m16 | m17 | m18 Flashcards
What are the four critical domains in relation to business opportunity?
- man
- machine
- materials
- method
Identify the business domain described below.
It refers to the system and step by step process in the business.
Method
Should methods be consistent among all branches or should it be changed accordingly to cater each specific branch?
It should be consistent among all branches, stemming from the main branch.
Identify the business domain described below.
This pertains to the workeror laborer.
Manpower or Man
Identify the business domain described below.
Sourcing these are critical in any business endeavor as the business man would want to have the cheapest possible at the highest quality.
Materials
Identify the business domain described below.
These help automate and perform certain tasks more efficiently.
Machines
It is a pithy descriptor used in marketing campaigns to communicate the unique value proposition of a brand or its products.
Tagline
What are the steps in starting and operating a business?
- Do your research
- Make a plan
- Plan your finance
- Choose your business structure
- Pick and Register Your Business Name
- Get Licenses and Permits
- Choose Your Accounting System
- Set Up Your Business Location
- Get Your Team Ready
- Promote Your Small Business
What does USP stand for?
unique selling proposition
These are expenses incurred before the business is running.
Startup costs
Why is it important to keep records?
- Monitor the progress of your business
- Prepare your financial statements
- Identify sources of your income
- Keep track of your deductible expenses
- Help prepare your tax return
- Support items reported on your tax returns
For planning and management, these are defined as expenses you incur and assets you need before you can launch the business.
Starting costs
These are expenses or upfront costs that happen before you launch and start bringing in any revenue.
Start-up expenses
What are the two types of startup expenses?
- One-time expenses
- Ongoing expenses
Identify which type of startup expense the example below belongs to.
- permits and licenses
- logo design
- signage
- downpayment on rental fee
- brochure and business card printing
One-Time Expenses
Identify which type of startup expense the example below belongs to.
- rent
- payroll
- taxes
- legal services
- utilities
- marketing costs
Ongoing Expenses
These are costs associated with long-term assets purchased in order to start your business.
Startup assets
List the four pricing strategies that were discussed.
- marker pricing
- cost plus
- penetrative pricing
- value based pricing
Why should you separate assets and expenses?
Expenses are deductible against income, while assets are not. With this deduction, expenses reduce taxable income.
1. You save yourself some on money on taxes.
2. You avoid overstating your assets on the balance sheets.
What are the two ways to plan for startup costs?
- The traditional method: Startup worksheet
- Live-Plan method: Consolidated estimates
What is the key difference between the traditional method and live-plan method of financial planning?
(From the POV of Live-Plan method)
- The estimates start when a business starts spending rather than when it launches and starts getting revenues.
- There is no division between the launch date and pre-launch date spending.
