How to maxamize revenue at small business marina on a lake Research Paper

How to maxamize revenue at small business marina on a lake - Research Paper Example This is because well established large scale businesses enjoy economies of scale when they offer large scale products. Furthermore, well established business can afford to hire qualified workforce and provide employee training that result to efficiency of operations. Small lake marinas face stiff competitions for customers from the public operated marinas and big lake marinas. The big lake marinas and public run marinas have stable sources of finances to finance their activities. In addition, due to large scale of operation the rival marina owners are able to enjoy low cost recreational services hence enabling them to charge their clients competitive fees. Also, the public marinas and big lake marinas are able to provide better services to their clients due to their ability to hire qualified workers (Cooper, & Burke, 2011). There are other cheaper alternative recreational facilities that limit the performance of marinas; hence marina operators should utilize efficient technology to p rovide a wide range of recreation facilities and increase business profitability. The growth of small business revenue depends on the managers ability to use the finances appropriately throughout the financial year. Many businesses face characteristic fluctuations in the flow of finances since in some periods the income is lower than the cost with some seasons of huge sales hence greater incomes (Kariv, 2013). Therefore, since the fixed cost of running the business remains constant throughout the year, the business managers should be able to distribute their incomes throughout the financial year. However, small scale businesses are rarely able to distribute their finances throughout the year because of lack of financial reserves (Prosek, 2011). For this reason, small scale business relies heavily on borrowings from banks and other financial institutions that charge interest on the loans hence reducing the business