Sac 2 Flashcards
Define equity
Funds by owners, for commence + build
Define triple bottom line
Economic, environmental and social performance
Franchise
Buying, rights, to distribute, products under name
Define sole propiertership
Owned 1 person, unlimited liability
Define partnership
Uncompensated legal structure, min 2 max 20
What are the 4 ps of marketing
Product
Price
Promotion
Place
Why is the 4 ps used by small businesses
To reach target market
Business explanation of name combat 4 fitness
Combat = strength , self defence Fitness= for target market, everyone wants to be fit 4= 4 martial arts studied
Define target market
Specific group, demographic of people, intends sell to
3 objectives of combat 4 fitness triple bottom line
Environmental, fund charity of choice
Economically, create jobs
Environmentally, recycle trash
Ownership of combat 4 fitness
Legal structure of sole trader, one person and unlimited liability
Product of the marketing mix
Essential because source of income, must be produced high standard
Must compliment demand + needs of target market
Price marketing mix
Cost, determine impression
Too high lose sales
Too low, cheap and nasty
Promotion marketing mix
Advertising aspect. Tech forces assists, social media
Place
Distribution, provides product where customer easy access.
Strategies for product
Must meet demand, target market, produce sales and earn income
Strategy for price
Affordable, not too cheap. Must satisfy customer
2 financial performance indicators
Profit, debt
2 non financial performance indicators
Customer satisfaction, employee satisfaction
Benefits of developing a business plan
Viability Proactive rather than reactive Attention on goals and objectives Indicates commitment Identifies strengths and weaknesses
Strategic goals def eg
Long term 3-5
Expand business, second store
Tactical goals def eg
Medium term 1-2 years
Increase market share by 2%
Operational goals def and eg
Short term goals -12 months
Increase profit by 5%
Establishment costs def eg
Costs involved in setting up a business
Installation, nothing p/w eg
Operating costs def eg
Involved in ordinary day to day running of the business
Bills and wages
