Entrepreneurship Flashcards
(78 cards)
1
Q
What is an entrepreneur?
A
A person who identifies a want or need in a community and creates a business opportunity from it
2
Q
Factors to consider when identifying a business that will work for you.
A
- Your time availability
- Your financial position
- Your own capabilities
- Your personal interests
- Is there a need for your product
- Infrastructure, appliances, equipment needed
- Your business skills
3
Q
What is a profitable business
A
A business that generates earnings
4
Q
What should be in your concept statement (Formulation of the idea) for your idea?
A
- A description of the product
- Explanation of the benefits
- How it differs from other products
- Info regarding sell; to who. where, how much
- Order telephonically or online
- Credibility of product
- Packaging info
5
Q
What does it mean to standardise a recipe
A
A carefully tested recipe used to ensure the end result is always the same.
6
Q
How would you standardise a recipe? (Product Specification)
A
- Use exact quantity of ingredients, cooking time and temp
- Exact yield, portion size and quantity
- Should be appealing and tasty
- Write down the method in detail
- End result must be exact same
7
Q
Which human skills do you need in order to run a business?
A
- Financial skills
- People skills
- Technical skills
- Ability to motivate self and others
8
Q
Workflow plan for a food product?
A
- Storage Space - Prep area - Cooking area - Packing area - Storage before selling
9
Q
What should be available in food product workplace?
A
- Lighting
- Ventilation
- Correct surfaces
- Fire safety
- Utensils
10
Q
What are the first, second and third areas for needlework?
A
First - Receiving and storing materials
Second - Cut items go to production area
Third - Packing Area
11
Q
What should be available in needlework workplace?
A
- Lighting (Focused lighting - affects quality)
- Ventilation (Stuffy room - spoils mood)
12
Q
Workflow plan for needlework
A
- Storage space - Cutting space - Sewing space - Packaging and labelling area - Storage be selling
13
Q
Which factors are important for the availability of raw materials?
A
- Maintaining a good relation with the supplier
- Making sure fruit are in season
- Buying good quality materials
- Planting your own trees - more effort but cost effective
- Easily available
14
Q
How do you appeal to your customers?
A
- Good value for money
- Do not copy existing product (Be different but not too different)
- Be trendy
- Recipe/patterns standardised
- Adjust packaging to customers needs
- Deliver when needed
15
Q
What does short-term planning involve?
A
- Determining how many products will be available within a given time frame
- Drafting a work plan
16
Q
What is a work plan and what is another name for it?
A
- A document consisting of the tasks that need to be done and the goals that need to be achieved
- Implementation plan
17
Q
What does long-term planning involve?
A
- How often equipment should be serviced.
- How and when will you improve production facilities
- When you will be expanding your product line (Variations)
18
Q
Benefits of adhering to product specifications?
A
- Products will be high quality
19
Q
What is quality a measure of?
A
A measure of excellence
20
Q
What is a quality product free from?
A
Defects and signification variation - satisfies customer requirements
21
Q
What is quality control?
A
A way of making sure the quality of a product is maintained
22
Q
What are the four stages of quality control?
A
- Quality of raw materials
- Production process
- Finished product
- Packaging and labelling
23
Q
How do you keep a workplace tidy?
A
- Be organised
- Keep workspace tidy/ free from clutter
- Do not allow pets
- Keep house pest-free
- Minimise the risk of cross-contamination
- Clean and sanitise kitchen regularly
24
Q
What is cross-contamination?
A
Indirect bacterial contamination caused by infected raw food or non-food products
25
What is hygiene?
Conditions that serve to promote health and prevent illness
26
Guidelines to ensure hygiene in the workplace
- Wear clean clothes
- Wash hands
- Cover a wound
- Don't chew gum/smoke/cough/sneeze around food
- Pull hair away from face
- Don't wear jewellry
27
How should you ensure an adequate control of finances?
- Know how to collect, keep track of, save or invest money wisely.
- Have a sound bookkeeping foundation
- Accurately record day to day sales
28
What should your record system include?
- Income and expenses
- bank statements
- bank reconciliations
- Insurance
- Record of equipment
29
What is the aim of stock control?
To minimise the cost of storage
30
What is overstocking and what are the disadvantages of it?
Overstocking is having too much stock. Products may become damaged, obsolete or get stolen
31
What is stock-out and what are the disadvantages of it?
Stock-out is running out of stock. You may have to order more stuck which can cause a delay and damage the businesses reputation.
32
What is an effective way to keep track of your stock?
FIFO - first in, first out
33
Give 3 ways to manage stock control of consumables.
Choose suppliers carefully, do not buy too much at a time, buy only what you will use immediately
34
How to manage stock control of equipment?
- Record in stock control book
- Check regularly to detect broken and missing equipment
- Keep storage areas or organised and tidy
- Equipment kept clean
- Spare part available
35
What is a target market?
A group of people with common needs and interests
36
How should food be packaged?
In a way that is informative and attractive (Visual representation)
37
How to purchase raw materials properly?
- Choose suppliers carefully
- Supermarkets with a high turnover
- JIT principle
- Buy what you need
38
What are the 4 types of dates on packaging?
- sell-by date; Store has to remove product from shelves
- Best before date; highest quality before date
- Expiry date; last day food should be eaten
- Packed-on date; Day of packaging
39
Why should packaging be appealing?
- It affects the customers willingness to buy
40
What should be considered for packaging?
