3.9
Define business model.
The way in which the business will run its operations to generate a profit
Name three individuals a business owner can go to for legal and financial advice.
Solicitors, accountants and bank managers.
What does SWOT refer to?
Strengths, Weaknesses, Opportunities and Threats
Any group or individual who has an interest in, or is affected by, the activities of a business.
Define incorporated.
A business that has a separate legal existence apart from its owner/s.
Name two types of online business models.
Advertising-based business
Freemium
Brokerage
Merchant
Identify three types of assistance from community-based services such as BEC Australia and SBCV.
Information, mentoring, training programs, workshops and seminars, referrals to accountants, solicitors and government programs, and access to networks of other business people.
What is market research?
Collection and analysis of data and information to assist the business in its understanding of potential customers and competitors.
What will customers do if they don't agree with a business's impact on the wider community?
Boycott.
List the factors affecting choice of location.
Visibility
Cost
Proximity to customers and suppliers
Proximity to competitors
Complementary businesses
What is bricks and clicks?
The business model that offers customers the choice of online shopping as well as shopping at the physical store.
Name two different types of formal private networks.
Chambers of commerce
VCCI
Small Business Association of Australia and New Zealand
Trade associations
Define business plan.
It is a written statement of the goals and objectives for a business, and the steps to be taken to achieve them.
Provide two examples of way a business owner can be socially responsible towards their staff.
Fair pay
Safe and healthy working conditions
Employing disadvantaged groups
Describe two advantages of the company form of business ownership.
Easier to attract public finance.
Limited liability.
Perpetual succession.
Growth potential
Experienced management
Give two advantages of an import business model.
Provide goods to customers that are not readily available locally.
Provide the prospective business owner with the opportunity to grow and further expand their business.
What are the elements of of a business plan?
Executive Summary
Operations Plan
Financial Plan
Marketing Plan
What happens if staff morale is taken care of?
More productive workplace and greater employee retention.
Identify two sources of short-term borrowing and two sources of long-term borrowing.
Bank overdraft, bank bills and trade credit.
Loan and leasing.
Describe two disadvantages of franchising.
Unable to make independent decisions.
Franchisee has to share profit with the franchisor.
Name an advantage of having a business mentor.
Provide invaluable advice and strategies to the small business owner on a variety of issues
Name two benefits of a business plan.
Helps tests the business' viability.
Forces the business owner to justify his actions and plans.
Identifies a business' strengths and weaknesses.
Indicates the owner's commitment to the business.
Assists the business to be proactive rather than reactive.
Assists in maintaining the business' operations.
Describe the importance of an environment audit.
Help the owner to assess the nature and extent of the business’s impact on the environment and how it can be managed.
Demonstrate accountability to stakeholders, such as shareholders, customers, the government and the community.
There is a high risk and a measure of uncertainty.
Without a previous business reputation, it may prove difficult to secure finance.
Time is needed to develop a customer base, employ staff and develop lines of credit from suppliers.
If the start-up period is slow, then profits may not be generated for some time.