Introduction
The chosen legal form for the business will be a general partnership. The benefit of the partnership is that it shares resources and responsibilities among partners, so the burden of creating a business will be decreased (Clifford & Warner, 1). As it also stands from the importance of choosing the right partner, the partnership will still be the most suitable case for small businesses as, together with expenses, risks are also shared evenly among owners. The proportion of each partner on profits and losses will be determined later when signing a partnership agreement.
The small businesses will be based on producing fashion clothes, and several employees will be needed for that. First of all, as it is a partnership, there will be two owners who are responsible for management and strategic decisions. Furthermore, an operations manager will oversee daily operations, such as production and logistics. Three or more workshop employees and designers will be needed to provide the necessary product.
Furthermore, a sales and marketing manager will curate overall sales, advertising, customer, and local business negotiations. The financial manager will administer the accounting and budgeting for the following year. Lastly, if necessary, a customer service representative will work with the media and operate at an overall customer satisfaction level.
Brand Building
One of the most efficient ways to promote teamwork and brand building is incentivizing. It can be financially incentivizing based on the performance of an employee, either in a boost of wages or a single supplement to it (Longenecker et al., 2. Another critical method is providing regular meetings with all employees present to discuss brand development. It should be a conversation-based meeting where employees can speak for the company’s future. Lastly, it is important to set attainable goals every specific period. Goals will always remind employees of their responsibilities in brand building. In addition, it is essential to check the progress on goals and periodically update their content.
Stakeholders
One of the ways to satisfy investors is to ensure the liability of the company and its prospects. This can be done through regular meetings with investors, during which the company’s progress can be explained in detail. Other than that, employees as stakeholders can be satisfied by providing competitive wages that match market salaries and by offering development opportunities such as training (Longenecker et al., 2).
Next, customers can be satisfied by providing sufficient support and service to buyers. It can be sophisticated assistance of new customers and timely management of products sold, such as home appliances. The best indicators or methods for the community will be creating environmentally friendly initiatives or funding specific local area development programs.
Investment
One of the main principles of attracting investment is showing the more significant potential of the company. Longenecker et al. (2) argue that the main factors when presenting a company to the investor include showing profitability, possible financial risks, and who will possess the voting control. The issue with equity investors is that they are hard to receive for small businesses, as they usually come from personal savings or selling the stock to the public. One of the possible ways is to address venture capitalist funds or directly negotiate with business angels.
The funding should be directly stated in the company’s strategic planning. Strategic planning should also be considered within financial analytics and additional managerial groups (William Jr. et al., 3). As Longenecker et al. (2) suggest, less debt and more equity funds are usually better. It can go the proportion of 30/70, where the debt will contribute 30% of the investment and equity to 70%. Its rationale is that debt investment can increase the profit of individual sole owners, but it will not be suitable for general partnership forms. At the same time, equity investment increases the profit for all its members, although at a lower rate.
Technology Assessment
The technologies necessary for the development are diverse. First of all, it is necessary to have digital marketing strategies, such as having online advertisements or specific social media accounts targeting the necessary audience. Modern clothing companies usually have their e-commerce platforms, such as individual websites, social media accounts, or a place at a more expansive shopping website. Lastly, clothing production requires a workshop with the necessary equipment and technologies.
Conclusion
Small businesses are a vital part of the country’s economy; thus, it is possible to seek additional support for its development. Usually, there are loans with better interest rates and different training opportunities for employees. In the future, it is possible to ensure the company’s growth through strategic planning. For now, the company should have a solid legal framework and signed agreements with a team willing to develop the brand. Lastly, correctly estimating financial risks and profits is vital, considering the necessary investments.
Sources
- Clifford Denis and Ralph Warner. 2020. Form a Partnership: The Legal Guide for Business Owners. Web.
- Longenecker Justin G., Petty J. William, Palich Leslie E., Hoy Frank. 2019. Small Business Management: Launching & Growing Entrepreneurial Ventures. Web.
- Ralph I. Williams Jr., Scott C. Manley, Joshua R. Aaron, Francis Daniel. 2018. The Relationship Between AComprehensive Strategic Approach And Small Business Performance. Web.
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