This paper is about the challenges encountered by a startup business. The challenges are discussed exhaustively with solutions given under each problem.

1. Running head: BUSINESS AND MANAGEMENT 1
BUSINESS AND MANAGEMENT
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2. BUSINESS AND MANAGEMENT 2
Introduction
Starting a business is never an easy task. There are small businesses which are not
positioned to succeed. Only two-thirds of businesses with workers survive for about two years
and close to a half survive for five years. Hence there is always a significant challenge when
starting a business. In this paper, I would discuss the things that the Smart would do to
outstanding in their operation.
Challenges Facing a Startup Business
The challenges that Smarts would experience regarding financing is hiring key staffs as
well as other associated expenses (Mungal and Garbharran, 2014). As far as the finances are
concerned the Smarts need to understand that getting a bank loan is never easy when there is a
financial crash. Getting the required funds to start the business would be the most significant
challenge that Smart would face. Marketing is another challenge they would face since when
starting the business their brand would not be recognized and also considering the competitive
environment. Therefore, it is very crucial for them to offer sound content to sell their business in
the best light to the target clients (Mungal and Garbharran, 2014). Hiring people is another
challenge that the Smart business would experience. Selecting and choosing the right candidate
to fit a particular task is very crucial for the company hence the most significant problem for any
starting business.
For the Smart business to do well, it has to know how to get the right people for the job
as well as the required skills (Mungal and Garbharran, 2014). Another challenge I would expect
the Smarts to experience would also be how to win customer loyalty. It would be very crucial for
them to have trust from their customers and to achieve this; they are supposed to work
aggressively to implement customer-centric working philosophies.

3. BUSINESS AND MANAGEMENT 3
Form of Business
The best legal business form for the Smarts would be the sole proprietorship because
there will be no corporate tax needed (Briffaut, 2015). Moreover considering it is a startup,
business sole proprietorship requires minimal legal costs. Furthermore, the sale in this form of
business would allow them to run at the owner's discretion.
Marketing
When marketing their products, I would suggest for the Smarts to use the 4 P’s marketing
strategy (Briffaut, 2015). The first P is the strategy refers to the price. The pricing of a product
determines sales, and it is connected to the perceived product value of the customer and not the
actual product cost. For instance, when the price is high, or low than products’ worth, it would
not sell. Under the promotion, the Smarts need to use the right channel for advertisement. In
Place, the Smarts need to analyze the provision of the product to the customer or the proper
channel to be used.
Finance
Another way Smarts can raise the finances to start the business firstly, they can get the
bank loan (Assessing Business Performance, 2011). Although some of the banks have gotten
stricter, there are others, for instance, the J.P Morgan chance which offers additional finances for
startups business. Another way is getting support from friends and family members as well as the
crowd funding, for instance, using the Kick starter sit.
Leadership and Motivation

4. BUSINESS AND MANAGEMENT 4
A good leadership style I would propose for the Smarts it would be the authoritative
leadership (Briffaut, 2015). Considering that the business is starting this leadership style, the
employees would be kept close and being provided with instructions and direction to achieve
goals appropriately. Moreover, the Smarts will need to motivate their team in order gain job
satisfaction. Furthermore, the motivation would enable the workers to be more empowered as
well as being optimistic at work hence a stable workforce.
Operation Management
In the areas of operation management, Smarts should focus on the quality management.
By this, they should use ensure premium quality services through warm, friendly culture as well
as servant leadership (Briffaut, 2015). Additionally, they should consider their location strategy
such that to be in the densely populated area to attain market share. Human resources and job
design are another to be found to integrate the company’s organizational culture. Communication
and collaboration is the organization culture I would suggest for them since it will encourage
collaborative efforts through effective communication to fulfill orders as well as making the
process efficient.
In conclusion, the Smart is positioned to succeed if they follow the ideas if have
proposed. It is very crucial to consider organization structure, leadership style as well as the
mode of organization the business would operate.

5. BUSINESS AND MANAGEMENT 5
References
Assessing Business Performance. (2011). Effective Operations and Performance Management.
doi:10.5040/9781472920362.0039
Briffaut, J. (2015). Business Models: Control Models, Flow Models, Organization Models,
Function Models. E-Enabled Operations Management, 33-56.
doi:10.1002/9781119145219.ch3
Mungal, A., & Garbharran, H. L. (2014). Cash Management Challenges of Small Businesses in a
Developing Community. Mediterranean Journal of Social Sciences.
doi:10.5901/mjss.2014.v5n27p11

6. BUSINESS AND MANAGEMENT 5
References
Assessing Business Performance. (2011). Effective Operations and Performance Management.
doi:10.5040/9781472920362.0039
Briffaut, J. (2015). Business Models: Control Models, Flow Models, Organization Models,
Function Models. E-Enabled Operations Management, 33-56.
doi:10.1002/9781119145219.ch3
Mungal, A., & Garbharran, H. L. (2014). Cash Management Challenges of Small Businesses in a
Developing Community. Mediterranean Journal of Social Sciences.
doi:10.5901/mjss.2014.v5n27p11