Business Entrepreneurship Procedure of Designing

Question: Describe about the Business Entrepreneurship for the Procedure of Designing. Answer: Introduction: Entrepreneurship is the term which indicates the procedure of designing, running and launching a new model of business which starts it journey as the small business (Drucker 2014). In the words of Kirzner (2015), the term entrepreneurship also describes about the startup company, its product and uniqueness, service or procedure for sale. Moreover, the capacity, willingness to organize, develops and manages the business along with the risks and profit of the business has been highlighted (Drucker 2014). In this perspective, the principles and innovation policy of the enterprise in Australia has been analyzed and the effectiveness of intervention in the SME sector has critically assessed. Furthermore, a business plan has been presented in this context. On the other hand, the effectiveness of the start-up business in comparison to the real life example has been done. 1: The principles of enterprise, small firms and innovation policy: In general, according to Lackus and Williams Middleton (2015), there are several principles of enterprise such as adoption of an effective approach to enterprise the transformation procedure, identification of the relevant stakeholders and set their value and propositions. After this stage, the main focus needs to be on the effectiveness of the enterprise rather efficiency (Frese et al. 2012). However, next motive is to identify both the external and internal interdependencies of the enterprise and ensure the flow and stability of the enterprise. Moreover, in the words of Ferguson et al. (2014), the cultivation of the leadership needs to be done for drive and support the behaviors of the enterprise. Lastly, the organizational learning needs to be emphasized critically. In this perspective, the innovation policies of the SME are supply side and demand side technology policy and the systemic technology policy. As commented by Kuratko (2016), the primary motive of the supply side policy is to raise the amount of incentives for innovation along with reducing costs. Apart from this, the demand side policy not only creates markets for the products which is made by SMEs but also focuses on the public procurement process (Hagoort, Thomassen and Kooyman 2012). In addition, the systemic technology policy helps to improve the standard performance of the innovation system through which better coordination of the actors can be possible. Evaluation of the current policy of Australia and the effectiveness of intervention in the SME sector: As per the innovation policy report of Australian government, with the implementation of DataStart process, the opportunities have been provided to the startups to improve and sustain in the business. The successful organization will get the opportunity to access networks, platforms, private investment and coaching as they want to create new business setups. In this respect, the tax incentive of RD has been revised which would help to proceed in the new business by reducing the cost. Moreover, the commercialization has been offered to the 20 innovative companies of Australia through which support of commercialization projects has been done. On the other hand, with the help of new procurement panel, service delivery procedure and digital solutions has been redesigned which would help to run the new business effectively. Furthermore, innovation in the collaboration centre, futures and entrepreneurial pathway program, business and employment in the remote working area has been improved (industry.gov.au. 2016). The Australian Innovation System Report highlights the fact that the trending innovation policies are efficient and effective for the startup business. It would create near about 1.44 million job opportunities in the Australian economy during the year 2011. This report also showcases that fact that younger generations intend to engage in the business sector by inspiring with the profitability, sales, product range and productivity. On the contrary, the equity finance specifically venture capital are relatively lower in the startup of Australia and the success rate is also not so much significant. However, the overall perspective is positive. Lastly, to achieve high growth rate in the startup business, Australia needs potential targeted support and modern entrepreneurial ecosystem (industry.gov.au. 2016). 2: Business proposal: In this current study, a new business startup model has been described in the name of The Rootz in which a new spa and salon is organized in the Australian market. The aim is to offer highest level of customer satisfaction along with the excellent services related to reasonable prices. In this perspective, a business plan has been described which focuses on the profitability factors of this organization by creating the loyal customer base. About the company: The Rootz spa and salon will provide the service to both the men and women. This organization will engaged highly talented and trained staffs which provides hair and beauty services. This spa and salon will remain open from 8.00 a.m. to 9.00 p.m. except Thursday and offer excellent business service to the consumers on every weekend. This spa and salon is established