IGCSE, A Level Business Student Forum

Hameed is a furniture designer who love designing unique furniture with least materials & sleek designs. He is looking to start as a sole trader with limited funds available. He is looking to offer varieties of coffee tables, dining tables, chairs and sofas at the moment.

Analyse the possible advantages of being an entrepreneur to Mr Hameed. [6]
[KN] Can use own ideas; this means owner can make a unique product.
[APP] Since Hameed likes to design unique furniture, this means if the customers like these designs, they will be ready to pay higher prices due to its USP.
[AN] This would help Hameed having better profit margins which would help him managing his cash flow as in the start of business it is very critical.

[KN] Freedom of choice; able to choose how to use time and money.
[APP] Since Hameed is passionate about making unique designs, this would make him spend more time to the business as he is already motivated to do so.
[AN] This means Hameed will be able to manufacture durable furniture; which would help having loyal customers through repeated sales leading towards a strong brand image.

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kn : entrepreneurs make their own decisions.
app : Hameed can choose which furniture designs to make without asking anyone else. he can sell anything he wants like coffee tables and dining tables.
An : This allows him to be creative and try unique designs which might be liked by the customers. In this case, his sales would increased based on the USP (Unique selling point) of his furniture leading towards a strong brand name in longer run.

Kn : Entrepreneurs take risks when starting and running a business.
App : Hameed has limited funds so starting his furniture business involves the risk of losing some or all of his investments and if his furniture designs do not sell he may not earn enough to cover costs and expenses leading to a financial risk.
An : Taking this risk allows hameed to be more careful and make smart decisions which will improve his learning in multiple areas like finance & marketing. This would make him lead all departments under his command, making everyone productive in his business.

KN] Entrepreneurs can use their own ideas when running a business.
[APP] Since Hameed designs unique furniture which gave him edge over the customers , as an entrepreneur it allows him to turn these ideas into products such as coffee tables and chairs.
[AN] This means his furniture may be superior from competitors, allowing him to attract customers who loves to buy furniture , helping him charge higher prices and improve profit margins since he has limited funds

[KN] Hameed has control over his business and make decisions efficently.
[APP] Hameed can decide how to manage cost of production , allow him to buy better raw matarials and can set prices for his dining tables and sofas according to his financial capacity .
[AN] This helps him to keep his expenses low and operate efficiently, which can improve cash flow in business and increase the chances of company capacity to live more than its actual life .