The learnings and experiences that I have acquired from the course have been very influential in my potential to decide and conduct future business endeavors, most importantly, the interaction that I have had with the renowned entrepreneurs who came to class to give us insights on how to conduct ourselves in the world of entrepreneurship. After getting the detailed and valuable insights and listening to shared insights by the entrepreneurs in class, some ideas grew in me regarding the best business opportunities that in which I would risk starting a business today. Ideally, if I were start a business today, I would start a coffee shop. In terms of the industry, the coffee shop is expected to operate within the beverages industry.
A stipulated above, my ideal business to start would be a coffee shop situated in an area where the human traffic is immense. The idea of starting a coffee shop is influenced by a gradual research that I have been conducting in class regarding the industry that still contains a gap for investment and that would easily grow if the necessary business measures are taken. Further, the decision is influenced by my assessment that I have been conducting regarding the beverages sector where consumers are substituting the carbonated drinks for alternative drinks such as coffee and tea.
The process of initiating the coffee shop is not as complex as it would be to start a large hotel or motel. The major elements of planning that I would consider would include determining the 4Ps which constitute the product, place, price and promotion.
Arguably, the Planning will include determining the products that I will start by determining that the coffee shop will operate and sell a diversified portfolio of products. According to my instructor and the entrepreneurs who came to class, it is imperative to diversify the products that one is offering in the market. It is through diversity that the coffee shop will retain customers and remain running even when one product falls out of the market.
Further, I will make a preparation of the prices that I will charge. The entrepreneurs advised us that when one intend to invest in a heavily invested industry, it is imperative to denote that using the penetrative pricing strategy would be suit the business. That means that it will be imperative to consider charging a lower price than the others provided that the price is considerate and economical.
In addition, on the issue of preparing and determining the place to invest, I will have to identify the area where there is massive human traffic and that the human traffic should stand a position to constitute potential customers of the business.
Then, the issue of promotion will be addressed. I will identify the cheap and realistic approaches of product promotion. The visiting entrepreneurs advised us to embrace promotion approaches including television commercials and trade shows within the premises.
In the context of the business operations, the business will start by offering services at the shop before it can offer mobile and delivery services to the corporate customers. Despite the fact that there many forthcoming operations that the shop would want to incorporate, the most important one that will apply in the business today will be that of promotion. The approach of business promotion once the business has started will be developing of a loyalty brand. That is a simulation of one idea I personally enquired on during the class session. It will be applied in the business where the customers will be organized according to their rate of consumption. Potential customers will be granted additional benefits. The process will however be spread to the general customer portfolio with time.
With time, I will have to keep the financial records. According to the lessons I have had in my course and the advices given by the entrepreneurs, it will be imperative to keep records of the business. They will assist me in evaluating the business. Through the financial records, I will evaluate the shop’s performance through calculating the liquidity and profitability rations which will show me the ability of the business to handle and finance its debts and also finance its operations.
From a personal perspective, it will be imperative to conduct intensive marketing or product promotion and also speed up the process of informing the potential customer the availability of the product. Hence, I would have to invest heavily in this sector. In addition, it will be imperative to commence the business operations by holding a promotion or trade show party within the premise where the shop will be situated. That may even require me to invite a celebrity who will influence a fraction of the consumers to attend and share an experience with me as I share the aims of the shop.
First, I believe that it is necessary and sufficient for the business to consider embracing diversity in terms of the products that they offer. It is through diversity of products that the entrepreneurs will also diversify their source of revenue. In addition, there is a need for entrepreneurs to consistently evaluate their businesses’ status as far as profitability and liquidity is concerned. It will be easy for them to understand the right time to expand their operations even to international standards.