starting a business Flashcards
(76 cards)
what is an enterprise ?
a profit seeking business that exists to achieve social objectives
what is an entrepreneur ?
someone that sets up a business in hope of a profit
positives of sole traders ?
- easy to set up
- your youre own boss
- take all the profit
negatives of sole traders ?
- work long hours
- unlimited liability
positive of partnerships ?
- more orders means more ideas and specailised skills
- shared workloads
- more capital
negatives of partnerships ?
- legally responsible for what the other partner does
- unlimited liability
- can be disagreements
positives of a private limited company ?
- limited liability
negatives of private limited company ?
- expensive to set up
- legal information is not kept quiet
2 documents private limited companies have to fill out ?
- memorandum of association ( who and where they are based)
- article of association ( how the business will be run )
pros of franchises ?
- less risk of the business failing
- wider market
- they might be given training or help on things lime staff management
cons of franchises ?
- cant create your own products
- has to run business according to franchises rules so freedom is limited.
7 goals a business might have ?
- survival
- profit
- growth
- market share
- enviroment sustainability
- ethical considerations
- customer satisfaction
how are objectives different to aims ?
objectives ten to be more short term and are more measurable
2 different types of stakeholders ?
- internal
- external
what is a business plan ?
is an outline of what a new business will do and how it aims to do it
7 sections of a business plan ?
personal details missions statement objectives product description production details staffing requirements finance
what can affect a good business plan ?
- the economy at the time
- actions of the competitors
location of production factors ?
location of raw materials labour supply transport economies of concentrations communication links location of market goverment policies
4 Ps in marketing ?
product - that people will want to buy
price - that customers think of good value for money
promotion - so that potential customers are aware
place - coventiant for customers
what is a gap in the market ?
there is a group of customers thats needs arent being met.
what does market research do ?
finds out want the customers wants and what price they are willing to pay
what is field/primary research ?
carrying out your own research and work
examples of primary research?
questionaires, telephone surveys, customer/supplier feedback, and focused groups
what is desk/secondary research ?
looking at other peoples work and research