entreprenueurhsip Flashcards
What is an entrepreneur
A person who has an idea or recognizes a need for a product or service, they take a chance and spend money to start a successful profitable business
How can one identify a profitable business
It is essential to conduct research, find out who the target market is and there needs, analyze current available products,
List the 8 requirements for a successful profitable business
Passion, target market, product, competitive advantage, price, location, research, start-up costs
state 6 reasons why it is necessary to do research about a business idea
aids help make realistic decisions, organize thoughts, identify challenges, evaluate progress, determine profitability, convince investors
List the 7 steps on how to set up a business
find info about the business, production plan, marketing plan, financial plan, swot analysis, management plan, protection of your idea.
what are the 5 p’s of marketing
product, price, place, person, promotion
What does SWOT stand for
strength, weakness, opportunities, threats
What is a patent
provides you w sole right to produce your product
What is the benefit to product specification?
keeps standards, quality remains constant, consumers remain satisfied
What info is required for product specification?
appearance, ingredients, packaging, equipment, standardization
What does SETA stand for
Sector Education and training academy
List 4 ways that you can access money to start up a business
own savings, loan, partnership, possible investors
list 4 start up costs
registration fees, business license, deposit, purchase equipment
list 4 operational costs
rent, salaries, loan instalments, fuel
List 3 ways that ergonomics can be applied to workers work spaces
ensure there comfort, correct heights, addequate space to move,
Why is it beneficial to develop relationships between you and the supplier
Could result in business contacts
Why should you use locally produced produce
Often better quality and more easily available
What 3 things are used to attract the consume
packaging, marketing, product
List 4 ways you can make a product irrisitable
high quality, affordable, unique, relevant product
state the 7 Factors influencing efficient quality production
planning, product specs, quality control, neatness of work place, hygiene of workers, control finances, stock
List 3 things to keep in mind when setting goals
determine the product that’ll be made, find a place, calculate how much to produce
Why is it important to maintain equipment
break downs = less production = less sales = less profit
What are the 5 things to keep in mind when planning
set goals, construct a detailed plan, planning order, keep in mind possibility of mistakes, priorities
Why are specifications important
ensures consistiency
What is the benefit to quality control
ensures constant quality
What does it mean if a space is ergonomically designed
It means that it’s the most accesible and functional an area can be for its workers
List 3 finanacial records that should be kept
income, collecting of debt, savings
How can you make more profit
increase selling price or decrease production costs
impact of buying too much stock
cash flow issue, inadequate storage, stock becomes damaged
not purchasing enough stock
production reduced, less profit, cancel orders, unhappy customers
Formula for the control of finances
setting of a budget + accurate stock purchases + correctly calculated costs
State 5 reasons why stock control is important
ensures quality of ingredients, prevents production stopping, prevents waste, prevents over spending, prevents theft.
Disadvantage of high quality products
Expensive
Advantage of low quality products
Cheap
Why is it beneficial to listen to consumers needs
helps you to adopt and modify a product to best suit there needs
What does presentation influence
The perception of quality and price
Formula for quality of packaging design
target market + sp + aim of packaging
list 4 aspects of packaging that attracts the consumer
quality, neatness, attractiveness, efficiency
Function of labels
ensures quality and safety
2 examples of beneficial labels
clothing care guidlines, food labels for allergies
list three ways to use time effectively
Plan, set production schedules, ensure profit is inline w amount of time spent on it
List 5 ways that time can be used effectively
prioritize, deadlines, routine, neatness, dont postpone
why should you keep records of stock
Ensure organisation and it makes ordering easier
How can you make stock control easier
storage areas should be kept clean, neat and organized
How can you one prevent stock damage
keep areas clean and dry
What does the abbreviation FIFO stand for
First in first out
List 4 ways in which you can ensure good customer relations
- get customer feed back
- resolve problems
- be curious and patient
- be transparent
List 4 reasons why maintenance of equipment is important
- prevents production stopping
- cheaper than repair
- prevents stopping of production
- no loss of income
List 4 reasons why it’s beneficial to train staff
- makes them motivated
- less waste
- learn new skills
- satisfied
What is the definition for sustainable production
Product is produced to fulfill basic needs in a way that natural resources and the environment will be preserved for future generations
name 3 things sustainable production required
- reduce use of resources
- reduce waste
- decrease toxic by products
Name 3 ways manufacturers can be suistaable
- reduce packaging
- limit waste
- use resources sensible
Name 3 ways consumers can be suistanable
- reduce unecessary purchases
- reduce food waste
- make compost
Name 3 rules for storage
- store products in correct environment
- place products in air tight containers
- goods used most frequently should be easily reachable
name 3 rules for delivery
- package products w care
- protect products from contamination
- keep to scheduled dates/times
What are the 2 other terms for the marketing plan
marketing mix and marketing strategy
Provide a definition for marketing plan
Process that controls the flow of the product from manufacturer to consumer
Name the 5 p’s of marketing
Product, promotion, price, person, place
Name 4 ways that a product can be identified
brand name, image, label, packaging
Name 5 things that need to be included on a food label
Brand name and logo / description/ ingredients / manufacturer info/ allergens
Name 4 requirements for packaging
attractive, easy to handle, recycleable, easy to open and close
How can promotions be benficial
serves as a way to introduce a product or service to a customer in order to promote sales
what does AIDA stand for
attention, interest, desire, action
Name 4 advertising methods
Direct mail, printed media, outdoor media, electronic media
Name 3 things that make an advert effective
contains accurate info, promises are abided, unique and creative
What is a pricing strategy
The planning that goes behind what price to sell your product for
Name the 4 aims of pricing strategy
profit, market share, increase in sales, susitabnable profit
Name 3 pricing strategies
cost based, deman bases, competitive
Name 4 things to consider when searching for a manufacturing establishment
costs,infastructure, raw materials, workers
List 3 things to consider when wanting to find place tp sell from
- accesibility
- visbility
- parking
Name 2 sales methods
direct and indirect
List the employees responilities during the marketing process
- skilled/educated
- trained
- understand product
- communication skills
- ensure TM satisfied
what is a feasibility study
the ability of a business to produce products over a period of time, cover all expenses and make a profit
how can one determine sustainable profiability
by conducting financial feasibility
name 2 aims of a financial feasibility test
- determine strengths and weakneses of the business
- make objective business decisions
what is a best and worst case sale scenaio
prediction of a situation that might be encountered in the market and how it will influence the sales of the product.
what is a cash flow projection
prediction of a business finances over a period of time
3 components of cash flow
inflow, outflow, cash available
