A business plan is a plan of what the business is and what type of business it is. It is an overview of the business, accessing possible risks and opportunities. Business planning is important because its the whole business, it determines whether it is successful or not, it helps organise the business. It also lets the bank to decide whether to invest or lend money to this business idea. Keys aspects in a business plan:
Background information of the desired business.
business objectives.
information about the business
how the business will compete
financial information
an analysis of the market
business idea (product idea/service)
how will they promote/market their business.
Here is a quick video clip on the importance of business planning:
Public and Private sectors contains two different types of organisations. The Public sector is owned by the government. The Private sector is owned by an individual. When a public sector company moves into the Private sector it is called 'Privatisation'
Stakeholder-are individuals and organisations that are interested in the success/failure of a business. They will be affected by and can affect the activities of a business.
Internal Stakeholders-are people within the business. eg. Employees
External Stakeholders-are people outside the business. eg. Government
Start-Up costs are the things you are going to need to get the business giong i.e. furniture, IT, stock / materials etc. These are mainly one off payments that do not come again. Running Costs are the day to day costs of running the business usually calculated in terms of monthly or annual costs. These costs will be for things like power, staffing, materials etc.
Fixed and Variable Costs Fixed costs are ones that do not vary with sales. For example, one of the fixed costs of a high street shop is the rent paid for the property. The rent is still the same whether the shop sells one item or hundreds. Variable costs are ones that vary with sales. For example, imagine that a shop buys in books for an average price of £5 each. It then sells the books for a higher price. For the shops the variable cost is £5 per unit.
Heres a quick video clip on Fixed and Variable costs:
Market Research is the process of gathering, analysing and presenting data relevant to marketing. It is important to a business when starting up because it tells them what type of product or service they should make. Market Research is measured by the volume of sales, (number of items sold) or the value of sales. Primary Research- primary research is also known as "Field" research. The data is new and has not been collected before. It can be done by someone in the business or pay another business to carry it out for them. Advantages of Field research is that you research what you want, it is also new. Disadvantages of Field research is that it is very time consuming, and it costs a great deal of money. Secondary Research- Secondary research is also known as "Desk" research. The data is collected from sources such as the internet. The data has been gathered before. Advantages of Desk research is that you don't have to find it yourself because it has already been collected. Disadvantages of Desk research is that it can be outdated and it is not always relevant to what your looking for, also it has to many sources and they could be incorrect.
Targets allow businesses to keep track of their progress. There are two types of objectives, 'general objectives' and 'effective objectives' General Objectives- Are general statements e.g."To survive" or "To make a profit"
Effective objectives- These are specific targets or are called 'SMART' targets. Specific Measurable Achievable Realistic Timed
Examples: "To make £25,000 profit in the first 6 months"
Here is a video clip of General Business Objectives:
An Entrepreneur is a person who creates their own business and is generally quite successful. Examples of successful entrepreneurs:
Alan Sugar
Bill Gates
Steve Jobs
Richard Brandson
Alan Sugar is one of the most known entrepreneurs. He has built his name on creating successful companies in the field of technology. He started his career at the age of 17, with £100 in his pocket, selling car aerials and electrical goods just out of the van he had bought. Now, his is considered to be one of the wealthiest people in the UK. Here is a short video clip of him explaining some tips of being a successful entrepreneur:
This blog is designed by David- Lee Amor Gonzalez and Haydn Yick and will help us prepare for our GCSE Business studies final exam. The blog will contain information about Unit one and Unit two topics. The will also be relevant video clips on key topics that are taken from YouTube.
