RUNNING HEAD: CREATING AN E-COMMERCE BUSINESS 1
CREATING AN E-COMMERCE BUSINESS 6
Assignment 1: Creating an E-commerce Business
Courtney Nelson
BUS 402
Professor Adrienne Garabedian
May 4, 2021
An Idea for a Prospective Small Business
The whole idea of starting up a business requires some considerations to be sure that you are ready. According to Entrepreneur.com, It’s easy to feel ready much earlier than you actually are, and it’s equally easy to let fear hold you back long after you should have jumped (Sujan, 1). I can understand what is meant by that statement, so they have listed 15 signs to help you know. I felt the current wave of the natural hair and skin care products would be a good idea for a small business. It is important to start something that you are genuinely passionate about since much of your time and money will go into it. The last few years have been amazing seeing a positive trend of women as well as men embracing their natural beauty.
The small business idea will be a black-owned hair store specializing in natural hair and skin products. The store will be named Natural Hair Goals located here in Huntsville, AL where there aren’t many natural hair care product options. The staff would comprise of people with a background working with natural products so that they can help recommend products for customers based on their needs. The versatility of the staff would help with the customer base because there will still be something for everyone. In my town, most of the hair stores close around 7 pm, but from my experience, that seems to be a bit too early. The main issue is on the weekends when people are getting ready to go out with friends and need last minute hair items. For this reason, it seems necessary to have later hours available.
Key Competitor’s Strengths and Weaknesses
There are not many stores centered on natural hair products, but there are retailers who sell some of the more popular brands. These retailers are Classy, Target, Walmart, Ulta, and Sally Beauty to name a few that have started making a mark in this industry. Retailers such as these are competitors for what I would be trying to do with the store. For example, one of Target’s strengths is selling natural hair and skincare products similar to what my store would have. A weakness of this retailer is that the selection is on a much smaller scale than what Natural Hair Goals would have. According to Retail Wire, Each participating store will have a Target Beauty Concierge, a highly-trained, brand agnostic beauty enthusiast to answer guests’ questions in-store about cosmetics, hair care and skin care (Ryan, 2). Due to Target making this change it places it as one of my top competitors. Some strengths of my store would be the variety of products to choose when coming to the shop.
The store will have samples of new items given out during check out. Staff at Natural Hair Goals will know of different hair types and be able to suggest products for a h.
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RUNNING HEAD CREATING AN E-COMMERCE BUSINESS1CREATING AN E-C.docx
1. RUNNING HEAD: CREATING AN E-COMMERCE BUSINESS
1
CREATING AN E-COMMERCE BUSINESS 6
Assignment 1: Creating an E-commerce Business
Courtney Nelson
BUS 402
Professor Adrienne Garabedian
May 4, 2021
An Idea for a Prospective Small Business
The whole idea of starting up a business requires some
considerations to be sure that you are ready. According to
Entrepreneur.com, It’s easy to feel ready much earlier than you
actually are, and it’s equally easy to let fear hold you back long
after you should have jumped (Sujan, 1). I can understand what
is meant by that statement, so they have listed 15 signs to help
you know. I felt the current wave of the natural hair and skin
care products would be a good idea for a small business. It is
important to start something that you are genuinely passionate
about since much of your time and money will go into it. The
last few years have been amazing seeing a positive trend of
women as well as men embracing their natural beauty.
The small business idea will be a black-owned hair store
specializing in natural hair and skin products. The store will be
named Natural Hair Goals located here in Huntsville, AL where
there aren’t many natural hair care product options. The staff
2. would comprise of people with a background working with
natural products so that they can help recommend products for
customers based on their needs. The versatility of the staff
would help with the customer base because there will still be
something for everyone. In my town, most of the hair stores
close around 7 pm, but from my experience, that seems to be a
bit too early. The main issue is on the weekends when people
are getting ready to go out with friends and need last minute
hair items. For this reason, it seems necessary to have later
hours available.
Key Competitor’s Strengths and Weaknesses
There are not many stores centered on natural hair products, but
there are retailers who sell some of the more popular brands.
