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Mid Term Flashcards

(59 cards)

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1
Q

Small Business: 2

A

Independently owned organization that exists to make a profit for its owners

Measured as having fewer then 500 employees

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2
Q

Entrepreneur: 2

A

Someone who risks money to make a profit

All business owners, free lancers, and self-employed people

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3
Q

Employability skills: 5

A

Oral and written communications

Mathematics

Time management

Team work

Computer literacy

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4
Q

Entrepreneur skills:3

A

Financial planning – understand cash flow

Sales/negotiation - relationship building

People management – recruit, train, motivate

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5
Q

Entrepreneur Personal demands: 3

A

50hrs/week (average)

Takes 3-5 years to establish

Family issues

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6
Q

What is a business plan: 3

A

Checklist- keeping you and the process organized

Communicates plan- to lenders, investors, partners

Makes it real- motivator

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7
Q

Length and format of business plan: 3

A

10-100 pages

Divided into 5 sections

Lots of proof reading, clearly labelled diagrams and correct calculations

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8
Q

The different kinds of business plans: 5

A

Basic plan- used for startups

Buying an existing business

Buying a franchise

Taking over family business

Renewal of business

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9
Q

Section one of business plan: 6

A

Concept and summary

Executive summary

Describes what business is selling

Customers it will have

Why there is an opportunity for the business now

Why the owners are the right people for the business

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10
Q

Executive summary-purpose, key elements and importance : 3

A

Purpose –concise overview of business

Key elements: business name, location, services, mission statement

Importance- captures the essence of business for potential investors/ partners

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11
Q

Section 2 of the business plan: 6

A

Feasibility- how do you know it will work

Market analysis

General location/working from home

Market potential

Competition

Estimating future sales

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12
Q

Market analysis- purpose, key elements and importance:3

A

Purpose- understanding your industry, competitors and target market

Key elements- market trends, target customer demographics and competitor analysis

Importance- helps in positioning your business effectively in market

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13
Q

Section 3 of the business plan: 7

A

Marketing- how will you get customers

Services offered

Marketing and sales strategy

Service and product strategies

Negotiation

Advertising

Selling process

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14
Q

Services offered- purpose, key elements and importance:

A

Purpose- detailing the services you will provide

Key elements- service descriptions, pricing strategy, unique selling points

Importance- defines what sets your services apart from competitors

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15
Q

Marketing and sales strategy- purpose, key elements, importance: 3

A

Purpose- outlining how you will attract and retain customers

Key elements- marketing channels (social media, email), sales tactics, promotional strategies

Importance:
Essential for driving business growth and building customer loyalty

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16
Q

Section 4 of business plan: 7

A

Operations- how you will organize work

Operational plan

Management and organization

Floor plans

Policies and procedures

Functions and management

Industry associations

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17
Q

Operational Plan- purpose, key elements, importance:

A

Purpose- describing day-to-day operations of business

Key elements- location, equipment, staff, suppliers, business hours

Importance- ensures smooth running and efficiency

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18
Q

Operations and organization- purpose, key elements, importance:

A

Purpose- outlining business organizational structure

Key elements- business ownership, management team roles, staff responsibilities

Importance- clarifies roles and responsibilities, ensuring effective management

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19
Q

Section 5 of business plan: 6

A

Finances- how will I manage money

Financial planning

Financial statements

Making a profit

Break even points

Cash flow planning

Sources of financing

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20
Q

Financial planning- purpose, key elements, importance:

A

Purpose- providing financial roadmap

Key elements- startup costs, revenue projections, profit/loss forecast, cash flow analysis

