Essay on "Small Business Management Challenges"

Essay 50 pages (16727 words) Sources: 50

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B & B. Custom Woodworks, Inc. has been in operation since March of 2007 in the Chesapeake, Virginia area. It began as a sole proprietor business that specializes in custom woodwork, and personalized service business. In 2009, the business incorporated and now operates as an " S" Corporation in the State of Virginia. The focus of the business is to produce heirloom quality custom or personalized gifts for family, friends, or coworkers that will be cherished for a lifetime. The business is divided into several primary areas, which are custom woodwork, personalized gifts, engraving services, and sublimation items.

This is the only business in the local area that offers one-stop shopping for the customer who wants a personalized gifts or awards for special occasions. The purpose of this study is to determine how B & B. Custom Woodworks, Inc. can continue to grow in the Chesapeake, Virginia area and to expand its business to a national market, while continuing to offer the say quality products that it currently offers to its local clients. The mission of the business is to offer impeccable laser engraving and custom built products. The business features a fast turn around, high quality products, and on time delivery. Its items include the awards, picture framing, shadow display boxes, personalized gifts, custom company logos, promotional products, and many additional laser applications. The company is categorized as an Internet web retail for the purposes of zoning. B & B. Custom Woodworks, Inc. has the flexibility to change their management style to meet their customers' needs.

In order to continue expansion, the company seeks a business loan of $100,000. The funds wi

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ll be used for three purposes. The first is the development of a facility in which to house the business. The second is capital for expansion of the business to include a national clientele. The third is financing for the acquisition of additional equipment in order to meet increasing customer demand. It is expected that these funds will allow the business to grow continually over the next five years. It is expected that the business will grow from $229,272 in the first year to $367,061 by the end of year five. This expansion will be accomplished through continual reinvestment of and partnering with businesses that specialize in the distribution of personalized corporate gifts. The company plans to move from depending on the local economy to a market that includes the entirety of the United States.

Problem Statement

B & B. Custom Woodworks, Inc. began in March of 2007. Since that time the business has thrived and increased in terms of order and has experienced increased yearly profits. The business added an expansive online website that allows for the ordering of custom woodwork projects. This ILP will explore the problem of how the business can continue to expand and to continue the success that it has experienced since opening.

The business faces several challenges in its desire to continue to grow. The company wishes to expand offering further diversified product lines in addition to expanding facilities and operations. However, the business faces several challenges in doing so. First, the currently poor economy and its effects on all sectors of the market pose a threat to this plan. This problem that will be addressed in this study is the how the business can continue to expand and reach its financial goals, despite the challenges that it faces.

The study will address solutions to this problem by examining the businesses market, competition, and SWOT analysis so that it can develop a marketing plan that will capitalize on its strengths and minimize its weaknesses. It is essential that the marketing plan be directly related to these factors in order to be successful and help the company achieve its goals.

Rationale for Studying the Problem

B & B. Custom Woodworks, Inc. has been a small, local company up to this point. Its expansion plans include marketing to the rest of the United States. In order to do this the company must develop a solid marketing plan that matches its goals, its market, its competition, and other factors that will influence business. When the company expands, its competitive profile will also expand to include other companies in the United States that make similar product lines. The company will have to differentiate itself and its marketing in order to continue to increase sales and meet their goals.

The study will rely on external market analysis to ensure that the company continues to grow, while continuing to maintain a sense of innovation in the products and services that can be provided to clients in the future. The company will seek to maintain growth despite the economic pressures in the open market. It is expected that woodworking products and services will remain relatively price inelastic as the economy fluctuates. Another problem that the company faces is keeping its prices affordable during times of economic recession and increasing the overhead costs. Yet, it must do so without changing its target market and focus.

The marketing strategy is one of the most important elements of a successful expansion project. The marketing must take into account the risks of that must be overcome, as well as to be able to take advantage of any opportunities that may arise. It is not enough to simply embark on a generic marketing plan, particularly in a niche market such as the custom woodworking industry. The marketing plan must match all of the goals and elements involved with the expansion plan. It is one of the most important elements in the success of the project. The importance of the marketing plan is the key rationale for the studying the problem that is the focus of this ILP. This research project will focus on the development of a marketing plan that will suit of all of the needs of the company and its future expansion projects.

Background

According to the U.S. census, custom woodworking is differentiated from carpentry work. Gross revenues of $1 billion year have been reported. However, the industry only employs approximately 10,000 people. This translates into high incomes for those who are in the business. Growth and demand for custom woodworking services closely follows that of the general economy.

