Why A Person Starts A Business - 1684 Words

Introduction. The main reason why a person starts a business is to be in charge, make important decisions, and become successful and also to provide an income for themselves and their family (Exploring business, 2014, ch.5 p.10). An economic system that provides goods and services to consumers in order to make money is a business (Exploring business, 2014, ch.1 p.6). Before starting a business, it is important for an individual to ensure that they are willing to do whatever it takes to run the business, ensure they have the right skills needed to run the business and have enough starting capital (Exploring business, 2014, ch.4 pp. 3-4). Starting a business, also requires the individual to be hardworking, patient and understanding since†¦show more content†¦Growth strategy, is focusing on winning a bigger market share, even at the expense of short- term earnings. Jayne’s growth strategy could involve diversification and market penetration. Diversification is act of either selling or manufacturing a variety of products to prevent being affected by an economic slump (Dictionary.com). And finding new ways where customers can use the product you are producing is market penetration. Jayne including diversification in her growth strategy, would mean including a variety of new products to her menu. Doing this will give her customers a lot of options to choose from and she would not be effected if the demand for one product is higher than the other. It will also help her not to rely on one product and she can have different sources of income. Growth in company can be done either by boosting the revenue of a b usiness with greater service income or by increasing profitability of the operation by minimizing cost (Business Dictionary). To achieve her growth strategy, Jayne would have change her current business form to help her business take off. Business Forms. Giving Jayne’s expansion plans, it would be advisable if she went into a limited partnership. A limited partnership usually consists of a general partner and a limited partner/s. The general partner runs the company and makes decisions and is also liable for financial