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

Small Business (Entrepreneurship) - Essay ExampleCitroen has the pay off of working in a large organisation. He understands the business of cooking and recipes well. But he is ease a novice in handling business operations. He may not have accosted those cost of a business that come to fore better in a small environment.The figures on which he is Citroen bases his decisions are not exhaustive and the actual running cost of the restaurant could be higher. Some of the fix and non-fixed expenditures like overheads like electricity, water establishment be, telephone bills, software, internet and computer costs, insurance, dilapidation costs, maintenance costs and sales promotion are not included in his analysis. A business always require 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 call for to generate enough money that is over and above the amount he need s to look afterwards himself.According to Citroen, each meal leaves him with a margin of $22. The costs for sales promotion. He needs to gain ground forecasts of the occupancy of 40-seater restaurant especially the peak occupancy and its time period. In case it exceeds the available seating area capacity of 40, for such time period that may lead to substantial business loss, he leave have to provide additional seats. This needs a workload and capacity management planning. His decision to close-fitting 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 expediency from them. It is important 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 chan ge of employees. He needs to care a thorough financial analysis