Idea Journal

User Generated

AbbeUhaqny

Business Finance

yorkville university

Description

Students will keep a journal in an electronic format where they outline ten ideas for a new business or expansion of an existing business. The Idea Journal is where students use strategies to locate, identify, and describe new ideas and identify problems or issues requiring a new solution. For the first two units of the course students maintain an “idea journal”. This journal should show a progression in thinking and idea generation.

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Explanation & Answer

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1

New Business Startup Problems and their Solutions.

Student’s Name
Institutional Affiliation
Course Name
Instructor’s Name
Submission Date

2
New Business Startup Problems and their Solutions.
Lack of Adequate Capital
The first challenge that most new businesses face is the lack of adequate capital to
purchase the required materials, set up physical operation infrastructure, and acquire the required
labor force.
Solution
The founder of the new business should ensure there is adequate, easily accessible
financial capital for the business start-up by engaging family members and friends for small
business funding. The business founders can also engage credible banks to acquire conventional
loans that will be useful to facilitate the business start-up (Haubrich, 2019). However, new
business founders are advised to seek legal guidance from business lawyers and financial
analysts to acquire favorable loans from the banks. Business analysts further advise that new
businesses start by opening up small business firms as they require less capital to start than large
business firms. This can be achieved by focusing on a specific target audience for the upcoming
goods and services the company will provide.
Inappropriate Business Choice
The second problem associated with a new business start-up is selecting an unsuitable
business depending on the external environment. For example, setting up a coffee shop next to a
kindergarten school is an inappropriate business choice as most children do not like drinking
coffee.
Solution
The business founder should conduct a detailed Pestle analysis of the external
environment in which the new business venture is set up. This involves understanding the

3
strengths of setting up the business in that environment, the weaknesses, business threats
associated with the environment, and business opportunities experienced in the business
environment (Benjamin, 2020). Secondly, the business founder should conduct a market analysis
to determine a gap in product or service that aligns with the target audience’s demands in an
external environment. This will help select the best type of business to be set up which will meet
the needs and demands of the targeted customers.
Lack of Adequa...


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