Introduction
The purpose of this paper is to review and analyze a small business owned and operated by an entrepreneur. The business type, the form of ownership, and aspects of the business will be compared to the issues presented in the text. The owner’s leadership style will be evaluated, as well as how the business is managed. Additionally, the questions asked of the entrepreneur during the interview will be provided.
Section 1
The person picked for the interview is the owner of “Luxury Linens,” a modest company. Luxury Linens is a family-owned company specializing in high-end bedding, towels, and luxury linens. The company was founded in 2016 by a husband and wife team with an experience in textile manufacture. Luxury Linens’ business model is that of a specialist retail shop. The company is organized as a Limited Liability Company (LLC), allowing the owners to enjoy the limited liability protection that comes with a corporation while avoiding the double taxation of corporate income and dividends. Luxury Linens has a minimal client base: high-end hotels, spas, and private consumers. A Limited Liability Company (LLC) is a type of business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. This means that the members of the LLC will not be held personally liable for debts, lawsuits, or other liabilities incurred by the LLC. This type of business structure is appealing to business owners looking to limit their liability and have more specific tax filing requirements than a corporation.
Luxury Linens addresses the problems raised in the text about small businesses positively. The literature, for example, highlights the significance of a business strategy that Luxury Linens has in place. Furthermore, the interview emphasizes the significance of funding, and Luxury Linens has successfully received financing from various sources (Robbins, 2019). Moreover, the interview emphasizes the importance of marketing, and Luxury Linens has actively engaged in a range of marketing methods, such as social media, paid to advertise, and public relations.
On the other side, certain negative characteristics of Luxury Linens are discussed in the book. The literature, for example, emphasizes the necessity of knowing the legal elements of running a corporation. Luxury Linens falls short in this area since their legal understanding is inadequate, and they have not talked with a lawyer to guarantee they are adequately protected. Furthermore, the article emphasizes the importance of knowing the competitors, and Luxury Linens has not conducted an in-depth investigation of the rivalry in their local market.
Finally, Luxury Linens is a modest company run by a husband and wife team. The company, which is organized as an LLC, provides specialty retail services. The concerns raised in the book are handled positively in some ways and negatively in others. The existence of a company plan, effective finance, and a good marketing strategy are all positive elements. The disadvantages include a lack of legal expertise and a poor comprehension of the competition.
Section 2
The interview revealed that the proprietors of Luxury Linens are actively engaged in the operation of the company. They are active in all elements of the firm, including operational management, marketing, and customer relations. They have also formed a team of workers to assist with day-to-day activities and operations. The owners seem to have a collaborative and delegated leadership style. They welcome employee feedback and depend on their team to make choices and execute initiatives. They also look to be receptive to input and actively listen to the thoughts and recommendations of their staff. Overall, it seems like the founders of Luxury Linens are devoted to fostering a collaborative work atmosphere that fosters innovation and creativity.
The firm has hired a business manager to help with day-to-day operations in addition to the owners. The manager’s responsibilities include financial management, inventory control, and customer service, among others, as well as ensuring the firm works smoothly and effectively. The manager of an organization is also responsible for leading the staff and helping them accomplish their goals. The manager is expected to have a leadership style that is both authoritative and encouraging. He is not afraid to make decisions or delegate responsibilities, and he encourages teamwork and the development of novel approaches to problems.
The Interview Portion
When interviewing the entrepreneur, the following questions were asked:
- What motivated you to start a small business?
- How did you go about financing the business?
- What challenges did you face when starting up the business?
- How have you gone about marketing and advertising the business?
- What plans do you have to stay competitive in the market?
- What advice would you offer to someone looking to start a small business?
The entrepreneur expressed that they were motivated to start a small business because they wanted to create a business that was their own and that they could be proud of. They noted that the process of financing the business was difficult but that they were able to obtain financing from various sources. When discussing the challenges faced when starting up the business, the entrepreneur noted that the biggest challenge was gaining the trust of customers and building a loyal customer base (Robbins, 2019). The entrepreneur said they had put a lot of money into several forms of promotion and marketing including social media, sponsored ads, and PR. The company stressed that it was constantly looking for new clients and was actively researching strategies to maintain its market competitiveness. Finally, when asked for guidance, the company owner stressed the need to develop a game plan and be prepared to put in the long hours of labor required to see the venture through to fruition. They also emphasized the need to maintain order and complete all necessary formalities.
To summarize, Luxury Linens is a small company that has been successfully run and controlled by an entrepreneur. An LLC is a company form of ownership that provides the owners with limited liability protection. The entrepreneur is actively involved in the company and has embraced a collaborative and delegated leadership style. Furthermore, the firm has obtained funding from several sources and actively participated in various marketing strategies. Although Luxury Linens has shortcomings, such as a lack of legal experience and a poor understanding of the market, the company is well-run and profitable. The entrepreneur said the most challenging aspect of beginning a firm was obtaining client confidence and creating a loyal customer base. Finally, the entrepreneur gave advice to potential entrepreneurs, stressing the necessity of having a strategy, remaining organized, and putting in the hard work and devotion required to run a successful firm.
Reference
Robbins, E. (2019). Personal communication (2nd ed.). Pearson.