Abstract
Bill’s vast experience that has been accumulated over the years places him in a perfect position to inherit the business from Hugo. Coupled with support from family members and the goodwill he has in the business, management and ownership of the business would not be a great deal to Bill. The sales agreement places Bill in an advantageous position since he would not have to look for capital or funds to start up the business. Furthermore, the business enjoys high reputation and respect from the customers. With his hard work and determination, Bill should not be scared of the risks associated with individual risks because it will be important in keeping him cautious and vigilant.
The simple structure of the business means that little paperwork will be involved and therefore, Bill does not need professional qualifications. Again, there are no complications associated with filling tax returns since tax returns are only paid annually. Management is simple and Bill’s expansive experience is enough to run the business efficiently. Since he has a good reputation with the clients, no expertise will be needed to manage sales issues (Justin, 2008). Any form of legal entity does also not face the business and Bill can maintain the utmost secrecy of the business. Finally yet importantly, Bill is capable of managing and repaying the amount specified in the sales agreement because he managed to save $4,200 despite having to fend for his family needs. Therefore, Bill should go ahead and accept the business from Hugo.
Characteristics of Bill that may be important to his success
Actually, there are numerous characteristics that each entrepreneur must have in order to be successful (Harold, 2004). Bill has learned and developed numerous entrepreneurship skills for some years hence that enable him to be successful in the business. In order to be successful, Bill must be ready handle human resources, management, marketing, taxation and other legalities of the business. As a matter of fact Bill is a risk taker; this is important characteristics for the success of his business. Individuals who are not ready to take risks will never succeed as businessperson. In the business Bill will face lots of problems in the business, which needs him to make decisions so fast. Bill has already had a chance to evaluate Hugo business therefore he can take risk to run the business.
Mr. Bill has the inner passion of the business; success comes after continuous interest and enthusiasm in the business. Bill has the right passion and drive that will help him run the craft business for a long time. Doing what you enjoy most forms financial gain, personal satisfaction, as well as stability.
Another important characteristic that Bill has is the knowledge of the industry and business. Bill has the knowledge on what the business entails; he does not need to acquire it anymore through trial and error. Mostly one of the prime causes of failure to any business is lack of knowledge. Additionally, Bill has built a good reputation between the employees and the customers. Customers will still be faithful to him because of the respect he has from them. The collaborative character of Bill enables him to develop delegate efficiency, personal relationship and dedicated to creating opportunities for success.
Bill is very curious to run the small business despite the fact that he has never been in the business side of operation. He is open to learning and gaining skills on how others run their small businesses and dynamically seek preeminent insights regarding business innovation, management, employee attraction and prospecting, retention and motivation.
Action oriented businessmen like Bill will always succeed. Success-oriented small entrepreneurs are more proactive in developing their business. His aggressiveness makes him take the business to the upper level, distinguishing himself from his competitors in the market. Furthermore, he appreciates adversity has a strength to move him forward. In the past four years Bill has been dealing with the technical decisions in the business. Technology is an important point of leverage that will lead to success. The success, efficiency and effectiveness of the business depend on the technology hence bill wound have any problem dealing with business technological issues (Donald & Richard, 2008).
Bill is a good manager and saver of the money received from the business. He managed to save some money regardless of him providing for his family. The livelihood of every business depends on the cash flow. Bill need money to pay services, replace and repair equipment and tools, buy raw materials as well as market and promote the business. With the saving and management skill of Bill, he can meet all the requirements of the business. He can balance the two aspects of money which include income and expenses.
Bill’s characteristics that could lead to his failure
In most cases failure of a business does not entail one event, but a assortment of circumstances and events that add up to test the strength and patience of the owner. It is accumulation of unsolved issues and lack of planning lead to failure (Bakr & Ellis, 2006). Often, most small business failure results from poor planning and not economic issues. Bill lacks some professionalism in planning of the business; therefore he might face challenges in the planning aspect.
Bill can also be part of those who belief in entrepreneurial myth, he might be tempted to believe that his expertise in the past field especially in the technical field will completely replicate to managing the business. It is not only technical skills that are required for the success of the business, management skills are highly recommended for the success of the business.
Strategies to avoid failure
Bills in order to overcome the challenges, he should accept the responsibility and never spread blame. Arguably, it is possible in most situations for owners of the business to blame his family members, the economy and customers. Hence bill should not blame anyone on the challenges he will face, blame game will eliminates the aspect of learning from the challenges. Bill need to realize that he is a risk taker and a volunteer of the business not the victim. Failures are there to strengthen and build the base small business (Bakr & Ellis, 2006).
Bill need to always capitalize on the perfect and good relationship he had already established with his customers. In every bad scenario in business there are good individuals. Bills have good partners in business which are the workers, family members and customers. The good customers will always be there for him and his family members will take him to the next level of success.
Hugo’s decision
According to me Hugo’s decision to sell the business to Bill is not a wise resolution. The shop has been successful for many years; additionally he has built a fantastic reputation on the quality of products. The best solution was to enter into partnership with Bill. Bill could be given full running of the business based on his numerous skills, characteristics and experience. They could have worked on the percentage of benefits that both of them could share. In this case Hugo could enjoy the legacy he created in the business for the rest of their life. He could only retire from running the business but not from earning the benefits. Selling it could end their enjoyment and continuous source of income.
Personal reasoning based on concepts
The most fundamental element of small business achievement is decision making. All businessmen must always make sound decisions on either to sell or buy a business. Decisions that are always made on sound reasoning and knowledge leads the business to long-term success (Justin, 2008). Actually before any decision is made, thorough analysis on the profitability, management, weakness, strengths as well as long-term and short-term effects should be carried out. Numerous options should be put in place so as to give room for the right choices to be made. Some of the important aspects of small business include planning for success, innovations and inventions, listening to all customers, building good reputation, good employees’ relationship, differentiate products, show a good impression, work smart and constantly built on product improvement (Donald & Richard, 2008)
Conclusion
Bill should be ready to face changes and always react so fast to change. Due, to change of ownership the customers too can react differently to the changes. He also needs to have a good desire of independence and a strong sense to initiate new strategies in the business. He should continue getting motivation from family and customers. . The sales agreement places Bill in a beneficial position since he would not have to look for capital or funds to start up the deal. Moreover, the business enjoys high reputation and respect from the customers. Bill has already had a chance to evaluate Hugo business therefore he can take risk to run the business.
References
Bakr, A. I & Ellis, W. (2006). “An empirical Investigation of causes of Failures in Small
Business and Strategies to Reduce it”.Journal of Small Business and Entrepreneurship. Vol. 4, No. 4 pp. 1-56.
Donald, F.K & Richard, M.H. (2008). Entrepreneurship: Theory, Process, and Practice. New
York: Cengage Learning.
Harold, P.W. (2004). Entrepreneurship: The Way ahead. London: Routledge.
Justin, G.L. (2008). Small Business Management: Launching and Managing New Ventures.
London: Cengage Learning.
