A business plan/business roles Flashcards

Question

ASPECTS THAT MUST BE INCLUDED in the executive summary

Answer 1

• The business’s name, location, and contact information. • A brief description of your product or service and why it’s necessary. • A description of your target market or the people you think will spend money on your idea. • The reasons for writing a business plan • The size of the business, sales forecasts and profit margins. • Other details such as stakeholders, funding needed and often an exit strategy.

Answer 2

• the way CAPITAL will be raised; • how PROFIT AND LOSSES will be shared; • the REGISTRATION formalities; • and the CONTINUITY of the business.

Answer 3

CIPC • All forms of companies must register with the Companies and Intellectual Property Commission (CIPC) • New inventions and patents must be registered with CIPC SARS • Register with the South African Revenue Service (SARS) to fulfill tax obligations • Most businesses must also register as VAT vendors • UIF registration can be done on form UF8 at any SARS office or online. LOCAL MUNICIPALITY • Businesses selling or supplying meals or perishable food to eat will need a license from the local municipality to do so.

Answer 4

• Explains how the product or service of the business will be marketed. • Business must learn as much as possible from their potential customers. • The marketing plan will indicate how the goods will be marketed to its target market. • The marketing plan will also include the amount of money to be spend on advertising and promotion. • The proposed pricing of the goods and services of the business must be included.

Answer 5

• Aims to understand the reasons why consumers will buy a certain product or service. • Businesses must gather data on the customers by observing the market, asking clients to complete questionnaires. • Analyse the data and use the information to make informed decisions.

Answer 6

1. PRICE • One of the most difficult aspects to determine. • Charge the most appropriate price. • Needs to be affordable to the customers. • Must allow the business to cover costs and make a profit. • Price charged by competitors must also be taken into consideration. 2. PLACE • Refers to where the goods and services are sold. • Location is essential for any business. • Good access to the product or service will increase the sales. • Also refers to how the product is distributed. 3. PRODUCT • Refers to the actual products or services. • Essential to keep customers happy with your product or service. • Must be different from those of the competitors. 38 Identify COMPETITORS from doing a market research and explain the STRATEGIES that you will use to overcome competition in the market. • Competitors are all businesses that sell similar products or render similar services and who have the same target market • Entrepreneurs must have a very good idea of their competitors. • Taking note of your competition can improve your own business and give your business the competitive edge. • Businesses must use the latest technology and production methods to keep ahead of the competitors. • Business must also be aware of market trends. • Note the SWOT analysis of competitors and improve on it. Explain the concept of the FINANCIAL PLAN The financial plan gives a detailed description of the entrepreneur's financial contributions, the funding requirements, projected budget and cash flow statements. 4. PROMOTION • Essential to identify how you are going to make your customers and the target market aware of your products. • How is the business planning to market and advertise the product? • Business must decide which method will best reach the target market. 5. PEOPLE • Includes all the people that are in some way involved in or who have an impact on the business. • People represent the business and make decisions. • Staff can affect the success of the business. 6. PHYSICAL ENVIRONMENT • Refer to the environment where the business is located • Environmental protection must be taken into account • Cleanliness and health in and around the building - consumers need to feel safe • All facilities must be in working condition 7. PROCESS • Describes the way in which the marketing and sales processes are carried out. • The simpler the process, the better. • Use technology to make processes easier.

Answer 7

• Competitors are all businesses that sell similar products or render similar services and who have the same target market • Entrepreneurs must have a very good idea of their competitors. • Taking note of your competition can improve your own business and give your business the competitive edge. • Businesses must use the latest technology and production methods to keep ahead of the competitors. • Business must also be aware of market trends. • Note the SWOT analysis of competitors and improve on it.

Answer 8

The financial plan gives a detailed description of the entrepreneur's financial contributions, the funding requirements, projected budget and cash flow statements.

Answer 9

1. SOURCES OF FINANCING • Requires a detailed explanation of financing needed for your business • Financial contribution of the entrepreneur is stated • Loans from investors or financial institutions • The interest rate on the loan, period of repayment and the due date of the loan should be stated 2. CASH FLOW STATEMENT • Indicates how much money was received and spent within a certain period 3. PROJECTED INCOME STATEMENT • Determines whether the business will make a profit or a loss • Formula: Revenue – Expenses = Profit or Loss • The sales prediction for the first year is given • Highlights expenses on a monthly basis 4. BALANCE SHEET • The statement shows the estimated worth of the business • Assets = Owners’ Equity + Liabilities • Assets are the possessions of the business • Owner’s Equity refers to the money provided by the owner(s) to start the business • Liabilities refer to the money owned by the business 5. PRODUCT COSTING • All the costs involved in the business process 6. PRODUCT PRICING • Detailed description of how the price of the product and service were determined 7. BREAKEVEN ANALYSIS • Calculating the point at which income from sales is equal to the expenses of the business • After this point the business starts making a profit

Answer 10

• An ethical view point that says every individual/organization has an obligation to benefit society as a whole. • The responsibility of every citizen individual/organization to contribute towards the well-being of the community and the environment in which they live.

