What is Start up Cost?
What is Running costs?
COSTS OCCURING MONTHLY
What is fixed costs?
COSTS THAT SO NOT CHANGE.
MONTHLY DIRECT DEBITS FOR UTILITIES
What are variable costs?
COSTS THAT CAN INCREASE WITH ACTIVITY LEVELS.
Caluclating costs - variable
variable costs= cost of unit x number of units produced
What is total cost? and how to work it out.
FIXED COSTS ADD VARIABLE COSTS
What is revenue?
Whats going into the business slaes, stock,adverts etc
How to calculate revenue?
REVENUE = SALES X UNIT PRICE
Types of expenditure
What is overheads?
Everyday running costs
What is profit and loss?
What is made and lost in business.
PROFIT= REVENUE - EXPENSES
Break even charts
A break even chart will tell you how many units are to be produced and sold before the business can make money.
What is budget control?
TO CHECK THAT PERFORMANCE IS ON PLAN.
BALANCING WHAT IS GOING INTO AN ACCOUNT AND WHATIS GOING OUT.
IMPORTANT BECAUSE CASH BUYERS PAY STRAIGHT AWAY BUT CREDIT TRANSACTIONS MEANS THE BUYER CAN PAY USUALLY IN 30 DAYS.
CAHS BALANCE WILL FLUCTUATE YOU NEED TO TIME YOUR INVOICES, REDUCE STOCK AT RELEVANT TIMES, UP CASH SALES ETC.
What is gross profit?
THE MONEY MADE FROM SELLING AN ITEMS AFTER PRODUCE COST.
What is a financial statement?
A STATEMENT SHOWING ASSETS, LIABILITIES,SUPPLIERS,STAKEHOLDERS,CUSTOMERS, AND BANK MANAGER.
What is marketing and why is it important?
UNDERSTANDING WHAT CUSTOMER WANTS
IDENTIFY TARGET MARKET
BEST SELLING PRODUCTS
CAN PROMOTE THE BUSINESS
How do businesses use marketing?
TO BOOST SALES
PROMOTE NEW BRANDS
TO BE COMPETITIVE
CHECK OUT COMPETITORS
What is SMART objectives?
What is B2B and B2C?
B2C BUSINESS TO CONSUMER
B2B BUSINESS TO BUSINESS MARKET
Types of Markets
What is a Business Model?
It sthe way a business makes MONEY and ADDS VALUE to the business
What is Branding?
BRANDING = COLOUR,LOGO,IMAGES,NAME,SYMBOL
STANDS OUT FROM ITS COMPETITOR
MAY HAVE CELEBRITY ENDORSEMENT
BENEFIT FROM REPEAT PURCHASES
CAN CHARGE A HIGHER PRICE
STAND OUT/CAN BE SEEN EASILY
What is market research and why do it?
TO GATHER INFORMATION ABOUT BUSINESS AND CUSTOMERS. TO SEE A GAP IN MARKET, BENEFIT FROM OPPORTUNITY.
INFORMATIVE SECONDARY DATA
QUALITIVE DATA VIEWS AND OPINIONS OF PEOPLE
What is PESTLE analysis?
P - POLITICAL
E - ECONOMIC
S - SOCIAL
T - TECHNOLGICAL
L - LEGAL
E - ENVIRONMENTAL
What is marketing mix?
A combination of the following to help sell products
P - product
P - place
P - price
P - promotion
USP - Unique selling point
Develop,Introduction,growth,maturity and decline.
What is extension strategy? extend the life of a product.
What is a Product Portfolio?
A range of products produced.
Why analyse them? to check they are selling and to see if the products needs development.
A method to charge for the product.
Mark up pricing
Elasticity of demand.
the price increases and decreases by the demad of the product.
THE METHOD OF GETTING PRODUCT TO CONSUMER
Place - Location
NEAR TO SUPPLIERS
GOOD TRANSPORT LINKS
AVAILABILITY OF LABOUR
Viral marketing and guerilla advertising
Social media - facebook, UTube,Twitter
Guerilla - Flash mob can lead to free publicity.
E Business and E-Commerce
Selling products online and offering customer service.
All linked by technology
24 hours a day
instant and prompt