Setting up a business & The types of businesses

Businesses exist because they are formed by entrepreneurs and are subsequently developed if they manage to get beyond the survival stage.

Most businesses exist in order to earn a return for the business owners, and the potential for profit is a key motive for entrepreneurial activity

To survive and pay the bills of the owner who is usually only just getting by or possibly not even.

It involves acquiring raw materials. For example, metals and coal have to be mined, oil drilled from the ground, rubber tapped from trees, foodstuffs farmed and fish trawled. This is sometimes known as extractive production.

It is the manufacturing and assembly process. It involves converting raw materials into components, for example, making plastics from oil. It also involves assembling the product, eg building houses, bridges and roads.

It refers to the commercial services that support the production and distribution process, eg insurance, transport, advertising, warehousing and other services such as teaching and health care.

 Unlike mass marketing, niche marketing focuses on a smaller group of people with easily identifiable preferences, wants and needs. 

It is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.

 Finance, human resource management and marketing

An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company's products.

It offers the independence of small business ownership supported by the benefits of a big business network.

They don't get to keep all the profit.

Product distribution franchises get use of a franchisor's trademark and logo to sell products.

Most franchises are business format, which provides products and methods to run the business.

Objective = the action(s) you will take in order to achieve the aim. Aims are statements of intent.

S.M.A.R.T. goals are Specific, Measurable, Attainable, Relevant, and Timely.

A sole trader is a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses.

Features of a sale trader - Liability

                                           Taxes

                                           Control

                                           Consideration

A person who sets up a business or businesses, taking on financial risks in the hope of profit.

An unlimited liability business involves joint owners that are equally responsible for debt and liabilities accrued by the business; this liability is not capped and can be paid off through the seizure of owners’ personal assets, making it different from limited liability ventures.

It's when a business loses all of their money.