Discuss about the Business Routledge Companion of Entrepreneurship.
The process of on-selling can be defined as selling something that has been bought to a second buyer. John and Robyn have created a business that can be on-sold. Although in certain areas or aspects, the business of the couple cannot be on-sold. The business that is developed by aJohn and Robyn is essentially based in the tourism industry. The couple focused their attention on indigenous tourism industry. Any and everybody cannot overtake this. A person of an indigenous origin can only helm it. Since the sentiment of the local people is involved in the local tourism, the responsibility of heading the business cannot be given to any random individual. The person to whom the business is passed on to must have a thorough knowledge of the local culture of the particular region. Since the case study is based on an Australian isle off the coast of New South Wales, the knowledge of the culture of the place is essential to run the business started by John and Robyn in a successful manner. An indigenous couple, john and Robyn started the business. The business essentially was indigenous backpacker tourism. The tourism thrived on the picturesque location and the charm of the ancient folklore around the beautiful place. However, few parts of the business can be on-sold to a third party like few of the resources of the business like the caravan and the van that were rented out to the tourists during the beginning of the business. The entrepreneurs developed a tourism business that cannot be on-sold. Since the business is based on an indigenous culture and folklore, running the business by a non-indigenous individual should result in a non-favorable return to the business and thus the running of the business by a non-indigenous person is not viable. The on-selling of the business set up by John and Robyn, thus, cannot be on-sold. The business has to be handed over to a person or a group of person who have a similar kind of culture and ethnicity to run the business successfully.
Indigenous entrepreneurs, John and Robyn should have taken these few steps at the initial stage of their business in order to run their business in a successful manner (Chwolka and Raith 2012). They are:
In the initial planning of their business, John and Robyn most importantly, should have calculated their investment requirement. In the first stage, the entrepreneur couple should have identified the start-up cost to all the aspect of the business. This step should have been taken after careful planning and research (Stutely 2012).
The initial planning of the business should have included the development of a sound and viable marketing strategy. In this competitive market, marketing is a key element to a profitable and a successful company. When it is a question of a start up, it is essential to have a healthy marketing strategy during the initial days of starting up the business (Shaw 2012).
The most cost-effective method of marketing the business has to be researched and found out. The marketing plan is essential in the world of today as in the competitive market, marketing a business that is a start up is of the utmost importance. The consumers or in this case, the tourists have to be aware of the business started by these entrepreneurs. Since the location that they chose for starting their business was a rubbish dump previously, nobody would have been interested to explore the picturesque destination (Boone and Kurtz 2013). Thus, a stable and sound marketing plan would have been essential in letting the consumers know about the business start up by the entrepreneur couple (Baker 2014).
The next step of the startup was to develop a sound sales plan for the business. The selling price of the business needs to be developed by assessing the idea of the business. The promotion plan needs to be chalked out by the entrepreneurs. The target market of the business in a local, national as well as international level needs to be identified. The identification of the target market is essential because by identifying the target market, appropriate sales plan can be chalked out and thus the business strategy can be laid out for the business (Blank 2012). The break-even point of the business should have been determined for the business. Break-even point in a business is the point where the revenue and the total cost are equal. By calculating and determining the break-even point, the entrepreneur couple could have run a successful business without having much to worry about incurring loss in the business (Tungstedt 2013).
The entrepreneur couple, John and Robyn, after their retirement, should engage in a plan that ensures that they are free from the mortgages. They should devise a plan that allows them to free their savings and enjoy their retired life peacefully. Their post-retirement engagement should have a plan to oversee the business set up by them and enjoy the fruits of the toil that they had put for so many years.
Bootstrapping is a concept that essentially means the division of the capital by stretching the resources of the business to their optimum capacity. It is one of the most efficient and cost-effective ways to guarantee that a business has a cash flow that is positive to the business (Harvard Business Review, 2017). There are many options to finance a business. Bootstrapping is one of the many ways to finance a business. In the context of a start up business, bootstrapping means the commencement of business without the aid of venture capital investment but only with the sole help of all the financial and other resources that are available. The three stages that a bootstrapped company goes through are accumulating the seed money, getting money from the customers and circulating a word about the credit. Bootstrapping in the initial few days of the business is essential as during the initial days of the business, maximum utilization and division of capital of a business (Schwienbacher 2014).
The positive aspects regarding the indigenous operators when they got together for the first time are mentioned as under,
The negative aspects regarding the indigenous operators when they got together for the first time are mentioned as under,
Sustainability in business can assist in addressing the concerns regarding the society while offering profit-making scopes in respect of the entrepreneurs. Sustainability in business is majorly related with the changing practices regarding businesses. The sustainable businesses that are considered successful are focusing towards the aspects of creating new products, services or practices that will be addressing or mitigating concerns regarding environmental as well as social aspects in new manners (Dean, 2014). Therefore, successful implementation relating with sustainable business practices will be relying on entrepreneurship as well as innovation.
