A New Business Management Practice- Report
In this report, a new business associated with smart office consultancy services was analyzed and the various risks associated with it was also determined. Moreover, the various political, economic, technological, environmental, social and cultural issues that the concerned business has a chance of encountering was also discussed effectively in the report. In the report few management practices was highlighted which will assist in mitigating the determined issues. Furthermore, suitable recommendations were even provided for the same.
The main purpose of the report is to analyze a new business management practice in the country of Australia. Smart Office Advisor is the new business selected for the purpose of this report.
Smart Office Advisor will be making use of a B2B ( business to business) perspective in the course of their operation. The concerned business is associated with the task of working with other organizations and assist them in the process of establishing an agile infrastructure. This in turn will help the concerned organizations to make their functioning as well as their working life much more effective.
In this report, a Pestle analysis will be conducted of the selected business and the various risks associated with it would be determined. Furthermore, effective management practices would be proposed to minimize such risks with suitable recommendations.
Business Size & Product Feature
The business of the Smart Office Advisor will include processes like mounting sensors for the lighting in the client’s office in a way such that there will no need for an individual to manually switch on or even off the lights. Moreover, the concerned smart office business work towards creating a warning system for the repair department employees of an organization, who will be notified with the sensor-based settings made by the Smart Office Advisor that a particular light has burnt out. The concerned business will also provide for a system that will automatically turn on a coffee pot, computer system as well as propose various sitting alignments of the employees of a particular organization with their smart products. Moreover, it has the potential to execute all of the above on the basis of the direction in which an individual in the organization is moving.
The size of the business is small and no huge investment would be required to begin with the same. The business even has the potential to work with one client at a time and only purchase those materials that will be required to set-up a smart infrastructure for that particular organization only. Moreover, there is also a high possibility that the business will rise and prosper and it will become a major requirement for the organizations as they grow.
Here are the few sources of capital for the Smart Office Advisor to embrace for their business:
- Angel Investors- This is known to be the best source of capital that the concerned smart office business can opt for to get the basic finance for starting their business. The concerned investors are determined to be very much rich and they are also ready to take a risk associated with an emerging business practice. Generally, such kind of an investor offers a small-scale of finance to the budding businesses, with an attempt to pay for their functional expenses as well as for the revenues for the initial few years of the concerned business (Karadag, 2015). Moreover, such type of an investor even leaves a certain place in providing finance considering the failure of the business. Furthermore, if the concerned smart office business will approach an angel investor for their obtaining capital, these investors will also provide the business with numerous connections to expand their business as well as provide them knowledge and ideas related to the same.
In order to obtain finance from an angel investor, the concerned business would be required to take the following steps:
- Find an angel investor from the Angel Capital Association (Kumar et al. 2017).
- Meet the investor with a power business strategy along with an excelling persuasion technique.
- Moreover, it is even required to drive the interest of such investors with huge passion as well as convincing statistics about the business’s present condition and future scope.
- Bootstrap the Business- This source of capital can be very much suitable for the new smart office business as the initial amount required to start the business is not very high. Through this method a business man can finance their own operations and it has the potential to be very much affordable than even a person can imagine (Kim, et al. 2019).
Since, the concerned smart office advisor business is a new business, wherein they don’t have sufficient funds to support their operations, they can simply bootstrap their business and apply for a APR ( Annual Percentage Rate) credit card for conducting the business (Venkatraman et al. 2016). Through the use of the card the concerned business can easily lend money for a certain span of time, with 0% rate of interest to conduct their business.
Challenges & Difficulties for the Smart Office Consultants
- Political- The regulations imposed by the government of Australia requires any business to pay an amount of $249B annually in adherence to the associated regulation and also due to the decrease in its output (Hernández et al. 2017). Thus, the smart office consultant business will encounter huge difficulties in compensating the price for the regulatory framework of the country. Moreover, being new in the market, the concerned business will be required to spend a huge portion of their profit on compensating for the cost of the regulations.
- Economical- For a business to be steady, it is required to have a steady flow of cash as well. However, smart office consulting business will experience huge problems in maintaining their overdues as well as their outstanding under control in a constant manner.
- Social & Cultural- The concept of marketing has gone through a considerable level of changes in the past few years. Hence, it will be difficult for a business-like Smart office consulting service to drive the interest of the clients, mostly when they are not well-acquainted with digital products like creating a smart setting at their offices (Ryu et al. 2015).
- Technological- The country of Australia has bee determined to be a technologically advanced country, hence there would numerous companies providing similar services like that of the smart office consulting business. In the context, there would be high level of competitions for the concerned business.
- Environmental- Considering from the environmental point of view, also the concerned business would be experiencing numerous competitions and this would create great problems for the new business to stabilize their position in the market. Majority of the businesses these days have embraced an environmentally friendly approach, thus the level of competition would be very high (Ding et al. 2015).
- Legal- The smart office consulting business would be required to adhere to a number of regulatory frameworks imposed by the government of the country, which can be a major challenge for a new business.
Here are the few risks that a new business-like smart office consulting service can encounter:
- Shift in law and principles of the country, for example, trade related battles, rates related issues as well as economy-based penalty imposed by the government.
- Growth in the market of the country that includes high level of rivalries, new entries as well as ups and down in the market conditions (Darchen,2016).
- Cyber security related incidents can pose a huge risk for a new business-like smart office consulting service, including the downfall of IT ( Information Technology).
- The smart office consulting business should embrace a management practice that will have the potential to eliminate any kind of a critical fiscal or even law related outcomes.
- The concerned business should concentrate towards developing a specific environment and society based governing portfolios. This will assist them in appearing more interesting to their business associates, which will the office of the clients in the case of the smart office consulting business (Cumming et al. 2019). In this way, the concerned business will also be able to improve their image in the market.
Through the above analysis it can be recommended that the concerned smart office consulting business needs to have an efficient risk-management plan of action in place. In this way the concerned business will be able to determine, explore, measure and give important consideration to the biggest threats posed to the business (Becker et al. 2015). The concerned business is also required to execute a plan of action that will be able to reduce as well as to eliminate such risks in a total manner. The concerned business should concentrate as well as safeguard their commercial activities and the individuals associated with it. In this way the business can prepare themselves to overcome any issues in the upcoming years.
It can be concluded from this report that starting a new business of smart office consultants in the country of Australia is a good choice. Since, Australia is a technologically advanced country the business will have a great scope in the country. However, it has the chance of facing numerous competitions in the field which could even generate loss for them. Moreover, the regulatory charges payable to government is also very high for a new business like it as they would be spending a major portion of their profits in the process of adhering to these regulatory frameworks. Furthermore, it is significant for the business to be prepared to face any kind of challenges which they are likely to face in the upcoming years. Additionally, in order to maintain a good image in the market, it is important for the concerned business to have a powerful sustainability as well as social profiles.
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