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Plan of Action and Failure Mechanisms in a Small Business

You have decided to start a new sporting goods business! You will begin a partnership with one other business associate that you trust and have known for several years. You plan to hire three managers and another twenty employees.

Discuss a plan of action that you and your partner would personally implement to avoid the four main failure mechanisms of small business:

- managerial incompetence or inexperience
- neglect
- weak control systems
- insufficient capital

Identify what steps you and your partner will take to address each of the four failure mechanisms.

Solution Preview

Identify what steps you and your partner will take to address each of the four failure mechanisms.

The success of any business depends on how it is being managed. Several fundamental mechanisms must be addressed as they are known to effect all business be they long established or recently formed. Methodology must be designed and implemented to address the issues of management incompetence, neglect, weak control systems, and insufficient capital. Studies have cited management incompetence and inexperience as major causes of small business failure. The owners of the failed firms neglected planning, had poor personnel practices and marketing strategies and lacked adequate accounting records. In order to avoid management incompetence and succeed in the business, owners must find different ways to develop management skills that will allow them to make better decisions with emergencies, recruiting, purchasing, bookkeeping, marketing, training, planning, etc.

This is very important in developing the foundation of the business. They must identify the things needed to be accomplished and they need to pay close attention to the performance and the task completion. Also, they have to ensure that their resources are organized well. Business owners must look ahead and make plans for any future requirements. They must also try dealing with any problems that may arise. Another way to avoid managerial ineffectiveness is through a comprehensive performance ...

Solution Summary

The solution explains a plan of action for a sporting business. The plan of action will be implemented with the step by step procedure to avoid the four main failure mechanisms of small businesses. References included.

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