Entrepreneurship as well as innovation is having relevance in various sustainable contexts regarding business. These are considered to be the basic aspects regarding the success associated with the start-up organizations that offers innovative solutions for meeting challenges associated with environmental as well as social aspects. The organizations are undertaking sustainability in the entrepreneurship in respect of different reasons that includes the enhancement of their brand name as well as reputation (Rajasekaran, 2013). It is also required getting benefitted through financial aspects by becoming market leaders regarding business practices, which will be reducing influences regarding environmental as well as societal aspects.
For being increasingly sustainable, the entrepreneurs are required recognizing the scopes primarily and then making innovation by stating a business solution that will be providing an attractive option for the consumers. The business solution is however, considered being the primary step and after that the entrepreneur is required investigating the economic worth as well as business plan that emanates from that scope (Schaltegger, 2016). The entrepreneurs are required researching the market for understanding in what ways their potential products or services will be providing worth of the customers that will be reflecting the product value or service value in respect of the customers (Provasnek, 2016).
For instance, as per the case analysis on entrepreneurship, there occurred a concern relating with the fishing business. To solve the matter, it was required maintaining stringent catch limits for ensuring the reef stocks as well as making sure that customers will understand the cultural inferences relating to sustainability. For better diversification of the small tourism operation, the following steps can be taken into consideration,
It is required observing what needs to be invested both in terms of finances as well as the availability of the resources. This requires considering the primary funds required for the smooth functioning of the expansion. There is also the requirement for considering the funds that are required for supporting the expansion, the new staffs as well as other aspects. It also needs to be taken into consideration every resource that will get used which will be maintaining as well as building the present business scenario (Weinzimmer, 2015).
The possibilities can be found out through the horizontal aspects as well as vertical aspects in which the vertical aspects will be determining the ways associated with advancing to the next product level and the horizontal aspects will be determining the offering that are being made by the competitors and which product or service is offering a complementary fit (Battisti, 2013)
It is very exciting to experience new developments, new directions as well as new experiences but the entrepreneurs are strongly recommended not to lose focus regarding the maintenance as well as the continuous consideration that the present business will be requiring. Therefore, it is recommended that the entrepreneurs should be getting efficient people for assisting them in managing the new development regarding the small tourism operation as well as the initial work of the small tourism operation (Stoner, 2015).
Hence, it can be inferred that diversification will be taking the small tourism operation into new territories, building a greater scope, as well as increasing the long-term profits but all of this will can be actualized if done in a correct manner (Piza, 2016). Therefore, it is highly recommended that everything is carried out in a correct manner regarding the business.
References:
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Battisti, M., Deakins, D. and Perry, M., 2013. The sustainability of small businesses in recessionary times: Evidence from the strategies of urban and rural small businesses in New Zealand. International Journal of Entrepreneurial Behavior & Research, 19(1), pp.72-96.
Blank, S., 2012. The startup owner’s manual: The step-by-step guide for building a great company. BookBaby.
Boone, L.E. and Kurtz, D.L., 2013. Contemporary marketing. Cengage learning.
Chwolka, A. and Raith, M.G., 2012. The value of business planning before start-up—A decision-theoretical perspective. Journal of business venturing, 27(3), pp.385-399.
Dean, T.J., 2014. Sustainability and Entrepreneurship. Wiley Encyclopedia of Management.
Harvard Business Review. (2017). Bootstrap Finance: The Art of Start-ups. [online] Available at: https://hbr.org/1992/11/bootstrap-finance-the-art-of-start-ups [Accessed 15 Mar. 2017].
Piza, C., Cravo, T.A., Taylor, L., Gonzalez, L., Musse, I., Furtado, I., Sierra, A.C. and Abdelnour, S., 2016. The Impacts of Business Support Services for Small and Medium Enterprises on Firm Performance in Low-and Middle-income Countries: A Systematic Review. Campbell Systematic Reviews, 12(1).
Provasnek, A.K., Schmid, E., Geissler, B. and Steiner, G., 2016. Sustainable Corporate Entrepreneurship: Performance and Strategies Toward Innovation. Business Strategy and the Environment.
Rajasekaran, B., 2013. Sustainable entrepreneurship: Past researches and future directions. Journal of Entrepreneurship and Management, 2(1), p.20.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2016. Business models for sustainability: a co-evolutionary analysis of sustainable entrepreneurship, innovation, and transformation. Organization & Environment, 29(3), pp.264-289.
Schwienbacher, A., 2014. Financing the business. Routledge Companion of Entrepreneurship, London, pp.193-206.
Shaw, E.H., 2012. Marketing strategy: From the origin of the concept to the development of a conceptual framework. Journal of Historical Research in Marketing, 4(1), pp.30-55.
Stoner, C.R. and Hartman, R.I., 2015. Diversity management in small businesses: an exploratory investigation of attitudes and actions. Journal of Small Business Strategy, 7(1), pp.37-48.
Stutely, R., 2012. The definitive business plan: the fast track to intelligent planning for executives and entrepreneurs. Pearson UK.
Tungstedt, E., 2013. Business Plan for a Startup: Ekomero.
Weinzimmer, L.G. and Nystrom, P.C., 2015. The search for opportunities by small business owners. Journal of Small Business Strategy, 7(3), pp.1-14.
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