These retailers are Classy, Target, Walmart, Ulta, and Sally
Beauty to name a few that have started making a mark in this
industry. Retailers such as these are competitors for what I
would be trying to do with the store. For example, one of
Target’s strengths is selling natural hair and skincare products
similar to what my store would have. A weakness of this retailer
is that the selection is on a much smaller scale than what
Natural Hair Goals would have. According to Retail Wire, Each
participating store will have a Target Beauty Concierge, a
highly-trained, brand agnostic beauty enthusiast to answer
guests’ questions in-store about cosmetics, hair care and skin
care (Ryan, 2). Due to Target making this change it places it as
one of my top competitors. Some strengths of my store would be
the variety of products to choose when coming to the shop.
The store will have samples of new items given out during
check out. Staff at Natural Hair Goals will know of different
hair types and be able to suggest products for a hair care routine
that will work for your hair type. Also, skincare routines would
be important because not everyone has the same type of skin.
Embracing these natural routines will be easy with on-site staff
who are knowledgeable in those areas. Weaknesses to opening
up this business would be trying to break into an industry-
owned majority by Korean’s. A lady by the name of Karen
3. Coffey opened up a black-owned beauty and hair store named
Bella Beauty and Hair.
There has been an article written about her experience on a
website called MPR News. She described her experience as
challenging because she feels due to Korean’s dominating the
hair industry the suppliers have not been fair in partnering with
her in receiving products. Coffey stated, All of it is run by
Korean’s a lot of them don't make it easy for blacks to get in. I
didn't know it would be this challenging (Sapong, 3). She is not
the first to make this type of statement from what I have
researched so far. Having this type of difficulty could be a
weakness if not thoroughly investigated and considered before
getting into the industry. There are some loopholes and ways
around getting hair and skin products without only going
through those type of retailers.
Natural Hair Goals Company Mission Statement
Our mission at Natural Hair Goal is to provide a friendly
atmosphere where you can enhance your individuality by
embracing your natural beauty without breaking the bank. We
have professionals here for all your hair or, skincare questions
no matter how simple or complex. We take pride in ensuring
high-quality products to be fully stocked when needed most.
Our staff is highly trained professionals with a background in
various hair care so our customers can shop with confidence in
their purchases. Each shopper is sure to love their products, but
if for some reason something is wrong we do have a return
policy to suit your needs.
Business Ownership Type
For the ownership type for this Natural hair store, it will be a
Sole Proprietorship. This type has been chosen because I prefer
to be solely responsible for my business. There is a lot of hard
work not to mention financial investments that would be
required which is why I would instead choose to enjoy the
profits of my labor. The thing about being solely responsible for
the business means knowing a little bit about all aspects of
running it alone. I would need to file the store on my tax return.
4. If sued for any reason it means the money would be coming out
of my pocket also. Having money coming out of my pocket isn’t
ideal, but I feel it is worth the risk with the chances of having a
successful business overall with an immense amount of profit.
I initially considered a partnership, but that would be too
challenging for the vision I have set for the store. It would be
highly frustrating trying to get two people to always agree on
everything without any issues. Having a business is said to be
pretty stressful in the beginning, so the last thing I would need
is to be continually trying to work out agreements with someone
else about what I want to happen with my business. There is a
requirement for registering the business name then getting a
license after that it is pretty much set up. I know I would have
to have all the contracts set up in my name then be mindful of
debt since it is possible to be sued and personally liable, so that
is something else I considered. Overall a sole proprietorship
would work best for the vision I am going with, so I have no
reservations towards my decision.”
References:
1. Sujan, P. (2015, January 1). 15 Signs You Might Be Ready to
Start Your Own Business. Retrieved from Entrepreneur:
https://www.entrepreneur.com/article/246755
2. Ryan, T. (2013, June 3). Do Beauty Consultants Make Sense
for Target? Retrieved from Retail Wire:
https://www.retailwire.com/discussion/do-beauty-consultants-
make-sense-for-target/
3. Sapong, E. (2017, April Roots of tension: race, hair,
competition and black beauty stores). Roots of tension: race,
hair, competition and black beauty stores. Retrieved from 25:
https://www.mprnews.org/story/2017/04/25/black-beauty-shops-
korean-suppliers-roots-of-tension-mn
Discussion 1
5. BUDGETING
Synopsis
The purpose of this study was to analyze the accrual-based
performance budgeting systems in the United Kingdom,
Australia, and New Zealand. The analysis focuses on the
content and format of implemented performance budgets and the
added value that accrual budgeting brings to performance
budgeting. The author addressed four research questions. The
research seeks to highlight and identify the different models of
accrual and performance budgeting that exist, and what kind of
performance information is included in the budget documents of
central governments. It also seeks to know how performance
information and accrual budgeting integrated into budgetary
documents and what added value do accrual budgeting brings to
performance budgeting.
