1.4 - Making The Business Effective Flashcards
Advantages of a sole trader
Easy to set up
Be your own boss
You decide what happens to the profit
Disadvantages of a sole trader
May include long hours
Unincorporated
Unlimited Liability
Hard to raise money
Advantages of a partnership
More ideas and skills
People to share the work
More capital to invest
Disadvantages of a partnership
Legally responsible for everyone’s actions
More disagreements
Profits are shared
Unlimited liability
Advantages of an LTD
Limited liability
Easier to get a mortgage
Disadvantages of an LTD
More expensive to set up due to legal paperwork
Legally obliged to publish their accounts every year
Advantages of Franchising
Customers will recognise the brand
Less risk
Easier to get a loan
May be provided with training or help
Disadvantages of Franchising
Freedom is limited
Pay a large amount of money to start
Regular payments to the Franchisor
Factors influencing location
Proximity to materials
Proximity to competition
Proximity to labour
Proximity to market
Use of the internet
Marketing mix
Price
Product
Promotion
Place
Factors affecting the Marketing mix
Changes in technology
Changes in what customers need
The competitive market
Things to include in a business plan
The business idea
Business aims and objectives
Target market
Marketing mix
Location
Finance
