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A person who organizes, manages, and takes on the risks of a business.
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A person who organizes, manages, and takes on the risks of a business.
Target Market
a set of buyers sharing common needs or characteristics that the company decides to serve
Marketing Mix
the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market
Viability of a business opportunity
Viability means the likelihood of success. Entrepreneurs can reduce risk by ensuring that the business idea is viable through market research and careful planning.
Potential Business Opportunity
Successful entrepreneurs will constantly be looking for opportunities to start a business. Sometimes inspiration may strike and it is the entrepreneur's responsibility to take an idea and put it into practice. Did you know that Simon Cowell came up with the idea for X Factor while walking home because he couldn't afford a taxi? Monopoly was initially drawn out on a napkin. The founder of Zoom, Eric Yuan, had to apply 9 times to get a U.S. visa before starting his company. Being an entrepreneur is about pursuing your ideas and dreams and overcoming adversity.
Financial (profit as a financial reward)
financial independence - being able to make a living without being employed or having a boss
Personal (personal interest or hobby
job satisfaction - happy with how you make a living autonomy - being in charge of yourself and making your own decisions
sustainable sourcing - procuring (buying) resources without causing harm to the environment environmental - entrepreneurs may start a business to change paying the living wage - minimum pay businesses must give according to law for their employees to survive (e.g. enough to pay rent and buy food) working conditions - providing a safe and comfortable workplace for employees
Helping the community
working with charities - an entrepreneur may start up to provide a service for a charitable organisation Supporting community projects - such as the National lottery that donates millions from their profits to good causes Employment opportunities - such as providing jobs for the local community or a specific group of people Equal opportunities - providing opportunities for disadvantaged groups
Attributes (feature or quality belonging to someone)
independence- confidence- self-starting- self-reflective- determination- decision-making- risk-taking
- financial- communication- management- sales- IT- timekeeping
The purpose of business aims is to:
Provide focus Inform mission statement Help allocate resources Manage Progress
A business can increase its revenue in the following ways:
Get more customers through promotions or offers Increase the average money spent on each purchase Increase how often customers buy Raise their prices (assuming the number of sales stays the same as higher prices could put customers off)
A business can decrease costs in the following ways:
Switch to a cheaper supplier Buy in bulk or buy lower quality/ cheaper raw materials Lease not buy equipment/ machinery Find cheaper rent/mortgage or utility providers Reduce employees Use free methods of advertising
In addition to monetary aims and objectives, a business may have other aims that are non-financial:
positive reputation-Reputation is the general perception that customers have about a business. A business that has a good reputation is likely to be seen as high-quality and have good customer service. Having a positive reputation means that customers are more likely to return (repeat business) and also promote the business to others via word-of-mouth promotion. Additionally, customers are willing to pay more when businesses have built a positive reputation.
There are 6 different types of business ownership:
Sole Trader Partnership Franchise Private Limited Company (Ltd) Public Limited Company (PLC) Cooperative