Jaynes Sandwich Shop
Small Business Growth
Small Business Growth
Small businesses are the type of businesses that are characterised by the small number of employees, few management personnel, a small number of customer that translate into average sales and average profits. These types of business serve clients who are located in the short geographic area from the production point. In the case of Jayne’s Sandwich Stop, the business can be termed as a small business. This is because it satisfies all the characteristics of a small business. The business is managed and owned privately by Jayne. The business has six part-time employees, and it’s location of service is limited to only the town center. The business has got few assets that include the trailers used in the concession. Another characteristic of small business exhibited by Jayne’s Sandwich Stop is the method used for advertisement. The business relies on the word-of-mouth advertisement.
Small Business Growth Strategy
Jayne’s Sandwich Stop has recorded significant growth, and it is in the transition period. The business is expanding, and according to the information given, the business is moving its location to a permanent location in a mall. During the transition period, there must be a strategy to facilitate and enhance the growth of the business. Growing a business from a small business into a big business is never easy, and it requires a lot of planning and proper strategizing. The management should be able to develop and implement a growth strategy. A proper growth strategy should indicate how the business will penetrate the market. For the case of Jayne’s Sandwich Stop, Jayne should already have a plan on how she plans to penetrate the market and to get customers to her new location. The strategy should also indicate alternative channels that the business would rely on to getting more customers. Jayne should be able to explain which methods, other than the word-of-mouth she is going to use to get customers to her business. Her business has grown and therefore, to sustain it; it is a must that the business fetches more customers. It, therefore, means that the method of advertisement must be changed. Another component of the growth strategy is the market development. Jayne should be able to devise a way that will help her sell more sandwiches to her adjacent market. Jayne must be ready to increase her supply for the sandwiches to meet the new market demands. If she is not able to produce enough sandwiches by herself, she can opt to outsource (Volery, Mueller & Siemens, 2015).
As noted by Goss (2015), for a small business, the most appropriate form is the sole proprietorship or private ownership. This is mainly because the business is not much complicated regarding management, and a single person can manage the business effectively. For instance, Jayne’s Sandwich Stop is small enough for Jayne to manage it effectively. As the business grows, it gets complicated in so many areas including the management. It, therefore, becomes very hard for the management of the business to be left in hands of an individual. It is recommended that the business moves from a sole proprietorship into a partnership. The partners will help each other in managing the business and raising the capital required to fund the expansion (Lederer & Maupin, 2015).
Short and Medium Term Goals
The short terms goals for a growing business are maintaining the existing market share, increasing the assets, supporting the increased production, and being in a position to pay the increased number of employees. The medium term goals include making a penetration and getting a bigger market share. The business should also be aimed at increasing the number of products that it offers. As Jayne’s Sandwich Stop grows, there will be an increase in the number of customers who have different preferences and taste. This factor will dictate that Jayne produces different types of products, other than just producing sandwiches alone. The other medium goal will be to increase the profit by increasing the sales (Hatten, 2015).
The expansion of a business requires capital to fund various operations. Some of the sources of the capital include borrowing from family and friends and also from financial lending institutions such as banks. The fund may also raise by partnering with other people of the same vision. The partnership will see every partner contribute towards the needed capital. It would be recommended that Jayne gets into partnership as this would help her in raising the capital needed for expansion. Every partner will be required to raise a given proportion and the ownership equity among the partners will be determined by the percentage of their contribution.
Organizational Structure and Staffing Needs
As the business grows its organization structure, and staffing needs get very complex. As a small business, Jayne’s Sandwich Stop is only managed by one person. Jayne can oversee all the activities of the business. On the other hand, the business only requires a few employees to help in the operations. As the business grows, it will be hard for Jayne to manage the business alone. Most likely, she will need to hire professional and qualified personnel to help in the management of the business. The business will have to be subdivided into different departments such as finance, human resource, customer care, among others, and every department will have to be under the management of a qualified person. Jayne will also need to hire more employees to help her in running the business. More expansion of the business will require bigger workforce.
Customers and Promotion
As Jayne’s Sandwich Stop grows, the method of promotion will have to be changed from the word-of-mouth to a wider reaching method such as the use of billboards, print media advertisement, and even the use of the internet for advertisement. As a small business, Jayne can use Facebook and word-of-mouth to advertise her business, but as the business grows, there will be a need to reach to more customers. Therefore, Jayne will resort to more complex and expensive forms of advertisement.
Ethics and Social Responsibility
Any business must observe and serve its customers while observing some ethics. It is expected that the business undertakes social responsibility. Some of the social responsibility that Jayne will need to undertake will include any activity that is aimed at benefiting the community such as organising the community cleaning activities. The business will be required to perform its duties according to the proper ethics that govern the code of performance of the business. Such ethics includes paying taxes on time without evading. The business will now face an increase in the number of customers. It will be ethical that Jayne has enough employees to ensure that the customers get prompt services without delay.
Goss, D. (2015). Small Business and Society (Routledge Revivals). Routledge.
Hatten, T. S. (2015). Small business Management: Entrepreneurship and Beyond. Cengage
Lederer, A. L., & Maupin, D. J. (2015). A World Wide Web Primer for Small Business.
Journal of Small Business Strategy, 8(2), 1-12.
Volery, T., Mueller, S., & von Siemens, B. (2015). Entrepreneur ambidexterity: A study of
entrepreneur behaviours and competencies in growth-oriented small and medium-
sized enterprises. International Small Business Journal, 33(2), 109-129.