Answer 11

• The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the local community and society at large. • Corporate Social Responsibility/CSR is the way a business conducts its operations ethically and morally, regarding the use of human, physical and financial resources. • Corporate Social Responsibility is an obligation required by law and benefits both business and society.

Answer 12

Initiatives/STRATEGIES to deal with HIV/AIDS • Train counsellors to provide counselling to infected and affected employees. • Develop counselling programmes for infected and affected employees. • Conduct workshops on HIV/Aids programmes or campaigns. • Roll out anti-retroviral (ARV) treatment programmes for the infected employees. • Encourage employees to join HIV/Aids support groups. • Develop strategies to deal with stigma and discrimination. • Participate in the HIV/Aids prevention programmes implemented in the community. • Support community based organisation’s HIV/Aids initiatives.

Answer 13

• Provide skills development programmes through learnerships. • Offer bursaries to the community to improve the level of education. • Create jobs for members of the community. • Provide entrepreneurial programmes that can promote self-employment. • Support existing small businesses to create more employment opportunities.

Answer 14

• Invest in a young starting SME that can be a business competitor, buyer or supplier. • Attract the best employees by being socially responsible and offering the best volunteering programs. • Support poverty alleviation programmes that are offered by the government. • Donate money or food parcels to local NGO’s.

Answer 15

The ability to think of original, varied new ideas or new approaches

Answer 16

• Better ideas are generated. • Improves motivation amongst staff members. • May give the business a competitive advantage if unique strategies are implemented. • Complex business problems may be solved. • Creativity may lead to new inventions which improves the general standard of living. • Productivity increases as management or employees may quickly generate multiple ideas which utilises time and money more effectively. • Managers and employees have more confidence as they can live up to their full potential.

Answer 17

• Encourage staff to come up with new ideas/opinions/solutions. • Encourage alternative ways of working/doing things. • Respond enthusiastically to ideas • Make time for brainstorming sessions • Place suggestion boxes around the workplace • Train staff in innovative techniques

Answer 18

• Products and services can be marketed creatively. • Managers can come up with creative strategies for the business. • Managers can motivate and manage staff creatively. • Employees can come up with creative solutions to all kinds of problems. • Creative public relations strategies can be designed and implemented. • New products or services can be designed to meet changing needs. • Existing products can be adapted creatively to meet changing preferences and demands.

Answer 19

• To be able to solve any problem, it is important that your research skills are used to find the facts that you need to understand the problem. • Research skills include knowing: o What information you need o Where to find that information o How to choose relevant information • Research involves: o Speaking to someone who has experience in the area that is a problem for you o Going to the library and finding books, magazines or newspaper articles on the topic o Looking for information on the internet

Answer 20

o Be very clear on what you are researching o Looking for different sources of information o Analyse the information o Reflect on the usefulness of the research o Consider the useful elements of the research

Answer 21

• Gathering facts that include problem findings and problem shaping.

Answer 22

DECISION MAKING • ONE PERSON • Various alternatives considered • It is part of the problem-solving cycle. PROBLEM SOLVING • GROUP • Alternative solutions are generated/ identified and critically evaluated. • analysing a situation to identify strategies to bring about change.

Answer 23

1. Identify the problem. 2. Define the problem. 3. Identify possible solutions to the problem. 4. Select the most appropriate alternative. 5. Develop an action plan. 6. Implement the suggested solution/action plan. 7. Monitor the implementation of the solution/action plan. 8. Evaluate the implemented solution.

Answer 24

delphi technique force field analysis brainstorming technique nominal group technique

Answer 25

businesses get experts to assess customer complaints and recommend strategies to help

Answer 26

rate a pros and cons list

Answer 27

define the problem and ask people to discuss reasons for problems/how to solve them, evaluate best ones

Answer 28

bigger group splits into smaller groups, each person in a group suggests ideas, person with best idea is reccomended to big group again

Answer 29

SUBSTITUTE • Substitute some parts of the parts of the product with something else. • Replace part of the problem with something new. COMBINE • Arrange parts of a problem in a creative way to cancel out the problem. ADAPT • Look at existing solutions and adapt them to solve the current situation. • Look at the new trend for products and adapt the old product to attract more customers. MODIFY / MAGNIFY • Exaggerate the problem and see if there is a part of it that can be adjusted to solve the whole problem. • Put some new parts into the product to attract more customers. PUT TO OTHER USES • Make alterations to use it for other purposes. ELIMINATE • Get rid of some parts of the problem or reduce them. REVERSE / REARRANGE • Push the idea around and rearrange in order to think of it differently.

