Business, Finance, Law and Accounts

Its Tough Out There But Its Worth It!!

Running a successful business is hard work. starting a new successful business is even harder work!!

People know all about the success stories and the well known names like Richard Branson, Bill Gates, Walt Disney, Henry Ford etc - but no one cares about the failures and also rans

Like pop music people dont just suddenly rise to fame and glory - there's plenty of back bedroom sweat and toil, and wondering if your business will ever work!!

Bill Gates started out designing a version of a programming language called "BASIC", which most people today have forgotten about - in fact it doesnt even run on the most advanced modern home computers

One of the most important aspects of running a business is that although you are often on your own, you have to know where you are going - what you are aiming at and what your target is

Like horse racing the difference between success and failure can be very small. Consider the Olympycs - a runner may win Gold by being only tenths of a second faster than the second placed runner

Often in business its volumes that turn in the profit, so make 100,000 fewer cars and you make a loss, make and sell 500,000 more than you planned and you make so much money you are on the front page of the business papers

Entrepreneurs

People who start new bnusiness are often called Entrepreneurs

This is simply someone who has the idea and energy for starting a business and who sill mwilling to take the risk

Having a business is certainly risky. For example

• 342,000 new business started up in the UK every year
• 410,000 business cease trading every year
• 4 out of 10 business started in London do not survive for more than 3 years

Decisions Made By A Business

There are lots of decisions that you must make when starting a new business

You have to think about where you are going to operate - often we call the location

You have to decide what exectly you will be selling or what service you will be providing. This means looking in depth at the market, setting the right price and dealing with the competition

A business must also decide what kind of business ownership it will have - such as a sole trader, a partnership, a corporation or company, or a franchise or cooperative arrangement

Outside Pressures On A Business

A business cannot completely "go it alone". There are lots of outside bodies and groups that have an impact on the activities of a business

Some of these outside pressures include

• The government - both local or state and federal or national
• Competitors
• The Environment and reclyling
• Local Residents - people living nearby might object to what your business is doing or the noise it is making etc
• Trade Unions and Organised Labour - if you employ staff you need to keep on the right side of the trade union(s) that represents the workers
• Technology - this might be in the form of production processes, communications, delivery systems and stock management etc