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Start-Up Business Edgar C11 - Coggle Diagram
Start-Up Business Edgar C11
Reasons
Some people have a desire for independence, by creating their own business, they wouldn’t be told what to do, as they have a more flexible time plan, and more control over their working lives.
They intend to make more money than their current jobs, as if the business turns out successful, they might earn more income working by themselves compared to working for others.
People that lost their job might be more encouraged to set up a business by themselves, based on the interests and skills that they have possessed.
The person might already talk to his/her friends and family, where the business opportunity might be clear and ready to set up.
Problems
There might be competition for new start-up businesses, unless the idea itself is unique. Generally, an older and more experienced business would be more favored compared to new and inexperienced businesses.
To build a strong customer base is also challenging, especially when the business has just started. Usually smaller businesses tend to offer better service compared to their older competitors to build a stronger customer base.
With no experience, there would be lack of record keeping, which is crucial to pay bills and taxes and also to chase debtors. With no quality record keeping, a business would be less trusted by its customer, and could fail in a matter of months.
A new business, unless funded by a rich investor, might be lacking of working capital. Capital is a significant part of building a business, and without a capital or lacking of it, a business might go bankrupt in a matter of months as the business would be unable to buy more stocks and pay suppliers.
First-time Entrepreneurs might also find difficulties in management, with poor leadership skills, communication skills, decision making skills, and many other skills required to build a business empire. With poor management, a business would struggle as there are no clear adjustments made to the business for the business itself to strive.
Businesses Environment also affects the successful aspect of the business. If the business has an original idea, but no publicity, then the business would go bankrupt and lacking in capital. New competitors on the market might also interfere with the success of the business. Economic and technological advances might also cost more money for the business to pay, especially if the business is already struggling.
Existing Business
Apple
Reason
Apple started up due to the fact that Steve Jobs and Wozniak would like to bring a new company vision and a unique interpretation to the technology world. They believe that the business would boom as they could make computers small enough for people to have them in their homes or offices.
Problems
No one used to believe and depend on technology.
Its models usually broke down, thus sweeping the market.
No major funding by a rich investor.
Steve Jobs and Wozniak once got into a fight.
Not a usual business environment.
Computer was a less known thing back then.