Unit 3: Building a Business

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Brand: A named product that consumers can see as being different from other products and which they can associate and identify with.

Branded Products: 

  • Consumers are more willing to trial products in the brand range
  • Brands encourage customer loyalty
  • Consumers trust brands, leading to repeat purchases
  • Brands can often charge premium prices
  • Consumers have greater awareness of brands
  • Brands can lead to increased sales and markets share
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How to Improve Cash Flow

Cash Flow: the movement of money into and out of the business

Cash Inflows Comes from

  • customers who buy their products
  • interest in bank accounts
  • renting out of factory units 

Cash Outflows Comes from:

  • wages paid to workers
  • raw materials
  • admin - heating, insurance 
  • taxes - VAT, income tax
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cash inflow

Financial management: deliberately changing monetary variables like cash flows to achieve financial objectives such as improved cash flows

Changing cash inflow

Increasing sales revenues:

  • Usually most desired way to improve cash inflow
  • Sales revenue - average product price x quantity sold


  • Make a one-off reduction in stocks of finsihed products
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