Enterprise and business Planning Flashcards
What does business come the private sector give us
food from farming, power through mining or oil extraction
What does enterprise in the secondary sector provide us with
Consumer goods from manufacturing
What does enterprise from the tertiary (services) sector provide us with
Gyms, financial advice, fleets of trucks or buses
Sumerise business sector in Uk
1 almost 5 million businesses employing 4 million
2 of which 3.3 million are sole traders
3 approx 500,000 partnerships
4 1.2 million ltd companies
5 small and medium enterprises employ 14.4 million with a turnover of 1.6 billion
Give reasons why people start their own businesses
1 gain profit
2 turn a hobby into a business
3 own boss
4 use redundancy- as little chance of finding a job
What is satisficing
making decisions that aim for a satisfactory result but not using up all their energy to maximise income
Why do politicians refer to small businesses as lifeblood of uk economy
1According to department of business and skills 99% of businesses are defined as small
2 this 99% is responsible for 47% of all private sector employment
3 am 1/3 of all turnover created in UK
What are needs and wants
Needs - what you require to exist - food, warmth, shelter, healthcare , clothes, education
Wants - what is desired- big TVs, holidays, new cars
Why do needs and wants change
because fashions and lifestyles change, incomes increase and population changes
What is an entrepreneur
someone who starts and runs their own business
Why are entrepreneurs valued by governments
1 they create wealth in the economy
2 many are innovators who bring new ideas to market and drive development of new technologies
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What are the characteristics of an entrepreneur
1 risk taker - capital , leave jobs
2 proactive/ take initiative
3 effective organiser
4creative and innovative
5 hard working
6 determined and have perseverance
When does a potential business opportunity occur
When a market need exists preferably one not yet targeted - entrepreneur needs to find a product not already available or one that can be improved
What is the purpose of a business plan
1 describe the idea
2 make clear the aims and objectives of a business
3 detail how they will be achieved
4 describe how finance will be achieved
What forms can objectives take
They can be financial - sales
Marketing
Or production
What is a market plan
A desk and field research to establish
1 s ize of market
3, needs of customer and 4 level of competition
What is an operations plan
includes details of
1 where business will be located
2 production methods
3 equipment needed
4 cost of production
5 where supplies are bought
What is Human Resources plan
1 number of employees
2 skills experience and qualifications needed
3 outlined management teams
What are financial plans
A variety of forecasts
1 sales forecasts indicating potential revenue
2 cash flow forecasts for first 12 months
3 profit and loss balance forecast for end of 1st year
4 break even analysis
5 details of where finance will come from for starting up
What are the benefits of a business plan
1 gives owner clear set of instructions on how to run the business
2 owner can check progress against objectives and take action when not achieved
3 needed for potential investors or when seeking finance from banks
What are the draw backs of a business plan
1 market research costs time and money resources may be better spent else where
2 questionable how reliable the market research data is
3inaccurate business plans with unachievable objectives lead to failed investments