in the well known city Melbourne of Australia. Products and service: The Rootz spa and salon business will provide a wide range of beauty service to men and women. The products and services in this business are skin care, hair and nails. In the skin care part the included products are de-tanning, body contouring, facial and acne treatments. Moreover, in the hair section, SPA, hair treatment, shampoo, cutting, coloring and hair curling are included. In the nails section, pedicures, nail art, manicures has been done. Mission, objective and goal: The mission statement of this spa and salon company is to provide superior and excellent quality service to the customer at reasonable prices. The objectives and goals of this organization are as follows. Satisfy and fulfill the demand of the customers. Raising the numbers of customers for this spa and salon. Increasing online offers and discounts through websites and getting more feedbacks and reviews from the customers. To acquire professional hairstylists by which new hairstyles can be done. To accomplish a renowned place for offering the salon services to the common people as well as the celebrities. Competition and the Competitive advantage: The Rootz spa and salon wants to start the business in the famous city Melbourne of Australia. In this region, the business can be able to achieve competitive advantage which would ensure to sustain in the international market. The basic reason is that there is no excellent spa and salon in this region. The major competitors of The Rootz are Orchid Day spa and Crown spa. Both the competitors offer best quality of hair coloring and straightening, manicure, pedicure and waxing in the products and services. Moreover, in Orchid Day spa, the price of the services varies from $18 to $300 and in Crown spa the ranges varies from $35 to $600. However, the overall market share of Orchid Day spa is approximately 8% and Crown spa is 5% which give the tough competition to the Rootz (Heskett, Earl Sasser and Joe Wheeler 2013). Market segmentation: In the market segmentation portions of this business the target groups are 56% females and 44% males. In this perspective, the average age of the target consumers is near about 35 years. Hence, the average income of the individual is approximately $1600 for every week and average income of the household is near about $4000 for every week. Now, based on the above demographic plan of the market, the targets consumers are mainly youngsters both male and female belong from the age group 18 to 25 years. However, children and teenagers are also included in the targets belong from the age group 5 to 19 years. In addition, elderly customers and mothers are included in this group along with the male members (Ramafikeng and Likenkeng 2016). Value propositions of Products and Services: The main reasons for choosing The Rootz spa and salon as an exploring and emerging business sector are as follows. Best professional and the experience team Standard and superior quality of service Design and surrounding are relaxing and mind refreshing The Rootz spa and salon will offer excellent and superior services by redesigning and modifying the old and traditional concept of the beauty salon. This organization intends to provide great value and services through combining the beauty services varies from skin care to hair style in order to acquire maximum amount of profit. However, different types of hairstyle along with special and modern bridal makeup added the value services which would help to enhance the benefits of the company in terms of finance. In this context, expert personnel will hire to offer this excellent services to the consumers. In short, the main intention of The Rootz spa and salon is to establish itself as a unique brand by offering this type of premium styling and skin care services. Consumer Demographics and the Target market: In respect to the consumer demographics, The Rootz spa and salon mainly focuses on the male and female members within age group of 19 to 56 years (Kruger 2015). It is surveyed that both the teenagers and the adults of Melbourne city of Australia prefer to do different kind of hair style. Thus, to accommodate these demands of the customers, this organization will employ professionals of the LOreal. The price of the services is set in a manner that teenagers can afford easily. However, the value added services or packages will get by the process of appointments. The location is almost near to the residential complex through which all the customers can easily access it. Marketing Strategy: In the words of Berthon et al. (2012), to run a business successfully, an effective and stronger marketing strategy is an essential factor. In this perspective, the main marketing strategy of this business is to satisfy the demand of the customers along with the modern techniques. On the other hand, the satisfied customers will convey the messages about the company and its quality services. As a result, existing customers will attract new customers towards this organization. Thus, the strategy is direct marketing to attract more clients (Leonidou et al. 2013). However, the advertising of this organization can be done by the word of mouth which is really beneficial for foster growth of an organization. In this context, The Rootz spa and