According to Timmon theory, the success of an entrepreneur does not only depend on the ability of the individual to invest in unique opportunities and taking risks but also on the ability to manage other important things. These factors include opportunities, resources, and ability to build and employ a team to achieve the objective of the organization. Although kalin was a young graduate whose vision was to become a successful entrepreneur, he applied his skills to succeed amidst many challenges. For example, many Bulgarian customers did not embrace his idea of establishing an online e-commerce website. He had powerful communication skills and strong network that enabled him to mobilize cash from different sources in order to establish his business (De Hoyos-Ruperto et al., 2013). Secondly, he relied on his girlfriend and other friends to provide the necessary teamwork in order to help him achieve his vision. They provided the workforce he needed since he did not have enough resources to hire employees. Thirdly, Kalin did not have enough capital to start his cheese business. Therefore, he borrowed money from friends and relatives and used his personal car for transporting purposes. In addition, he shared a refrigerator with a shopkeeper since he could not afford his own especially on the first days of his business. Finally, Kalin show opportunity in the cheese business that many other people had not seen. He realized that many Bulgarians living in America proffered their homeland cheese, which was not offered in the market. Therefore, he decided to think how he could import those products in order to satisfy that market need.
Business models are open to a food-product importer
In order to increase their profitability, should come up with strategies that will enable to reach more customers in the local market and in other markets. First, they need to embrace online marketing in order to reach with ease many customers who will know about their products over the internet. Just like Kalin had decided to use website to market his products, other food importers can also embrace the same strategy (Nacu & Avasilcai, 2014). Secondly, they can use prices as a strategy to attract more customers in the market. They can set their prices lower than those of other competitors such as wholesalers in order to compete with them equally (Mani, 2013). Thirdly, food importers can look for more funds from different sources in order to expand their business activities. For instance, one can borrow money from financial institutions such as banks in order to buy more vehicles for transport. This will enable them to reach wider areas with their products.
Steps should Kalin take to position his company
In order to take his business in the next stage of growth, Kalin can implement the following suggestions;
Concerns of a potential investor?
The concerns for potential investors may include government regulations such as taxation and food policies that may affect their profitability negatively. In addition, increased competition in the industry is likely to affect the profitability for those intending to venture in food importation business.
References
De Hoyos-Ruperto, M., Romaguera, J.,, Carlsson, B. & Lyytinen, K. (2013). Networking: A Critical Success Factor for Entrepreneurship. American Journal of Management, 13(2), 55-72.
Mani, M.(2013). Motivation, Challenges and Success Factors of Entrepreneurs: An Empirical Analysis. Pertanika Journal of Social Sciences & Humanities, 21(2), 667-675.
Nacu, C. M. & Avasilcai, S (2014). Technological Entrepreneurship: Success Factors as Perceived by Potential Young Entrepreneurs. Advanced materials research, 837, 639-644.
