Schumpeter (1934) (cited in James et al. 1984) proposes five stages of behavior, which are the characteristics of the entrepreneurial firm: introduction of new goods, introduction of a new method of production, opening of new markets, opening of new sources of supply and industrial reorganization. Fraser Doherty, a young entrepreneur, made his dreams come true when he started his own 'Super Jam' business at the age of 14, using his grandfather's secret jam recipes. His goal was to make it healthier and better tasting than all other regular jams. He begins selling jam in local areas. Eventually, his success grew as he made thousands of pots in a month. Super Jam now supplies major stores such as Waitrose, Asda, Tesco and Morrison. Doherty plans to expand his work overseas (Sky News, 2010). In the UK, jam has suffered in the past from consumer perceptions that it was old-fashioned and suitable for older people and that most were unhealthy. Storey et al. (2010, p2) indicate that businesses should compete on quality rather than price, as this is an important element of success for entrepreneurial businesses. Super Jam revitalizes jam with an original approach that has been the main reason for its success. It contains superfruits, giving the jam a new positioning as a functional food that meets the health needs of consumers. The super fruit contains antioxidants; a chemical that can help fight damage caused by disease and aging (DataMonitor, 2009). Super Jam has also been successful because it engages with customers and Doherty reaches customers who often buy jam, for example by organizing "Super Jam Tea Parties" for elderly people living alone, in retirement homes or in sheltered accommodation. Doherty's main target was older citizens, as he cited "All... middle of paper... current factors such as exchange rate fluctuations or tariff barriers could affect the business (Burns, P. 2007, p264). The product life cycle has important implications for the entrepreneur. Once the product is mature, it must make the most of the cash flows it can generate (West, A. 1992, p16). The most effective way is to manage risk by developing a business plan, which is a document explaining how and why you will run your business. The business plan includes financial forecasts, market research and number of employees. A business plan is useful for determining whether your business idea is reasonable, helping owners convince investors that the business is a reliable position, reassuring potential investors that you are a reasonable investment opportunity , plan the future of the company, list specific goals and objectives and manage them. cash flow (Smarta.com. 2010).