Importance- critical for managing finances and attracting funding

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21
Q

Feasibility: 6

A

Selecting a location for business – how important it is for success

Identify advantages and disadvantages

Competition

Estimating sales

Business insurance

Theft protection

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22
Q

Location: 2

A

Genral geographic area business can be found

Neighborhoods, municipality, region, county

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23
Q

Site: 2

A

Specific place where business is conducted

Particular block, address, suite, part of a building

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24
Q

Main considerations of location: 3

Study These Flashcards
A

Closeness to customers
Transportation
Suppliers

25
Site issues/main considerations: 4
Traffic Visibility Parking Neighboring business
26
Home based business: 3
Site of business is, owners car, cell phone, basement etc. Decision to work from home depends on what your selling and to whom Business plan should explain decision- why it's best for business, customers- not just convenience
27
Leasing premises: 3
Basic rent Maintenance and other expenses Length if lease leasehold improvements
28
Basic rent: 2
Minimum rent charged by landlord May be charged percentage of sales, maintenance fees and other expenses
29
Maintenance and other expenses: 4
On top of utilities, paying property owner for expenses Gardening Garbage pick-up Snow removal
30
Length of lease: 2
Length you want lease to run More doubt with short lease
31
Leasehold approvements: 4
Renovation Modifications New fixtures Etc
32
Calculating base rent example:
sold for amount $ per square ft. need to know years worth 1000 square ft for $12/square 1000x12= $12 000/year $12 000/12months= $1000/month base rent
33
Direct Competition: 2
Provides similar products and services Pursuing same potential clients
34
Indirect competition: 2
Alternative for customer to satisfy needs Where else customer may be able to get products and services offered
35
How to learn about competition: 3
Experience- work for one Primary research Secondary research
36
Primary research:4
Gathering information from original source Interview Observe Questionnaire
37
Secondary research: 1
Using information that has already been gathered and published
38
Market Potential: 2
How much money a group of potential customers will spend on particular product/service How much business is out there and how many of them will be consumers
39
Sales forecast:4
An estimate if how much money a business will bring in over a given period How much you can expect an how much is coming in How much are the expenses How much is left over
40
sources to find market potential: 6
Government and municipal statistics Business publications Trade magazines Primary research Populations of province, region Amount of sales across province
41
How to calculate potential sales $ in region: 6 and example (sales forecast)
Region population divided by province population = percent of population Sales in province x region pop. percent = sales in region Wont have market of full percent - Figure out amount of population that is your target Target market divided by region population = % of market Total sales in region x % of market= potential sales in market Consider if you will receive full market, what percent of potential market you aim for in the first year 34 000 (chatham) / 3 300 000 (ON) = 1% $275 000 000 x 1% = $2 750 000 Target- women age 30-55: 6000 in chatham 6000/ 34 000= 0.18% 2 750 000 x 0.18%+ $495 000
42
Marketing Definition: 3
Process of selecting groups of potential customers Identifying their needs Developing strategy to satisfy those needs
43
Projected image: 1
Impressions of business created by the minds of potential customers by everything you do
44
Expected image: 1
impressions carried by potential customers of what business should be like
45
Cognitive dissonance: 1
Psychological discomfort felt when trying to hold two opposing ideas in mind
46
Naming the business:
Get attention Easy to remember Projects image you want
47
Business cards: 7
Extension of brand Creates image Contact info Marketing tool Promotions – stamping Appointment reminders QR code
48
Service menu: 7
Matches image portrayed Logo and colour scheme Easy to read Service names and descriptions Pricing Timing for each service Clean and organized
49
Marketing strategies: 4
Product/service strategy - different than competitors Pricing strategy - cheaper Distribution strategy – how you give/distribute product/service Promotion Strategy – to inform customers deals, packages, ads etc.
50
Promotion Strategy needs: 4
Grab attention- ask question, solve problem Project right image Action- drop by today, please call Measure- activity, sales, purpose of ad
51
Publicity: 2
Promotion by spreading information about your company, product or service Without paying for space or time
52
Sales promotion: 3
Technique to get customers to buy Don’t fit other discreet categories Give aways, coupons , 2 for 1, events, tradeshows, displays, free samples
53
Combinations and amount of service: 3
Specialization- more is not better, be the best at less Keep it simple Easier to add something new then stop providing- customer loss
54
decision of which product line to use: 3
Check list of what you are looking for in line Features can be used for marketing- vegan/cruelty free Ingredients, packaging, price, popularity, locally made, etc.
55
Setting Cost of service/products : 2
How much product used for service Sizes and price of professional product used in service
56
Formulation to find prices of product used in facial:
Price of whole product divided by mL in full product = price/ mL $30.75/250mL = 0.12= 12 cents/mL Estimate how much is used per service- mL $0.12x 2mL used= 24 cents Add all the prices of mL used = $7.99 Supplies and equipment used are taken into consideration for price along with esthetician time
57
3 basic strategies for price setting:3
Price lower than the competition Price higher than competition Price same as competition
58
Penetration Pricing:1
so much of it that the price is reasonable – fast food
59
Price skimming: 1
Expensive due to lack of availability Water at concerts

Spa Business (2 decks)

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