Small Business Management May Semester Assignment

Small Business Management May Semester Assignment Words: 2911

Starting a business is one of those dreams which for many people never come true. As an entrepreneur, starting up can be an exciting experience. This means being honest about a range of issue- your knowledge, your financial status and the personal qualities that can bring to your new business. There are a few steps that are needed to be taken into consideration. * The flirts step is to make sure it’s really the right thing to do. This is where the business idea is created. * Secondly Is having what It takes. It Is a process to ensure you the right skills and qualities needed to make a success of he business. Step 3 is about market research. In order for your business to succeed, it must be viable financially and there must be a market for whatever the business will be selling. Do you have savings that can be invested and if this won’t be enough, how much money is needed to borrow as a way of financing the venture? In this assignment, I will be discussing the various sources of financing for different stages of business cycle starts from the initial business idea creation, to start up, expansion and the maturity and sustainable stages. Chart 1: Business Cycle Stage 1: Initial Business idea creation.

Deciding to start a business can be one of the most exhilarating decisions you can make in your life. One of the elements to be considered during this period is creation of a business idea. All business starts from a common point – an idea. You may have dreamed of starting your own business for years, or inspiration may have hit you unexpectedly. All you need to start with is to do your research. It’s time to balance it between dreams and little reality. This is to gauge your readiness to see what you need to prepare yourself for the business. The source for idea generation can be into two categories.

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One of it is the Formal way if sourcing idea generation. It it’s by inquiring through the: * Banks * Government agencies * Business Consultants * Exhibitions. Where else the Informal way of idea generation is thorough: * Family * Friends * Colleagues * Newspaper * Magazine * Books * Internet * Catalogues. During this period of time you will be needed to invest your time and little money in order for your traveling, meeting friends, buying books and paying internet bills. Stage 2: Business start-up If we dive deeper in the phase of business start-up phase, there a few components that we need to obliged.

It involves planning, making key financial decisions and completing the legal activities. There are 10 major steps to accomplish as below list: This is the phase where several of financial sourcing is required. In this article you will be exposing towards various organization that could assist the business start-up. One of them is: This could be either in the form of: * Personal loan – borrowing from the bank with certain interest rate and periodic repayment plan * Credit card – cash withdrawal from the credit card. However the risk is high interest rate. Personal savings – cash from the savings done by the individual. * Money borrowed from friends and family. B. TAKEN TACKLE is an agency under the Ministry of Entrepreneurial and Cooperative Development. The objective of this organization is to provide simple and quick financing facilities in order to kick start and further expand your business. Besides financial assistance there are other services offered such as business opportunities as well as income generation opportunity. They also will guide you to provide a beautiful working network which is very important.

The schemes available from minimum amount of REARM till ARMS,OHO with various repayment back schedule. . Manama Skitter Malaysia ( AIM ) Manama Skitter Malaysia is Registered Private Trust and is governed by a Board of Trustees that comprises of senior Government Officers and individuals on personal capacities. The scheme represents a tool through which capital is uniquely disbursed to the poor and marginalia currently known as micromanage. AIM is smart conventional banking with disbursement of small loans to finance income generating activities without any collateral, guarantor and any legal action against defaulters.

There are few schemes that are available with AIM and to name a few are: * Skitter Resize Skitter Pyongyang * Skitter Bestiaries * Skitter Shatter. Different scheme having different borrowing amount and for different purpose and Ho may select the right scheme that could serves you. D. Misaims Manama Rackety Malaysia ( MAR ) MAR was formed by an act of Parliament in 1966. MAR offers loans to manipulate entrepreneurs. Such loans may be repaid either in the conventional Nesters manner, or in the style of Islamic banking, depending on the borrower’s preference.

MAR also offers entrepreneurship courses, vocational training, consultancy services, and assistance in marketing for Bumpier entrepreneurs. MAR also constructs infrastructure, such as shop lots or factories, which are rented to Bumpier entrepreneurs at a subsidized rate. These facilities are often constructed in towns or underdeveloped areas of the country, to encourage further development there All the different 4 modes of financial assistance are available when you wanted to start up your business.

The following part of this assignment; I will discuss about Maturity and Sustainability. To answer the context of what is a Business Expansion; it is a business strategy in Inch growth is obtained by increasing the number of stores in which customer can ay and utilize and enjoy the services provided. Unlike relocation, business expansion entails opening up new stores in different physical location while maintaining the current business location.

