Startup

·         Discuss the advantages and disadvantages of starting a business from scratch.

Starting business from scratch is a common way to get into business.  Starting a business from scratch involves developing your own business idea and building the business from the ground up. But there are the advantages and disadvantages of starting a business from scratch.

Advantages of starting a business from scratch:

a)      It is the ultimate business start-up experience: You can make your own decisions, keep your own time and able to shape and mold the business as you fit.

b)      Business is a direct reflection of your efforts, Values, work ethic, and skills.

c)      Goodwill can be built our self, no need to pay for goodwill.

d)     Perfect freedom to choose the location, building and premises.

e)      You can create the business image in our own way.

f)       Incentive for the hard work.

g)      Freedom to hire the staff and train them at the beginning.

h)      Starting a business from scratch is the best alternative.

Disadvantages of starting a business from scratch:

a)      Starting a new business is more risk than buying an existing business.

b)      You want to be build brand, promotional activities, suppliers, customers etc.

c)      Difficulty to get financial assistance from financial institution for new business.

d)     At the beginning stage your business does not have a positive cash inflow.

e)      Large investment is required to meet the competition.

Describe types of new businesses and discuss the characteristics commonly shared by fast growth companies.

The new types of business are: -

a)      E-Business

b)      Home-based business.

c)      Part time business.

The characteristics commonly shared by fast growth companies:

a)      Successful businesses keep moving forward.

b)      Leaders of growth businesses are willing to take calculated risks.

c)      Growth businesses understand in depth what their customers want and need,

d)     Profit potential.

e)      Potential for expand into new business.

Explain the most important points to consider when starting a new business.

The most important points to be considered when starting a new business are:

a)      Good idea and plan of new business.

b)      Nature and scope of business entity.

c)      Initial capital required for new business

d)     Availability of financial assistance.

e)      Focus on consumer and their needs.

f)       Know your competitor.

These are the most important factors you need to consider while starting a business of your own.

What are some examples of things the new business owner can do to ensure capturing some of the market for the good or service being produced?

a)      Build brand image.

b)      Provide quality goods or service.

c)      Know your customer better.

d)     Use promotional activities

e)      Build relation with customer (Customer Loyalty)

After start up, what is the single most important tool the small business owner has at his disposal to ensure the success of the business?

After start up, customers are the single most important tool the small business owner has at his disposal to ensure the success of the business. Business organization build good relation with customers through brand image, Customer loyalty, promotional activities etc..