraints that are likely to act as limits on business activity. Typical constraints facing the business include: 1.The size of the market. The extent of the market determines a businesses ability to make sales. You can't make sales if there are no customers out there. 2.The nature of demand in the market. It is important to identify the nature of your customers and their requirements through detailed market research. 3.The availability of supply. A business often depends on supplies. For example, a clothes retailing business needs to acquire garments, in the appropriate quantities, prices and at the right times.

  6. 4. The nature of the competition. The strength of the competition is a key constraint on business success. Businesses need to position themselves in such a way as to limit the effect of the competition. 5.The availability of finance. Businesses need to have the right quantities of finance at the right times to match their needs. Liquidity and cash flow are thus very important. It is necessary to have funds when they are required to meet the pressing needs of the business. 6.The quality and skills of employees. The human resource is one of the most important resources of any organization. It is essential to have the right number of people with the appropriate skills to enable the business to achieve its business objectives. 7. The quality of direction and management. Directors and managers of a business need to have the right skills and abilities e.g. to create well structured plans, and to motivate and lead other members of the organization. In creating a business plan you therefore need to identify the key constraints, and to set out plans for dealing with any pressing constraints.

  7. Restrictions on Small Business • Economical • Supply Chain • Lack of Funding Sources (Grant or Loan) • Governmental Aid or Assistance (Waivers or Incentives) • Access to new Markets (Domestic or International) • See Additional Reading links below • http://www.cbr.cam.ac.uk/pdf/wp107.pdf • http://www.boxtheorygold.com/blog/bid/59599/The-Theory-of-Constraints-for-Small-Business-Eliminate-Bottlenecks

  8. Responsibilities and Liabilities of Owner-Manager • Monitor and Evaluate KPI’s • Employ the “Visionary” techniques for Growth • Conduct the necessary financial planning mechanisms for streaming profits • Ensure Customer Service Delivery is superb and constant • Monitor Human Resources and their contribution to the business objectives • Oversee the General Management • Mitigate Business Framework against Competition • Additional Reading • http://smallbusiness.chron.com/five-duties-small-business-owner-13882.html • http://www.bizfilings.com/toolkit/sbg/startup/entrepeneurship/understanding-requirements-of-business-ownership.aspx

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