...Study: Creating a Business Introduction to Business Prof. Maria Gambuzza Urban Outfitters Continuing Case Study: Creating a Business 1. Identify at least three challenges when setting up a business. Explain why they are challenges. One of the challenges when setting up a business is about finance. First and foremost, business needs to determine the startup cost. To be able to do that, they must identify all the expenses their business will encounter during their startup phase. The expenses will be either one-time cost, such as business license fee or going costs, such as leasing cost, supplies, etc… After that phase, business needs to find their capital sources. If they don’t have their own savings or can’t borrow money from friends or family, their option will be getting loan from banks. In the early state of the business, their inexperience “in financial matters often prompts banks to deny loan requests”. (1) Business owner needs to well prepare and organize to prove to their lender that they are the bank’s good investment. The other challenge is experience and skills. Many people are first time business owners who are inexperience and lack of skills. Some start a business because they see people doing successfully and think they can do the same. However, running a business smoothly and successfully requires owners to have skills and experience in all perspective of the business, including accounting, marketing, etc. The third challenge new business owners will...
Words: 1125 - Pages: 5
...Creating a Business Sherine Ghabour Professor Ivy Business 100 January 26, 2011 Identify at least three challenges when setting up a business. Explain why they are challenges. Many individuals face countless obstacles and challenges when setting up a new business. These individuals are better known as entrepreneurs. Entrepreneurs are people who risk their time, money, and other resources to start and manage a business (Kelly & McGowen, 2010). When starting a new business, entrepreneurs usually start out small. One of the numerous reasons for this small startup is their uncertainty regarding the challenges they might have to face in the initial stages. One of main challenges when setting up a new business is lack of knowledge and experience. People often think that if they have in depth knowledge in a spcific area, they are experts in running a business which is not true for all. The reason it is not true is that successful business owners must lead others by example and know every detail from finance to marketing. Finance is another main challenge many also face when setting up any kind of business. Understanding the real cost associated with delivering a product is extremely imperative. Many businesses fail due to insufficient operating funds because business owners also known as entrepreneurs often underestimate how much money is needed, which results in closing down the business before having a fair chance to succeed. They also may have an unrealistic...
Words: 769 - Pages: 4
...challenges when setting up a business. Explain why they are challenges: Lack of Capital is probably the biggest challenge when starting a new business. Most small businesses are dependent on personal savings as they do not generally get funds from investors when starting up. And since most entrepreneurs are young and they do not have much funding to invest, their business will kick off much slower than an entrepreneur with age and savings. This lack of funds also limits business plans. Entrepreneurs will not be able to put together a substantial marketing plan or hire employees with a lack of capital, and without a marketing plan it will be extremely difficult and frustrating for the business to grow at the rate the entrepreneur might be expecting. Time management is another key challenge in starting a business. With everything and everyone depending on the entrepreneur, it is hard for most to distinguish between low-priority tasks and high-priority tasks. They can get caught up in advertising the business and forget about following up with customers or vice versa. Both ultimately being a high-priority task, but not having good time management skills, it’s hard to get customers without advertising and it is also hard to keep customers if you are not following up with them. Lack of experience in running a business is another challenge in starting a business. Most entrepreneurs have little to no experience in marketing, running a business, customer service, and financial...
Words: 1287 - Pages: 6
...Creating a Business Plan Entrepreneurship is the basis of the American dream. It can be one of the most rewarding occupations. Owning a business, making key decisions, and becoming financially independent are very rewarding benefits. Many people see starting a business as something that they will never be able to do, be it because of finances, interest, or knowledge. If people follow certain steps, entrepreneurship may not be as difficult as originally thought. Starting a small business requires skills, planning, and devotion. Certain skills are beneficial in starting a business. Being able to interact with a variety of people such as customers, vendors, employees, bankers, and lawyers is a must. Another trait required to run a business is being organized. An organized business runs smoothly and is not overrun with paperwork. Stamina is also a must. Business owners can spend twelve to fifteen hours a day working. Training for starting a business can be as simple as reading books and internet business guides. Having a college education in business management is not a must, but it can be very beneficial. Planning for a business is one of the most important steps in entrepreneurship. A business plan is a formal document explaining in detail plans for a financially successful business. Any lender will ask to review the business plan before any money is loaned. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues...
