Issues with an Entrepreneurial Startup

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Issues with an Entrepreneurial Start-up.
Issues with an Entrepreneurial Start-up.

Edinburgh Napier University
Exploring Entrepreneurship
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Edinburgh Napier University
Exploring Entrepreneurship
[Type the phone number]
[Type the fax number]
[Pick the date]

40071737

40071737

Contents.

1. Introduction
2. Research Methodology
3. Findings
4. Critical Evaluation & Recommendations
5. Conclusions
6. Reflection
7. Appendix

Issues with an Entrepreneurial Start up

1. Introduction.
This report on the issues within an ES will be centred on Ray Simpson and his most recent acquisition The Cumberland Bar in Edinburgh. The Cumberland Bar is an independently owned public house situated in Cumberland Street in the New Town area of Edinburgh. With the diversity of the market which the Cumberland bar competes in it falls into a subcategory of cask ale and single malt orientated bar. The business model Ray initiated is based around the idea of having a country pub full character in the middle of the city. ‘An iconic community pub situated in the heart of the city’ (Cumberland Bar.co.uk). As with any bar the Cumberland provides a range of products although this is not the best asset of the business. A huge emphasis is placed on customer service, so much so it is Ray’s constant wish is that the Cumberland be synonymous with fantastic service. I have chosen to base this report around Ray and the Cumberland because he is a very successful entrepreneur who started up his first business then sold it for a massive profit and has started the same cycle again. He has a successful business model and has faced the difficulties in an entrepreneurial start-up many times and has overcome them. The report will consist of my research finding, a discussion of my findings, a critical analysis, recommendation, conclusion and reflection.

2. Research Methodology.
The information gathered in the research for this report was collated via personal and telephone techniques. The majority being from a face to face interview conducted with the owner of the business Ray Simpson. It was felt that primary research was the most effective way to collect information as face to face contact was easily arranged and was most convenient for the interviewee. An interview, although time consuming in time in terms of planning and refining, was deemed the most efficient way of gathering the relevant information. This also allowed for the interviewer to develop an opinion of characteristics exhibited by the interviewee. Secondary research although less time consuming would not have yielded such directly relevant results as there simply isn’t the same level of information available as there would be for a company of a larger size.

3. Findings.
3.1 Start-up issues.
As with any entrepreneurial enterprise one of the main start-up issues is funding. Financial risk is at the very heart of being an entrepreneur. This current enterprise owned by R&S Simpson was partly funded by Caledonian Heritable, an estate management company based in Edinburgh. Although Ray Simpson, the owner of R&S Simpson and Co, was in a more financially stable position than somebody initially embarking on an enterprise acquiring funding is a stressful process. According to Ray “Experience is invaluable but you can’t pay for anything with it.” Another issue with start-up is finalising and making a suitable business model. Previous success with other businesses models gave foundations for The Cumberland Bar but needed to be tailored to suit a particular bracket of customers due to area and average income per head of local populous. The other aspect of start-up issues are the toll they take on the people involved. Where ever people take risks and stretch themselves financially there can be consequences on a personal level. When asked about these Ray answered...
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