Professor Joseph Brennan
Individual Project 1
In this paper I will be discussing how I will advice a high school friend of mine Bill Hudson. Bill asked me some advice on a business proposition that he just had. Bill is overwhelmed by the proposition and need a good advice.
Bill has been an employee of Hugo’s Machine Shop for the last 12 years. Recently Hugo’s Machine Shop owner, Hugo Huffman offered to sell the business to Bill. Hugo knew that Bill didn’t have the money to buy the business and offered to Bill to give him a portion of the profits for the next 15 years and a modest initial investment.
Small Business Owner Characteristics
Bill has …show more content…
2. Lack Managerial Experience- Bill has no managerial experience. In Hugo’s Machine Shop Mr. Huffman took care of all managerial decisions.
3. Lack of initial planning- Mr. Huffman offer to sell his business to Bill was a total surprise for him and he had no idea that Mr. Huffman had intentions to retire. Because all this was so sudden Bill didn’t plan anything.
The lack of managerial experience is going to be something that Bill has to learn very quickly if he decides to buy Mr. Huffman business. Because if he buys the business and don’t make good managerial decision it could cost him to make a successful running business fail, (Scarborough, 2012).
Pitfalls to avoid
No one plans to fail in a business venture. But if an entrepreneur actually doesn’t want to fail has to consider it seriously to avoid it. The following are some pitfall that every entrepreneur should avoid if he or she wants to succeed.
1. Know your business- Every entrepreneur should get educated about his business area. He needs to read journal, magazines, books, and even from the web to get to know as much as he can. By having a good knowledge of his business will help the entrepreneur to make the right decision for the business.
2. Prepare a plan- Every business needs a plan. You can’t manage a business by pure improvisation. That only will…