Description of Venture’s Services
Starting a retail and distribution consultancy business venture in the future is one of the most lucrative business ideas. A business venture is a legal, organizational, economic, and financial unit feature created by entrepreneurs to enhance their business operations (Kose, 2020). This venture will be appropriate in providing resolutions for declining entrepreneurship dynamism in business in the United States (US). Furthermore, it will try to identify the factors contributing to the decline of entrepreneurship. Some of the potential factors for reducing dynamics for an entrepreneur may include non-compliance with taxation rules and regulation, insufficient access to capital, uncertain economic times, undesirable culture, and existing mismatch between employers and employees (Tseng & Tseng, 2019). The business will provide relevant and potential permanent solutions for utilization to stimulate the US’s business dynamism. The planning for the venture includes understanding the size of the market segment, business growth rate, number of available competitors, demographic location, target group, religion, race, and gender, among other aspects.
The Target Market and Customer Demography
The retail and consultancy business venture will target the retailers: both potential and already established entrepreneurs. Retailers will receive consultancy services which will help them understand the market, challenges, and potential unexplored opportunities. For instance, most US immigrants venture into entrepreneurship with the main aim being to secure self-employment because of a disadvantaged employment environment and a times face discrimination in workplaces (Suarez, 2016). Furthermore, immigrants in the US engage in entrepreneurship to overcome being marginalized (Suarez, 2016). Entrepreneurship practices by the immigrants facilitate the creation of self-employment, which will help to sustain their needs.
How the Company Will Gain a Competitive Advantage in the Industry
The business venture will seek to identify, outline, and provide consultancy to potential entrepreneurs regarding the challenges that they face in the United States. It will address factors to be considered for entrepreneurial activities. Some of these factors include demographic business location, environment, human relations, behavior, and strategic market. The business will also focus on giving guidelines on the requirements to be met before starting a venture, as well as the challenges faced during entrepreneurial activities (Tseng & Tseng, 2019). Therefore, it will be highly instrumental in providing insight to potential future entrepreneurs in the US. Since sustainability is vital for creating entrepreneurial business ventures within a particular demographical area, this consultancy business is necessary and appropriate (Tur-Porcar et al., 2018). Addressing the factors considered for entrepreneurial activities and sustainability gives the consultancy business venture a competitive advantage. Furthermore, targeting the minority groups such as the immigrants provide an advantage because the business will be focusing on a particular niche in the market.
Future Symbiotic Relationship between the business and the Entrepreneurs
The consultancy venture’s success or failure depends on the faith potential future retailers have for the business. It will be vital to possess innovative skills to provide complete quality managerial services (Jung & Lee, 2016). Creative gifts will try to harness various entrepreneurial partners’ capabilities and resources to form a hub or network or support by pursuing and searching for new business gaps for the independent and dispersed potential future entrepreneurs in the US (Giudici et al., 2018). Furthermore, business process reengineering skills are helpful for proper decision-making (Jung & Lee, 2016). Since managerial practices coupled with their associated ideas gain rapid popularity, innovation and successful means of achieving the venture’s outcomes are expected.
For effective identification and recognition of new business opportunities for potential future entrepreneurs in the US, problem-solving skills will be essential for the venture. The possession of problem-solving skills which will increase the creation of social value in the business venture’s operation is vital (Kim et al., 2018). Entrepreneurs are bend towards establishing new economic value. Identification of new opportunities reflects improved market gaps and competitive advantages, which leads to innovation and increase sales yielding high profits.
Benefits of the Venture to Potential Customers
The venture application of the problem-solving skills will positively impact the innovation behavior and how opportunities are perceived by both the existing and the potential future entrepreneurs. Innovative action is a vital measure which partially mediates the association between creative behavior and the ability to offer solutions for various challenges (Kim et al., 2018). The venture will provide alternative solutions for elaboration and substantiating ideologies in the business environment (Giudici et al., 2018, p. 1400). Furthermore, entrepreneurs will have the opportunity to explore decision making options which are bend towards total quality managerial services.
Proposal on How to Get Services for Marketing
The model of the venture will define value tapping, delivery, and creation for the customer segment. Effectuation is a developed decision-making process for situations under certainty and involves both learning and experimentation. The venture will apply the effectuation strategy, which depends on the customers’ interaction (Reymen et al., 2016). Furthermore, the causation model would be suitable since it pursues entrepreneurs’ opportunities and is considered rational in use, and its behavior is goal-driven (Reymen et al., 2016). Both causation and effectuation models are useful for getting the services to the market.
