Topics 1.11 - 1.53 Flashcards
Changing technology can
Make products and services faster, make products smaller, make products cheaper ,easier to use, safer,
Change in consumers needs are caused by
Change in fashion, change in the economy, change in the demographics, change in lifestyle, change in tech
Risk and rewards for a business
Risks: business failure, financial loss, lack of security
Reward: business success ,profit,independence
Market research purpose (4)
*customer needs
* identifying gaps in the market
*reduce risk
*make business decisions
Competitive environment have strengths and weaknesses which can include what 5 things
Price
Quality
Location
Product range
Customer service
Business aims and objectives financial and non financial
Financial:
Survival
Profit
Sales
Market share
Financial security
Non financial:
Social objectives
Satisfaction
Challenge
Independence
Control
Importance of cash to a business
To pay suppliers, overheads and employees
Prevent business failure
Cash can be a given amount used to pay off debts
Short term sources of finance (2)
Overdraft
Trade credit
Long term sources of finance (6)
Personal savings
Venture capital
Share capital
Loans
Profits
Crowd funding
Unlimited liability
Sole traders
Responsible for debts
Could lose assets
Limited liability
Private companies
Owners and business are separate
Debts are to be payed by business
Owners can only lose what they have invested
Personal belongings are safe
Advantages and disadvantages of sole trader (4) each
Advantages:
Makes all the decisions
Easy to setup
Keeps profit
Financial info kept private
Disadvantages:
Unlimited liability
Hard to raise money on ur own
Pressure
Nobody to cover you when sick or on vacation
What does a business plan identify (7)
Business idea
Business aims and objectives
Target market
Revenue forecast
Cost/profit
Cash flow
Location
What does a business plan do (2)
Minimises risk and obtains finance
How can technology be used in business (4)
E-commerce
Social media
Digital communication
Payment systems