Words: 2559 - Pages: 11
...Creating A Business When thinking about Kingsville and all it has to offer it is easy to see it’s a primary target area for sportsmen. Twenty miles south is Baffin Bay Hallowed waters for trophy trout and redfish. Three of the past four state record speckled trout came out of Baffin Bay’s hyper saline waters. Making it a bucket-list destination for sport fisherman around the world. Kingsville is also home to the most famous hunting ranch in the world, The King Ranch. These two outdoorsman paradises make Kingsville a year-around attraction for everyone from hard-earned dignitaries to blue collar families spending their hard-earned vacation time. There is one thing Kingsville does not have to support this year-round attraction; an outdoor super store to supply all the necessities one may need to enjoy their hunting and fishing needs. Kingsville offers everything a sportsman could dream of but they need a place for that sportsman to buy the products they need to chase that dream. A store that sells quality hunting, fishing, birding, and outdoor equipment would be extremely profitable to the storeowner and the community. The store could offer products like fishing gear such as rods, reels, tackle, and bait; hunting gear that included guns, shells, decoys, camo, and feeders; feed for deer, livestock, fish; ATV’s such as 4-wheelers; and apparel. They could also sell snacks, drinks, and ice. When it comes to the staff they could hire college students who are dedicating their...
Words: 574 - Pages: 3
...Business Planning Business Plan Introduction My idea for the business that I will be planning is a ‘dog grooming’ business, offering a range of treatments that can be purchased and used in order to care for dogs, ensuring that they are as healthy and clean as possible. This isn’t a very competitive market to enter as there aren’t many dog grooming companies that operate within the UK that can dominate the market nationwide; there will be larger ‘regional’ dog groomers that could possible dominate a specific region/county of the UK. I believe that I will benefit from creating this business and so will the community that is within the surrounding/local area. A lot of people own a dog(s) as pets, with stats from 2013 showing that there are roughly 8.5 million dogs kept as pets within the UK (25% of households) (app 3). A huge amount of people love their dogs and love to care for them, ensuring that they are treated the best way possible, so taking them to a dog grooming service is a great way of caring for them. * Aims & Objectives An aim is a specific goal or purpose, whilst an objective is a specific result that a person or system aims to achieve within a time frame and with available resources. In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives...
Words: 5351 - Pages: 22
...successful business, we will discuss ownership, and funding of a business. We will look at the pros and cons of partnership as a form of ownership. We will look at accounting practices, and marketing of the business to the consumer. We will look at how technology has changed the business and marketing environment and a company’s social and environmental responsibility. Starting, Financing, and Marketing a Business A business is any activity that provides goods and services in an effort to earn a profit (Mcgowan, Kelly and; 2012) There are many aspects to a successful business, an idea for a product or service that is needed or wanted by the consumer. After the idea, comes finding a way to fund the business, develop the idea, and a good marketing and distribution plan. Good accounting practices are a must to keep track of how the business is doing. There are four major forms of business ownership. * If just one person owns the business, it is a sole proprietorship. In this form of business the owner has all the say in how the business is run, and keeps all the profit. The owner is also responsible for all debts the business incurs. * A partnership is an agreement between two or more people that act as co-owners there are several types of partnership, but in a basic partnership, owners share profits, and liabilities * A Cooperation is a business that is created to be separate from its owners. This protects owners from debts and obligations that the business incurs...
Words: 1448 - Pages: 6
...Assignment 2 - Creating, Financing, and Marketing a Business Carol Brandon Professor Mark McMullen Bus 100 - Introduction to Business Strayer University May 25, 2012 Creating, Financing, and Marketing a Business Carol Brandon Entering into a written agreement is one way to form a partnership; a partnership may be formed through the actions of the partners as they operate the business together. Even if individuals have an agreement that says "we are not a partnership," the law may find that there is a partnership and hold one or more partners liable for some business-related obligation. The simplicity and flexibility in creating a partnership may be one of the main advantages of the partnership as a form of business. However, the disadvantages of simplicity and flexibility must be carefully considered. Although an agreement is not required, without a written agreement, partners cannot determine their rights, duties, obligations, and liabilities, except for what is covered by state law. This is not normally enough, since the law on partnerships is not detailed. This allows partners a great deal of flexibility to structure the business as they would like it. But it leaves many questions unanswered if there is not an adequate written agreement setting out the details. The other main attraction to the partnership as a form of business is partnership tax treatment. From a tax standpoint, the partnership is as straightforward as the sole proprietorship. There is no tax...
