Starting a Business and Marketing Flashcards by Rochelle Brown

Give 2 examples of types of firms that are ‘not-for-profit’ firms

Charity or if they’re owned by the government

How well did you know this?

Not at all

Perfectly

Name 3 types of reasons people set up a business?

Financial reasons- to make a fortune
Personal reasons-wanting to be their own boss
Charitable reasons- to help others

How well did you know this?

Not at all

Perfectly

What is a social enterprise?

They seek profit to fulfil social objectives such as providing help for homeless they are also known as ‘more than profit’ organisations

How well did you know this?

Not at all

Perfectly

Name 5 qualities of an entrepreneur

The ability to think ahead

Initiative -seek business opportunities

Determination and drive

Networking skills

Leadership

Risk taking

Being able to plan carefully
Able to learn from mistakes

How well did you know this?

Not at all

Perfectly

What is a soletrader?

People who run the business alone

How well did you know this?

Not at all

Perfectly

What are the advantages and disadvantages of being a sole trader?

they’re easy to set up
you get to be your own boss
you decide what happens to the profit

You have to work long hours, no ones there to look after the business if your ill or want a holiday

Unlimited liability

How well did you know this?

Not at all

Perfectly

What is a partnership?

2-20 people run a business ?

How well did you know this?

Not at all

Perfectly

What are the advantages and disadvantages of being in a partnership?

more owners meen more ideas
more owners meen mor capital (money) put into the business

Each partner is legally responsible for what the other does
Most have unlimited liability
More owners meens more disagreements, your not the only boss

How well did you know this?

Not at all

Perfectly

What is a private limited company (ltd)

A company with several shareholders that must all agree on selling shares

How well did you know this?

Not at all

Perfectly

What are the advantages and disadvantages of being in a LTD?

They have limited liability so they can only loose their capital and dont have the risk of losing their assets

they’re more expensive to set up than some traders as they must have a Memorandum of Association (says how the business will be run and where it’s based) they must also have an Article of Association
the firm must publish its accounts each year

How well did you know this?

Not at all

Perfectly

What is a Menmorandum of Association (LTD’s must have this)

When a firm tells the world who they are and where they’re based
Private limited companies must do this

How well did you know this?

Not at all

Perfectly

What is franchising?

When someone else is given the right to sell a firms products in return for a fee

How well did you know this?

Not at all

Perfectly

What is a franchisor?

The person who owns the firm

How well did you know this?

Not at all

Perfectly

What is a franchisee?

The person selling the firms products

How well did you know this?

Not at all

Perfectly

What are the advantages and disadvantages of franchising for the franchisee

Pros: little chance of bankruptcy as the product sold is from an established firm
Because of the first advantage the firm are likely to get a bank loan
The franchisor is likely to help promote the brand
The franchisor might provide training for the franchisee

Disadvantages:
The franchisee can’t add extra products and must stick to the firms rules (limited freedom)

How well did you know this?

Not at all

Perfectly

What are the advantages and disadvantages of franchising for the franchisor

Pro: They can increase their market share ( more profit)

Con: if the franchisee has poor customer service standards , it can damage the reputation of the business

How well did you know this?

Not at all

Perfectly

What is an objective?

They are more specific measurable steps to help a company achieve their aim

They can be used to measure whether the firm has been successful or not

How well did you know this?

Not at all

Perfectly

What are the two types of targets objectives are used for and give an example of a potential objective for each of these type of targets

Numerical targets-increase profit obj:
Increasing profits by 15% by the end of the year

non-numerical targets-become ethical
Obj: only get products from a fair trade manufacturer

Name 5 aims a business owners u have for their business

To survive 
Make a profit 
To have market share & be established
To grow and expand 
Ensure customer satisfaction 
To be ethical and sustainable

Name five stakeholders

Employees 
suppliers
 the local community
customers
the government

Why are customers important to the business?

Without customers the business won’t be able to sell its products therefore the business won’t survive

How are the employees of the business important

If the employees aren’t happy and motivated the work may become unproductive and they may not give good customer service which will lead to customers not returning and not recommending the business to others they may even bad mouth the business

also if the employees are not motivated staff retention will be lower and staff may begin to leave the business

What is the business plan

A Business plan highlights what a new business plans to do and how it aims to do it

How does the business plan help when setting up a business and raising finance

Business plan will help the business calculate how much start up capital they will need.

The business plan can be used to convince banks at the business should be given a loan as it makes the business appear organised and see you might feel better but to pay back the money

If the business has a bad idea the planning and to top the owner to realise this at the early stage so I don’t waste time and money

Who does the business plan benefit?

The owner of the business and the banks that could potentially loan money to the business

What are the seven sections to the business plan?

``` Personal details aims of the company (mission statement) objectives product description production details staffing requirements finance ```

What Are some risks to the business

The health of the economy could decline like in the recession in 2009 which closed many businesses The business do not know the actions of competitors

Can a business minimise the risk of what their competitors will do

They can regularly carry out market research to make sure their products will still do you well

What are some factors that will affect where a business is that located and explain two of these

Location of suppliers- being close to their suppliers of raw materials means lower transport costs Labour supply-if the business is set up in an area of high unemployment, people are eager for jobs so wages can be lower Transport- if businesses want to trade with different countries being near to railways & seaports is good Competitors- being near to competitors mean they may be able to steal customers from similar firms vs Some businesses may want to be far away from competitors so customers are more likely to only choose their business for a particular need Communication links- Proximity to market- if the business is far from their customers transport costs will be expensive

What methods of marketing will a new/ small business use?

They could use more desk research as its cheap and gives the business access to a range of the market. It also allows them to look at past trends and predict the future Field research they could conduct: telephone surveys Questionnaires Internet research Focus groups (expensive)

Why do businesses conduct market research ?

To find out what products the customers want, and what price they're will to pay for it.

What are the two types of market research?

Field research and desk research

What are the 4 aspects of the marketing mix?

Price Place Promotion Product

What does a market driven firm do?

They carry out market research then sell a product that caters to the results of the market research

What does a product driven firm do?

Their design or invent a new product and try to send it , they usually don't do you as well as market-driven firms

What happens to the demand of a product once the price falls?

As Price falls demand rises(e.g why sales attract customers)

As Rises Rises

As supply rises, price rises

Give 3 examples of how businesses can promote their products

``` Local radio (cheaper than tv) Local newspapers Magazines Posters and Billboards Leaflets ```

What are the advantages and disadvantages of a firm promoting their products by the local radio?

They're cheaper than tv They won't reach as much people that a the tv will

What are the advantages and disadvantages of a firm promoting their products by local newspapers?

It's relatively cheap | May be overlooked by readers of newspaper

What are the advantages of a firm promoting their products by magazines?

It's a good way for the business to target a specialist market over a wide area

What are the advantages of a firm promoting their products by billboards?

They have high visual impact as they're seen daily by people; normally stay up for long periods of time

What are the advantages and disadvantages of a firm promoting their products by leaflets

They are cheap to produce and distribute; they can target specific groups. Some people find them annoying

How is the place of business sets itself up important

The firm must be in an area that is convenient for potential customers