The research employed the use of critical analysis of
governmental and parliamentary documents, performance
information, appropriations, policy paper, financial statements,
and departmental budgets to identify the models of accrual-
based performance budgeting systems in the United Kingdom,
Australia, and New Zealand. The article concluded by showing
that there are two ways to implement accrual budgeting. In New
Zealand and Australia, the implementation of accrual budgeting
requires the preparation of budgeted financial statements with
the same format as those presented at year-end. In the UK,
appropriations are approved by Parliament on both the cash and
accrual bases. The three countries analyzed changed their
budget structures to focus on outcomes and outputs as part of
their initiatives to introduce accrual-based budgeting. Input
information was not replaced by output and outcome
information. Performance measures and inputs are provided
together with other, more sophisticated criteria, such as
effectiveness, impact, timelines, and quality. It also showed that
accrual budgeting and performance budgeting is, in general,
complementary tools, even though there are some differences
6. between the three countries.
Main Points and Relevance
One of the major takeaways from this research is that accrual
budgeting provides measures of the full cost of services/outputs
in the budgetary statements. A complete accrual accounting
system that registers costs rather than cash flows is required for
measurements of efficiency or cost-effectiveness. Martí (2013)
inferred that if the government wants to present performance
measures of the effectiveness or profitability of the services
provided, the costs of the outputs must still be calculated using
accrual-based figures, even if an accrual-based budget system is
not implemented. The application of full accrual budgeting
measures is not limited to the public sector alone.
Comprehensive accrual budgeting measures are necessary for
decisions that require a comparison of prices with other public-
or private-sector providers. Lastly, this article concludes that
accrual budgeting allows departments to base their expenditure
prioritization decisions on the full costs of alternative programs
within a medium and long-term framework of expenditure.
I currently work for a government agency as an accountant, and
I do not have to be in the executive hierarchy to know that state
budgets are complex and fluid, as they depend on anticipated
revenues and planned expenditures, which may alter for a fiscal
year. The state executive arm is committed to using accounting
practices that highlight the actual size of deficits. The State had
previously use a cash-based accounting system, but it's now
using generally accepted accounting principles or GAAP. The
crucial difference between these two methods is that GAAP
includes what's called "accrual-based" accounting. In accruals-
based budgeting, a budget balance is defined by adding the
present value of assets and the long-term cost of liabilities. This
has further strengthened the balanced budget provision of the
Illinois Constitution to require end-of-year balance, rather than
just prospective balance. Marti (2013) stated that cash-based
accounting underreports actual budget deficit and unlike
accrual-based budgeting. I think the State of Illinois agrees with
7. this position as it is reflected in their budgetary policy.
Reference
Martí, C. (2013). Performance Budgeting and Accrual
Budgeting. Public Performance & Management Review, 37(1),
33–58. doi: 10.2753/pmr1530-957637R
Discussion 2
In Stearns The Moderating Effects of Personality on the
Relationship between Budget Participation and Motivation to
Reach the Budget Goal, the effects of personality are observed
among budget participation and motivation to reach the budget
goal. Different dimensions of personality are observed to have
effects on how individuals participate in budgeting activities
and how motivated they are to reach those budgeting goals
(Stearns, 2016). Participation was administered at three levels
and personality of participating individuals was measured by
the five-factor model of personality, perception of participation,
and motivation. Results indicated strong relationships among
personality and participation effecting the motivational
involvement to reach budget goals (Stearns, 2016). Such results
indicate that personality among participative budgeting systems
can influence the motivation to achieve budget targets.
