Establishing A Small For Medium Enterprise ( Sme )

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When establishing a small to medium enterprise (SME), it is vital that an entrepreneur considers establishment influences, which can determine the success or failure of a business. These establishment influences consist of those in the internal and external business environment, and include the business idea, market considerations and legal considerations and influence of government. THE BUSINESS IDEA Prior to the establishment phase, an entrepreneur must have a concept that has the possibility of establishing a profitable business. This is known as the business idea, and includes ideas related to products that are existing, have been improved or are unique. The key to establishing a lucrative business is identifying the gap in the…show more content…
“Winkiwoo" was the first Facebook photo book application that allowed a quick, worldwide, affordable, and high quality service, giving it a competitive advantage which in turn has increased the success of the business. The business idea primarily determines the core activities and products of a business and through business opportunities businesses are able to meet the changing needs of consumers with or over its competitors. MARKET CONSIDERATIONS Through the business idea entrepreneurs must have a clear understanding of the goods and/or services which the business will produce, sell and where the business itself will be located. One of the first decisions an entrepreneur must make is what goods and/or services the potential business provide. An enterprise must tailor its products ensuring the needs of market are met, which can be done through market analysis, which involves collecting, and identifying opportunities of a business on the market. Through market analysis an entrepreneur/s is able to identify where the target group is located and determine the size of the market and consumer attitudes. To consumers products are benefits that satisfy their needs, hence entrepreneurs must consider tangible and intangible benefits of a product, ensuring that it meets safety standards. This is reflected in the case study of “Fresh espresso and food bar,” a small business providing healthy food and drinks located in Katoomba, NSW. Owners Guy
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