Successful entrepreneurs develop innovative concepts and strategies to achieve their potential. More often than not, small businesses fail to implement appropriate initiatives to deliver positive results. They tend to ignore critical attributes such as targeting, segmentation, positioning, and effective marketing mix. This paper gives a detailed description of a small business venture and the most appropriate strategy that will be considered to maximize profitability.
Business Concept
The proposed business idea is informed by the changes experienced in the current global environment. Malach and Malach (2014) indicate that emerging technologies continue to revolutionize the way different entrepreneurs achieve their goals. One of the small businesses that I visit frequently markets new cell phones and handheld devices (such as tablets) to different customers. The outstanding observation is that the number of such ventures focusing on smartphones and mobile devices has been on the rise. It is also agreeable that such businesses are profitable since more people are purchasing and using these gadgets than ever before.
With this kind of information, my business model seeks to compete directly with most of these new gadgets. Several reasons can be presented to support this strategy. The main idea is to purchase (or acquire) secondhand smartphones that are no longer in use. Studies have revealed that many young people are keen to acquire the latest device in the market (Petkovic, Jager, & Sasic, 2016). This means that earlier brands or series of such devices lie unused in every home. With a proper strategy in place, these individuals can be identified and encouraged to sell every smartphone that is not in use.
The rationale for this concept is that many people are unaware that such products can help others who do not have enough money to afford new brands in the market. Secondly, the strategy is supported by the idea of sustainability. With more corporations such as Apple and Samsung introducing superior products that feature advanced operating systems and applications (apps) in the market, a complicated situation has emerged whereby natural resources are being over-utilized. Mobile devices that are available in the market have been observed to have increased impacts on the natural environment because of the production, research, and development (R&D), and logistical procedures used to deliver them to the final user (Malach & Malach, 2014). My new business approach, therefore, seeks to deal with this sustainability predicament.
The global community is currently focusing on the issue of environmental conservation (Petkovic et al., 2016). Additionally, those who do not have enough money to purchase new smartphones will find it easier to acquire similar products and be empowered to achieve their potential. These aspects show that the proposed business concept is capable of delivering positive results.
Opening a New Business
As described earlier, my new business will compete directly with existing shops and outlets that market a wide range of cell phones. To emerge successfully, I strongly believe that the most appropriate strategy is to start the business from scratch instead of purchasing an existing one. There are several reasons for doing so. To begin with, this approach will make it easier for me to identify the most appropriate and visible location (Schwarzl & Grabowska, 2015). This strategy will attract more customers and make the proposed venture profitable.
Secondly, this model will empower me to conduct a feasibility study to identify potential risk factors and determinants that can affect the business’s performance. This strategy will make it easier to develop the best plan for implementing the idea and ensuring that positive results are realized within the stipulated time. Different professionals and consultants will be contacted during the initial phases of the business implementation process. This action will be undertaken in an attempt to understand the best approaches that can add value or improve the idea (Zeriti, Robson, Spyropoulou, & Leonidou, 2014). The ultimate goal is to have an original business venture that is capable of supporting the diverse needs of different customers.
Thirdly, the proposed idea or concept is something that has not been tried before in my local town. Currently, many people sell their old phones to their friends and colleagues after acquiring new ones (Petkovic et al., 2016). This situation explains why individuals visit existing shops and outlets to purchase mobile phones. This has been the case because they cannot acquire secondhand devices. Since this is a revolutionary business idea, it will be impossible to find or purchase an existing venture. With this information in mind, my workers will be empowered, trained, and guided to ensure that positive results are realized.
Ownership
Various approaches are available to entrepreneurs who want to start new businesses. Some of them include franchising, sole proprietorships, and partnerships. The most appropriate ownership approach for this new venture is that of the sole proprietorship. This means that I will be the one in charge of the small business and it’s every operation (Petkovic et al., 2016). Several aspects explain why this form of ownership is appropriate for my case. The first one is that I can manage to raise enough funds to start the business. This is possible because many secondhand phones and tablets can be acquired at discounted prices. This means that I will be in a position to purchase a considerable number of devices after implementing the proposed business idea.
