business
1. The role of an entrepreneur when starting a business is complicated. The person must first realize that he or she is required to invest a lot of time, energy, and funds in order to open the business. When it comes to funds, the person must realize that, of course, there is a risk that they might lose their money should the business fail. Most importantly, the entrepreneur must recognize a need that customers have. For example, a winter coat store would do well in an area that has cold climates. This is also an examination of a persons environment.
2. There is a big difference between a product-producing and service-producing business. Product-producing businesses are businesses that get their business by selling a product, where service-producing businesses do not. For example, Pathmark is a product producing business because they sell groceries. An exterminator would be a service-producing business because they don’t provide a product, but it still is something that improves the quality of life.
3. Profit and risk are huge influences on business decisions. If a business is making good money, it might decide to expand by opening more stores or selling more products. If it is not doing as well, they might decide that perhaps they should cut some products that aren’t doing as well from their inventory. Some businesses might also take a risk by expanding, and this could end either way. Some stores may not do as well in some areas, based on population and environment. The afore mentioned winter coat store probably won’t do as well in Florida as it does in upstate New York. Taking a risk could also be beneficial. There might be a winter coat fad in Florida, and that store might thrive, maybe even become very successful because maybe they are the only winter store coat around.
4. Competition causes a business to change its policies. Many businesses have to change in order to compete with other businesses of similar cause. Many businesses may have sales in order to be more competitive. At Home Depot, they will match the price of a product from a competitor and give an extra 10% off the price on top of that. That’s an example of a business changing to be competitive.
5. It is important for a customer to be happy. If the customer is happy, then he or she will go back to that particular business again. Not only that, but he or she will tell all his or her friends about that business, generating more interest in that business. That is why customer satisfaction is important.
6. Small companies grow into large companies because of their success. In the video, Minyard started out as a guy who wanted to feed his [next page]