Risks to Be Considered
The business venture is vulnerable to the exposure of risks which may impede its operations and functionality. Business start-ups and their long-term viability are influenced by family, education, religion, culture, government policies, and economic conditions (Kose, 2020). The risks arising from culture include individualism; the behavior of not caring about others, and uncertainty avoidance; feeling of unease when possessing unclear and inadequate information relating to a customer’s query, Femininity and masculinity; bestowed roles to societal gender, and power distance; occupying different positions with other individuals having more power than others, are also cultural potential risk factors (Kose, 2020). Furthermore, the risks of failure to comply with taxation rules and regulations, uncertain economic times, culture, and existing mismatch between employers and employees will interfere with the venture’s operations (Kose, 2020). For smooth operation, the business venture should ensure it has enough capital, be sure about the economic times, comply with US trade rules, understand the culture. Both employees and managers will have to exhibit moral behavior and uphold proper working standards.
Trends in growth and Franchise Opportunities
Entrepreneurship is a concept which is becoming more popular as employment opportunities diminish in various regions. Many youths are embracing the concept and starting their own businesses as a way of ensuring their financial sustainability. This trend offers an opportunity to the consultancy business since the number of people who will be in need of the services continue to elevate. The United States of America has many states with youths who implies negative attitude towards starting their own businesses. Therefore, there is need for entrepreneurship consultation services to be rendered in all the states. There are a number of companies such as Boston Consulting Group, Deloitte Consulting LLP and McKinsey & Company among others which are already offering various consultancy services. However, having an organization which will solely focus on entrepreneurship will still be necessary. This will give the business an opportunity to offer franchise to other small experts who wish to offer the same services in their respective regions. Thus, it will be vital for the business to make a proper name and reputation upon starting its operations.
Formulating the Business Plan
Before setting up the business it will be critical to have a proper business plan. Some of the critical information that will be needed for the plan include: marketing and sales strategies, service line, sources of funding, financial projections, rate of growth, market size and the number of competitors. This information can be obtained in journals and government websites for particular industries. Others such as the rate of industry growth and size of the market can be obtained from annual reports of the competitor organizations.
Annotated Bibliography
Giudici, A., Reinmoeller, P., & Ravasi, D. (2018). Open-system orchestration as a relational source of sensing capabilities: Evidence from a venture association. Academy of Management Journal, 61(4), 1369−1402. Web.
The authors, Professors in various areas within the field of business, undertake a study to examine open-system orchestrations which they believe are under-theorized and yet important. They research also focus on enhancing dynamic capabilities by taking into consideration the emotional and cognitive micro-foundation which aid in enhancing a vision towards opportunities by using open-systems orchestrations. They provide insight which is critical to various people interested in having a better understanding of entrepreneurship as they aim at enabling the audience to improve their capacity to sense capability in the business field. The study reveals how opportunities can be identified and exploited to enhance optimum performance and sustainability in a competitive industry. Therefore, the source is relevant in this study because it enhances the idea on some of the possible areas of opportunities which can be identified in various markets.
Jung, D., & Lee, W. H. (2016). Crossing the management fashion border: The adoption of business process reengineering services by management consultants offering total quality management services in the United States, 1992–2004. Journal of Management & Organization, 22(5), 702−719. Web.
The authors who are both scholar with an expertise in management consultancy, undertakes the study to build upon prior research on management fashion. The authors focus on consultant managers and consulting firms illuminating how the management consulting firms in the United States respond to different situations with a focus on the fashion industry. Explaining how the results and activities of the consultant managers change over time and circumstance, the article givens insight on some of the possible trends and decisions that may be made in the future business. As opposed to the other sources which are cited, the article mainly accesses the dynamics of consultancy management which is in line with the business idea in consideration. Although the authors have their focus in the fashion industry, the results and insight gained is applicable to the business idea which is captured in this paper.
Kim, J. Y., Choi, D. S., Sung, C.-S., & Park, J. Y. (2018). The role of problem-solving ability on innovative behavior and opportunity recognition in university students. Journal of Open Innovation: Technology, Market, and Complexity, 4(1), 1−13. Web.
