Week 6 Assignment - Feasibility Analysis
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SmallBusinessManagementWeek4assignment-CreatingSmallBusiness.docx
BUS 402: Small Business Management
Name:
Strayer University
Date: 10/30/2021
The idea of beginning a business necessitates some thought to ensure that you are prepared. According to Entrepreneur research, it’s easy to feel capable far sooner than you seem to be, and it's equally simple for someone to feel or to have a fear of being dragged down long after you start the business. I think the same way by that phrase; therefore, they've given some indicators to help people figure out how to succeed in the business world.
As a new business entrepreneur, you must first research what it will take for the business to succeed in this competitive world. According to the class material, E-commerce can help your firm succeed (Scarborough & Cornwall, 2015). E-commerce is similar to web-based advertising or business. As a result, whether you buy or sell something on the internet, you are engaging in e-commerce, which can be frustrating at times, particularly when developing a strategy for becoming a successful entrepreneur. It's been stated that during pick seasons sales, e-commerce sales seem to soar to new heights.
The prospective small business idea and the name for the company
Selling things through different online organizations such as Amazon or eBay has always been my dream. From my perspective, it would be an incredible platform for a small business to thrive in and have low maintenance costs running in the future, and that I believe would be profitable for many years to come since we are in a digital world. My main idea is to sell things through other organizations, such as Amazon and use their warehousing service. Because they manage all customer service, it reduces stress. Selling beauty products is a dream that I have always liked to pursue because it has been booming currently. (M&U) Beauty Company is the brand name I've chosen for my company.
Company's main competitors and their strengths and weaknesses.
Some of the businesses that I expect to be the main competitors of my company (M&U) are.
· Bluemercury
· Glossier
· Space NK
· Beautylish
· Harmon Face Values
· Net-a-Porter
· Violet Grey
Most of my main competitors have added advantages over M&U. for instance, beauty shops like Bluemercury, Glossier, Space NK, and Beautylish are big companies with well-established brands. Another main strength of these companies is that they have opened up physical stores across the United States as opposed to my company which only relies on other organizations' websites. Lastly, besides using both web and physical stores, they have a unique advertisement strategy using cerebrates to gain a good competitive advantage. Therefore M&U will follow in the footsteps of these companies to ensure that soon we get an equal share in the market.
Every organization faces challenges; however, some challenges are unavoidable while others can be rectified. In that case, weaknesses are negative internal factors that inhibit the companies' ability to maximize their profit or achieve their goals (Scarborough & Cornwall, 2015, p.114). One of the main weaknesses that these beauty companies are facing is the high cost of management. Beauty products are highly perishable if not well packaged. Therefore, these companies need a lot of capital to ensure their products are in good condition. Secondly, poor completion methods are also used by these companies. For instance, they lower their selling price to have a competitive advantage. This should not be the case because lowering the selling price will not maximize the profit, and in some cases, it might not cover the production cost.
The mission statement encompasses the purpose of MI&U, considering the target market.
According to Rath, (2019), a mission statement summarizes why a company exists, its goal, and how it will achieve these goals. Additionally, a mission statement is essential because it acts as a road map for the company. MI&U's mission is to celebrate men and women who believe in themselves and are willing to step up into a lovely new look. We employ beauty products made of natural ingredients because we believe in the best of the best.
Identify the ownership form for this business, considering tax implications, liability exposure, managerial ability, and cost of formation.
A limited liability company, or LLC, would be the form of ownership for MI&U Beauty Company. LLCs protect the owners' assets, provide tax advantages, and are incredibly flexible (Gunderson, Denton & Peterson, P.C., n.d.). An LLC's tax ramifications differ from those of a corporation. Pass-through taxation is used by LLCs, which means the LLC does not pay taxes. Instead, income from the firm will be distributed to the company's owners, shareholders. They report the gains or losses on their tax returns (Rath, 2019).
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