Mgmt 250 – Management Entrepreneurship
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Schconda Keller
MGMT 250 Management Entrepreneurship
Professor: Thomas J. Schaefer
October 12, 2011
Abstract
Deciding the right time to go into business can make or break a business. There are many factors to consider such as: available resources, knowledge of the product, condition of the economy, and many other factors. This email will attempt to provide some clarity on bills decision to purchase Hugos Machine Shop. This email will discuss Bills charachertics as small business owner, possible reason for his failure or success, and explain why the purchase agreement being proposed is a good one.
Dear Bill
It is great to hear from you again, I hope you and your families are doing well. I am pleased that you have decided to seek advice before moving ahead with your plans. Becoming a small business can be very rewarding or it can be the beginning of the end financially for some people. There various factors one should consider when deciding to engage in such a venture. You have several small business owners characterizes that could be an advantage for you. You possess a high level of knowledge, and skill. This is mostly due to your longtivity with the company and the training you received from Hugo himself. You possess a high degree of commitment to the craft and the company itself. Most of the technical decisions have been made by you over the past 4 years. You are very familiarly with the customer base, and all the employees respect you. This will make the transition much easier. You also have a chance to run the company and the opportunity for substance pecuniary rewards.
I would recommend that you become more familiar with the management the financial aspects of the company. It would be a good idea to take a few business courses as well. Since you are a family man you consider the fact that you may have to work longer hours. You should also consider the government regulations and red tape. It would also be good to hire someone to manage the day to day operations, since you will be taking on all the business duties yourself. Please be sure that the ownership structure is clearly defined and in writing.
There is high failure rate amount small business. Many people do not have the stamina and perseverance to keep up with the responsibility that comes with owning a business. In order to avoid many of the problems, that is common to small business. I would not make any immediate changes to the operations other than hiring someone to take your place. This will allow people a chance to get use to the changes. It will also help with the anxiety of the employees. Many times people become worried when they hear about new