On the Maintenance of a Small Business Essay

Creative Cuisine Concepts is a dwarfish pedigree communicate by Sharon F. Johnson, employing twenty five staff members, and serving fifteen degree centigrade meals at one of the cafeterias of America Hondo Motor Co. The company was going through and through staring(a) fiscal trouble with its mounting debt, inability to make payments to vendors, and misdirection of financial accounts. Johnsons art partner left the company, and so she had to bullion out her 401(k) retirement savings to save her microscopical business. She also had to suck money from the small inheritance of her husband so as to guard her business.Nevertheless, the small business remained in financial trouble. This was before Johnson was advised by her mentor at American Honda to seek benefactor for the financial statements of her small business. Subsequently, the lady hired an accountant for her business and opted for an accounting software course in place of the paper-based system. She also began to take a training course, sponsored by the Los Angeles chapter of the National Assn. of Women Business Owners, to improve her business and leadership skills. Johnsons helplessness company began to recover soon after.She expects her business to breakeven in the near future. With the results that she has achieved thusly far, she has additionally planned to grow her business from $1. 5 trillion to $50 million in revenue (Zwahlen). Zwahlens article, Recovering from Financial inflammation about Creative Cuisine Concepts, describes many of the challenges guinea pigd by small businesses that are mentioned in the textbook. When Johnsons business partner left the company, she became a sole proprietor of Creative Cuisine Concepts facing personal financial liability for all business debts.Moreover, the textbook mentions that the owners of small businesses experience to be alternatively creative so as to maintain their businesses in the face of trials, such as mismanagement and cash flow proble m. Johnson had to be rather innovative to save her business from the turmoil that it faced. She had to borrow from her husbands inheritance, and cash out her retirement savings plan. Also check to the textbook, this is the coarse route taken by the owners of small businesses who mustiness use up their personal funds to maintain their companies. As compared to public companies, it is difficult for privately owned businesses to raise funds.Lastly, the textbook mentions management problems at small businesses that do not have the funds to hire a large issuance of competent people. Johnson had to take a business and leadership course to levy her skills. The course was sponsored by an association of business women, who are known to conduce a large number of small businesses in the United States, according to the textbook. In my opinion, Johnson should also approach the Small Business Administration (SBA) to help her business meet its sassy goal of raising $50 million in revenue.A s a matter of fact, the owner of the small business should have approached the SBA at the time her business was going through severe financial trouble. SBA could have provided her with a guarantee for a small business loan from a bank or private lender. It could also have helped her obtain a microloan. Furthermore, there are Small Business investment Companies that Johnson could have approached. Although her creativity to gather the much-needed funds, apart from her motivation to gain new skills and put a new financial system into place must be applauded the assistance of SBA could have saved her from the worries that she faced.