The authors, lectures at the Dongguk University and Yonsei University, give an elaborate explanation on how universities engage in entrepreneurship to enable students to recognize opportunities in the outside world. Being in the departments of technology entrepreneurship, the authors conduct a research on 203 students to study the impact of entrepreneurship education on social value creation. The research shows a positive influence on opportunity perception and innovation behavior influenced by gaining problem-solving abilities. The authors in this article exploit the importance of entrepreneurial skills in addressing the challenge of unemployment and offering solutions to young people. The article helps in justifying the relevance of entrepreneurship which is the core area which the paper explores. Showing how rapid the youth are starting or purposing to establish their own businesses reveals the importance of the consultancy business.
Köse, E. (2020). Chapter 2 comparison of Turkish and American entrepreneurship cultures in the cultural axis of entrepreneurship. In E. Köse (1st ed.), Management Studies (pp. 11-26). Akademisyen Publishing House Inc.
Köse, a Doctor of Philosophy in Business Administration, examines the culture and concept of entrepreneurship. He explores various factors that are responsible for shaping the culture of entrepreneurship while taking some case studies into consideration. Focusing on various groups of people interested in starting and operating their businesses, he gives a deeper understanding of the importance of the concept and elaborates on strategies of embracing it. The author strives to enhance the understanding of the people on the importance of entrepreneurship hence showing why it is greatly gaining popularity in contemporary times. Addressing some of the pertinent issues which makes the area of focus lucrative, the article helps in identifying some gaps and opportunities which makes the consultancy business idea relevant.
Reymen, I., Berends, H., Oudehand, R., & Stultiëns, R. (2016). Decision making for business model development: A process study of effectuation and causation in new technology-based ventures. R&D Management, 47(4), 595−606. Web.
The authors, academic scholars in Netherlands, explores decision making logics which are utilized by startups to enhance their business models. The authors focus on business people aiming at establishing businesses of their own and those aiming at venturing in new fields. Exploiting the logics of making proper decisions, they concentrate their efforts on the logics of causation and effectuation. The article helps to develop insight on how the dynamics of the logics are critical in developing the business models from time to time. The article is key in addressing the strategies which the future organization will use to get its services to clients within the population of interest. Therefore, it is a critical source which helps to answer one of the most important aspect of any person making preparations to establish a new venture. It adds significant value to the solution and helps in the justification of the business idea.
Suarez, M. D. (2016). An assessment of Hispanic entrepreneurship in the United States. Journal of Multidisciplinary Research, 8(3), 67−76.
Suarez, a scholar from the University of the District of Columbia, focuses on the concept of entrepreneurship giving more a tension on a particular ethnic group; the Hispanics. She attributes the ethnic group to high business growth; the Hispanic business are the second fastest growing businesses after the African-American businesses in the United States. The paper targets business people trying to identify gaps in the market with interest on ethnicity. The article is relevant to the study because it helps to predicts the trends of prediction and also helps in identifying the best market for the future business. Suarez’s study helps to justify the business idea of entrepreneurship consultancy since it gives a clear description of the trends towards the concept of starting people’s own businesses.
Tseng, C., & Tseng, C. (2019). Entrepreneurship as a key resolution for declining business dynamism. Journal of Applied Business and Economics, 21(3), 114. Web.
The authors, Cheng Tseng and Chien-Chi Tseng from University of Chicago and Morgan State University respectively, investigate some of the aspects contributing to decline in business dynamism. The authors address a number of entrepreneurial challenges which are experienced by various stakeholders in several markets. The research targets both potential and existing entrepreneurs as well as those willing to identify and offer solutions to these problems such as the consultants. The study explores six critical factors which have significant influence on the activities of the entrepreneurs. Identification and analysis of the factors is relevant to the business idea because it identifies some of the issues which the consultancy business will be addressing. The article is important because it offers some of the strategies which can be used to address the problem to avoid similar challenges. The information proves the need for the existence of the business in the future.
Tur-Porcar, A., Roig-Tierno, N., & Llorca Mestre, A. (2018). Factors affecting entrepreneurship and business sustainability. Sustainability, 10(2), 452. Web.
The authors, all from the University of Valencia, address an important aspect relating to sustainability in the business field. The authors target young people and all the people aiming at starting their own businesses and sustaining their lives in various settings. They focus on the factors which are established to ensure the sustainability of businesses. They conduct a research and collects information from experts to better understand the factors affecting efforts made in various businesses. The result from their study revealed business and behavioral factors to be the most critical drivers of sustainable entrepreneurship. The article is important in showing the gaps and the opportunities which makes the consultancy business lucrative in the future. Thus, the article is relevant similar to the other ones which have been utilized.