Starting a business venture is a vision held by many people. This is because entrepreneurship leads to self- reliance and encourage innovation. However, people desiring to start businesses notwithstanding; it is never easy. This is so because, starting a new business venture calls for commitment and knowledge.
To craft the business acumen into reality, individual need to understand the factors which can ultimately determine smooth progress towards achieving the primary goals. Knowledge on factors such as; a workable business idea, detailed business plan, finance, marketing strategy and infrastructure contributes to the success of a business (Pearce and Robinson, 2011).
Business opportunities prevail or occur in different environments. For a business to be successful, the environment should be favorable. Once one has identified an opportunity he or she has to analyze the environment to determine the viability of the business opportunity. This can be achieved successfully by using professional tools such as SWOT, Porters Five Forces and PESTEL among other recognized tools. Furthermore, the entrepreneur has to gather the necessary resources in order to start and operate a successful business.
When individuals decide to venture into any type of business, they are required to attract or possess certain prerequisite skills and knowledge that are necessary. Moreover, they require capital, machinery and an accessible market. Managerial and technical skills are all necessary and can be acquired by interacting with people who have been in business for long as well as formal training.
According to Ireland et al (2008), when coming up with a business idea, innovation is important. To ascertain whether a business idea is feasible or not, an entrepreneur has to carry out a feasibility study. Once the viability of a business idea has been demonstrated from findings in the feasibility study, the next important aspect is to develop a comprehensive business plan. It is through developing a business plan that a hazy idea is transformed into an implementable business.
Joyce and Woods (2001) also argue that business ideas whose viability has been demonstrated through a feasibility survey and a business plan developed are more likely to receive support from other firms and interested investors in terms of financial or management backing. Besides, a business concept when implemented in a timely manner i.e. when service or a product is in demand holds high-profit potential.
From our feasibility research, we resolved to start a snack bar business, with the trading name of “Eating Korner”. Our line of business will involve selling different types of snacks. These will include and not limited to; potato chips, muffins, queen cakes, fruit salad, cookies and biscuits, popcorn, also candy.
A snack bar is appropriate, in this area, because it is highly populated with college students, itinerant travelers and office workers. Therefore, there is a ready market for our services. This business responds to a real market gap in the area. From our own research, other similar food shops are scattered around the town thus constraining peoples’ movement during lunch hours.
Eating Korner Mission Statement
A Mission statement is important for every business. A mission statement defines the business primary objectives and purposes. Hence, the primary function is defining the measure of business success. A business or entity that seeks to carry out its operations without a mission statement risks having no ability to quantify its intended objective. The mission statement for Eating Korner is to be one of the best snack bars in the town and eventually in the whole country by selling the best, affordable and quality snacks to its customers.
Eating Korner Vision Statement
Joyce and Woods (2001) notes that the organization Vision statement is a process that identifies the purpose and vision of a business and how the needs of customers are going to be satisfied. The purpose of our snack bar is to provide quality and fresh snacks every day to guarantee our customer’s satisfaction.
Our primary goal is to ensure we run our snack bar competitively and provide value to our customers. Another key goal is to earn more profits and expand more and be recognized as the best snack bar in town. From research and interviews we have conducted, we have learned that a compelling vision and commitment will ensure the future of our business and guide it through changing times.
Eating Korner SWOT Analysis
SWOT is an acronym of Strength, Weakness, Opportunities and Threats. Strengths are the strong points of an organization i.e. which the organization is advantaged in. SWOT analysis evaluates the ‘strengths, weaknesses, opportunities and threats’ in or affecting a business activity or organization (Nadine and Anne, 2009).
Through performing a SWOT analysis, a business person comes to understand a thing to anchor on to grow the business and outwit the competition. These positive aspects, when properly harnessed and enhanced, can propel an organization to much greater heights. In every business organization, a number of things or factors either are still being developed or put the organization at a disadvantage.
In many organizations, there are elements, which tend to decline or diminish a business (Peteraf, 1993). These issues originate from within a business and are put down as weaknesses in a SWOT matrix. Unless a business organization takes care of the weaknesses, they are likely to bring the business down or place it in a disadvantaged position in comparison to the competitors.
Opportunities can be defined as chances that an organization or individual can maximize in order to gain a competitive advantage i.e. overcome the pressure and intimidations of the competitor (Peteraf, 1993). Opportunities are external factors that a person or organization may have very minimal authority to influence.
Threats refer to factors in the external environment of an organization that are likely to affect the organization negatively.
Based on the SWOT analysis we did, we have set our objectives and identified factors that will make us achieve our objectives and those that may make us not able to achieve the set objectives. The strengths of Eating Korner business that will give us an advantage over our competitors include; the strategic location of our snack bar and freshly made snacks.
A weakness that we have recognized that may give others in the same business advantage over us is that our snack bar is only for take away(s). This means that we will lose those customers who have time to sit down and enjoy their snacks. Also there are costs associated with setting up the business and weak brand name, since we are new entrants.
Considering opportunities, there are great opportunities for our snack bar to make more profits every day in this environment. The strategic location, low local taxes and flexible peak hours of our snack bar offers our snack bar great chances of being successful. Through SWOT analysis, we have evaluated external threats that could create challenges to our business. Such external threats include security in the area, changing eating lifestyles, lack of enough financial resources and skilled personnel.
SWOT analysis is necessary as we will be able to me minimize our weaknesses and concentrate on our strengths as we take advantage of opportunities emerging every day.
Eating Korner SWOT Analysis (Author, 2011)