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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…

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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
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


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

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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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