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Starting a Business Introduction An entrepreneur is defined as someone who has the ability to take risks and organise the factors of production. When starting a new business the entrepreneur faces a number of problems before they can start up. They need an idea and a will to succeed, but these are not enough on their own to be successful. A business needs: Finance to fund the other elements listed below: finance is usually the hardest thing to obtain in a start-up business. Labour to help develop a product or service and then to produce/deliver it. Customers without them, the business will fail. Obtaining customers means the business must undertake marketing. Suppliers provide many of the inputs, such as raw materials. Premises and equipment maybe a simple office, or possibly a large, modern factory; depending on what the business activity is. Management organisation & structure this is often very simple at the start-up stage (e.g. a sole trader!). Designed, researched and tested product or service a successful business is about more than just having a good idea the product needs to be brought to the marketplace in its best format. Entrepreneurs An entrepreneur needs several skills to succeed: Have ideas Ability to take risks Ability to persuade others to join the business or lend the business money Energy to keep the business going under tough circumstances it is often said that the best entrepreneurs are the most persistent |