- Opportunities presented by the Internet to Businesses
Current trends in information technology, particularly on the use of the internet, provide businesses with opportunities to expand. Business growth is enhanced through effective use of the internet in marketing, sales and management of information in the organizational setting. The internet will enhance business performance in future and is capable of enhancing entrepreneurial performance in the future. The internet will provide new opportunities for entrepreneurial businesses through increasing opportunities for product marketing. Online marketing platforms and the social media will boost entrepreneurial business marketing opportunities and access to a wider audience with marketing information. In terms of actual commerce, the internet will provide opportunities for new entrepreneurs to use online platforms for trading. The establishment of online product purchasing platforms and the use of such practices provide entrepreneurial businesses an opportunity to access more people and to widen the distribution networks for all goods.
- Characteristics of Successful Entrepreneurs
While the internet provides several opportunities for entrepreneurs, there are various skills and attributes that are associated with successful entrepreneurs. For instance, successful entrepreneurs have great problem solving skills and are creative. They are also persuasive, have effective decision making skills and are good at planning and negotiating. At the same time, they are also associated with attributes such as versatility, self confidence, autonomy, resourcefulness and achievement orientation. They must also possess passion in whatever they do to enable them push through the challenges related to entrepreneurship (Fitriati and Hermiati 263).
- Steps in Closing a Business
The first step in closing a business is making the decision to close the business. Once decided, the entrepreneur should file dissolution documents then cancel all registrations, licenses and permits associated with the business. Thereafter, the business owner has to comply with labor and employment laws and resolve financial obligations. During the entire process, the business owner must maintain all the records associated with the business.
- Break Even Point
The cost of the toys = $ 60.00 per unit
The cost of materials = $1.50 per unit
The wages = $ 2.00 per unit
Total fixed costs = $ 200,000.00 The break- even point is defined as the number of units needed to be sold for the total revenue to be equal to the total fixed cost of production. The revenue per toy = 60 – (1.50 + 2.00) = $ 56.50, hence break- even point in units = 200,000 /56.50 = 3,540 toys.
- Competitive Priorities
Any business intending to gain competitive advantage relative to others engages in competitively aligned practices such as effective business positioning, good planning, developing the people involved and establishing a wide fan base (Voogd par. 2- 5). As such, it can be deduced that the competitive priorities in a business include the plans, the position, the people and the clients.
- Common pricing strategies at start-up
The most common pricing strategy at start-up is the discounted pricing model. This model is used to gain the attention of more potential customers and thus increase the customer base for the business. Alternatively, a start-up could use a cost- based pricing strategy. This is whereby the price per unit is equivalent to the production cost per unit product. Premiums pricing could also be used by start- ups. Premiums pricing is based on market rates and characterized by what the market will accept. The higher the market rates are, the higher the product costs will be.
- Four Financial Statements
The key financial statements include: income statements which indicate all revenues obtained regardless of their uses and sources; the balance sheet, which shows the organizational assets and liabilities, the statement of cash flows and the statement of retained revenues. The retained revenue statements indicate the amount of funds kept as profits by a company.
- Forms of Organizations
Various forms of organizations exist. These include: sole proprietorship, where the business is owned by a single individual; limited liability partnerships, where business operate under partnerships yet are distinguished from the owners; Corporations, and liability partnerships. The sole proprietorship has the advantage of ease in decision-making. At the same time, it can also pose a challenge since the owner cannot be separated from the business. The LLPs and corporations have advantages in tax reduction while the liability partnership has the advantage of funds accessibility from different sources.
- Porter’s Five Forces
Porter’s five forces include: the product to be sold; the price at which the product is to be sold; the people targeted by the product; the place of product offer; and the product promotion strategies. Each of these forces contributes significantly to the success of the business. Once a product has been selected and the right pricing strategy chosen for the product, marketing activities have to be carried out. The marketing or promotion activities depend on the targeted market population and the place in which it is desired to sell the product.
- Suggestions for the class
Based on my experience attending the class, I believe that it is a really informative class. I therefore recommend that more students be encouraged to take the course at least for personal gains. More resources could also be provided to enhance comprehension of the core concepts of the course.
Fitriati, Rachma and Hermiati, Tutie. Entrepreneurial skills and characteristics analysis on the graduates of the department of administrative sciences, FISIP Universitas Indonesia. Journal of Administrative Sciences and Organization 17, 3(2010): 262- 275. Retrieved from www.journal.ui.ac.id/index.php/jbb/article/viewFile/788/750
Voogd, Peter. 5 ways entrepreneurs can gain a competitive advantage. Entrepreneur, 2016 August 5. Retrieved from www.entrepreneur.com/article/243717