Urban Outfitters Continuing Case Study: Creating a Business.

Urban Outfitters Continuing Case Study: Creating a business.

Darren Blake

Browder Coates

BUS100143VA016-1118-001

10/27/2011

1. Identify at least three challenges when setting up a business. Explain why they are challenges.

There are a number of challenges involved with starting your own business. The first one is coming up with a great business idea. The potential business owner must deicide on what the business is going to do and who they are going to do it for. The potential business owner must come up with a business plan on how he/she is going to change this idea into something concrete. The potential business owner must research the target market thoroughly and develop his/her business plan centered on what consumers in the area need. After on deciding on the business plan the potential owner should go about actually writing out the business plan. The business plan is an important document that serves as an outline of every detail of the business. One of its main uses is to present to

possible investors in order to secure initial funding for the company’s launch. A lot of potential business owners skip this step thinking it is too time consuming; they just want to get their plan in action. A business owner has to take into account the rewards of a business, but more importantly potential setbacks. The fact that business owners create the mindset that things may not always go the way they plan, will aid them in bouncing back from any setbacks they may incur. If business owners plan on succeeding and not preparing for any hindrances, they will be far less likely to succeed and be able to bounce back from any stumbling blocks.

The second challenge would be acquiring the right amount of capital to get the business started . The potential owner must have the funds to cover all the start up costs of the business. Under estimating these costs could kill the business before it really gets off the ground .It takes a lot of money to start a business and to guide it though the start up phase , which could last for several months. This can usually be avoided by the business plan.

A third challenge would be realizing the amount of time that is going to be required to get the business of the ground . Most people are accustomed to only working 40 hours a week and having their weekends free to relax. The new business might require much more than that.

2. Define what a "niche" product is. Give at least three examples of niche products.

A niche product is a product that is made and marketed for use in a small and specialized but profitable market. Simply put