- Cost of packaging
41
What are the requirements for packaging materials?
- Suitable size and shape for the protection of the product
- Must protect from UV rays and dust
- Must be kept clean, fresh and safe
- Be convenient for distribution
- Must be appealing and attractive
42
How would you ensure proper storage procedures?
- High level of cleanliness
- Stored in desirable conditions
- Minimise food being handled
- Temperature control
- Do not leave ingredients in car
43
What is the danger zone?
Temperate range in which bacteria grows
44
What is the HACCP?
Hazard Analysis Critical Control Points ; look at every stage of production and identify hazards
45
What are the 7 safety procedures you should follow?
- Protective clothing ; Prevent from contaminating food
- Preparation ; Hands washed before handling food
- Serving Food ; suitable containers & correct temps
- Storage ; Cool foods promptly
- Wrap all food before selling ; High-risk foods at safe temp
- Selling - Wash hands after handling money
46
6 things that should be on your labels?
- Name of product
- Weight
- List of ingredients
- Date of manufacture
- List of allergens
- Your address, name and contact information
47
Name 5 strategies to manage time effectively
- Prioritise tasks ; set performance target
- Establish routines
- Set time limits for each task
- Stay organised and tidy
- Do not postpone tasks
48
How do you ensure good customer service?
- Giving the customer what they need/want
- Giving clear info on product
- Dealing and resolving complaints immediately
- Writing down enquiries or complaints for the future
- Returning calls
49
What does routine maintenance ensure?
It prevents unexpected breakdowns during production and ensures continuous flow
50
Name 6 delivery strategies
- Ensure the food is protected from contamination
- Hazardous food kept cold or hot
- Vehicle must be clean
- Journey planned properly and kept short
- Package food so it doesn't get damaged
51
What is sustainable production? (supply)
Production of goods to satisfy consumer needs without harming the environment (Manufacturing industry, transport, energy)
52
What is sustainable consumption? (Demand)
Goods and services used to meet basic needs of consumers without harming the environment (Lifestyle)
53
What is a carbon footprint and what is it a measure of?
Quantity of greenhouse gases left behind by an individual ; It is a measure of the impact our activities have on the environment
54
What is the primary and secondary footprint?
PF - direct omissions of CO2
| SF - Indirect omissions of CO2
55
What is renewable energy?
Energy sources that can be used indefinitely without being used up
56
What is non-renewable energy?
Limited supply of energy sources
57
What are biodegradable products?
Can be broken down by micro-organisms and absorbed into the ecosystem
58
What are the responsibilities of producers?
- Stop making unnecessary goods
- Process must have minimal effect on the environment
- Reduce waste and use recycled materials
- Reduce food waste
- Use solar energy in shop
- Manufacture eco-friendly products
- Become environmentally friendly
59
What are the responsibilities of consumers?
- Reduce waste
- Recycle
- Transport
- Buy wisely
- Eat properly
- Electricity and water usage
- Eat properly
- Leisure activities
- General
60
What is a green product
Energy saving product or system
61
What do green products do?
- Less impact on the environment
- Made partly from recycled materials
- Less impact on human health
- Energy efficient
- Less packaging
62
What is a marketing strategy?
Plans businesses use to help guide them when marketing and selling a product
63
What are the 5Ps?
- Product
- Place
- People
- Promotion
- Pricing
64
How can you identify a product?
- Trade name; slogan
- Image
- Labels
- Packaging
65
What is sales promotion?
Increasing the awareness and visibility of a product
66
What is advertising?
Any suitable method a business uses to inform the public about its product
67
Give 5 objectives of advertising (GPECM)
- Generating customer interest
- Persuading customers to buy your product
- Expanding the market to new customers
- Creating awareness about the product
- Maintaining sales
68
Describe pricing strategies
A method businesses use to price their products
69
What are the 4 basic approaches for pricing strategy? Explain.
- Premium Pricing ; Pricing products above average price
- Value-for-money pricing ; Standard product that will not be much higher or lower price than competitors
- Undercut pricing ; Being cheapest in the market and generating high-turnover
- Market skimming ; Setting a high price for a high-end/exclusive product
70
Which factors determine pricing strategy?
- New product;Low price as a promotional offer
- Lower price in times of over-availibility
- Increase prices when demand is high and supply is low
- Keep prices in line with customers expectations
- Change or revamp product if not doing well
71
Things to consider for place
- Place of production (Perishable foods)
- Point of sale
- Sell directly or make use of middleman (retailer)
- Delivered when and where its wanted
72
How can you evaluate a target market?
- Wants and needs should be easily definable
- Reachable by advertisement
- Should be able to reach point of sale
- Should be large enough to make a profit
- Relatively stable to ensure sustainability of business
73
Define a financial feasibility
A study of whether a business will be successful after taking into consideration the total costs and revenue
74
What is a sustainable profitability?
A businesses ability to maintain a steady level of production and sales without exhausting available cash
75
What are start-up needs? - Working from home and Renting
Home - Infrastructure; Appliances; Equipment; Facilities; Stock
Rent - Premises; Labour; Vehicle; Cash register
76
What are the production costs for home + renting?
Home - Administrative costs, Material costs, Labour, Electricity, Delivery costs
Rent - Rent, Electricity and water, Administrative costs, Cleaning costs, Labour
77
What is the mark-up?
The amount added to the cost price of goods to cover overheads and profit
78
Formula for calculating mark-up?
% mark-up x actual cost/ 100
