Nature of Small Business
There is no single, uniformly acceptable, definition of small firm. It is one that has few employees, little or no formal structure and usually managed by one person, who is also the business owner (Bridge et al, 1998). The main aspect of small business that distinguishes them from other businesses is obviously their size. However, small businesses are not just smaller versions of big businesses. They have a number of distinctive features that are not always obvious to the untutored observer. For example, in terms of their behaviour, the biggest difference between small and big businesses is likely to be that which results from the objectives or aspirations of their owners and managers. Larger business is more likely to be run by a professional management trying to maximise its value whereas small business is more likely to be run by owner manager with an aim based on personal benefits rather than merely to maximising business results (Bridge et al, 1998).
Small Business Profile
Photogenics was established on 1st of May 2005 In Makassar City, South of Indonesia by a friend of mine, Karlina “Nina” Otto. It is a “start from scratch” and sole proprietorship business, which makes her to become the owner manager as well. The business interview with the owner manager was conducted via emails and phone calls. Karlina is a Certified Professional Photographer who earned her Bachelor of Arts degree at Queensland University of Technology, Australia. She has more than 10 years of experience in portraits and wedding photography, providing clients with a high level of expertise and creativity. In addition to that, she is also a member of the Professional Photographers of Indonesia, as well as the Professional Photographers of Makassar City. Both organizations guarantee a high standard of ethics and education that clients can depend on. Choosing photography as a business was always a natural and easy decision for her. She particularly loved to capture the innocence of a child such as newborns, babies, children as well as youths such as teenagers, or young couples. Therefore based on her interests combined with market opportunity in Makassar (her Hometown), she decided to establish her business, called Photogenics. Photogenics is a small business, considering the size and people it employed. It is a service based business because its main offers to customers are photograph services although she is also selling some other products such as cameras and frames. The purpose of this report is to analyze the Business of Photogenics and then highlighting its business practices against theories to find out whether business practices meets the evidences and framework of the small business management literature. Finally, the Business strengths and weaknesses will be examined and recommendations will be provided to help Photogenics to improve the management of its business in general.
According to Jonathan et al (2004), Market research is an in-depth investigation into the potential of a specific market sectors and some general aspects of what is happening within the market place and how effective particular marketing strategies are performing within that broader market. It is essential for Owner managers to conduct a market research to provide a more reliable method of predicting possible outcomes of a marketing or business decision as well as to reduce the risk or monitored plans and strategies that have already been implemented. In addition to that, market research is essential for every small business to be able to understand and analyse a business external environment, including market structure, customers, competitors, collaborators and company. Nina, the owner manager of Photogenics was fully aware with the costs of conducting the market research. Rather than using expensive, primary techniques such as focus groups, survey, or even hiring a professional to conduct the research, Secondary...
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