The purposes of this study are followings:
First, we are to try to access to theoretical concepts by considering theory of starting business with little capital and various literatures on the present condition of small-medium restaurants.
Second, we...
The purposes of this study are followings:
First, we are to try to access to theoretical concepts by considering theory of starting business with little capital and various literatures on the present condition of small-medium restaurants.
Second, we are to identify factors which have an effect on success of starting business with little capital based on analyzed results of existing researches and explain the interrelation among various factors.
Third, we are to verify research hypotheses.
Fourth, we are to show potential enterprisers practical implications which help promote successful businesses and elicit effectiveness and overcome of starting businesses by analyzing success factors of starting businesses with little capital using results of researches.
The results of research hypotheses are followings.
First, success factors starting businesses including psychological features, selection of business items, management factors, and image of stores have a positive effect on factors of coping with circumstance.
Second, factors of coping with circumstance that are proper compensation, polite apology, solving problems, and advance prevention of problems have a positive effect on business performance.
Third, success factors of starting businesses including psychological features, selection of business items, management factors, and image of stores have a positive effect on business performance.
Managerial implications of this study are followings:
First, founders' psychological states are primarily the most important to bring steady increase in sale after starting businesses with little capital. They should make efforts constantly to obtain excellent overcome and achieve fixed goals, making decisions carefully against scattered unexpected problems.
Second, the results of this study show that business items are not directly related to business performance. Therefore, it is necessary to find success factors from external elements as business items are so sensitive of trend.
Third, considering factors of management, even small stores need basic management and operation which design, carry out, and control them. Companies should consider constantly consumers' demands and reduce the cost through innovative management as the purpose of companies, large or small is to make profits from customers' satisfaction. Fourth, first impression of the newly emerging store has an important effect on consumers. Though the store is located unfavorably because of the lack of capital, we should use a long-term strategy which gives consumers a good image through a steady publicity. Especially, we should try to provide a good image of store management, differential products and services that make a lasting impression on consumers.
Fifth, considering factors of coping with circumstance, it is actually impossible to prevent against possible problems in advance, though it is the best policy in delivering services.
Therefore, we should make efforts to open failures of delivering services and solve these problems instead to look over them so that consumers consider the store as devoted and credible as a long-term positive effect on business performance.