This study observes and studies the certain aspects that can
have affects on company budgets and the success of fulfilling
them. One aspect underlines the purpose of the study. Past
studies have illustrated possible variables affecting the
participation-motivation relationship; however, the results have
not been consistent and this study looks at “how the dimensions
of the five-factor model might intervene in the participation
motivation relationship” (Stearns, 2016, p. 144). Another key
aspect is the observation and hypothesized idea of participation
and variables in such. Inconsistent answers from past studies
gained positive and no effect results for participation in goal
commitment and this study analyzes the main effect of
8. participation on motivation to reach budget goals (Stearns,
2016). Results indicated that more neurotic individuals will
increasingly be more involved with less motivation to reach
budget goals; moreover, a level of participation is correlated
with an individual’s motivation and dimension of personal
neuroticism (Stearns, 2016).
Relevance in today’s world reaches many aspects of businesses.
Understanding how individuals act/perceive basic budgeting
practices and goals can determine how managers structure
planning systems and the measures taken to design structed goal
planning. This can also structure how managers organize
motivation. Drivers of motivation vary among individuals and
this study can be used for further experimentation to understand
how individuals can be most successful with budgeting
practices. Compared to my level of experience, this can be
related to certain aspects of the company I work for. On a more
individualistic level, my coworkers and I do not deal with such
budgeting matters collectively but such points can still be
relevant. How the office managers budget certain components
are dependent on multiple individuals and how they interact
with each other. Motivation to achieve budgeting goals can
varying depending on the individual and therefore the
motivational drivers vary themselves. This article was very
insight on the personal and collective neurological processes
that go into the simplistic process of planning and achieving
budget goals.
Reference
Stearns, J. (JP). (2016). The Moderating Effects of Personality
on the Relationship between Budget Participation and
Motivation to Reach the Budget Goal. International Journal of
Business, Accounting, & Finance, 10(1), 144–164.
Discussion 3
The article I chose for this week discusses the need for what the
author refers to as “financial engineering.” Although the article
focuses on Ukrainian enterprises, the content is applicable to
institutions and businesses around the world. Many of the
9. problems that are arising for larger businesses in the Ukrainian
markets were solved here in the United States, and the author is
adapting those solutions to enterprises in Ukraine.
Essentially, thanks to fierce competition in that market, the
need for newer instruments and methods related to budgeting
and management accounting are needed for larger companies to
succeed. The author breaks it down into businesses managers
needing to segment into “responsibility centers” that are
responsible for their own individual budgets. Mangers of those
individual responsibility centers mange their budgets that are
overall, set by the business managers.
My own organization, like most larger corporations, work this
way. The company sets their overall annual budget that is
separated by operational segment. The corporate segment sets
the budget for our large segment, who further segments the
budget by each individual operational unit. Eventually, that
large budget set by corporate filters all the way down to my
individual segment. To break it up into easier terms, The Walt
Disney Company sets the overall company budget. Walt Disney
Parks & Resorts sets their overall budget from that. Walt Disney
World then sets their budget from that, eventually filtering
down through each park and resort until our individual area,
Star Wars: Galaxy’s Edge Operations in Florida gets their
annual budget. Our proprietor is ultimately in charge of the
budget for our responsibility center.
The article also talks about budget management that should
follow certain financial engineering procedures. In my
particular segment, attractions operations, we do not directly
influence revenue. Our collective job is to operate the two
marquee attractions in the park, Millennium Falcon: Smuggler’s
Run and Star Wars: Rise of the Resistance. Because we do not
sell anything, we eventually influence company revenue through
our interactions with customers and by keeping people happy.
How this relates to financial engineering gets a little murky.
Our segment is more or less regulated by metrics that relate to
Guest satisfaction rather than black and white financial metrics.
10. If one simply treats those non-financial numbers as dollars and
cents, our annual budget can be driven by how we perform
based on a standard set by a higher responsibility center (the
park Vice President, President of Walt Disney World, etc).
To conclude, the biggest theme in this article was how different
responsibility centers must be in control of their own budgets
for the enterprise as a whole to be successful. While the overall
business manager(s) can set the budget for the company, it is
eventually up to the managers of each individual responsibility
center to ensure the success of the company.
Reference:
Herasmovych, I. A. (2015). Budgeting Of Business Processes -
The Basis of Financial Engineering And Operating Activities Of
An Enterprise. Practical Science Edition "Independent
Auditor", No14.