...Montrez Fox Lawanda Robertson Introduction To Business 10/26/2010 1. Identify at least three challenges when setting up a business. Explain why they are challenges. The first challenge I see with setting up a business is deciding what type of business to start. Choosing the wrong business can ultimately cause your business to fail. The second challenge I see with setting up a business is targeting potential customers. You have to figure out who your going to sell your product to and how to reach these individuals. The third challenge I see with setting up a business is coming up with the capital to start the business. It takes money to make money. Unless you have a nice savings account, you will probably have to get a business loan or find people who are willing to invest in your company. 2. Define what a “niche” product is. Give at least three examples of niche products. A niche product is something designed to appeal to specialized interests. Not for everyone, but a specific customer. Examples; speakers at the Bose store, Starbucks Coffee, a restaurant that sells Chinese food. 3. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not. A niche company has an advantage in the market because the customers are coming to the store specifically for a product that the company sells. If a woman walks into Victoria’s Secret, she’s shopping for women’s underclothes...
Words: 477 - Pages: 2
...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
...when setting up a business. Explain why they are challenges. Three challenges a business owner would face when setting up a business are visualizing possible risks, low ambition, and inadequate revenue. Starting a business in itself, is a huge risk. A business owner has to take into account the rewards of a business, but more importantly potential setbacks. The fact that business owners create the mindset that things may not always go the way they plan, will aid them in bouncing back from any setbacks they may incur. If business owners plan on succeeding and not preparing for any hindrances, they will be far less likely to succeed and be able to bounce back from any stumbling blocks. With visualizing risks, you also have to take low ambition into play. If a business owner has any issues with the business, they may start to lack ambition, and it will affect anyone else that is involved with the business. Inadequate revenue stems from business owner basically setting goals based on what they are accustomed to. When you go into business for yourself, you have to realize that you may not make as much as you made before the transition into becoming a business owner. Economic conditions play a major part in this, so you need to make sure you have sufficient fall back money if you are unable to net the income you need in order to maintain your current lifestyle. Define what a “niche” product is. Give at least three examples of niche products. A niche product...
Words: 977 - Pages: 4
...Urban Outfitters Continuing Case Study Part 2:-The Business Environment. Pr. Joseph B. Pettiford Introduction to Business 9 Nov 2009 1. Identify at least three challenges when setting up a business. Explain why they are challenges. The challenges will vary depending on the business; therefore, there are three important challenges to consider when setting a business one of them is the capital, location, and service. Acquiring adequate capital is fundamental to setting up a business this could be challenging. You need money to stat up and have something to live on until the business is successful. However, it is important to manage the capital wisely in the business needs, in order to earn profit to avoid a loss, and be successful. Depending of the type of business the right location is essential. Making a decision of picking up a right place for starting a business could be challenging. For instance if you have coffee shop food traffic is a great place, and if you have, a gas station near the intersections of the highway is perfect. However, if you pick a wrong location you may go out of business. Offering the best service and good value product is essential for a costumer. It is important to listen, stay positive and stay involved when offering a good product value. Costumers are going to be satisfied and come back to your store. However, if do not provide them value along with a costumer...
Words: 604 - Pages: 3
...Niche Products and There Demand Identify at least three challenges when setting up a business. Explain why they are challenges. When setting up a business one must know that there will be challenges that will occur. The first challenge in setting up a business is having a business plan that will actually work and getting professional advice about whether the business plan is marketable. The second challenge is having or gaining access to capital to get the business going and to sustain your own expenses until the business pays for itself and pays for you too. The third challenge and to me the most challenging challenge is knowing and realizing that there will be long work hours for the first couple of months or longer until the business begin to grow. Define what a “niche” product is. Give at least three examples of niche products. A “niche” product is something very specific which is not regularly sold in big stores. A “niche” product usually designed not necessarily for everyone. This type of product should be a product that a consumer would have to go to a particular store to purchase it. When I think of a store that sells a “niche” product, I think of what we call a “specialty store.” Three examples of niche products are certain hair products. For example, the Carol’s Daughter hair product is a hair product that is not sold in big stores. In order to purchase this product a consumer must either purchase it on the Home Shopping Network , the consumer can go...
