Assignment:
Question 1. In a study conducted by Entrepreneur Weekly, Bradley University and University of Tennessee, the failure rate for startup companies was 44% by the end of the third year in business. Meaning, almost one in two startups failed after three years. There are a variety of reasons for this low success rate among entrepreneurs - from poor market research, to accelerated growth, to lack of cash flow planning, to many others. Review the article "Biggest Startup Mistakes and How to Avoid Them," and discuss the following:
- Select the mistake described in the article that you think would have the greatest impact on a newly formed company.
- Why do you think this mistake is so common with entrepreneurs?
- If you were the owner of a company, what you would you do to avoid that particular mistake?
Question 2. Think of a product or service. Discuss the role of cost and demand factors that should be considered when pricing that product or service
Question 3. Identify three creative kinds of business relationships/financing arrangements that can be used to help manage cash in a small firm. Why are they viable options?
Question 4. If a new venture had its choice between long-term debt and equity financing, which would you recommend? Why?
Question 5. Identify four factors a consumer might give for not using an online business. What actions might an entrepreneur take to overcome those factors?
Question 6. What are the key attributes of a good business location? Which of these would probably be important for a retail location in gaining a competitive advantage? Why?