Words: 1450 - Pages: 6
...CREATING, FINANCING, AND MARKETING A BUSINESS Creating, Financing, and Marketing a Business William B. Smith Dr. Robert Culver Lithonia Campus BUS 100 August 19, 2012 Strayer University CREATING, FINANCING, AND MARKETING A BUSINESS Pros and Cons Individuals with the intention of starting a business of their own have several options to choose from in regards to what structure that will fit their needs. For instance, a partnership means that more than one person has ownership of the company. There are different variations of a partnership such as limited and general partnerships. One particular benefit to a business that is defined as a partnership is that the work and responsibilities be shared between whomever is involved, the work load is not left up to any one individual to take on alone. The second benefit to a partnership is that it can be formed very easily, a simple verbal agreement by itself can be all that is needed to bring it together (BUSN Textbook page 76). The worth of all involved may allow the business more resources and brings additional experience to the organization. A major con in this type of business structure is, if all the participants are not on the same page in regards to setting goals, work ethic, drive, and knowledge, conflicts of interest can set in and have turbulent affects on the business. Another stipulation is that the profits must be shared between each partner involved as per the initial agreement. Partnerships can...
Words: 1113 - Pages: 5
...Creating, Financing, and Marketing a Business Creating, Financing, and Marketing a Business Heather Stalder Strayer University Justin Ndwiga Business 100(Mini) Creating, Financing, and Marketing a Business One of the easiest ways to start a business is to create a partnership; creating a partnership when forming a business has several advantages and disadvantages. A partnership starts with two or more parties having the same vision developing a business and contributing to the financial and operations of the business.“The simplicity and flexibility in creating a partnership may be one the main advantages of the partnership as a form of business. However, the disadvantages of the simplicity and flexibility must be carefully considered.” (Hanson, 1998) A risk you take in the partnership is that there is no requirement to have written agreement. Without a legal agreement it may be difficult for those in partnership to outline the parameters of the business relationship. If a thorough partnership agreement is agreed upon it can be executed to make the partnership flexible and workable for all involved and help alleviate the tensions that may arise in a business partnership situation. (Hanson, 1998) An upstart business has quite a few options when it comes to financing their vision. Depending on your financial needs the type of financing you choose will differ. Will the financing be long...
Words: 1190 - Pages: 5
...Running head: CREATING, FINANCING, AND MARKETING A BUSINESS Creating, Financing, and Marketing a Business Strayer University Business 100 JANET LARGAESPADA February 26, 2012 Creating, Financing, and Marketing a Business In business there are several forms to consider when starting the organization, this paper will be focusing on the creation of a general partnership. A general partnership is one of the simplest forms of business to create because all it really takes is an agreement to form between two or more individuals and that is it. No complex documents to submit, no issuance of private stock, no bylaws or need for a board of directors. Its simplicity is a general partnerships' biggest assets although it is not its only one. Another big benefit to the general partnership is the pass through of tax liability. From a tax standpoint, the partnership is as straightforward as the sole proprietorship. There is no tax at the partnership level. All tax consequences are passed through to the individual partners. The benefit of this pass-through tax treatment is that there is only one level of tax. This is a pretty big difference when you look at the tax structure of a corporation, who faces multiple levels of taxation. While those are the benefits of a general partnership, there are a few downsides to the structure of a general partnership as well and those can be daunting if your choice in partners is questionable. A general partnership is subject to unlimited...
