• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Theories Used When Setting Up a New Business

Extracts from this document...

Introduction

Theories Used When Setting Up a New Business When setting up a new business many business theories have to be considered and thought about. To enable a successful business set up, many features must be pre planned and thought over carefully. These features are such as: * Business plan * Cash flow forecast * Break-even figure * Entrepreneur skills * Business reasons - why set up the business? * Success - how will they succeed in the market? * Finance - where will it come from? * Government - how can they help? * Setting up - how will they set up the business? * Who will run the business? All of the above 10 business theories are vital and must be considered and thought out carefully in order for business success. Business's that start up without consideration of the above are less likely to survive in their market than those who are set up properly with all the above theories planned and worked out. ...read more.

Middle

For this money to be redeemed the amount spent/invested firstly has to be gained back in the form of revenue. The break even point is when the total amount of revenue equals the total amount of money spent. After this point, the revenue will be profit. Entrepreneur Skills: The entrepreneur creates the business idea, and then hires others to carry out the activity. The may also wish to invest some of their personnel money in hope to gain profit out of the business after establishment. They will need skills to ensure that they make the right plans, and hire the right people/organizations to help them. Any wrong actions taken can lead to failure of the business. Reasons to set up: There has to be some reasons as to why a business should be started. Many people start business because they want to be their own boss, they want full control over everything, they want a fresh start, and they have enough experience and want to run their own business. ...read more.

Conclusion

The government may get involved for one of 3 reasons; to control areas of high business congestion, encourage firms to locate in high unemployment areas, or to attract foreign business' to UK. The government does this with various schemes such as enterprise zones where taxes are exempt (for a given period) in order to attract business' into the area. Setting Up: Before setting up the business the businessperson needs to know and decide how they are going to set up the business. Therefore, they would need a business idea, business plan etc. When setting up they can then either decide to set up on their own by taking a loan or investing their personnel money, or setting up the business with a partner. Running the Business: The businessperson must also understand what is required for running a business. He must have adequate staff, enough money to buy stock and pay staff, enough stock to sell, business/product advertising etc. The businessperson must have enough resources (Land, Labour and Capital) to meet all the above needs to keep the business running smoothly. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. REPORT ON THE BUSINESS OF MARKS & SPENCER

    This is concerned with creating quality culture so every worker seeks to delight customers. T.Q.M requires that every employee is devoted to doing the best job they can, raising the probability of the customer getting what they want. In order to communicate this spirit of quality, they promote the idea

  2. I have selected a nursery because there is high demand in the UK as ...

    Once the business has established its name it will mean repeat business form existing customers and the customers introducing friends. Futher more a good reputation may also result in competitor's customers coming to my nursery. It 's essential for my business to break even otherwise it will result in bankruptcy,

  1. Business Aims and Objectives.

    Sometimes businesses may wish to share knowledge or even research projects. Competitors can make the other business grow weaker and maybe close down in that area bringing in more custom to the business. Customers Customers are an important factor in a location.

  2. The business I am going to set up is a snooker club,

    the arcades, once they loose in a round they will want to play the game again and proceed that round. Like the other sales figures they are fluctuated in different months due to seasonal factors and consumer views. The sales revenue is calculated by multiplying �0.30 (game price)

  1. This coursework that I intend on completing will be based around setting up a ...

    Because of this I decided that I would sell CD singles as part of the service the shop would provide. Below are the prices they charge for packs of single CD's. AMOUNT PRICE 6 new Eminem singles �15 12 new Eminem singles �30 24 new Eminem singles �55 I will

  2. In this coursework I need to produce a detailed business report on one medium-sized ...

    Tesco is working with some of the country's top chefs and other experts who want to share their passion for good food and drink with customers. Tesco Packaging Design. Tesco has many "Own Brand" products, and in order to promote its own brand correctly Tesco has its own Packaging Design Department.

  1. "Feasibility study of starting a new business".

    People may have different leisure desires and prefer to indulge in alternative leisure activities such as the cinema, bowling, eating out or even sport. This issue of demand, and who would want to use the nightclub is a very significant factor.

  2. Online Business

    This will be a good impression on the customers as you're showing that your customers are your first priority and you are taking care of their needs constantly. Monitor the quality of your services and product constantly. Remember, satisfied customers who spread the word about your business are the best source of new customers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work