1.1 business

The nature of business is

Dynamic

How do new business Ideas come about

Changes in technology

Other products/services becoming obsolete

Changes in customer want/demand

Original business ideas are hard to come by because:

Lack of creativity

Poor leadership

Self doubt

Poor communication

Why adapt products

Cost affective as market research is mostly done

Difficult to think of original ideas

Competitive advantage

Helps a business to stand out in the market this could be based by

Price

Quality

USP

Product range

Branding

Location

Risks to a business

Business failure

Financial loss

Lack of security

Why do businesses fail

Poor knowledge of the market

Poor business plan

Too little finance

Bad market strategy

How to reduce risk

Produce in depth business plans

Carry out market research

Cash flow forecast

Keep costs down

Rewards to a business

Business success

Profit

Independence

Non financial rewards

Sense of accomplishment

Personal satisfaction

Added value

Convenience

USP

Branding

Quality

Enterprise

Creating ideas

Taking risk

Using initiative

Entrepreneur job

Organise resources

Leadership

Decision making

Role of business is to

Add value

Meet customer needs

Revenue

Selling price x units sold

Profit

Revenue - total costs