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Unit 1
Starting a
Lubna Sana Amir

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The process by which new businesses are formed in order to
produce goods/services.

Someone who starts and runs a business and has responsibility
for the risks involved

Has to be able to manage the factors of production
which are: land or natural resources, labour, capital
and enterprise…

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something up in order to acquire something else, such as
wages given up from previous employment in order to begin
his/her own business.
Government support

The government over the last few decades have tended to
favour a laid back approach. This means that the
government do not interfere in the…

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Prevent discrimination against female entrepreneurs
and those from ethnic minorities

The government has introduced measures for start-ups
and support for growing businesses by:
Offering lower taxes
Reducing the burden on enterprises
Supporting new business start-ups through Business
Improving the support for small/new businesses
Increased funding to schools to create…

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The main groups who award grants are:
The government
The European Union
Local authorities/councils/agencies
Business Links

How to raise finance

There are many sources of finance available to start

Ordinary share capital ­ shares that represent ownership
of a company
If you hold one share worth £1 in a…

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Venture capital can also come in private equity finance.
The venture capitalists will invest large amounts of money
in a business in return for share of the company. They will
look for a high rate of return in a certain time period and
will only agree to invest if the…

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Only pay for money Interest payments tend
borrowed to be variable making it
Quick and easy to hard to budget
arrange Banks may secure the
No charges for paying overdraft against the
off the overdraft business assets

Sources of business ideas

There is no point creating a product/service unless there…

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1) Business experience:
Good way of getting insights on what works best
Having a more realistic business plan
Requiring less need for market research

2) Personal experience:
Day to day activities, interests and hobbies
Bad experiences

3) Observations:
- Analyse the market and improving on what is already

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Little or no competition in the early stages
Lack of knowledge in the product/service which makes
it more likely to make mistakes
Competition may enter quickly and attain market
The gap may not be real as someone may have tried it

Franchise ­ a business marriage between…

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3) Examples of franchises?
McDonalds, Subway, Pizza hut and Clarks.
Advantages Disadvantages
Gain an established Pay a % of sales back in
brand name royalties
Help and guidance Work within strict
Fixtures included guidelines
Never your own boss

Advantages Disadvantages
Spreads the name of Could gain a bad…



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Lubna Amir

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