Evaluate issues that need to be considered when starting and running a business.

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Mohammed Ali Noor

Business Enterprise

Task 10 D1

Evaluate issues that need to be considered when starting and running a business.

Business ownership

This is one of the most important issue that needs to be considered when starting and running a business. I say this because the person who owns the business will have full control of the business; this will mean that they will get to make all the dictions about the business such as the amount of money spent on stock. Any profit made by the business goes to the owner; the owner can choose to keep the profit or to invest into the business. If the owner of the business is a sole trader then he will have unlimited liability, this means that if the business goes bankrupt the owner could lose his possessions such as house and car.

Market Research

This also an important issue because the business needs to find out what customers

 need and expert from them. Research  helps the business to  sell the product and find new customers. The business needs to carry out primary research this could be  a questionnaires or a focus group. The result of the questionnaires and focus group will help the business sell the product to customers. The business can get lots of information from primary research such as if the customer likes the product and what price they will pay for the product. Business also use secondary research, this is someone else research it  can be found on the internet or in newspapers. Secondary research can help the business identify potential customers.

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Marketing plans

This is an important issue that need to be considered when starting and running a business. This is because the business needs a plan to promote the product that they are trying to sell to the customer. The marketing plan must be detailed and must include information such as promotion. Promoting the product is important because the business needs to inform the customers about their product. Business use lots of methods to promote their product such as adverts in newspapers and magazines. Another aspect of the marketing plan is the price the business will ...

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