Home based business is a small business that operates from the business owner’s home office. Home businesses are usually defined by having a very small number of employees. Family business is a business in which one or more members of one or more families have a significant ownership interest and significant commitments toward the business. Copreneurial business is a business in which couples (husband and wife) work together as co-owners of their business. There is often an assumption at family firms that the family tree will always provide the right leadership and management for the firm or business. But this doesn’t always hold true.
Islamabad is the capital city of Pakistan. Islamabad is home to many migrants from other regions of Pakistan and has a cultural and religious diversity of considerable antiquity. Mr. Aijaz Ahmed and Mrs. Aijaz are running a home based business of Boutique and cultural brands of clothing (a newly established business) in posh area of Islamabad. They have done graduation from Islamabad College of Management & Design.They are looking for trendy, appealing and stylish cultural outfits with flexibility of trying out new brands offering unique designs at a reasonable price. As setup of cultural cloths requires a team of talented designers.
Question: Home based business and copreneurial business face lot of challenges and problems. Enlist these challenges and problems (Any five). 10 Marks
Problem No. 1: Inability to focus on generating new business. Not only is a sole proprietor required to take care of her existing clients, she must also find time to focus on marketing, promotion and sales if she wants to generate new business. Finding new customers or selling more product or services to existing clients can take time to build up.
Problem No. 2. Spreading time across multiple projects or roles. Sole proprietors are notorious for spreading themselves too thin. Most small business owners take on too much of the administrative work and feel overwhelmed by all the details of making an office run smoothly.
Problem No. 3. Limited resources. Everything costs money. And when you are your own boss, the money you spend on equipment, overhead, travel, entertainment, professional fees and other expenses comes straight out of your bottom line. The paycheck you take home becomes smaller and smaller.
Problem No. 4. Running the business more efficiently. As a sole proprietor, you have no boss looking over your shoulder; no supervisor to keep track of your efficiency. It’s both a blessing and a curse.
Problem No. 5. Not having enough time to focus on their own passions. Sole proprietors often feel overwhelmed by their businesses with little time left over to devote to family and social life, much less their secret passions.
In your opinion, Mr. Aijaz Ahmed and Mrs. Aijaz need a talented team or they purchase cultural outfits from different areas of Pakistan and how can they promote their business in the city? Give at least five arguments in support of your answer which will be suitable for their business. 10 Marks
To promote their city they take such step which are given following
– Finding Good Employees
– Finding target Customers
– Dealing with Competitors
– Be aware with change in new market trend s
– Set low price
– Improve your product quality which meet customers requirements
– Know the cultures , trends of living peoples
– And finally which Is more important to produce such kind , or quality product which meet the customers , need, wants and demand because manufacture produce your product for customers or consumers if they are not satisfy then you cannot run your business in better way
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