IB Business Management Topic 1.1.5 Opportunities of a New Business Revision Notes (SL/HL)

IB Business Management Topic 1.1.5 Opportunities of a New Business Revision Notes (SL/HL) | RevisionDojo

Written by official IB examiners

Why Do People Start Businesses?

Starting a business is a deeply personal decision.
Typically, it's driven by a mix of financial, personal, and strategic motivations.

1. Rewards: Reaping the Benefits of Investment

Ownership and Profit: Unlike employees who earn wages, business owners benefit directly from their investments.
Wealth Creation: Many millionaires own small, often "boring" businesses that consistently generate income.

Example

A small bakery owner earns profits from sales, while an employee earns a fixed salary regardless of the bakery's success.

Example

Think of laundromats or plumbing services, steady demand and low competition can lead to significant financial rewards.

Tip

Owning a business means taking on risks, but it also offers the potential for higher returns compared to traditional employment.

2. Independence: Being Your Own Boss

Control: Entrepreneurs can create and modify their own policies without being constrained by others' rules.
Flexibility: Business owners decide how to allocate their time and resources.

Example

A freelance graphic designer can choose projects that align with their interests and values, unlike an employee who must follow company directives.

Note

Many entrepreneurs underestimate the time and effort required to run a business. Independence often comes with long hours and high responsibility.

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Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Duis aute irure dolor in reprehenderit

Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

Unlock the rest of this chapter with a free account

Why Do People Start Businesses?

Starting a business is a deeply personal decision.
Typically, it's driven by a mix of financial, personal, and strategic motivations.

1. Rewards: Reaping the Benefits of Investment

Ownership and Profit: Unlike employees who earn wages, business owners benefit directly from their investments.
Wealth Creation: Many millionaires own small, often "boring" businesses that consistently generate income.

Example

A small bakery owner earns profits from sales, while an employee earns a fixed salary regardless of the bakery's success.

Example

Think of laundromats or plumbing services, steady demand and low competition can lead to significant financial rewards.

Tip

Owning a business means taking on risks, but it also offers the potential for higher returns compared to traditional employment.

2. Independence: Being Your Own Boss

Control: Entrepreneurs can create and modify their own policies without being constrained by others' rules.
Flexibility: Business owners decide how to allocate their time and resources.

Example

A freelance graphic designer can choose projects that align with their interests and values, unlike an employee who must follow company directives.

Note

Many entrepreneurs underestimate the time and effort required to run a business. Independence often comes with long hours and high responsibility.

Definition

Paywall

(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Note

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.

Excepteur sint occaecat cupidatat non proident

Tip

Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.

Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

IB Business Management 1.1.5 Opportunities of a New Business Notes

Unit 1: Introduction to Business Management - Core operational components and business functions6 subtopics

Unit 2: HR Management - Motivation, Structure, Hierarchy7 subtopics

Unit 3: Financial Management - Accounting, Ratio evaluation, Core Financial Documents9 subtopics

Unit 4: Marketing Management - The 7 P's, strategies and forecasting6 subtopics

Unit 5: Operations Management - Production Methods, Production planning and management9 subtopics

BM Toolkit - Core business frameworks and tools15 subtopics

Why Do People Start Businesses?

1. Rewards: Reaping the Benefits of Investment

2. Independence: Being Your Own Boss

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account

Why Do People Start Businesses?

1. Rewards: Reaping the Benefits of Investment

2. Independence: Being Your Own Boss

anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua

Duis aute irure dolor in reprehenderit

Excepteur sint occaecat cupidatat non proident

Unlock the rest of this chapter with a free account