Running any business venture is very challenging since it entails pooling together the necessary resources that in most cases are scarce. Management demands not only one to creative in terms of handling the different risky situation the business venture may be exposed to but also integrity required to ensure decision made are of the best interest of the business. The most conspicuous challenge in any business management is securing the perpetuity of the business. This paper aims to bring out the various challenges managers face in addition to identifying the motivation behind putting up a business and managers’ continued zeal even in the tough times.
Why Would Someone Give Up The Security Of Working For Others To Assume The Risk Of Business Ownership?
With the high level of risk involved in starting and managing a business, it is hard to understand the reason as to why one can leave the comfort of a fixed assured salary to start up a business. However, the most common driving force being the move is the need to be one’s boss. This is particularly the case where a person has been involved in a position where they were not in a position to make decisions that could have changed the attained results for the better. Another luring factor for the people who make such move is when one has identified an opportunity in the market. Over and above, some people’s ultimate goals is having their business venture and are only employed as means through which they are able to save the required amount of capital needed. Once they have attained the relevant amount, they have no reason of being under someone else orders, they just quit and start over they planned venture.
Some Of The Conspicuous Challenges Being Faced By Today’s Managers
The expectation of maintaining integrity among the managers has never been as demanding as it has in the current era. This is because of the great level of competition among rival businesses as everyone tries to be as successful and competitive as possible. In response, the culture of unhealthy competition is soon creeping among the business demanding a high level of integrity.
As a manager, the challenge at hand under this factor is to ensure healthy cash flow into and out of the business. With more and more business being set up, the price for capital is ever increasing due to its increased demand. This can be reflected in the ever increasing lending rates across the commercial banks. In respect of this reality, managers in the current era are faced with the huge demand of ensuring a high level of efficiency when it comes to utilizing the resources at hand. With the high level of competition, the difference between the good performers and the poor ones in the market depends heavily on the way they utilize their resources.
Increased Substitution And Competition
Today starting a business is very simple with the fact that one can fully register his/her business via an online platform. The repercussion of this factor is the fact that there is a high level of competition in all market. This present another huge challenge to managers since he or she has to come up with ways that makes their venture more appealing to the customers. This is because to the customers; more competing venture means more opportunities/ substitutes. Managers have to put an extra effort to ensure that their businesses stand out in the midst of the high level of competition.
The above are just but a few challenges managers have to face as they try to see to it that their ventures are not only competitive in the market but also profitable. In an attempt to understand the demands being faced by the managers in the prevailing market competition, I was able to secure a meeting with John an owner and the current manager of Magic Food Restaurant. He is a well-known proud owner of a chain of restaurant in our nearby town that is constantly expanding despite the increased competition from other hotels. The main aim was to understand what it takes to have a business that is not only resilient to the competition but also profitable despite being in a very competitive market.
- How Would You Define Your Organization's Culture And Values In Your Company?
John, he said that the said that the Magic Food Restaurant has over the year developed the culture of being customer oriented. Besides, he mentioned that the restaurant appreciated that it’s only through satisfying a customer that any business is guaranteed of success. In the same spirit, throughout the chains of restaurants, the common values include honesty, hard work and integrity vital in ensuring that the customers are offered the best services in the greatest manner possible.
- What Would You Do To Change It?
In a smiling face, John replied “so far nothing.” I was surprised and inquired more. He said that the performance of his employees and the feedback from the customers has been positive, and this can be seen in the company’s continued expansion. However, he did mention that it has taken him a lot of effort to attain the success he was enjoying.
- What Are The Opportunities And The Threats Of Going Global?
To John, thinking about going global was not in the near future despite the great success the company was experiencing. Despite this, he did not shy away from giving his perception on the question. He told me that going global is usually capital intensive because in most cases one has to deal with completely new regulations and expectations. As a result, as a manager/owner, you have to invest according to meet the new expectations some of which you might not be conversant with. However, it was his take that indeed going global once done in a due diligent manner present huge opportunities.
- How Do You Motivate And Empower Others Within Your Company?
The main method utilized by John in an attempt to motive and empower his employees is through encouraging teamwork and a well-detailed performance and reward system. John informed me that within the restaurant lays a culture of teamwork where the intention is not to award an individual, but a group of employees working in the same docket. According to John, this was an intentional action that he made in an attempt to ensure there is no unhealthy completion among the employees. “Here we are interested in what a department is performing not individuals within that demanded,” affirmed John. Targets are set for departments, and every target met attracts a good reward. Through the system, Magic Food Restaurant has been able to ensure a healthy competition thrives among various departments making their customers’ experience more satisfying.
- Did You Ever Work For Someone Else? If So, Why Did You Stop?
John informed me that he used to be a banker working as a teller in one of the major commercial banks in the town. However, throughout the time he was employed, he felt that this was not what he wanted to do. He told me that the he felt out of place and after five years of service he just quit his job and utilized his saving to start up the first Magic Food Restaurant. He further advised me that it is always good to ensure that you involved yourself with what you love most. To him, serving people with delicious food was all he ever wanted to do.
- Why Did You Want To Go Into Business And Particularly Restaurant Venture?
“I have always loved cooking and particularly experimenting in the kitchen,” said John. He informed me that ever since he was a small boy, he was always in problems with his mom for misusing their food supplies experimenting on the different dishes that were compatible. Soon he found himself serving common dishes in a unique manner that amazed everyone. This was when he first had the idea of having a restaurant but never went ahead to actualize the idea. Finally after being employed and having enough money, he was now in a position to follow his dream in a professional manner.
- What Expectations Did You Have When You Started The Business?
Trying hard not to laugh, John told me he was expecting to make a lot of money in a very short time. However, the facts were far from his expectations, the huge challenge according to John was attracting customers. “Food industry is very sensitive, and you have to work hard and smart to win over the people’s trust,” said John. He mentioned that as a restaurant business owner, the first crucial step one should channel his energy is towards ensuring the restaurant gets a good name in the market. According to John, having a good name is very important in the food industry since this is the first thing customers enquire. However, to John the greatest lesson his venture has taught him is the importance of being resilient and patient.
- What Challenges Have You Experienced As A Manager?
Of all the challenges John has experienced, getting the right workforce remains the hugest challenge. According to John, having the right employee working best in the area where he or she best fit is the hugest challenge to any manager. This is particularly in the kitchen where different people have different talents all necessary to the success of the restaurant. The challenge comes in ensuring that you identify where each and every one is best suited. To John once you have stricken the balance among the employees everything else clicks.
- What Advice Do You Have For An Entrepreneur Thinking Of Starting A New Business Today?
“Be yourself and be yourself,” agitated John. According to John, the major mistake people do before starting a business is thinking that they will or can do as good as another person did. He said that the best weapon one is supposed to utilize their authentic self and engage in a venture that best exploits one’s ability. Moreover, John informed me that there is the need to ensure that one also engages in a venture that falls under what he or she love and has a passion for as this will be helpful during the hard times. He also said that running a business in today’s era is a more complex thing since the taste and preference of the people are changing rapidly thereby making it harder for the new business ventures. John concluded by reaffirming the essence of ensuring that one does not ‘follow’ the crowd when making decisions on the business venture in which to engage.