Words: 726 - Pages: 3
...Urban Outfitters Professor Lizzie Lewis Business 100 Alfreda Leonard February 7, 2011 Identify at least three challenges when setting up a business. Explain why they are challenges. Three challenges when setting up a business are finding the right location, finding the right employees and developing a mission or vision statement. Location can cause a business to flourish or to fail if a business is not easily accessible or visible it makes it hard for customers to locate or find it. Your employees will be your representatives to your customers and the outside world, if your employee is rude or inconsiderate it will be a direct reflection of your business. A vision or mission statement is very important because it lets customers know the intent of your business. Define what a niche product is. Give at least three examples of niche products. A niche product is a made and marketed for use in a small and specialized but profitable market. Three examples of a niche products Coogi clothing line, a thrift store and neighborhood convenience store. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not? A niche market company might have an advantage in a market because of its location. Price would not necessarily be an advantage because in a convenience store the price is usually higher, but customers frequently visit these places to buy items they forget at the local grocery store. Identify...
Words: 369 - Pages: 2
...Creating a Business Gerri Lutz Professor Ashok BUS 10008616 July 25, 2010 When setting up a business there will be many challenges that you can encounter during this process. And why customers would pay a higher price for goods, and others less because of the quality of the product being marketed. In the following questions and answers, this will tell you why customers will definitely pay for the quality. 1. Identify at least three challenges when setting up a business. Explain why they are challenges. 2. Define what a “niche” product is. Give at least three examples of niche products. 3. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not. 4. Identify and explain three reasons why customers would pay more for exclusivity. 5. Explain how a niche player “chips away” at a larger competitor’s base. Give three examples of retailers who have done this. Identify at least three challenges when setting up a business. Explain why they are challenges. Financing: Does the owner have sufficient cash flow to fund the opening of the business as well as continuing operations? Many times an owner does have enough financial background to open their doors...
Words: 1073 - Pages: 5
...three 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...
Words: 1287 - Pages: 6
...Factors Involved in Growing a Business Factors Involved In Growing a Niche Company In creating/starting a business, the biggest fear is, “will my product succeed?” No one has any idea of what the future holds, so there is always a chance for success. Where would the world as we know it be if there was no one willing to take a “risk”? There would not be the advancements in technology that is so necessary in our everyday lives. Those products we have become so dependent on began with the idea of success. With that in mind, I will discuss some of the factors that are involved with creating and growing a niche company. Identify at least three challenges when setting up a business. Explain why they are challenges. One of the first challenges faced when setting up a business is developing a product that you are familiar with. I suggest you acquire some skills, or the hands on experience it would take to successfully run your business. Not having researched the information would make it challenging because it would be hard to sell a product you know nothing about. Marketing would be another challenge you will face in creating a business. There are many obstacles you will face when expanding into your products market. Understanding the target market size would be very beneficial. Find out the need for the product in that market. research and get information on some of your competitors and their pricing. Always figure out ways...
Words: 1192 - Pages: 5
...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...
Words: 908 - Pages: 4
...Urban Outfitters Continuing Case Study: Creating a Business Preston Frey Dr. Jose A. Folino Introduction to Business October 29, 2011 1) Identify at least three challenges when setting up a business. Explain why they are challenges. The first challenge in setting up any business is having a viable product or service to bring to the market. The selected product or service must fill a need in the market that is in general not presently being met, or is superior in quality to what is presently being provided. In a market that is saturated with product and services, finding an uncovered market or need demands innovative thinking. Money is the second challenge. After identifying the product or service, capital must be obtained to fund all the costs involved in the initial start-up. These costs would include such things as; securing a physical location for the business, up-fitting and staffing said location, hard costs to produce or supply initial deliverables, and a host of other ancillary items. Securing this upfront funding is difficult in an economy that is struggling with limited resources or incentives to receive funding from government or private investors. A third identified challenge, are the extensive requirements for a new business to insure that the product as well as the operation will be compliant with the myriad of federal and state licensing and regulatory laws. Examples of such requirements would include workman’s compensation, OSHA rules and regulations...
