Identify at least three challenges when setting up a business. Explain why they are challenges.

When one has the ambitious dream to start a business, ideas are constructed to meet expected challenges. Some challenges encountered when setting up a business are: source of funding, types of product produced and sold, and what type of audience the business is targeting for potential sales. Funding will always remain a top priority and challenge for any potential business owner. Without adequate funding, the business is sure to fail. Is it wise to begin a quest for success with failure determined from the beginning due to inadequate funding? In accordance with this concern, liabilities, in the form of loans or other elements, have to be established and if the business were to fail, a huge burden rests upon the ambitious character. When the attention is aimed at the business’ products and services, many factors have to be taken into consideration. Such elements like the economical stability of the nation, product brand and quality, type of hired employee, etc., are all factors which need to be considered. Should the wrong product be presented to the incorrect audience, the business is doomed because theoretically, sales will never exceed expenses. Finally, a new business owner should focus on his or her intended group. It is wise to start small and expand into new branches once the business has been acknowledged and is showing great promise. By targeting a wide range of individuals, the business owner is sure to allocate a lot of the funding for an array of products targeting all ages and preferences. This could merely take form as a hit-or-miss game. If the business starts small, it has the potential to prosper and be accurate with its aim. Do not bite off more than the business is capable of handling.

Define what a ‘niche’ product is. Give at least