Law

It is quite peculiar situation where the current employee of a firm has been given the offer to take over the business. In the current situation it will be so important for Bill to understand the basic characteristics which a small scale businessman should possess. Here is a list of them
(Identification of basic characteristics and concepts of small businesses)
Relationship based business The small scale business shall not only try to procure new clients and customers but should also make sure that the current customers are retained in the business. Maintaining healthy and long lasting relationships with the customers is the key to success in the small businesses.

Independence One of the major characteristics of a small scale business is the degree of independence enjoyed by the owner of the business. Bill must keep in mind that he no longer will have to work under somebody elses supervision. He could be his own boss.

Decision making capacity The most important trait which should be present in an entrepreneur is the capacity to take decisions at crucial times. There are no support systems for facilitating decision making under any circumstances. So it becomes important for Bill to understand that he needs to take his own crucial decisions that too at the right time.

But there are a few things which Bill must keep in mind which otherwise could be disastrous for the business. If these things are not followed properly, there are always the chances for the small scale business to fail under various circumstances

Mismanagement of funds The management of funds is the most important aspect in small scale business. If the manager fails to manage the funds and plan the budgets accordingly, there are always the chances that the business could fall in the condition of bankruptcy.

Minimizing overall costs Bill has to understand that the amount of profit could be increased significantly via minimizing the costs of the business. Overheads costs like rent, freight and insurance could be reduced considerably via active planning and research.

Better system of management accounting Apart from having sound system of financial accounting, the management accounting aspect of the business should also be intact. It is important to have the ratios in accordance to the industrial standards and also to manage a healthy contribution margin all the time.

Planning and implementation of plans Even though the words seem to be linking to huge business houses, but it is quite evident that planning and correct implementation of the plans is an integral part of the management of small scale businesses.

Analysis of the selected business configurations and operations
Bill first of all should understand the basics of the business which he is planning to take over. The first thing which Bill has to understand is the steps which should be taken into account to avoid any kinds of pitfalls in this regard

Strategic Planning is the basic pre requisite in small scale business
Marketing is pretty important to succeed but the fact is in business like thisi.e. the business related to art and craft, that too of small naturemouth publicity is most crucial.

Franchising related decisions Bill will have to decide whether he wants to expand his business or is happy in being the way he is today. For expanding purposes, franchising is one of the most common techniques used by small scale businesses all around the world.

It will be interesting to think from the other side. Had I been Hugo, would I have made the same decision as he did Well answer to that question is yes certainly I would have made the similar choice. It becomes so important in small scale businesses related to art and craft that the owner actively contributes in growth and development of the business along with taking crucial decisions at times. But Hugos age wont allow him to take active part in the business. So the best thing to do is to sell the business to somebody whom he trusts and whom he believes could carry the success story forward.