The outlook for the industry is favorable for the long-term future. Operational costs associated with the products and services offered allow the industry and its individual agents to maintain a reasonable profit and positive cash flow despite the changes in the economy that decrease revenues. Currently, more than 10,000 businesses offer similar custom woodworking products and services. B & B. Custom Woodworks, Inc. offers its products at a much lower cost than other competitors.

The customer profile for custom woodworking and personalized gifts is a mixed group. The business primarily has two different market sectors. They sell to individuals and businesses. The average individual customer purchases to one of two pieces of custom woodwork or engraved products. Businesses often provide customized plaques and other memorabilia as gifts for recognition of employee achievements. Business clients represent the greatest potential for repeat business and expansion of product sales. They are more likely to be less sensitive to price changes than individual customers do. The expansion project will focus on aggressively expanding the business portion of the market sector. This portion of the business will be extended through the development of an online ordering portal as well as through local marketing efforts. Business customers will be the key target of the expansion project.

Literature Review

B & B. Custom Woodworks, Inc. operates in the custom woodworking business. Understanding research on small business expansion is an important part of a successful project. Currently, B & B. Custom Woodworks, Inc. intends to increase their business exponentially over the next five years. Their plan is to concentrate on the business end of the market. However, their current marketing strategy only includes local promotion, except for Internet marketing. This research will explore current literature on topics related to this planned expansion.

The literature review will serve as the key data collection method for this ILP. The study. will explore a number of different types of resources including, but not limited to, academic research, information from trade magazines, and other sources of information. The credibility of each of these research sources will be considered in the final analysis of the project. An examination of the current literature will provide the background for an analysis of the current promotion and expansion strategy in relation to the literature that is found. This literature review will result in a list of strategies that will be applied to the current situation at B & B. Custom Woodworks, Inc. These strategies will form the basis of recommendations that will result from this research strategy. The Literature Review will explore a number of topics that are related to the expansion project of B & B. Custom Woodworks, Inc. In addition to reviewing the sources of information, the literature review will also analyze each of the sources as… READ MORE

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Quoted Instructions for "Small Business Management Challenges" Assignment:

“

As quoted from the requirements page for the Independent Learning Plan or Literature Review paper.

You are expected to select a topic of relevance to Management and of importance to your professional development. After identifying a topic, you will work with your faculty advisor to determine the type of ILP most conducive to enhancing your learning about this topic.

The Independent Learning Project (ILP) is a comprehensive project that students are required to complete as part of their master*****s degree program at the College. It enables students to demonstrate that they can think critically, undertake research, apply theory to a practical situation, and present their findings and recommendations in writing.

Requirements for your ILP:

Relates to current issues in Management Is original work of which i can include mine .

Has personal and practical relevance to the student in the workplace or the community.

Demonstrates that the student has gained a thorough understanding of the subject area through research, analysis of current management literature, and critical thinking.

Research using appropriate techniques and sufficient depth to give meaningful outcomes.

Provides evidence of the student*****s management skills, including project planning, meeting deadlines, overcoming hurdles, and responding to feedback.

Present in American Psychological Association (APA) format and the main body is at least 50 pages in length. Page numbering begins with the title page and each page should include the title as a running head.

Must have a reference page with the information cited clearly within paper.

Include my business plan for my actually company as reference within the paper and within specific areas.

Would like to write a masters level literature research paper (include peer reviews) on:

Small Business Management Challenges (include my company information B & B Custom Woodworks, Inc)

Possible *****"an analysis of issues impacting.... or how to turn the current challenges to opportunities.

Possible focus areas: Marketing & Advertising Strategies

E-commerce-website-social media

Financial-Start up money, accounting, money for supplies, employee salary, Benefits and costs in today*****s economic climate (recession, post 9-11), etc

Legal - types of corp, how to decide which are right, legal issues to consider when safeguarding company and assets, insurance, and safety issues

Human Resources - employee benefits, right person for right job, health insurance

Competition - know them

IT Services- latest computer and software $$, employee training on software, network security, customer personal information financial matters security.

Any additional information you may think of would be greatly appreciated.

I have additional resources which could be included.

Need references to reflect the sources of the material which was used and properly citate.

Needs to be guaranteed as my original work since this is a special requested item and never produced prior to me asking for this information.

Need to present the findings and recommendations. This may be how we tackled the challenge within the company or what our future plan would be to meet the challenge.

*****

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