Words: 737 - Pages: 3
...challenges when setting up a business. Explain why they are challenges. One challenge when setting up a business is the obstacle of arranging for financing. In business you’re going to have slow times when revenue is not steady or increasing. Ethically, businesses would like to retain their employees when times get rough. Being able to obtain a loan or establish a line credit is crucial to keeping the flow of the business going. You need capital and equipment to get your business up and running. Another challenge businesses face is finding the right employees for the job. Some people are lucky enough to have friends or family that are self motivated and are willing to put forth the effort to assist in establishing the business plan, practices, and model. Finding employees that have good work ethics: are punctual in their attendance, put in a full day’s work, and their personal integrity is held to a high standard, can be time consuming and difficult to find. Another challenge is getting your name out to a potential customer base. If people are unfamiliar and/or unaware of your company and services that you are offering to provide, they can’t contribute to the growth of your business. Creating an attractive, user friendly website is a great way to gain exposure and attract a new customer base. But most of the time, a company needs a sales force to reach out to its customer base so that the customers feel that there is personal interaction and that their business is valued...
Words: 1161 - Pages: 5
...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 face...
Words: 1125 - Pages: 5
...Urban Outfitters Continuing Case Study Part 2: Creating a Business 1. Setting up a business can be a very challenging job. Having a beautiful dream thinking about the business while sitting in your nice office with all the amenities is not enough. It is great to have an idea, but you have to make that idea work. There are lots of challenges that face their owners when setting up a business. It could take years for a business to produce enough profits for the owners to be able to enjoy. Most businesses start small and in time, with experience, goodwill, and success, they can grow into bigger businesses. Here are three challenges that new business face: ➢ Idea/Concept: Many entrepreneurs face risks to create their own business because they do not have the right idea or concept. Sometime ideas and concepts are good but if customers will not buy what they are offering, the business will fail. Richard Hayne and his wife Judy along with an old college roommate, Scott Belair had a great idea. They wanted to open a small shop filled with unique objects that they could sell. The basically sold used second hand clothes, bohemian knickknacks, and “found objects”. Their customers would come for the unique “found objects” and were willing to pay what they were being sold for. Entrepreneurs- people who risk their time, money and other resources to start and manage business-business basics chapter 1 page 3 ➢ Sale and marketing entry:...
Words: 1362 - Pages: 6
...Urban Outfitters Continuing Case Study Part 2 1. Setting up a new business can be a tumultuous task. Order, timing and planning is key when trying to execute a successful business. Even though you might have an excellent idea without proper execution a business can fail. It is imperative to understand that starting a business is not easy and conducting your own research, heeding the advice of experienced business owners and seeking other organizations and resources that help small business owners are key steps in addressing these challenges. - Financing. Does the owner have sufficient cash to fund the opening of the business as well as its ongoing operations? Many times the owner has enough financing to open their doors but they run into cash flow troubles and end up losing their business because they have failed to consider that the business has ongoing cash flow requirements. Excess growth can be a factor, and financing limitations can hinder growth, or growth can outstrip financing and cause a liquidity crisis. - Securing an Appropriate Location. In retail, location can be a deal maker or a deal breaker of the success of the firm. The type of product can have a big impact on the appropriateness of a given location. For example, in the Urban Outfitters case, the owners decided at first to focus their store openings near college campuses where young people looking for trendy fashions would tend to be in close proximity. - Legal Issues: Patents and trademarks must be...
Words: 888 - Pages: 4
