BUSS1 Bible

BUSS 1
Entrepreneurs are people who:
Take a calculated risk
Passionate and has belief in enterprise
Good planning and leadership skills.
Can identify good opportunities
Responds to market conditions
Understands that the early days can be tough


Bad entrepreneurs:
Lazy
Take uncalculated risk
No trust or investment
Ignore risk
Rush…

Reduces he barriers to investment for small businesses
Improves support for small business such as business link
Promotes a change in the UK's enterprise culture.


As business productivity and demand increase and therefore the costs decreases proportionally, the extra money is spent on:
Expanding the business
Lowering price
Increase the…

Price of competitor
Customer loyalty
Quality
Product availability
Economic climate
Other purchases from the customer


A business can forecast cost and revenue by:
Looking at previous sales data
Market research
Loyalty programmes
Forecast cost and revenue (cash flow forecast)
Break even chart


Business success:
Profit
Customer loyalty
Reputation
Business growth…

Primary Businesses:
Farming/Mining
Factories and food producers will by their product.
Limited contact with the final customer.
Low importance of brand image but product quality.
Almost impossible to identify brands in this industry e.g. carrots.
Industry has to be where the raw materials can grow/be found.
Secondary Businesses:
Manufacture
Car…

Shares are sold publicly when £50,000 has already been sold in shares.
They make lots of money by selling shares.
The business is not owned by the management therefore they are not in complete control.
At risk from hostile takeover.


Interdependence is the relationship between the 3 sectors and understanding…

Cannot account for demand.
A company plans for:
Marketing
Objectives
Organisation
Finance


Non-Profit Organisation (NPO):
Run as a business but all of the profit is reinvested into the business.
NGOs: act away from the government to benefit those of society.
Charity: set up to support a cause that is beneficial…