Answer to Question #200010 in Management for John

Question

Martin and Lorraine are Engineering graduates who have struggled to find employment post university. They have both decided to use their savings to start a business. They have decided to start a small fruit and veggie business in their area. Given that they live in a busy township, they are confident that their business will be a success as there is a market for it. Their biggest challenge however is their limited knowledge on business management and entrepreneurial skills and thus, requires you to play the advisory role for the business.

Strategic, Marketing and financial skills are some of the skills required for entrepreneurship.

Using examples, discuss how these skills may be beneficial to Martin and Lorrain’s business. ?

Answer 1

Financial literacy is essential since it provides one with the understanding and expertise to manage money efficiently. Without financial literacy, the schedules and decisions one make or do not make relating to investments and savings would lack a resilient basis. Becoming fiscally conscious will offer Martin and Lorrain’s business a concrete understanding of their key financial reports and a knowledge of on the dissimilarity between cash flow and profits and how to assess them.  For example, Martin and Lorrain’s business can benefit from an understanding of how to better handle their lenders and debtors.

The tenacity of strategic planning is to set business’s general objectives and to generate an effective plan to attain them. It includes stepping back from the business’s daily processes and asking where the business is directed and what its significance must be. For Martin and Lorrain’s business strategy skills will provide a vision of the future, ratify the determination and ethics of the business , set objectives, illuminate threats and prospects, define procedures to capitalize on strengths, and alleviate weaknesses.

Marketing is a essential procedure for entrepreneurs since no project or investment can become established and develop without a consumer market. Entrepreneurs like Martin and Lorraine need to distinguish their business's products or services so their uniqueness and value are rich to the consumers. This is the work of marketing.