Week 5 Assignmentbfied0404
Running Head: EXPANDING A FLOURISHING SMALL BUSINESS 1
EXPANDING A FLOURISHING SMALL BUSINESS 5
Expanding a Flourishing Business
Brea P. Sylvester
Expansion of a successful business into a corporation doesn't just happen, but quality intensive research and information gathering is required. This is aimed at ensuring that all the risks are put into consideration before the actual act of growing the business is done. The fact that the expansion of small successful businesses is greatly encouraged, there are many challenges that the owners face that may end up limiting the business’ long term survival. According to statistics, only three fifty (3/5) of small expanded business operates within the first two years of expansion (Weigert, 2018).
Q2. Create an outline of the major headings with a two- to three-sentence description of what you will discuss under each heading.
The following outline shows the different strategies that I will employ in expanding the business. Market Research
Under this, I will try to analyze the existing market for the products and services that I intend to add to the existing business for the expansion plan. I will analyze the market preference to the existing fashion of products in the market. The trends in the market will also be analyzed for the purpose of identifying the potentiality of the business to survive for long in the market. I will also analyze the demographic information of the existing market and make projections to the business that I intend to expand (Bach, Celjo, & Zoroja, 2016, June).
Under this, I will look at the possible business expansion strategies that can help me achieve my goal. Some of the strategies that I will analyze include;
· Adding new products and services to the existing stocks strategy
· Selling more products and services to the potential customers' strategy
· Expanding the business territories strategy
· Targeting new customers in the market strategy
· Finally, I will analyze changing into new sales strategy
New Marketing Strategies
Under this, I will explore all the possible plans that I will use towards making my goal of expanding the business valid. This will not only aim at the validity of the goal but the lasting of the business in the market. Under this I will look at analyze the following;
· Pricing of the business products which will involve lowering the prices to attract customers
· Types of advertising mean that will be adapted to market the business
· Branding of the business products and the premises in general for uniqueness.
New Sales Strategies
The right sales strategies will foster the continuity of expanded business existence. In this case, I will analyze the possible strategies that I will apply to promote the sales of business products and services. Some of these sales strategies include;
· Leading with what is in the business for a prospect to customers first
· Articulating the end results clearly to the customers
· Starting with small niche markets
· Lead score use in prioritizing the prospects
· Employment of storytelling technique on customers when selling the product.
Employees and Motivation Strategies
This is the final step of my paper. Under this, I will analyze the number of employees required in the expanded business together with the relevant qualifications required. I will also analyze different motivation strategies for the employees that will be as a booster to their morale towards work hence increases in the business productivity (Sakai, & Hidaka, 2018).
Acme Fireworks Case
Q1. Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.
The contract between Acme Fireworks and other businesses will have to be governed by common law. This is due to the fact that law falls under the system which emphasizes on drafting of regulations via judicial decisions where terms like quantity, price, and nature of work besides identity offers are interpreted unlike only quantity for uniform commercial law. This will ensure that all the rules made by the contracting businesses are clearly known and interpreted by the court of law hence safeguarding other businesses from any member who might be bad intentioned in the contract. The uniform commercial law evolved from common law to govern commercial transactions hence not fit to govern the contracts (Houghton, & Barber, 2016).
Q2. Analyze whether the owner formed a contract with the businesses, and apply the five essential elements of an enforceable contract.
According to the scenario, the owner entered into a contract with the businesses.
· Offer – an offer was given by the businesses to Acme Fireworks.
· Acceptance – the Acme Fire accepted the offer.
· Consideration – considerations were made by the two parties even if there was no disclosure of the terms of the agreement.
· Capacity- there was a legal capacity process that was followed.
· Lawful purpose- both Acme Fireworks entered into a legal process where common law was applied in governing the contract.
Q3. Explain the potential personal liability to Acme Fireworks if a spectator is injured by a stray firework from a fireworks display.
The Acme Fireworks can be responsible for any defective products that can injure an individual although one can believe that the nature of Firework displays is harmless. The Acme Fireworks conducts its operations in accordance with the local regulations and therefore a person might think that the injury would be to the owner's risk. But if there happens to be an unexpected malfunction, the business entity would be reliable.
Q4. Discuss the different employment types and relationships relevant to agency law, and analyze the advantages and disadvantages of each type specific to Acme Fireworks.
The Acme Fireworks would require only skilled workers regarding the nature of work being carried out by the business. The business owner needs to carefully choose the skilled personnel who are responsible for putting on fireworks displays. By hiring skilled individuals, the owner will reduce the risk that might occur if the fireworks display was carried out by a person who isn't trained. The training is necessary for the workers and the owner must ensure that every employee understands what the training is all about. The owner needs to employee new individuals who have more experience to show the existing employees the ropes on the job besides conducting training on them. Although the training costs will be high, they will be able to put good shows besides preventing unnecessary accidents from happening (Peel, 2015).
Q5. Explain why Acme Fireworks should not operate as a sole proprietorship. Recommend a new business entity, and provide a rationale to support your recommendation.
Acme Fireworks should not operate as a sole proprietorship because of the limited protection it has compared to the nature of the business it's carrying out. Also, the return on investment of a sole proprietorship is very little besides the tax rates are very high. Therefore, I suggest that Acme Fireworks change its status to a limited liability company. I recommend it because, the owner will be protected from the torts committed by another member, the taxation will be flexible and fair and finally, the returns on investments will increase (Knapp, Crystal, & Prince, 2019).
Bach, M. P., Celjo, A., & Zoroja, J. (2016, June). Expanding the Technology Acceptance Model for Business and Process Intelligence: Preliminary Research. In An Enterprise Odyssey. International Conference Proceedings (p. 716). The University of Zagreb, Faculty of Economics and Business.
Houghton, M., & Barber, C. (2016). About the expanding Black business credit initiative (EBBC).
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2019). Problems in Contract Law: cases and materials. Wolters Kluwer.
Peel, E. (2015). Treitel on the Law of Contract (Vol. 414). London: Sweet & Maxwell.
Sakai, S., & Hidaka, K. (2018). Aiming for Digital Business Innovation by Expanding Services for Co-creation. FUJITSU SCIENTIFIC & TECHNICAL JOURNAL, 54(2), 28-33.
Weigert, M. (2018). Jumia travel in Africa: expanding the boundaries of the online travel agency business model. Tourism Review.