Business Activity Flashcards
Business activity
What the business does to provide its customer with a product or service
Enterprise
Spotting an opportunity to provide a product of service that people are willing to buy
Entrepreneur
An individual who has the skill and knowledge to set up and run their own business and is will to take risks
An entrepreneur is…
Risk taking
Makes things happen
Driven by ideas
A visionary
Someone who spots an opportunity
Initiative
The ability to use your judgment to make decisions and do things without needing to be told what to do
Business plan
The business plan sets into how the owners/managers of a business intend to achieve its objectives. Without such a plan, a business is likely to drift
Seven sections of a business plan
- About the business
- The people running the business
- Results of market research
- Finance
- Objectives of the business
- The target market
- Competitors
Advantages of a business plan
Provides a focus on the business idea
It is essential to be able to raise finance from outside providers, such as banks
Plan provides a logical structure to thinking about the business and helps the business be more organised
The plan provides something which can be used to measure actual performance against
Reduces risk
Disadvantages of business plan
Time consuming
Plan may be poor quality or inaccurate due to lack of experience
Requires time and effort
Needs constantly updating as internal and external circumstances change
