Management, entrepreneurship, finance and marketing are components that could either make or break a business. Shark tank shows aspiring entrepreneur contestants as they make business presentations, obviously keeping in mind that the investors can stretch their hands towards good business proposals. Well, what is a good business proposal? A good business proposal is when an entrepreneur is able to balance all business functions and is able to develop entrepreneurial skills and qualities as well as being able to make a good profit out of the proposal. Episode 29 in Season 6 is a good example of a good business proposal that I watched on the Shark Tank show, David Patrick and his partner Zhack that feel like the traditional wheels that are used to today are too limited so they came to a conclusion that an upgrade of wheels is needed, so they re-invented the wheel and came up with a mathematically balanced design based on a cube. David also feels like their wheel rolls much better than an ordinary wheel, faster than any other wheel, has more grip than any other wheel and goes over any surface. The wheel is called the ‘Shark Wheel’. David and Zack are the role players, the investors are also going to be role players as they will be the shareholders of this business. If ever this business does grow and expand, it will also have staff members and maybe suppliers too then all those people will be stakeholders.
Entrepreneurship and Management:
Entrepreneurs are a very strong driving force in the economy providing products and services as well as creating jobs just like shark wheel organisation that could create jobs for other people if it grows. It is very important for everyone wanting to take this road to understand the basic principles behind being an entrepreneur .
David and his partner seem to be very passionate about their product which just also shows that they are passionate about their vision. They re-invented better wheels, these wheels are used on prams, skateboards and bicycles. Creativity is everything! What David and his partner came up with, I feel was very creative, they took their time and devoted it to this product. David and Zack seem to be driven by their positive attitudes. I feel like the partners are opportunists who just happened to be in right place at the right time for instance, they were even able to persuade the shirkers into investing in their business.
These skills can be learnt and may include aspects from all management functions as well as the basic elements like planning, organising, leading and controlling.
In order for David and Zack to make it in this business world they’ll need to at all times be in touch with things around them and this could be done by using the environmental scanning. Environmental scanning helps identify threats, identify opportunities and gaps in the market, keep their competitors in mind and always have long and short term strategies. With environmental scanning, it can be done for both internal and external aspects. For the shark wheel, David and Zack could approach any problem in the micro environment by using the swot analysis which will help with the strengths and weaknesses threat and opportunities, the market environment by using the porter’s five forces and the macro environment by using the PESTLE analysis.
The finance function is a vital component of the business, because without the necessary funding none of the other business operations can function. It is the role of the financial department to make sure that there is enough capital available in the business to carry out operations efficiently. The financial feasibility can be judged on the total estimated cost of the project, financing of the project in terms of its capital structure, existing investments, the cash flow and the profitability. The revenue of a business is made up of its sales but is also derived from interest on savings or investments. Different costs can be distinguished as being fixed, variable, controllable and non-controllable costs. There will come a time wheel shark wheels will experience what we call a breakeven point. Breakeven point is the level of output sales at which costs are covered, if output is below beak-even point then a loss is made. However, above breakeven point the business starts to make a profit. David and Zack do need a budget in order to plan the finances within a business and then to control financial expenditure within different departments. The financial officer will draw up a capital budget which will outline the capital needs for the short, medium and long term goals. A cash budget focuses on the day-to-day expenditure and revenue of the business. David, Zack and the Investors can always have a review on a budget quarterly, monthly and yearly. The first task in this department is pricing. Cost based pricing, demand-based pricing, competition based pricing, combination pricing are all the different pricing techniques. Before David and Zack determine their selling price for their goods they need to consider price discrimination, psychological pricing, perceived value pricing, promotional pricing, penetration pricing, bait pricing and loss leaders. Investment is saved money in order to make it grow. The mount invested is called the capital contribution. The truth is, people invest in dubious or risky projects, or don’t consciously evaluate their own risk profile or the product. The sharks decided to invest in the ‘Shark Wheel’ (David and Sacks’ business). Three investors have decided to raise about $225 000 and each get 2.5% stake till David and Zack can give them back about $500 000 which will be split three ways. The skateboarders from shark wheel are about $183 000. David and Zack sold over $4000 units in 4 months. The wheels are made for $12 000 and sold for $69 000, so they make a profit of about $57000.
Marketing is basically how people can know about a business such as shark wheels. When marketing a product, a lot has to be considered, basically a business like shark wheels needs to look at its target market, and this is when they look at who this product will accommodate. We are living in a time of different kinds of things are trending; we live in a time of era’s. Age, Gender, Interests, their surroundings, current trends, weight, heights. For example, shark wheels accommodates everybody even babies on prams. When showcasing a brand or business, we can use a variety of channels that are accessible for everyone like, Televison, Radio, Billboards,Magazines,Newspapers,News and word of mouth. Marketing is made up of the 7 ps of marketing, like the principles of marketing. Product, David would need to look at his product (wheels) as if he is a customer, that way he will be able to find the flaws of that product and the positive comments on that product. Prices, here David can just look at his cost price in order to determine the selling price, and also determine how much profit is made from selling his products. Promotion, the way in which people get to know about this product, so it’s the way in which it will be promoted. Place, once shark wheels grows, David will be able to distribute his product all over the world, but it cuts down transport costs when the manufacturer is close to the shop, that just makes life easy for everyone plus people will be able to excess to the shop, convenient. Packaging, packaging is important because presentation is everything. The first thing people see before they buy from you is the outside of the product. David should go wild when it comes to the packaging and explore different ideas, that also brings consumer to your product, style is everything! Positioning, you must always think through your product before sales. Always make sure that your product does not discriminate anybody. Process, this is the process that sharp wheels will be involved in when providing a good or service. People, people are important! David needs to consider people that are outside of the business, people who are HIV and that also means that our product should accommodate those people as well. Beyond everything, market research will help the business. It is important for the business to put its consumers first because they are the consumers afteral
In my opinion I think I am able to improve Shark Wheel, firstly shark wheel doesn’t make wheels for a car, so I would certainly invent a wheel fit for cars. In our homes we use a lot of utensils that have wheels, I would also try to make wheels that are fit for kitchen utensils. People love it when their things are personalised, so why not let people personalise their wheels, that way I think that there would be more consumers because of how wheels could have their names written all over them. Colour and shape is everything, I think having nice glow in the dark wheels and having the wheels in nice shapes would be something different and cool, more especially because its on a wheel unlike our everyday round wheels.
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