Part1: Pricing, Keeping Records, and Banking
Thedecision of lowering the price of a product is a tough one that isnormally accompanied by many ramifications. Apple Company is anexample of a business that I have witnessed lowering the price ofproducts. To obtain a huge market share is one of the company’sbusiness strategies. For this reason, Apple Company uses penetrationstrategy to target high sales. This is whereby it lures its customersfrom their competitors, as well as discourages new competitors intothe market. As a result, many customers flocked for their product.
Formy business, I would prefer electronic recording keeping over manualrecords keeping to record invoices, payments, as well as otherbusiness transactions. This is because it is time efficient, itautomatically tallies amount and gives ready-made reports, itrequires less storage space, it is easy to update to the latest taxrates, and it has the capability to back up all records in a safeplace. Furthermore, I would have control over the outgoing andincoming information, processing information, and I would usepasswords to secure information in the computer.
Iintend to open a checking bank account with Bank of America for mybusiness. Firstly, it is free to open and does not require monthlyfees. Furthermore, the bank has many physical branches hence, itwill be easy to access it anytime. The bank also offers a friendlyonline banking. Bank of America is among the banks that have livechats with its customers. Besides, it offers two types of debitcards, one for the business owner and the other for the employees.
Part2: Pros and Cons of Financing
Equityfinancing refers to the process of raising capital by selling sharesin the enterprise (Mann,McClung, and Kemerer, 2014).Its advantages include pay back flexibility, permanent source offinance, open chances of borrowing, no obligatory dividend payments,and intellectual capital. On the other hand, its disadvantagesinclude profit sharing, underwriting of shares, high costs of funds,no benefit of leverage, dilution of control, and time consumption.
Venturecapital is an example of financing for small, emerging, andearly-stage firms with a high growth potential, or have demonstratedhigh growth through annual revenue, the number of employees or both.Its advantages include many deep-pocketed friends willing to investin the company, access to knowledgeable and expertise to guide thebusiness, and high growth of the capital. Its disadvantages includeprofit share, lack of control, managerial distraction, and misalignedof goals and priorities.
Angelinvestment is whereby an “angel investor” who is an affluentindividual, provides capital to start a business in exchange forownership equity and convertible debt. Its advantages includeflexibility of business agreements, ability to raise capital in smallamounts, no need for collateral, access to angel investor mentoringskills, and no repayments of interests. Its disadvantages includeless structural support from an angel investor, an angel investor canbe deceptive and dubious, angels lack national recognition, and itcan be costly.
Vendorfinancing is whereby a company lends money to its customers so thathe or she can purchase their products or services. The companyincreases its sales by doing so. Advantages of vendor financinginclude the purchaser can negotiate on the terms including interestrate and repayment schedule, he or she does have to abide by theconstraints of vendor’s appraisal, and there are no limitations onthe amount that a vendor can finance. Similarly, the vendor canforeclose purchaser’s property if payment ceases, he or she cannegotiate the terms, and he or she can save on tax by receiving cash.
Self-financingis whereby an entrepreneur finances his or her own business withoutexternal grants or aid. Its advantages include high profits, lesscomplexity, and simple exit. Its disadvantages include the risk ofpersonal debt and bankruptcy, limited resources, limited growth, andthe entrepreneur may lack sufficient skills and knowledge to ventureinto successful business.
Part3: Injuries and Insurance
Examplesof companies that sell products and services that can injurecustomers include those manufacturing beauty and personal careproducts, chemicals and pesticides, and children toys. Insurance isessential to such companies. In a case of damage or injury, theinsurance is responsible for compensating for the damages and claims.Further, insurance ensures the company does not go bankrupt due tolegal defense bills that it would incur if many customers sue it.According to Guerinand Stim (2013),companies with insurance are protected from common lawsuits thatarise from the customer, as well as other hazardous events.
Part4: Employee Policies
Mypolicies towards employees are included in a personnel manual. It isthe first document that every employee receives when he or she ishired (Christensenand Schneider, 2015).It is drafted in a manner that is still part employee’s contract ofemployment with the company. Its contents include overtime policies,termination policies, grievance procedures, workplace safetyprotocol, employee health insurance, sick and maternity leave, andaccidents in the workplace, among other work-related topics.
Tomake my business a positive and rewarding place to work, I plan tolay down some strategies. This includes showing respect to myemployees, investing in them, fostering a team atmosphere, payingadequately, providing opportunities for promotion, offering along-term security, and offering a positive feedback. I believe bydoing all these employees will be happy and productive.
Christensen,K., & Schneider, B. (Eds.). (2015). Workplaceflexibility: Realigning 20th-century jobs for a 21st-centuryworkforce.Cornell University Press.
Guerin,L., & Stim, R. (2013). Smartpolicies for workplace technologies: Email, blogs, cell phones &more.Berkeley, CA: Nolo.
Mann,P. H., McClung, R. M., & Kemerer, K. L. (2014). SmallBusiness Entrepreneurship.Archway Publishing.