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Challenges When Setting Up a Business

Read the Urban Outfitters Continuing Case Study: Creating a business. You are to write a 3 report that answers the following questions:

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

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

3. Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not.

4. Identify and explain three reasons why customers would pay more for exclusivity.

5. Explain how a niche player chips away at a larger competitor's base. Give three examples of retailers who have done this.

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1. Three challenges for new businesses are having enough capital, creating a staff with excellent skills, who can work together successfully, and knowing and understanding the target market and accessible markets and how you can serve them. Finding capital is difficult, especially if one doesn't have access to available money or has limited credit. Making sure that money is used in the most effective way is also a challenge. Insuring legal proper methods of accounting and purchasing, assuring available resources and stock have appropriate quality and value, and transportation issues are resolved quickly. One cannot assume target markets as all markets. Targeting specific markets draws attention to the product or service and then other markets can be approached when the brand is established. Just sending out product with out knowing targets is wasting money and resources.

Beyond finding business partners and employees, companies need an accountant that works well with the owner(s). Employees and partners should have the same goals for success and while they do not have to have the same work style, it is important that these differences are discussed and addressed to the satisfaction of all. Making sure there is a good ...

Solution Summary

The challenges when setting up a business are determined. The expert defines what a niche product is.