Flashcards in Chapters 4,5 & 8 Deck (22):
How can a business help small businesses?
Through business incubators which can help by giving assistance and how to run a small business
How does KPI relate to benchmarking?
A KPI is measured to see te performance in terms of effectiveness and efficiency in the business. Through KPI a business can compare theirs to other small businesses
Compare financial objectives and non financial objectives?
Financial objectives are related to making a profit in the business,
Non financial objectives are aimed to see how the moral of the staff is going, how sustainable they are etc.
Compare the difference in efficiency and effectiveness?
Efficiency is aimed to see how much a. Business can get maximum output for minimal input
Effectiveness is aimed to see how well the objectives have been achieved
2 ways a business can fail?
Insolvency and bankruptcy
3 location factors for a SBO?
Three are personal being if the store is close to home
How the traffic flow is and the parking
The demographic of the area meaning age, gender and race
Ownership types and structures??
There are three of these...
How does an accountant help a small business operator
Through financial planning, taxation and valuation
Two decisions that need to be made before commencement?
1. The location
2. The hiring of staff
3. The layout and full of the business
As before u commence u would want an idea of what goes where and how to attract people into your store
Define intellectual property
The property of mind or intellect, can be an invention trademark or original design
2 types of intellectual property
Patents- you have exclusive to the product
Trade secrets- like recipes
Two personal skills for a SBO?
Planning and marketing
Two qualities for a SBO?
Think outside the square
Two motivations behind starting a small business
To become wealthy
Fill gap in the market
Advantages of buying an existing business?
Easier to finance
Generate cash flow easier
Disadvantage to buying existing business?
Buying someone else's failure
Advantages to buying franchise?
Been tested and is successful
Low risk and failing
Disadvantage to buying franchise
Can't make it your own
Define innovation and one small business innovation
Introduction of new methods, improving upon other things
Boost introduced an innovation by the introduction of healthy smoothies
Where to go for legality of footpath trading?
Industry code of ethics?
Loca council and government
Accountant can help with all financial advice
Industry association and AI groups
A successful entrepreneur
A potential SBO should