PRINCIPLES IN CREATING A BUSINESS Flashcards
Principles in Creating a Business
- Scalability
- Big Ideas
- Systems
- Sustainability
- Growth
- Vision
- Purpose
- Autonomy
- Profitability
- Standards
A business must be scalable for it to be successful. ___________ is the capability of a company to sustain or improve its performance in terms of profitability or efficiency when its sales volume increases
Scalability
A business is no more effective than the idea upon which it is built. Business creates its own plan to expand its economic growth.
Big Ideas
A business is a system in which all parts contribute to the success or failure of the whole. In this _________, everything must work together from employee to president; from equipment to resources.
Systems
A business must be dynamic- able to thrive through all economic conditions, in all markets, providing meaningful highly differentiated results to all of its customers. Such differentiation is the key to survival
Sustainability
___________ is essential in business. Without continued __________, operations will stagnate. This can result in lowered standards of quality for products or services, decreased customer service, and poor employee morale.
Growth
A business must manifest the higher purpose upon which it was seeded, the __________ it was meant to exemplify, the mission it was intended to fulfil.
Vision
A business is the fruit of a Higher Aim in the mind of the person who conceived it.
Purpose
A business is not part of the owner’s life, but is, in fact, its own entity
Autonomy
A business is an economic entity, driving an economic reality, creating an economic certainty for the communities in which it thrives.
Profitability
A business creates a ___________ against which all businesses are measured as either successful, or not. All small businesses should aim to thrive beyond the standards that formerly existed.
Standards
Tools, tips and techniques in Evaluating a Business
- Use technology to speed up workflow
- Shorter meetings fuel efficiency
- Smart office space pays
- Advetisement
- Small changes, big savings
- Keep a firm grip on cash flow
- Stay connected on the move
- Use time more efficiently
- Get the best deal on insurance
- Don’t be lax with the legal
Businesses should be looking to innovations in technology to solve day-to-day inconveniences and to increase efficiency.
Use technology to speed up workflow
Hold a brief meeting standing up, every morning, where each person explains what they are going to work on that day to ensure everyone is on the right track and not wasting time on non-urgent tasks.
Shorter meetings fuel efficiency
Office space can involve a big outlay for SMEs, but it is also an area where some smarter thinking can make a real difference.
Smart office space pays
Advertising keeps your business top of mind so consumers think of it when they require or need a service or product.
Advertisement
One way of improving efficiency is for business owners to make small changes to the way they handle their company’s expenses.
Small changes, big savings
“Cash is King not profit”. Ensure the right management of your inflow and outflow of cash.
Keep a firm grip on cash flow
The growing trend towards mobile and flexible working means that employees are permanently connected and on the go.
Stay connected on the move
Being more efficient is more about being than doing. It’s probably 90% mindset, (Allan, 2013). In addition, “The shorter the amount of time you allow yourself, the more you will get done”.
Use time more efficiently
Businesses need insurance because it helps cover the costs associated with property damage and liability claims.
Get the best deal on insurance
In the hectic process of starting up a business, the founders often put off sorting out the legal matters until later, or not at all.
Don’t be lax with the legal
Industry rivalry among companies of the same or related industry is an inevitable part of the business world of any business size. Intense competition leads to reduced profit potential for companies in the same industry. Businesses seek constantly competitive advantage
COMPETITION AND COMPETITORS
COMPETITIVE ADVANTAGE
- Is what sets your business apart from your competition.
- Highlights the benefits a customer receives when they do business with you.
- It could be your products, service, reputation, or even your location
4 CATEGORIES OF COMPETITIVE ADVANTAGE
- Cost Leadership
- Differentiation
- Defensive Strategies
- Alliances
an advantage occurs when business is able to offers same products at a lower price.
Cost Leadership
Find attributes that is important and set them apart from their competitors.
Differentiation
used a ____________ to distance themselves from competitors
Defensive Strategies
advantage of seeking strategic alliance with other within related or within businesses.
Alliances
– Individuals or companies who desires to possess or make use of products and services. They play a huge role in the success of your business. _________ likewise can force down prices, demand higher quality or more service, and play competitors off against each other—all at the expense of industry profits.
