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Setting up a Business


Why start a Business?

To pursue an interest or hobby
To escape an uninteresting job
To use new technology or ideas for making a product
To work from home
To provide a good or service that benefits others (social enterprise)
To have a big business one…

Page 2

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Market share ­ depending on the number and type of competitors the business faces it will have
control of a share of the total market. E.g. coca cola and Pepsi each have almost 50% of the total
market for cola. Achieving a greater market share is a common objective for…

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Resources ­ what resources the business currently has available and what it needs in the
future.
Timescale- when is it all going to happen

General business risks:

Business failure ­ complete closure or bankruptcy
Partial business failure- closure of certain parts (divisions) of the business
Loss earnings- for the owner…

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Partnership benefits:

Very few procedures to set up
Expertise of a number of people combined
More sources of finance as more people are involved

Drawbacks:

Unlimited liability for owners
Profits are shared amongst owners
Decisions of other partners must be honoured
Maximum of 20 people can join the partnership
Partnership…

Page 5

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Franchise ­ the legal right to use the name and logo of an existing firm and sell the same products



Business aim ­ a stated target for the future for example a new business may have the aim to
survive its first year of trading



Business objective ­ a clearly…

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