Entrepreneurship and Business Planning Flashcards
Three Characteristics of an entrepreneur
Risk-Taker
Shows initiative
Undertakes new Values
What is Business Activity?
Anything the organisation does to provide its customers with a product/service.
Define Enterprise…
Spotting an opportunity to provide a product/service that people are willing to buy
What are Three risks of Entrepreneurship?
Risk
Health
Strained Relationships
Two rewards of Entrepreneurship…
Finance
Self-Esteem
Outline one purpose of Business Planning…
Track Progress
Identify 4 elements of a business plan…
Aims/Objectives
Finances
Competitors
Market Research
Why is business planning good for new businesses?
Plan out finances; help them get a loan to increase capital
Two reasons why Business Planning is important
Track Progress
Set out aims/objectives
Outline one issue in a Business not making a plan…
Less likely to get a loan > No initial startup costs
What is the purpose of identifying resources needed on a business plan?
Gain more control over your outgoings and cash flow
How business plans helps them stand out against competitors….
Makes them look more professional
When would a Business plan be made?
Near the start of a business
Business Aims VS Objectives
A business aim is the overall long-term target or goal of the business, whereas business objectives are the short-term steps a business needs to take to meet its overall aims.
Benefits of setting Business Objectives
Gives the business direction (with decisions)
Focus + Motivation for employees
Measurement of success (quarterly reviews)
