1 While much has been hypothesized regarding the true meaning of the term idea multiplication, it is essential to note that it refers to all the processes involved in the use of existing ideas to develop newer ideas that are more important. These processes do not occur in isolation, but calls for brainstorming of the existing ideas with the sole aim of restructuring the existing idea by adding or removing certain feature. Notably, idea multiplication is advantageous in a number of ways. Above all, it is often easier to devise new ideas from existing ideas. In addition, it suits well with customers because the new ideas are closely aligned with the existing ideas; hence, can easily be identified by the customers. Some of the demerits of idea multiplication include the fact that the new ideas may not suit well with the customers, particularly in cases where customers had an increased preference for the previous idea.
2 Many at times, developing new business idea or product is challenging based on the fact that people with ill motives can claim ownership of such innovations. Nonetheless, the availability of patents protects innovators from such fraudulent claims. Speaking of a patent, this refers to the right given to someone who has invented something. Patents protect new inventions from being copied by fraudsters. Precisely, a patent prevents copying of the outward and inward features of any inventions. As such, it assures the inventors copy rights with regards to their inventions. On the other hand, a trade mark is concept that is relatively similar to a patent. However, a trademark assures protection on how the products are manufactured. In fact, the method of producing trade mark items such as those employed by the coca cola company are made unknown to the public; hence, makes it illegal for use by anyone with the pertinent information on how to manufacture such products.
3 Historically, banks have and continue to offer financial assistance to small and large scale entrepreneurs by offering them capital to start up or boost their businesses. However, there are cases when banks may not be willing to offer such assistances. Even so, there are other ways in which businesses can get such assistance. Above all, if a bank is unwilling to lend me money to finance my business ventures, I would ask for help from investors who can channel their resources in my business. This method is beneficial because the inventors will pay for all the costs of running the business. In addition, the time for repaying such investors is not limited. The disadvantage of this method aligns with the fact that decision making is challenging since you have to involve the investors in cases of any decision.
Another way in which I can finance my business without asking for help form the bank is through the use of personal savings. This method is advantageous because one is in full control of the business and the profits are not shared with any other party. It demerit aligns with the fact that personal savings may not be enough to run all the business activities such as marketing. Moreover, the risk of financial loss is high since loses are not shared with any other party.
4 Making a decision to acquire a business is advantageous and disadvantageous at the same time. Its advantages align with the fact that most of the target customers are financially stable; hence, will offer support for the business. In addition, the structure of the business management is not affected; therefore, the business will run smoothly with minimal disturbances. The demerits of acquisition can be attributed to the fact that the businesses’ operations are likely to be affected because the leadership structure will have to change and this may lead to the failure of the business venture.
An IPO is another strategy for establishing a business whose advantages include the notion that an IPO helps in marketing the business; hence, increasing the customer base of any given business. Furthermore, an IPO does not restructure the management of the previous business; hence, ensures the business continues functioning with no disturbances. On the other hand, an IPO is disadvantageous because it causes intense pressure on the business as customers hope for a rapid increase of their shares. Besides, an IPI is expensive because it’s a public event that is costly to establish and implement.
5 There are various strategies that someone can utilize in searching for angel investors. An internet search occurs as one of these strategies. Friends and family cam also provide crucial leads to these investors. Many at times, investors look for certain factors before they can support any given business. The availability of a business management team occurs as one of the major factors considered by the investors. The products and markets to engage in also occur as another factor considered by investors. A well devised business operational plan and positioning strategies to be utilized by the proposed business is another factor considered by investors. Finally, financial returns that investors will get after supporting the business is the most comprehensive factor considered by the investors.
6 Based on the Timmons framework, the entrepreneur, opportunities, and resources are the most comprehensive factors that should be kept in balance when starting up a business. However, as the business progresses to the growth stages, these factors shift to leadership, opportunities, resource organization, and capability. Worth noting is the fact that both the start up and growth stages are affected by the prevailing environmental conditions and uncertainty. This is because the business managers cannot predict certain occurrences such as the introduction of superior products by the competitors. Similarly, environmental conditions such as change in technology, economic cycle, and regulatory government have an effect on the success any given business venture. For this purpose, business managers should strike balance between its need and the needs of its shareholders as these factors have a compounding effect on the growth of these businesses. Talking insurance covers for sole proprietorships is viable, but may not be necessary because they do not involve so many risks.
7 Segmentation connotes to a section of customers defined by various characteristics. Targeting entails the focus on certain segments, which is carried out by analyzing and selecting segments that are profitable. Positioning entails the creation of adorable images regarding certain products in order to influence consumers positively. Notably, successful marketing plans incorporate these factors because they are closely related. In fact, these factors work together in integrating the customer’s needs into the product development processes; hence, influencing consumers positively.
8 The 4P’s of marketing include product, price, place, and promotion. Product refers to the manner in which the product will be represented to the target customers. Value addition should be carried out on the product development processes in order to devise products that add value and are valued by the target customers. Pricing refers to the cost at which a product will be sold to customers. The price should suit the prevailing market prices of the given products. Place connoted to where consumers will access the given products, which can be retail and whole sale outlets. Finally promotion entails the ways of increasing the consumer’s preference for a given product. Promotions are often carried out through personal selling and direct marketing through various media platforms.
9 Successful business managers often strive to ensure that there is a balance between salaries and equities. This is because business funders are limited, unlike the number of employees that may be overstretched. Business funders are often involved in the start up of any given business whereby they make some contributions to the business’s capital. On the other hand, an option pool refers to the amount of finances for certain employees for their contribution to any given business.
