Why Would You Set Up A Business?
Some motivators for starting a business are:
You are wanting to make a profit. This could be because you lost your existing job so you need another one.
Another motivator is that you would like to become independent. Also known as being your own boss.
Some businesses are non-profit like charity shops so you may have the objective of helping others.
You are wanting to make a profit. This could be because you lost your existing job so you need another one.
Another motivator is that you would like to become independent. Also known as being your own boss.
Some businesses are non-profit like charity shops so you may have the objective of helping others.
Business Plans
Most small businesses have very limited resources. Research is costly and can seem like a poor use of time. Some entrepreneurs ignore planning and analysis and instead rely on their gut instinct. They launch products they believe customers want and competitors cannot match. Poor planning is a major cause of business failure.
A business plan is a report by a new or existing business that contains all of its research findings and explains why the firm hopes to succeed. A business plan includes the results of market research and competitor analysis. Analysis is when a business interprets information.
Business plans make the owners decide in their aims and shows what competition they will face. Also they will see their financial potential. Business plans overall reduce risks and will make stakeholders such as banks more confident in your business.
Most small businesses have very limited resources. Research is costly and can seem like a poor use of time. Some entrepreneurs ignore planning and analysis and instead rely on their gut instinct. They launch products they believe customers want and competitors cannot match. Poor planning is a major cause of business failure.
A business plan is a report by a new or existing business that contains all of its research findings and explains why the firm hopes to succeed. A business plan includes the results of market research and competitor analysis. Analysis is when a business interprets information.
Business plans make the owners decide in their aims and shows what competition they will face. Also they will see their financial potential. Business plans overall reduce risks and will make stakeholders such as banks more confident in your business.
A competitive market will have many businesses trying to win the same customers. A monopoly is either the only supplier in a market, or a large business with more than 25% of the market.
Competition can make markets work better by improving these factors:
Some methods of product differentiation are:
Competition can make markets work better by improving these factors:
- Price: if there is only one retailer, products may not be competitively priced. If there are several retailers, each retailer will lower their prices in an attempt to win customers. It is illegal for retailers to agree between themselves to fix a price - they must compete for business.
- Product range: in order to attract customers away from rivals, businesses launch new varieties of products they believe to be superior to their competitors.
- Customer service: retailers that provide a helpful and friendly service will win customer loyalty.
Some methods of product differentiation are:
- A strong brand image
- A unique selling point
- Competitive factors