The second reason is that this form of ownership will make it easier for me to manage all aspects of the venture. I will monitor and record various transactions, identify areas that should be improved, and make appropriate decisions that can make the idea successful (Schwarzl & Grabowska, 2015). The third aspect is that a sole proprietor can develop applicable models that can result in positive performance without consulting others. Since this is a small business, it will be easier to implement and support it within a short time and eventually record positive outcomes.
Business Plan
Executive Summary
This business seeks to transform the way human beings acquire and use mobile phones. It is founded on the concept of sustainability since the wave of globalization is forcing people to overuse their natural resources. Superior (or new) mobile devices deliver numerous features and apps that meet the needs of different users. However, this approach has ignored the realities of environmental degradation (Petkovic et al., 2016). This company will maximize the number of existing phones that are in use and safeguard the natural environment.
Company Description
The proposed company/business name is Eco-friendly Mobile Phones. The company’s business model revolves around the purchase of used phones and marketing them to different customers. Phones will be categorized depending on their features, operating systems, and capabilities (Zeriti et al., 2014). Customers’ needs will be matched with these features in an attempt to streamline the marketing process.
Products and Services
The major products for this business include recycled (or secondhand) smartphones, mobile devices, and tablets (Zeriti et al., 2014). Acquired phones should meet the implemented quality criteria to ensure that they meet the needs of different customers.
Marketing Plan
Marketing will be pursued by two of the intended three employees. They will utilize a powerful mix to deliver positive results. This means that quality products will be sourced from different individuals. They will then be marketed at reasonable prices (Zeriti et al., 2014). Promotional strategies will revolve around the use of social media platforms such as Twitter. The business will also be located strategically to attract more customers.
Operational Plan
A simple operational plan is expected to support this business concept. It will be located in my local town. The targeted office space will be small. Licenses and operating permits will be acquired from the relevant authorities. A trademark for this business will also be developed. Competent persons who are aware of appropriate marketing and service delivery processes will be hired (Petkovic et al., 2016). The targeted devices will be acquired from the local community. Social media networks such as Facebook will be considered to reach out to potential suppliers.
Management & Organization
Managerial processes will be undertaken by the business owner. Three employees will also be hired to carry out various tasks such as advertising, acquisition of secondhand mobile devices, and delivering quality customer support (Petkovic et al., 2016). These individuals will work as a team to deliver positive results.
Startup Expenses & Capitalization
The starting capital for this business will be obtained from personal savings. Family members and relatives will also be requested to support the initiative. Projected startup expenses stand at $45,000. Most of these funds will be used to identify and rent enough space (or shop) for this business (Petkovic et al., 2016). Additional expenses will revolve around consultancy, transport, and the purchase of a computer for this start-up business.
Financial Plan
The proposed business will be launched and implemented for 50,000 US dollars. This amount will be used to rent space and design it to meet the needs of potential customers (Zeriti et al., 2014). The money will also be utilized to purchase secondhand phones from different users. The projected profit within the first six months is 7,000 US dollars. By the end of the first year, profits should have increased to around 12,000 US dollars. These earnings will then be plowed back into this business. Expenses are expected to stand at $1,200 per month.
Conclusion
The proposed business concept has the potential to succeed since it is an original idea. With many people embracing attributes such as environmental conservation and sustainability, chances are high that more customers will purchase these devices. A powerful business plan will also make a difference, tackle the challenge of competition, attract more stakeholders, and eventually make the venture successful. Aspects such as proper managerial practices, effective marketing strategies, and teamwork will be taken seriously to ensure that the business supports the needs of many customers in the selected town.
References
Malach, S. E., & Malach, R. L. (2014). Start your own business assignment in the context of experiential entrepreneurship education. Journal of Higher Education Outreach and Engagement, 18(1), 169-186.
Petkovic, S., Jager, C., & Sasic, B. (2016). Challenges of small and medium sized companies at early stage of development: Insights from Bosnia and Herzegovina. Management, 21(2), 45-76.
Schwarzl, S., & Grabowska, M. (2015). Online marketing strategies: The future is here. Journal of International Studies, 8(2), 187-196. Web.
Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable export marketing strategy fit and performance. Journal of International Marketing, 22(4), 44-66. Web.