Starting a Delivery Business (ANSWERED)

QUESTION

Required Resources

Read/review the following resources for this activity:

Textbook: Chapter 5
Lesson
Minimum of 1 scholarly source

Initial Post Instructions

Consider a small business you want to create. In your post, address the following:

What type of business would you create?
Conduct some research on companies offering a similar product. What distinguishes you from your competitors?
Name 2-3 risks you need to consider in your new venture? Consider the risk factors similar companies may have encountered.
How could you leverage e-commerce and social media to make your business profitable?

ANSWER

Entrepreneurship: Starting a Delivery Business (Small Scale)

If I created a small business, it would be delivery. Choosing this niche depended on the recent complaints about how delivery companies and businesses are failing their customers. I would start with owning a vehicle, dolly, and cell phone specifically meant for the business. The business will be a sole proprietorship.

Compared to big delivery companies, I will ensure that all deliveries made are confirmed by the owners and the correct cargo is delivered to avoid the loss and confusion common these days. Furthermore, I will offer delivery services at a slightly lower price than competitors. Loss, damage, and wrong deliveries will be limited, given my boundaries in a particular location. Therefore, my business will assure security and subsidized fees, which will stand out from the competition.

As a general risk, my business may be subject to the business risk of low profitability. After investing in the initial resources and other costs that follow when the business starts running, profitability may be challenging. Moreover, ways to leverage profits may be limited due to the nature of the business. These operational risks may result from failed internal processes like coordination and external collaboration with other businesses.

In delivery businesses, risks associated with damage, loss, and misplaced goods are common. Therefore, I will incorporate them in the analysis of risks and how I can solve them. Companies with a similar business to mine face risks associated with loss and damage of consignment, which leads to loss of clientele. Customers usually establish trust in these companies, and the loss of their orders creates mistrust, leading to business losses.

Social media is an important tool for business growth in the contemporary corporate environment, as most businesses put it high on their list (Roberts and Candi, 2014). I will use different platforms like Facebook, Twitter, and Instagram to market my services since most people use them frequently. By staying consistent, engaging followers, and optimizing individual content for the platforms, I will leverage social media to grow my business by increasing awareness. According to Huang and Benyoucef (2013), leveraging social media will enhance the e-commerce aspects of the business as the clients will want more information and order services. However, business owners need to be independent and feel successful and competent to continuously use social media to influence their e-commerce capabilities.

References

Huang, Z., & Benyoucef, M. (2013). From E-Commerce To Social Commerce: A Close Look At Design Features. Electronic Commerce Research and Applications, 12(4), 246-259. https://doi.org/10.1016/j.elerap.2012.12.003

Roberts, D. L., & Candi, M. (2014). Leveraging Social Network Sites In New Product Development: Opportunity Or Hype? Journal of Product Innovation Management, 31, 105-117. https://doi.org/10.1111/jpim.12195