Tag: Establishing a Business

Role of an Entrepreneur

An entrepreneur is one who undertakes the risk of investment to create and market a good or service for financial gains. He is very perceptive and takes advantage of business opportunities that will generate high profits.  Entrepreneurs can be sole traders, partners in a business or a group of shareholders. Entrepreneurs are of vital importance…...

Reasons Persons Establish their own Businesses

1.Financial Independence Some persons feel restricted financially with the income received from their job. Starting a business would give them the opportunity to be a successful business person and achieve financial independence. 2. Being your own boss You are able to make decisions about the direction and operation of the business. 3. To use your…...

Steps in Establishing a Business

1. Conceptualization All business ventures begin with the conceptualization of an idea. At this initial stage the product or service idea is envisioned.  Most Entrepreneurs identify a need in the market i.e. a service that is not being provided or a product that does not exist. If the product or service already exists then ideas…...

Functional Areas in the Operation of Businesses

Departments in a business organization are structured according to certain functions.  The departments of various organizations will differ depending on the type of business. Production The production department is responsible for transforming raw materials into finished products. They are also responsible for quality control to ensure that required standards are met. Finance/Accounts The accounts department…...

Sources of Research in Establishing a Business

Firms embark on research to uncover information about consumer preferences, the level of competition in the market, responses to advertisement etc. Sources of Information Data may be collected from primary or secondary sources. (a)Primary Data Primary data is originally collected data. This data will be obtained by interviewing, observing or distributing questionnaires to the sample…...

Process between Planning and the Operation of a Business

Managers must continue to plan in order to ensure that its operations meet all long – term, medium- term and short- term goals. Long- term plans are made for 3 to 5 year periods. Long-term plans determine the direction of the company. These plans set out the firm’s overall strategy to move from its present…...

Regulatory Practices Instituted by Governments

A business is not considered a legal entity if it is not registered as business in the country where it operates. All persons desirous of starting a business must first be registered with the government agency authorized to carry out registration of business in their country. A sole trader only needs to register his business…...

Advantages & Disadvantages:Types of Businesses

Sole Traders Advantages Benefits of operating alone are: all profits are taken by the owner. Consultations are not necessary for decision making and the legal requirements for start-up is very simple as the proprietor only needs to submit the registration documents for the business. Disadvantages The sole proprietor must work for long hours resulting in…...

Sources of Capital in Setting up a Business

Capital is one of the resources required to set up a business establishment. Capital mainly refers to those assets that are used to start and continuously operate a business. Fixed capital includes machinery, equipment and vehicles owned by the company. These assets are so called because they cannot easily be turned into cash. Circulating capital…...

Features of a Business Plan

A business plan is a document outlining the goals of a business and the strategies to achieve these goals. It is mainly prepared by new businesses or by ones making major changes. Executive Summary The Executive Summary is a synopsis of the full business plan. It presents the salient points of the plan.  It contains…...