Question # 1
The first important component necessary while starting a business is the vision of the business. The vision entails the type of business, which is in the mind of the individual. Having passion on a particular business venture can be a great motivator in this case, and it will help in knowing the right products for the target clients (Ashton 24).
The second important concept is the product or service that will be provided to the target clients. It is a great idea to consider where the product or services will be acquired, or the equipment that will be needed when processing the product or services into the final product on a daily basis. Moreover, uniqueness of the product or service is worth considering (Ashton 24).
Thirdly, capital is a necessary component in starting a business. It will be impossible to start a business without the ability of paying for the premises, acquiring of stock and equipment that will provide the services, or even advertising. It is crucial to consider whether capital will be from personal savings or a loan (Ashton 27).
Money management is a challenge that is commonly faced by individuals who have started a business; the inability of balancing the accounts can be detrimental. If a business is a sole proprietorship, it faces the challenge of going out of operation when the owner is absent due to sickness or other commitments. Another challenge is the lack of enough clients to buy the products or services, and this leads to expiry of goods, and since the business does not generate income; the inability to pay bills. Fatigue is also a challenge, and it comes along when the owner of the business becomes tired of the frustrations that come with running a business (Ashton 32).