Expansion of Bogdan Reels

Expansion of Bogdan Reels

Introduction

The expansion of the Bogdan reels business will lead to more output, which will increase the cash flow of the business and its profits. Bogdan reels are a company that produces reels specially used in fishing. The reels have been considered from time immemorial to be the best in the fish industry. The brand has won acclaim and the hearts of many people who engage in fly-fishing. Consequently, the market has been consistent as the reels produced are all ordered. Indeed, there is usually a waiting list. Thus, the demand has outweighed the supply in this case. Consequently, an expansion in the business will lead to increased revenue and thus increase the profit margins of the business since they now own a huge market share. Therefore, as entrepreneurs, the Bogdan  reels need to seek avenues of funding that are going to help them in the expansion of the business ( shepherd, 2009).

Overview

The purpose of this paper is to look into ways that the company can expand and the resources it needs in terms of funding. It will also discuss the sources that are available to the company and how it can obtain them. Bogdan reels are contemplating on increasing the price of their products as an option for raising the finances for expansion. The Bogdan reels are currently sold at a dear price. Several factors should be considered when it comes to expansion and sourcing of funds. One factor is the market and the price customers are willing to pay. Since most of the buyers have pledged allegiance to the company, a slight increase in the price will be welcome. This is because they have few competitors and their products have been considered the best in the market. They should be sure that any increase in price would not reduce their market. The company is in a better position to increase the prices because it is the market leader (Odekunle, 2000). It needs to provide a case for increasing the price. This may be in terms of increased warranty or after sales service for the product. The company must consider the pricing strategies adopted by the competition. In this case, Bogdan’s reels are preferred to the other reels. The revenue to be raised should be related to the time needed and the projected time for expansion. This will enable the company to set prices that will enable it to raise the revenue in the shortest time possible and still not hurt the customers. The increase in price should factor in the lifetime of the product and it demand. Bogdan reels have a steady and trustworthy market and thus their products lifecycle is great. Bogdan reels can also plough back the profit obtained from the business (Mognetti, 2002).

Sources of Funding

E commerce is also a welcome option for the Bogdan reels company. This will ensure an increase the business. This is because the orders will be ordered online and even paid for before the products are sent to the buyer. Therefore, those who are in the waiting line can pay in advance thus giving the company ready cash to be used for expansion or other purposes.

E commerce will also help market the products and collect reviews from customers on the product. The product has already been proven to be of high quality that other reels so the reviews are expected to be positive. This will also increase the customers and act as an avenue for online advertising. The advertising will enable promotion of the product everywhere. As a result, it will get new customers for its product and thus the consequent increase in revenue and stock turnover. This will help in getting additional customers due the expansion it has undergone. E commerce will make reduce operational costs considerably. This is because the customers orders thing online and get them delivered to his doorstep or is directed where to pick the goods. In addition, the people needed to run ecommerce for the business are few and thus the business cuts out on cost of having more employees in the case where the operations are manual.

The demerits of ecommerce to as any business are security. This is because data and money transfers are being carried out over the internet. If there is no security the data can be accessed and money stolen online especially by hackers. The security on the internet servers of the company should be tightened and firewalls used so as to avoid any information being lost to unscrupulous people on the internet.  Internet connectivity can be an obstacle since in some countries, the bandwidth is very low and this hinders effective communication. Another drawback is the chance of ecommerce software not being friendly with the operating system on the computers. This needs the proper setting of the software on supported operating system to avoid incompatibilities. The initial cost of setting up the ecommerce software and accompaniments is costly. This will be recovered in the long run it will bear fruits and the business will be able to recover the amount from the revenue it gets on sales.

Since the banks may be reluctant in funding small-scale businesses then the business can opt for sources of debt financing elsewhere. The sources that the business can source funds from are community banks that comprise of credit unions, venture capital, and small business administration (SBAs), crowds funding, and angel investors among others. The company can hence choose from these sources to expand their business (Orsino, 1994).

Conclusion

Finally, the availability of funds for business expansion is of great importance. This enables a company to grow and become more profitable in the market due the opportunities available. In addition, entrepreneurs need to seek and source funds that will enable them to carry out their activities efficiently and effectively. The source are discussed above.   Expansion needs quite an amount and the banks are sometimes not willing to give money to small-scale businesses. In essence, exploring other financial sources will enable the company to get funds for expansion.

 

References

Odekunle, S. O. (2000). Skill Acquisition as a Determinant Of Entrepreneurship Success In Nigeria: A Case Study of Ikirun Informal Sector. Ibadan: NISER.

Orsino, P. S. (1994). Successful Business Expansion: Practical Strategies for Planning Profitable growth. New York: J. Wiley & Sons.

Shepherd, D. A., & Katz, J. A. (2009). Cognitive Approaches to Entrepreneurship Research Bingley: Emerald Group Publishing Limited.

 

Last Completed Projects

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.

[order_calculator]