CUSTOMERS
Provide inputs that the firms in an industry need to create the goods and services that they in turn sell to their buyers. _______ can exert bargaining power on participants in an industry by raising prices or reducing the quality of purchased goods and services. A business may need one or more ________. It is important to develop __________ who are reliable in terms of quality of what they supply and their dependability in coming up with the things you order from them.
SUPPLIERS
Goods/services that can be used in place for another. These goods may, even if partly, satisfy the same needs of a consumer such that the consumer may use one for instead for another.
SUBSTITUTES
TYPES OF INDUSTRIES
A business that earns most or all of its revenues from agriculture. An agribusiness tends to be large scale operations and deals with farming, processing and manufacturing, packaging and distributing agricultural products.
Agribusiness
LIST OF AGRIBUSINESS IN THE PHILIPPINES
Processed fruits and vegetable
Seaweeds
Tropical fruit purees and juices
Fresh tropical fruits
Sugar
Bio ethanol and others
TYPES OF INDUSTRIES
The process of converting raw materials, components, or parts into finished goods that meet a customer’s expectations or specifications. There are many laws and regulations that govern the manufacturing industry. The business will be require to conform to all the licensing bodies may it be the government or the local authority’s requirements.
MANUFACTURING
Some of the best small manufacturing businesses that can be carried out at your residence are:
- Furniture Making
- Drinking Water Business
- Soap Manufacturing business
- Commercial Bread Making
TYPES OF INDUSTRIES
Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit and usually it’s done directly to its final consumer. Retailing includes subordinated services, such as delivery. The term “retailer” is also applied where a service provider services the small orders of a large number of individuals. Recently, online retailing, a type of electronic commerce used for business – to – consumer (B2C) transactions and mail order, are forms of non – shop retailing.
Retail and Services
TYPES OF RETAIL PRODUCTS
- Food Products
- Hard goods or durable goods
- Soft goods or consumables
- Arts
TYPES OF RETAIL PRODUCTS
typically require cold storage facilities
Food products
TYPES OF RETAIL PRODUCTS
these are automobiles, appliances, electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that do not quickly wear out and provide utility over time.
Hard goods or durable goods
TYPES OF RETAIL PRODUCTS
clothing, other fabrics, footwear, cosmetics, medicines and stationery. Goods that are consumed after one use or have limited period (typically under three years) in which you may use them.
Soft goods or consumables
– Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies for them. On the other hand, The typical service business provides intangible products, such as accounting, banking, consulting, cleaning, landscaping, education, insurance, treatment, and transportation services.
Arts
TYPES OF INDUSTRIES
is the exchange of capital, goods, and services across international borders or territories, significant share of gross domestic product (GDP).
International Trade
CLASSIFICATION OF INDUSTRY
Primary
Secondary
Tertiary
Quaternary
Quinary
CLASSIFICATION OF INDUSTRY
Working with or extraction of raw materials/natural resources
Primary
CLASSIFICATION OF INDUSTRY
Making or converting raw materials into usable products through processing and manufacturing
Secondary
CLASSIFICATION OF INDUSTRY
Service industries or providing essential services and support to allow other levels of industry to function.
Tertiary
CLASSIFICATION OF INDUSTRY
Dramatic growth of this new sector. Working with creation and transfer of information (ICT, media sharing) including research and development. As well as knowledge based services like consultation
Quaternary
CLASSIFICATION OF INDUSTRY
Control the industrial and government decision-making processes includes industry executives and management and bureaucrats and elected officials in government.
Quinary
CLASSIFICATION OF INDUSTRY
e.g. minig activities, fishing forestry and agriculture
Primary
CLASSIFICATION OF INDUSTRY
e.g. car manufacturing, bakeries
Secondary
CLASSIFICATION OF INDUSTRY
transportation, finance, utilities, retail, housing, banking, and other services
Tertiary
CLASSIFICATION OF INDUSTRY
ICT industries, R & D industries-eg. Synergy, Lexmark R & D, STRAND
Quatenary
CLASSIFICATION OF INDUSTRY
Eg. Government Owned Controlled Corporation Executive
Quinary
