Small Business (Entrepreneurship) Essay Example | Topics and Well Written Essays - 500 words

Small Business (Entrepreneurship) - Essay ExampleCitroen has the experience of workings in a large organisation. He understands the business of cooking and recipes well. But he is still a novice in handling business operations. He may not deport accosted those costs of a business that come to fore better in a small environment.The figures on which he is Citroen bases his decisions atomic number 18 not exhaustive and the actual running cost of the restaurant could be higher. Some of the fixed and non-fixed expenditures like overheads like electricity, water establishment costs, telephone bills, softw are, profit and computer costs, insurance, dilapidation costs, maintenance costs and sales promotion are not included in his analysis. A business always needs to be in growth, expansion, improvement or development mode in order to stay in competition. A salary of $85000 and a profit margin of $ 90000 are not comparable figures. He needs to generate enough money that is over and above t he amount he needs to look after himself. fit in to Citroen, each meal leaves him with a margin of $22. The costs for sales promotion. He needs to make forecasts of the occupancy of 40-seater restaurant especially the peak occupancy and its magazine period. In case it exceeds the available seating capacity of 40, for such time period that may lead to substantial business loss, he will hold to provide additional seats. This needs a workload and capacity management planning. His decision to close shop on the weekend is also flawed as restaurants generate highest turnovers on the weekends.Cost should be defined as what the customer pays to obtain certain goods or services and to derive full utility from them. It is alpha for Citroen to realise that he will not be able to encash his rapport with clientele of La Gauloise in entirety, for as much he may have done to increase restaurants popularity, big businesses carry their brand loyalty that does not change with change of employees. H e needs to conduct a thorough financial analysis