TERM 3:BUSINESS ROLES AND BUSINESS OPERATIONS

ENTREPRENEURIAL QUALITIES AND SUCCESS FACTORS

PART 2

FACTORS THAT MAKE A BUSINESS SUCCESSFUL

A business venture involves risks

Factors that contributes to a business venture’s success :

1. Sustainability

*can continue to exist despite set backs

2. Profitability

*attracts investors and enables business to expand

3. Customer base

*continuous customer base to sell to and must expand

4. A great idea

*needs and desires of consumers

5. Competent workers

*experts in their field, motivated and productive

6. Vision

*where they are headed

7. Financial control

*business failure

8. Ability to adapt to change

*constantly subjected to change - threatening?

*turn threats into opportunities?

9. Goods and services of quality

*attract and retain customers

10. Keeps looking for new opportunities

*improve and expand

IDENTIFYING AREAS FOR IMPROVEMENT

Running a business is a continuous process = new ideas or improvement

Tool to use to identify areas for improvement is a SWOT analysis.

Businesses comprise of several departments/functions.

AREAS FOR IMPROVEMENT

• Purchasing function

(Suppliers, purchasing process, quality, service)

• Production function

(Safety of workers, effectiveness)

• Public relations function

(Good publicity and staff training)

• General management

(incentives to increase productivity and salary packages)

• Marketing function

(Draw up budgets for marketing and products must be appealing to target market)

• Human resources function

(Recruit employees and staff training)

• Administrative function

(Effectiveness)

• Financial function

(Budgets and planning)