ORGANIZING A BUSINESS

Organization – is the first stage in the life cycle of a business.

The most common reasons for business failures include the following:
1. Bad or improper management practices, including poor cost controls and poor
hiring practices;
2. Poorly focused and executed marketing or inadequate marketing;
3. Poor location
4. Failure to invest in new products and efficient technology; and
5. Lack of adequate financing
Why persons engage in business?
They hope to enjoy certain values, which are derived from such undertaking.
These values include the following:
1. Provision of employment to people;
2. Profits
3. Service to the community
4. Personal satisfaction;
5. Means to earn a living;
6. Achievement of power; and
7. Protection of one’s self and family
Other reasons
a. For economic
b. To utilize skill and previous work experience
c. Situational conditions