The context of Business Maturity and Sustainability is about the period during which enterprise secures market position, optimizes investment opportunities, and explores product and market diversification Inhere else Business sustainability is often defined as managing the triple bottom line – a process by which companies manage their financial, social and environmental kiss, obligations and opportunities. These three impacts are sometimes referred to as profits, people and planet. During this phase of your business, lots of funding is needed to explore to be at greater heights.

Some of the financing organization that Mould be able to assist you are: a. SEEM Bank ere Bank was established to function as a development financial institution to nurture and meet the unique needs of small and medium enterprises (Seems) through the provision of financial and non-financial services to Seems. While SEEM nana’s role is to complement the products and services provided by other velveteen and commercial banking institutions, the Bank was also established to strengthen the national implementation infrastructure through enhanced SEEM capacity.

It offers direct lending activities, provision of guarantee to financial Institutions and investment activities including venture capital for Seems who are expanding their business. SEEM Bank also provides ancillary services related to business advisory and entrepreneurial development. There are many schemes that [oh could apply for such as: * Financing for Micro Business * Financing Small Business * Financing Medium Sized Business. He amount of financing ranges from ARMS,OHO to ARM 750,000 b.

Equity National Bertha (Aquinas) Equity National Bertha (Aquinas) was introduced by the Government of Malaysia to transform high potential Malaysian companies into future market leaders. The companies in Aquinas’ portfolio are involved in various businesses ranging from fast moving consumer goods, oil and gas, logistics, education, and retail food ; beverage (F;B). Aquinas is a body that welcomes business proposal from Malaysian companies seeking to enter the next level of growth. The amount of financing ranges between REARM,OHO to ARM 2 million.

So there isn’t any doubt that different sources of financing are observed throughout the small business cycle development. In supporting the Malaysian to grow in the business world, many initiatives had been introduce by the government to increase the income capital of very household. Question 2 Select a successful small business which has been in the market for more than 10 of a business started from small, then grow and expand using and utilizing different sources of financing. Analyses the stages of the chosen organization from the perspective of development.

Your analysis should critically discuss whether what eave been said in the literature can be verified or not and why? [70 marks] In doing this assignment, I have gone out to meet some of the business entrepreneurs that I have known who are successful currently in the heart of Juror. However there was nothing much I am able to extract from them. It was only the common sharing they gave which was their savings that they have invested in their current business. I have personally met 3 individuals where two of them are involved in property business and the other one focusing on grocery stores.

All three of them having the common background where they used to have worked in Singapore and able to secure some savings to be invested into their business. There isn’t much I could relate their business growth versus organizations development that is said in the literature. Then I decided to do internet research about successful business entrepreneurs in Malaysia. To name one of them is Tan Sir SMS Musician SMS Main the Founder, Chairman and CEO for Anza Group of Malaysia. Born in 1955, Musician was always interested in cars and the automobile industry. He received his early education from Seakale Render Tune Murrain (1961-1966).

He then studied at Seakale Meghan Thanks Muhammad (1967-1972). Both schools are located in Koala Pilaf, Negro Assemble. In 1974, when he was 19, he had ARMS,OHO in his bank account which he saved from his remunerations from helping out his contractor father. He started his automobile business with an allocation of Approved Permits (APs) to import foreign cars. APS are government-issued permits to import cars for bumptious. He made his first million in about a year. The next figure I was studying about was Tan Sir Anthony Francis “Tony” Fernando born on 30 April 1964 is a Malaysian entrepreneur. He is the founder of rune Air Sad.

Bad. Ho introduced the first budget no-frills airline, Air Asia, to Malaysian with the tagging “Now everyone can fly”. Fernando managed to turn Air Asia, a failing government-linked commercial airline, into a highly successful budget airline public-listed company. He has since founded the Tune Group of companies. He was also instrumental in lobbying the then-Malaysian Prime Minister, Tune Dry. Mathis Mohammad in mid-2003, to propose the idea of open skies agreements with neighboring Thailand, Indonesia, and Singapore. As a result, these nations have granted landing rights to Air Asia and other discount carriers.

Instead of starting from scratch, Mathis advised Fernando to buy an existing airline instead. Air Asia, the heavily-indebted subsidiary of the Malaysian government-owned conglomerate, DRY-Which, was quickly losing money. Fernando mortgaged his home and used his personal savings to acquire the company, comprising two ageing Boeing 737-300 Jets (MM-AAA and MM-ABA) and IIS$II million (ARMS million) worth of debts, and transformed it into an industry player. One year after his takeover, Air Asia had broken even and cleared all its debts. Its initial public offering (PIP) in November 004 was oversubscribed by 130 per cent.