Words: 1026 - Pages: 5
...Creating, Financing, and Marketing a Business BUS 100 Creating, Financing, and Marketing a Business A Business Partnership is usually hatched in a state of inspired optimism when two or more seemingly like-minded individuals come together with an idea to create a product or service and develop it into a business. As with anything, a business partnership has it’s pros and cons but there are also two types of partnerships, General and Limited. A General Partnership is subject to partnership agreement; all partners have equal rights in the management of the partnership. The Pros of General is that the partnership may designate particular partners with particular skills to make decisions in that area and reserve the more important decisions to the partnership as a whole. Cons to consider is that each partner has rights in management and may contractually bind the partnership. Each partner is responsible for the contracts that the other partners execute and the liabilities that they incur. The possibility of disagreement and deadlock exists. The other partnership is Limited. In a Limited Partnership at least one general partner is responsible for the management of the partnership. A limited partner may not participate in the management of the business or the limited partner runs the risk of becoming personally liable for the debts and obligations of the limited partnership. Pros to this partnership include that a general partner may vote on matters related to the...
Words: 1144 - Pages: 5
...Creating a New Internet Business List the business model description, Web site(s) visited, summary of the GREAT things that are on the Web page that makes the company successful for each Internet business model of uses for electronic commerce. Business 1: Aerospace Metal Alloys Aerospace Metal Alloys is a distributor of exotic steel, aluminum, and titanium alloys to the aerospace industry and other specialized industries. These metals such as kovar and inconel, must meet exceptionally exacting standards because they become parts in airplanes, rockets, industrial furnaces, and other high performance products. Aerospace sells raw materials produced in the form of bars, sheets, rings and forgings. In turn, Aerospace customers use these materials to fabricate their final products. Many Aerospace customers are actually parts suppliers to end-product assemblers such as Boeing Aircraft. Aerospace Metal maintains a sales force to sell these metals, and the company stores its products in seven warehouses throughout the country. They obtain their products from steel and metal manufacturers throughout North America. If a customer requests a product not carried by Aerospace, the company will special-order it from an appropriate supplier. Business 3: Low Cost Tires Inc. Low Cost Tires Inc. began as a small auto repair and tire shop in a small city outside of Detroit. While the original goal of the shop was to gain a reputation for quality repair, the owner also stressed meeting customer...
Words: 2035 - Pages: 9
...Assignment 2: Creating, Financing, and Marketing a Business Elbert Womack Professor Laverty BUS 100061VA016-1128-001 December 2, 2012 In today’s business environment, there has been a number new businesses being created at a rapid pace. With rising unemployment in our nation, people are beginning to consider being their own boss and are starting businesses of their own. However, starting your own business is no easy endeavor. It takes a considerable amount of planning, funding, and a strategy to transfer your goods or services. Most of all, you want to be sure that you set yourself up for success. The first thing that will come to mind is whether or not you can do it by yourself. You have a very marketable business concept that you know will do well, but you may wonder if you can develop the concept to its full extent. By starting business, it will create a lot of new responsibilities that you may not have considered yet. This may lead you to seek a partnership to increase your chances of success. A partnership will allow you to broaden your horizon in many ways. A partner could bring new financial options to your existing plan. They may have access to other financial resources that would have otherwise been unavailable to you. They can share some of the new responsibilities with you which will allow you to focus on other areas of the business. Also, there is not any legal documentation needed to enter a partnership. However, it would be a good idea to...
Words: 1260 - Pages: 6
...Creating, Financing, and Marketing a Business 1. Identify the pros and cons of the partnership as a form of ownership. Forming a partnership can be rewarding as well as taxing in many different ways. With a partnership, as compared to a corporation, you can start up fairly easy. Most everything from, what your product will be, to pricing, advertising, marketing and more will be decided by you and your partners. Forming a partnership vice going it alone allows you to have access to more capital, experience, and skills. Alone you may struggle to get your business up and running quickly and with the proper equipment, materials and skillset. Be it managerial or the hands on development, most times two or more personnel are better than one. However, as with anything, there are some drawbacks to having a partner or partners. With partners you do not have complete say in all aspects of the business. The decisions concerning the company must be talked about and agreed upon by all concerned. Another factor to consider is that withdrawing from the partnership may not be as easy as saying “I quit”. There can be other ramifications such as debt owed, any outstanding obligations, or pending lawsuits. There’s also, in my opinion, the biggest problem. Unlimited Liability! With unlimited liability you may be liable for actions taken by one or more of your partners. Even though you may not have actually committed any wrong doing yourself. This also means that it’s not just the...
Words: 1277 - Pages: 6
