Business topic 1

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  • 1.1 Business Enterprise
    • Coming up with new products
      • Invention
        • The Creation of new products or processes
        • usually as a result of extensive research
      • Innovation
        • the practical application of an idea or invention.
        • turn into something they will pay for.
    • Risk
      • Any situation that brings exposure top danger
        • Business Failure
          • Unable to make sufficient profit
          • 60% of business failure in first 5 years
        • Financial Loss
          • Generally expected tat a business won't make any profit within first 3 years
          • Could lose the money invested
        • Lack of Financial Security
          • Given up a job to set up business with regular income and security.
          • don't have regular income, or holiday, you don't know when your getting paid which can effect quality of life.
    • Reward
      • The benefits that can be obtained by someone who puts in the effort required.
        • Business Success
          • Becoming a house hold name
          • Win awards
          • Grow their business
          • Create new opportunities
          • Build a positive reputation
        • Financial Rewards
          • owing your own business can mean huge financial rewards.
          • you can earn a lot more from owning your own business and a lot more than working fore someone else.
        • Independance
          • when running a business you have a lot more freedom an control.
          • you can chose when you work, your holidays, and chose who you work with.
    • Purpose of business activity
      • to provide people with a good or a service
      • to meet customer needs- means providing goods that customers will want to buy
      • Add value- improve as product so customers are willing to pay more for it.
        • Convenience- e.g. mobile hairdresser
        • Brand image- customers will spend more on a product if they know that brand is trustworthy and desirable.
        • Improve the quality or design
        • USP- something that makes it stand out
    • Entrepreneurs
      • is someone who takes risks and organises the factors of production.
        • they have to organise the factors of production
          • have to keep on top of the day to day tasks of running a business
          • E.g they have to make sure the business has all the right resources such as money and supplies.
        • Takes risks
          • lots of unknowns involved in running a business, and can be very risky. they can risk a business plan to reduce risks but still likely to fail.
        • Make business decisions
          • there are lots of decisions that need to be made when running a business.
          • e.g an entrepreneur needs to be able to decide on the businesses aims and objectives, its structure , who to employ and how to grow.

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