salon will announce a special discount offer to those customers who referred it to the other. As a result, the loyal and existing customers will intend to promote this organization. Moreover, flyers will be distributed to the local people through newspapers for enhancing the awareness of this business. Lastly, a lucky draw will be organized in a monthly basis for the subscribed customers and different types of gifts will be provided to lucky winners. Promotion and Advertising strategy: Apart from this above stated marketing strategy, The Rootz spa and salon will promote and advertise their organization in several manners such as promoting their services by the social networking cites like Face book and Website pages and through the local newspapers. Furthermore, this organization will distributed near about 50,000 flyers in the nearby residential complexes and develop a stronger society connection by displaying 5000 posters. Apart from this, in respect to the promotional offers, The Rootz spa and salon will provide the first beauty service in free of cost and the referral clients will get free services for the first time (Lumpkin 2012). On the other hand, to gain customer satisfaction and sustain in the competitive market, The Rootz spa and salon will provide a starter kit to the lucky draw winners and registered members in which shampoo and mini hair color is included. Expected expenditure: To run the spa and salon business in the Melbourne city of Australia, the expected total cash flow in terms of operating services is approximately $115,500, investing activities is near about $150,000 and financing activities is approximately $ 290,000. Moreover, the total current and noncurrent assets are $360,876 and total liabilities are $267,890. This indicates the amount of owners capital, surplus and reserves and retained earnings are positive and significant. However, the above data reveals the information that this business is profitable in nature. 4: Comparison with the real life start-up firms: To compare with the real life examples to The Rootz spa and salon, the growth history of Johnny Cupcakes has been presented in this context. The location of this organization is Massachusetts and founder is Johnny Earle. In the year 2008, the amount of revenue of this organization is $3.8 million along with 30 employees. This organization started its business with $6,700 costs for printing and making of T-shirts in the year 2001 (Kitchen.johnnycupcakes.com. 2016). The first five years was tough for them and they employ the marketing strategy of face to face meeting with the customers. However, during the time of trade show, this organization has suffered a huge amount of expenses which is near about $10,000. Nonetheless, this organization can be able to recover from the adverse condition and establish as an emerging company of retailer. With the help of effective marketing strategy, promotional and advertising strategy and identification of target market, this business organization c an be able to achieve its objectives and goals. Apart from this, the effective and efficient marketing strategy would help to get success in the start-ups business (Lusch and Vargo 2014). As it is new to the market, the brand name can reach to the customers through the potential advertising and marketing strategy of the business. Moreover, the efficient marketing strategy would help to reach the business objectives and goals easily. On the other hand, the identification process of the target market along with the target consumers is also an essential factor for achieving success in the business (Morgan, Katsikeas and Vorhies 2012). Thus, the above models are appropriate and accurate to achieve growth in the start-up business. Hence, the real life example is also justified. Conclusion: Based on the above analysis, it is deduced that The Rootz spa and salon has immense opportunity and scope to grow in the Australian market of Melbourne city due to the increasing demand of parlors and spa. This organization will utilize the newspapers, hoardings, posters, television commercials and distribute newsletters through websites as an effective marketing strategy. It would attract more customers towards them. On the other hand, the promotional process of this spa and salon will help to create a strong customer base from which higher amount of profit can be generated. The financial overview of this business showcases the fact that sales of The Rootz spa and salon is expected to rise and the amount of profit is also significant. However, in this perspective, the innovation policies and principles of enterprises have been discussed. The current innovation policies in Australia has also been assessed and the effectiveness of its on the SME sector has been critically evaluated. O n the other hand, the real life example has been presented in this context in order to justify the business model. The startup business of Johnny Cupcakes becomes a well known organization now a day. This proves that the business model is appropriate and justified. As a result, by following this above stated business model, the start up business of spa and salon can be able to achieve growth. Reference list: Berthon, P.R., Pitt, L.F., Plangger, K. and Shapiro, D., 2012. 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