In many articles of Tony Fernando, there isn’t any information that could help me to understand the different sources of financing done by him for business expansion purpose and the only available Then I realize I have a friend who is fit to take as an example on the sequential development as part of this assignment. Her name is Unnecessary Nostradamus the Founder and Managing Director of Duke Education and Training Sad. Bad. The company was formed in 2006 where it was then known as Duke Training and Consultancy and later upgraded to an Sad. Bad company in year 2010.

Duke Education and Trainings business nature are as a Corporate Training Provider for Corporate Companies in Malaysia as well as from Asian Countries and also as a Private Education Institution organizing Tuition Classes for Primary and Secondary school under the name of Pupas Tuition Sinai Maintain. The business started with only two people and now they have almost 20 people working together for the growth of the company. Its all started when her husband decided to leave his Job due to some misunderstanding with the management team and at that point of time Unnecessary

Nas only an ordinary school teacher. They both realize that with a Giggle income its quit difficult to run the family. The circumstances make them to think hard on what are their capabilities, and they discovered that both of them having the passion of teaching and consulting. Furthermore both of them have been completed the training of Train the Trainer organized by Ministry of Human Resources. Consequently they decided to get involve into corporate training provider. This is when the start up phase comes in and they both brainstorm a company name and decided to register it Ninth the SMS.

Their first company name is Duke Training and Consultancy. When asked why its Duke and what does it means. They both answered saying Duke means member of the nobility at the highest level and they both have the ambition to strive in this corporate training field to the highest level. With very little savings in their hand, they do not afford to rent a shop lot to set up their office, and they decided to rent an office space at a Business Solution Centre in Juror. It is designed to cater for the demands of today modern environment at the lowest cost of investment.

It Nas an ideal concept for their new business venture. The premise was fully furnished, staffed and equipped office in a conducive and secure working environment with the latest telecommunications technology and Information Technology, as well as trained administrative support team to assist their business needs. With the contact they had with the industries players, they were offered numerous training projects that spasms from the heart of Juror, Malice, Niger Assemble and Penman. After a year over there, they decided to expand their business space. Their ambitions is to have a Training Centre.

This will create an opportunity to induct special souses and eventually to fulfill the need to be class A training provider. This is when their expansion space came in. During this expansion period, they surveyed to identify the right location to set up their training centre. With the objective of having the training centre within Sandbar Region and near to the Industrial area, they decided to have it at Paisa Guiding. They felt that Complex Pupas Banana Paisa Guiding is the right location as its in the township of Paisa Guiding with the access of all the major banks and within the 10 km radius, there are many NC impasses.

The premise they rented has not been occupied for many years and its has to go through major renovations. The total renovation cosseted them almost RAMMERS. They realize it was a major mistake they didn’t go into every details. The renovation are completed however the premise was lack of furniture, basic telecommunication infrastructure and their sign boards. They now are in need of ARM 50000. With their company portfolio, they went to many banks to get the support of RAMMERS. They submitted their business proposal to several financial institutions however luck was not at their side.

Two months had pass and there isn’t any development. They then when around asking for potential inverters and they were turned down. They both were frustrated and decided its time to seek the help of a private finances AKA Loan Shark. Later part in the test will be known as MR.. L’S. They shared their idea, investment plan and also the returns to him. The twist of their business was during the meeting with the loan shark. Mr.. L’S was very much interested with the business plans and with the passion of both of them to be successful. He then suggested, why no fully utilized the training centre fully.

Where y in the day time could run training sources and during night to conduct Tuition class. They when into deeper discussion and finally decided to set up a Tuition centre as well. With the proper documentation, they set up a Sad. Bad company. They shooed, Duke Education and Training Sad. Bad and Mr.. L’s as one of the board of Director. They also registered Pupas Tuition Sinai Maintain as a subsidiary company to Duke Education and Training. Mr.. L’S fully supported and he invested another RAMMERS which also included the working capital for the next 6 moths. Finally their raining Centre was complete and they launched it in Junk 2010.

They started their business immediately. They recruited staffs to manage the place. A marketing Manager to do marketing for their corporate training programs and a Vice Principals to manage the education centre. From July till November 2010, they had almost 50 students. And in year 2011 they had approximately 170 students with 10 teachers supporting them. As time passes, their business has come to a maturity and sustaining level. The board of directors now felt that it time to expand their Tuition rand. Sinai Maintain be known to many people. They decided to expand their centre to Banana Putrid Kulak’.

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