Pages in this set

Page 1

Preview of page 1
Business Studies Unit 1 Introduction To A Small
Business


Businesses

¾ of all businesses in the U.K are sole traders
Businesses provide goods (bricks) or services (haircut)
Setting up a business involves spotting a business opportunity
When there are customer needs that aren't being met there is a possible business…

Page 2

Preview of page 2







Competition

Ways a business can compete:

Quality providing a better service/good
Design if your design is unique it will attract customers, however trends seem to change
a lot
After sale service Supporting customers after they have bought a product/good, this
will help build a loyal relationship
Price businesses compete on…

Page 3

Preview of page 3
Enterprise

A willingness by an individual or business to take risks, show imitative, undertake new
adventures.
Enterprise means business
Entrepreneur Skills
Hard working, realistic, risk taker, intuition, past experience, desire, contacts, confident,
creative, determined, charismatic, dynamic, understanding the market, customer focused,
assertive, initiative

Thinking Creatively

Thinking creatively is new coming…

Page 4

Preview of page 4
Why? am I setting up my own business/ will people buy my products and not my
competitors
What If? I can't get a loan from the bank/customers don't come to my business/ another
business sets up which is just like mine?

Calculated Risk

When you calculate a risk you need…

Page 5

Preview of page 5
Profit= total revenue ­ total costs

Forecasting cash flows

Cash inflows is money that comes into the business (cash from sales, loans from bank)
Cash outflows is money that is paid out of the business (wages, bills, tax, advertising)
Businesses need to keep a cash flow forecast, this will predict…

Page 6

Preview of page 6
Research into the market
Information on potential competitors
Key personnel in the business including their position and salary
The sources of finance for starting up the business
How the business will be marked
Information on suppliers and any production methods
Budgets for income and expenditure
A cash flow forecast for…

Page 7

Preview of page 7
You can only loose what you invested into the company
You have to have at least one shareholder could be owner
Your shares can only be sold to family/friends they can not be sold on the stock market
You might want to sell shares to bring in money to the…

Page 8

Preview of page 8
The next stage is to shortlist the best three candidates and interview them.

Judging on the applicants CV and interview the business chooses what they feel id the
applicant for the job.

Training
After the recruitment process a lot of businesses train the applicants for techniques,
skills and processes that…

Page 9

Preview of page 9








Stakeholders

Stakeholders any individual or group of people that have an interest in the business or
are affected by the businesses activities on how it operates.
A successful business will try to keep its stakeholders happy, here are a list of some
typical stakeholders: suppliers, workers, customers, local community, owners…

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »