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Sinéad has been working for a number of years in a busy department store in Dublin, a distance of 50 kilometres from her home - Leaving Cert Business - Question 5 - 2008
Question 5
Sinéad has been working for a number of years in a busy department store in Dublin, a distance of 50 kilometres from her home. Sinéad would like to set up a busines... show full transcript
Worked Solution & Example Answer:Sinéad has been working for a number of years in a busy department store in Dublin, a distance of 50 kilometres from her home - Leaving Cert Business - Question 5 - 2008
Step 1
Identify two risks and two rewards for Sinéad if she sets up her own business.
Answer
Risks
- Personal Failure: There is a risk of not succeeding in her business due to various factors like competition and financial constraints.
- Business Losses: Sinéad might incur losses that could impact her personal finances, leading to the loss of assets such as her house.
Rewards
- Can Earn Profits/Income: Establishing her own business could lead to financial independence, allowing her to earn profits directly from her efforts.
- Personal Satisfaction: Successfully running her own business can provide a sense of achievement and personal satisfaction, allowing her to see the fruits of her labor.
Step 2
Outline three sources of new business ideas for Sinéad.
Answer
- Personal Interests and Hobbies: Exploring her passions can lead to new business ideas that align with her skills and enjoyment.
- Market Research: By studying market trends and consumer needs, Sinéad can identify gaps that her business could fill.
- Foreign Travel: Experiences gained from travel can inspire unique business concepts that are not yet available in her home area.
Step 3
Outline three methods Sinéad could use to recruit employees for her business.
Answer
- Advertising in Newspapers/Local Radio: Using traditional media can effectively reach a diverse audience.
- Local Job Centre: Posting job openings at a local job center helps connect her with job seekers in the community.
- Word of Mouth: Encouraging current employees and acquaintances to share job openings can lead to trustworthy referrals.
Step 4
Step 5
Name two long term sources of finance Sinéad could use to start her business and explain one of them.
Answer
- Mortgage: A mortgage can provide significant funding to purchase a property for her business.
- Venture Capital: This involves investing funds from investors who seek ownership equity in return.
Explanation of Venture Capital
Venture capital can be essential for a startup as it not only provides necessary funding but also often includes guidance and expertise from experienced investors in the industry.