chapter 1 enterprise and business planning Flashcards
what is the primary sector?
primary sector is farming,supplying power we use from mining or extracting oil from the north sea
what is the secondary sector?
raw materials get produced into goods in factories via manufacturing
what is the tertiary sector?
service sector such as hairdressers and where private companies provide services such as gyms
what is an sme
small/medium enterprise employ around 14.4 million people and have a combine turnover of £1,600 billion
why do people start their own businesses?
to gain profit
to turn a hobby into job
be their own boss
made redundant
what is a need
what people require to survive
what is a want
a luxury good that is not required to survive such as holidays or designer clothes
what is an entrepreneur
someone who starts a business who is willing to take risks and receive rewards
key characteristics of an entrepreneur
innovative
risk taker
taking initiative
effective organiser
hardworking
determined and perseverance
what is a business plan
lays out aims and objectives,financial,marketing,production
marketing plan
market research needs to establish size of market and the target market
operations plan
production,equipment needed and location
human resources plan
the number of employees and the skills, experience and qualifications they require will be outlined. Any
management team will also be identified.
financial plan
- a sales forecast indicating potential revenues;
- a cash flow forecast for the first 12 months;
- a profit and loss and balance forecast for the end of the first year;
- a break even analysis.
benefits of a business plan
seeking investment
bank loans
track progress to meet aims and objectives
