Starting a small business is a big challenge! However it can also prove very rewarding. Every small business owner has their own story as to why they decided to open their own small business; from flexibility and autonomy to a change in lifestyle and financial reasons. Many have been operating for only a few months, whilst others have been operating for over 20 years. How is each owner operating their own business? And is it as successful as they had anticipated?
Your task is to research the different motivations for starting a small business, and they key decisions owners must make when operating their own small business.
- Requirements –
1. A brief report – 2 Pages(10 marks)
2. An essay – ~1000 wards(10 marks)
- Methodology -
•Survey at least ten small business operators. Organise, collate and analyse these responses.
•Critically evaluate the responses from your surveys.
•Critically review trade, professional and research journals, books and other relevant publications
- Outline -
1. Identify suggestions by government, trade and professional organisations and small business operators themselves in regards to;
a. the different motivations for starting a small business, and
b. key decisions owners must make when operating their own small business
2. Critically evaluate suggestions and opinions.
- Instructions -
1. Prepare a brief report analysing your survey responses. This will require you to perform simple calculations in respect of the data (i.e. means, medians). The report should not exceed 2 printed pages (plus an appendix for the survey responses and relevant printouts of your analysis)
2. Complete the essay requirements. The essay should not exceed 1,000 words
3. Ensure that the essay includes an introduction, a body and a conclusion.
- SMALL BUSINESS SURVEY QUESTIONAIRE –
1. What motivated you to start your own small business?
a. Lifestyle
b. Flexibility
c. Money
d. Redundancy
e. Autonomy
f. Could not find other employment
g. Other – please specify
2. What structure does your business operate under?
a. Sole trader
b. Partnership
c. Company
d. Trust
3. What sector of the economy best describes your business?
a. Retailing
b. Manufacturing
c. Import and distribution
d. Exporting
e. On-line sales and distribution
f. Trade related
g. Professional services
4. What is your age?
5. How long have you been in small business?
a. Less than 12 months
b. 1 year to 5 years
c. 6 years to 10 years
d. 11 years to 20 years
e. More than 20 years
6. How many hours (on average per week) do you work in your business?
a. Less than 20 hours
b. Between 20 to 29 hours
c. Between 30 and 39 hours
d. Between 40 to 49 hours
e. Between 50 to 59 hours
f. More than 60 hours per week
7. How many employees (full-time equivalent) does your business employ?
8. When do you plan to retire or sell your business?
9. How do you maintain and update your accounting/bookkeeping requirements?
a. Manually
b. Spreadsheets – such as excel
c. ATO provided software
d. MYOB, Quicken etc.
e. Custom designed software
10. Which of the following financial statements/analysis techniques do you use in reviewing the performance of your business?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. Ratio analysis
e. Break-even analysis
f. Balanced scorecard
g. Other – please specify
11. Which of the following sources of financing does/has your business use(d)?
a. Personal savings
b. Friends and family members
c. Angels
d. Partners
e. Venture capital
f. Bank loan
g. Overdraft facility
h. Sale of equity in the business
12. Which of the following strategic planning items does your business use or has used?
a. SWOT analysis
b. Budgeting – income, expenses and cash flow
c. Business plan
d. Balanced scorecard
e. Other – please specify
13. How do you motivate your employees?
a. Higher than average pay
b. Performance based bonuses
c. Providing a friendly work environment
d. Providing flexible work hours
e. Providing regular feedback/praise and encouragement
f. They should be happy to have a job. I do not need to motivate them
14. How satisfied are you with your business success?
a. Very satisfied
b. Satisfied
c. Not satisfied
15. Why do you have this level of satisfaction? Explain