Swot Analysis : Opening A Business

1144 Words Mar 30th, 2015 5 Pages
Opening a Business is no easy task and deciding to open one will present many challenges. Some of the things to figure our before you can get proper investors would be a business plan and probably a Strengths Weaknesses opportunities and threats analysis, Long for the SWOT analysis. Investors will most likely not entertain your business unless you have a drawn out plan on how things will operate and how revenue will be made after your analysis research. Knowing how to make and how to read an analysis will help the individual learn key things they need to focus on when starting their business. In this case study I will be looking at following three companies: Acme Consulting, Interstate Travel Center, and Silvera and Sons. All three are starter companies that are looking to better their business and make more revenue to grow and be competitive with larger businesses. I will determine which business will get ther higher discount rate to provide them with greater returns.
The first way to do that, is using the principle of risk-return trade off. This principle is the belief that probable return rises with the growth in risk. Because you are taking a risk trying new things. Low levels of uncertainty, or low risk, are associated with low potential returns. High levels of uncertainty, or high risk, are associated with high potential returns. Which means, the risk-return trade off, invested money can render higher profits only if it is subject to the possibility of being lost…

More about Swot Analysis : Opening A Business

Open Document