Answer 30

• Decide on the central problem/topic and find a word/picture that captures it. • Break down the central theme into main ideas/points. • Break the ideas down further into sub-points. • Use colour and shapes to help sort ideas logically.

Answer 31

• Give employees a list of random words, pictures or objects. • Employees should then create connections between the problem at hand and their item. • Employees should answer questions like “how could this item solve our problem”?

Answer 32

• Speak to an empty chair and imagine another person sitting. • Make decisions on your own. • Limited creativity since only one person’s view is really applied.

Answer 33

• Emphasise the importance of creative thinking and ensure that all staff know that management want to hear their ideas. • Encourage staff to come up with new ideas. • Make time for brainstorming sessions to generate new ideas, e.g. regular workshops • Place suggestion boxes around the workplace and keep communication channels open for new ideas.

Answer 34

• Methods of thinking that is different from traditional methods must be used • Business problems are varied in nature • Finding a solution to each problem can be very challenging • Solutions must be creative and uniquely suited to the type of problem

Answer 35

• Define clear objectives • Break objectives down into tasks • Allocating time • Monitoring each task’s progress and the completion percentage. • When delays do occur, try to get to the root of the problem.

Answer 36

• Knowledge of the history, culture and traditions of the market is essential • Indigenous knowledge refers to the knowledge and skills that people in a particular area possess, that enables them to get the most out of the environment • South Africa have a wealth of traditional knowledge that can be used when searching for business opportunities or ways to solve problems

Answer 37

Time management is the ability to manage your time effectively, so that you use the number of hours available in the day to work towards the goals that you feel are most important.

Answer 38

• To achieve balance and direction in your life, you need to set goals. • To improve self-confidence

Answer 39

• The image you present and the way you communicate, create an impression on others.

Answer 40

• Be courteous and professional on the telephone. • set up a good advertising campaign. • See everyone you meet as a potential client. • Dress for success. • Give excellent service.

Answer 41

• recognise your strengths and build on them. • Recognise your weaknesses, then use that knowledge to your advantage. • It is only when you can recognise your strengths and weaknesses that you can manage them.

Answer 42

STRENGTHS • Focus your energy on the strengths you identified and encourage them until you've reached your full potential WEAKNESSES • Divide your weaknesses into those you can and cannot change.

Answer 43

• a person’s ability to take control of their life and to deal effectively with change • In a business context it is a person’s ability to take control of his/her career and to deal effectively with change • Skills of self-management include self-reflection self-confidence stress management adaptability.

Answer 44

•short -term goals that are set by management to achieve the goals of the company. • Examples o make a profit o be productive o be sustainable o exhibit social responsibility

Answer 45

• The members of the team learn from each other and grow. • Business’s is more productive. • The performance of all team members improves because they support each other’s skills. • Teamwork encourages workers to increase their range of skills. • Gives employees more control over their jobs.

Answer 46

• The business can make sure that employees understand and believe in business objectives. • The business should listen to employees when they share ideas. • Important decisions should be taken through a process of teamwork. • Good teamwork need to be rewarded and mistakes must be viewed as opportunities to learn and grow.

Answer 47

• The chain of command refers to the line of authority which flows from the top managers to every employee. • The degree of power and authority that managers possess depend on the level of management. • Each individual plays a role in achieving business objectives.

Answer 48

prejudice discrimination equality diversity

Answer 49

PREJUDICE • The personal attitudes and prejudices of managers and other staff can result in discrimination and can erode good communication and teamwork in the workplace. • Examples of prejudices are based on gender, religion, disability, social background, appearance, race, age, sexual orientation, education. • Encourage workers to respect each other's differences. • Respond to any evidence or complaints of inappropriate behaviour. • Deal with any complaints of discrimination promptly and confidentially. DISCRIMINATION • Discrimination involves excluding or restricting members of one group from opportunities that are available to other groups. • Discrimination is based on religion, age, ethnicity, gender, disability, skin colour, or race. • Pay attention to what you don't always see. • Don't play favourites. • Keep your personal beliefs personal. • Be careful of what you say and to whom you say it. • Formalise the policy and the consequence. EQUITY • Equity in a workplace means everyone receives fair treatment. This means all people have equal access to opportunities. • An example of equity in the workplace is “equal pay for equal work” • Develop a fair, respectful, supportive and inclusive workplace. • Make judgements based on merit and fairness. • Recognise every person’s contributions DIVERSITY • A diverse workforce includes people with different characteristics. • Diversity in the workplace means inclusion of people of varying gender, age, religion, race, ethnicity, cultural background, sexual orientation, religion, languages, education, abilities, etc. • Create inclusive policies and practices. • Provide diversity training. • Facilitate effective communication. • Encourage interaction.