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The offered business plan provides insight into the critical aspects of managing and operating a bar. The company in question will be run as a sole proprietorship. Obviously, it will not exist independently of its owner (Dungan 2). The company will be strategically positioned in the town center of the United States and will primarily provide alcoholic and non-alcoholic drinks and beverages. The company will primarily target adults in the region of both genders. The main mission of the business will be to deliver high quality products and services at low cost to the consumers in the market.
The use of product promotion tools will be utilized by the firm to ensure that it remains profitable in the market. Various strategies of communication will be implemented in the case of the bar to attract more customers and promote the profitability of the business. Having in mind that the business is still new, the use of the word of mouth strategy would be effective in marketing the services and goods of the bar. The word of mouth technique requires people to spread the news about the new business in town (Bulearca and Bulearca 108). To initiate the promotion of the word of mouth technique, the business will have to provide the customers with something to talk about. In the presented case, the business will offer the consumers with high quality beverage product at low cost than that offered by the competitors in the industry.
Other than the use of the word of mouth to promote the products in the market, the business will also enhance its profitability in the market by promoting its products and services through news stories. A story in the newspaper has the potential to increase the level of awareness about the new business, including its location and its dealing. The identified move will result to an increased customer traffic to the business hence an enhanced profitability. Katsigris and Thomas recommends that for an individual or a business to get published in a news story, the person in question must be trustworthy and a performer (637). Newspapers, televisions, and radio stations have played an important role in promoting businesses by featuring their stories, thus increasing their chances of succeeding in the market through better income generation.
Additionally, the use of promotional events would work positively for the new venture. A proper way of creating publicity and promoting community goodwill involves choosing a charitable cause where the business can donate such of its profits for a charitable deed. Such events play a considerable role in promoting the activities of the business among the potential consumers which further drives consumer traffic and the firm’s profitability in the long run.
How to compete in the marketplace
The new bar business will face the competitors in the industry through the implementation of a cost leadership strategy. Evidently, the firms seek to be the lowest cost provider in the industry with an aim of widening its customer base and performing even better in the market alongside its competitor. Li and Juan Li indicates that cost leadership is a term that companies utilize to project itself as the cheapest product market to remain competitive (18). Cost leadership strategy is known to be highly effective in enhancing the competitiveness of a firm as well as attracting the attention of the customers. Through the implementation of the presented strategy, the business will focus more towards reducing the costs of its product range within its portfolio. It is evident that cost leadership does not suggest that the goods offered by a business are inferior. Therefore, for the business to effectively deploy its cost leadership strategy when it comes to enhancing its competition, it is recommended that the firm should always offer quality products in the market at a price which is much lower than that of its competition (Li and Juan Li 19)
Major Skills and knowledge required for beverage owners
To successful operate a bar, the business owners should have various skills needed for effective business operation. Employee management skills is an example of an important skill for consideration for any business manager. The employees are regarded as the important asset of an organization. The employees will always interact with the customers on a daily basis. Additionally, their input within the workplace significantly determines the organization’s success rate. Having in mind the presented aspect, the management should always take into consideration the interest of the workers and ensure that they always remain motivated to always perform their tasks in the best way. Katsigris and Thomas recommends managers to “never underestimate the importance of your employees. You can’t be everywhere, and it is often up to them to make your customers feel welcome and important” (Katsigris and Thomas 472).
The beverage owners are also required to have proper planning skills. The presented factor stems from the notion that when dealing with the beverages, the manager will have to purchase the commodities in bulk and later store them and keep inventory to keep the business running. If the manager lacks the appropriate skills of inventory management, chances are higher that the business will go at a loss which may cost the business its operability.
The bar owners should also have proper planning skills which go hand in hand with the business in question. Through proper skills of planning, the leader in question will be aware of how to budget for inventory and control the level of cash inflow and outflow for the businesses’ survival (Katsigris and Thomas 563). Additionally, it is also recommended that the bar owner in question should also understand how to management the business effectively. Proper business management skills will ensure that all the aspect of the business is functioning as required for the smooth operability of the business. Effective business management skills will direct the owner to come up with a proper business plan which guides the owners on establishing a strategic mission for the business and gauging to see if the plan is working as expected. Business management skill also makes it possible for the managers to identify the appropriate tools which can drive the business towards its goals by identifying the requisite tools of promotion and marketing among others. Business owners should also have a proper knowledge of the legal environment governing firms and their operability. Aspects such as business licenses, health and regulation standard which must be considered when dealing with beverage products and other regulations which affect operations are important factors of consideration which may affect the functionality of the firm, thus putting it at risk of litigation.
Bulearca, Marius and Suzana Bulearca. "Is Media Planning the Driver or the End-Product of Promotional Strategy?." Global Business & Management Research, vol. 1, no. 3/4, Sept. 2009, pp. 105-116.
Dungan, Adrian. "Sole Proprietorship Returns, Tax Year 2014." Statistics of Income (SOI) Bulletin, vol. 36, no. 2, Oct. 2016, pp. 2-60.
Katsigris, Coastas, and Chris, Thomas. The Bar Beverage Book. New Jersey: John Wiley & Sons, Inc, 2012. Print
Li, Caroline Bingxin and Julie Juan Li. "Achieving Superior Financial Performance in China: Differentiation, Cost Leadership, or Both?." Journal of International Marketing, vol. 16, no. 3, Sept. 2008, pp. 1-22.
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