ACCOUNTING

Entrepreneurial Business

Entrepreneurial Business

Introduction

Entrepreneurship involves the creation of new organizations outright or within existing organizations. This innovative activity is undertaken by entrepreneurs who see and understand customer needs, find and combine resources, develop innovative solutions, take risks, and strive to make a profit. The rates of entrepreneurial activity vary by local and national environment, industry, and other factors. Compared to the rest of the population, entrepreneurs tend to have a stronger need for achievement, higher risk-taking propensity, and greater perseverance, more commitment to a task, bigger vision, higher creativity, and more tolerance for ambiguity. Individuals who want to become entrepreneurs also tend to have more positive attitudes toward risk and independence.

New Product Development can be defined as the process of innovating and inventing new ideas and concepts, with a view to developing a successful new product in the anticipation of customer needs. The process of New Product Development involves various stages of inventing, testing, retesting, acquiring consumer attention and even redesigning, therefore making this process quite elaborate, costly and complicated depending on how the business wishes to make it.

Product Selected

A custom made t-shirt for the football loving youth. The shirt will be endorsed by renowned international and English Premier League football players. The list of endorsed players will be provided to the customers before hand, and they will be able to pick and choose a player, whose signature will be placed on their shirt. The shirt will be sold for £ 100.

The shirt will be a brought from a shirt manufacturer, in the shape of a finished product. It will be a plain shirt, according to the colour choice of the customer. The shirt will then be signed by the chosen football player, by the customer. The cost for the shirt will be £ 50, and after going through all the phases, it would cost around £ 75; it will eventually be sold at £ 100.

A Hi-ace - Toyota Van will be bought for the purpose of delivery. 1 employee will be hired for first year. 1 more in the second and the third one will be hired in the 3rd year of business, which is year 2. In the fifth year, which is Year 4, another person would be added to the business.

The salary of each person will be £ 1233.33, which accumulates to £ 14,800 a year.

The business will only require a van as a fixed asset, as other things will be done by the manufacturers. We will use the word-of-mouth and social networking websites, such as facebook, twitter for the marketing of our products. Individual and product blogs will also be developed.

Why Social Media?

Social networking is a way to communicate with people whom you know or meet new people on the internet. It is also a way to communicate with people in business, or simply to find people who share the same interests. There are many different websites social networks including Facebook, Twitter and LinkedIn. Facebook has an astounding number of 300 million users, ...