Small Business Management: Moawia Juice Business Case Study

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Starting up the juice business is seemingly daunting to Moawia, but on the same breathe, it is appealing and adventurous. Any new business requires optimum talent and skill to achieve the desired and expected results; this is in addition to uncompromising motivation to carry through business activities. The business will most definitely involve some amount of risk, but it may be enormously rewarding if it is successful. Moawia is sure he can run a business successfully, thus he intends to try although his real concern is the ability of Sombrero to do enough business to pay all its bills and avoid going bankrupt. Moawia’s overall plans will become a valuable tool as he sets out to raise money for his business. It will also provide milestones to gauge his accomplishment.

Currently, Moawia is very satisfied and contented with his work and income as the operating manager at the Al Qatara bowling alley in the Al Ain Club, but on the other hand, he has a compelling urge to market his skills and endowment. Opening the juice business will be all about managing relationships with clients or customers, suppliers, and his employees. It will also entail being involved in handling marketing and sales duties, financial planning, and accounting responsibilities, administrative and personnel management duties or all of the above.

The main drawback, as Moawia anticipates, is the rent that is charged to businesses depending on the number of square meters that the business occupies (Sombrero Case Study, N.d). It depended on the size and how well known a business was. Moawia Sombrero would have to pay DH 60,000 per year to lease the space. This initially portends to be a daunting task for Moawia. The lease agreement would mean Sombrero should be in business for at least five years. This is besides other cost associated with setting up the floor, walls and ceiling install lighting and air conditioning. There is a huge financial risk involved in starting the business. New businesses do not start giving money readily and may wallow easily, leading to bankruptcy; therefore sustainability management is important (Kolk, 2008).

Another problem is the location of the proposed new business. Being on the second floor of the mall, it would mean maximum exposure of the business to as many people as possible. Moawia felt a little afraid because he did not know how many customers he would have to cover all his costs and be profitable. The business could usually hit lean periods once a year. The nature of fruits being in and out of season, necessitates him to be careful because there will be months when there will be little or no income coming in.

The business will require heavy refrigeration to accommodate all the fruits and ice cream for the customers. Sombrero would serve a freshly squeezed fruit drink mixed with Ice cream to be efficiently in operation. This will entail Moawia being creative and to research extensively. As clients, they can state what results are expected, and of course, he would want to satisfy them if he would want to receive more work, favorable referrals, or better rates.

Sombrero has two employees who will need working tirelessly to fulfill the needs and desires of the clients. More employees would be appropriate to cater for them comfortably. Sombrero can choose its clients or customers, but it cannot control their expectations or actions. If sombrero does not come motivate them or pay them well, they may not be productive enough, while customer’s needs may not be met.

Besides the downs, being the owner, Moawia would be in control of all aspects of the business, including the location and the operation of the business. He would decide when, where and how to work in order to ensure success of the business. There would be financial independence on the amount of return the business would bring. Moreover, there is a chance that he will progressively make more money through own business than by working for someone else.

Moawia is also at will to express his creative freedom, since there will be no more restrictions and he can do what he likes and have the freedom to labor, as well as devise, produce, and build what he thinks is superlative. His experience as the operating manager at the Al Qatara bowling alley in the Al Ain Club will be an asset in dispensation of operations, logistics, and overall management of his business. The business would work on word of mouth and referral from his colleagues, which would in turn form a formidable customer base.

As the owner, he will interact with his customers directly and will be able to lay special emphasis on their needs and requirements, which in turn will enable him and his team to improve the quality and features of the product or services that they may be offering. Nevertheless, being self-employed would present many new opportunities for Moawia, and in the future, promise more fruit avenues and operation expansion.

References

Kolk, A. (2008). Sustainability, Accountability and Corporate Governance: Exploring Multinationals’ Reporting Practices. Business Strategy and the Environment, 17; 1–15. Web.

Sombrero Case Study. (N.d). Proposed Fruit Juice Outlet (Attached case study). Web.

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