Definitions
the physical and tangible goods sold to the general public
the physical and tangible goods sold to the general public
Consumer goods
resources needed to operate and produce goods. There are 4 of these factors
Define Factors of production
a business employee who takes direct responsibility for turning an idea into a profitable new product or business venture. Intrapreneur
Intrapreneur
a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts.
a Business plan
someone who takes the financial risk of starting and managing a new venture.
Entrepreneur
Enterprise, capital, land and labor
the 4 factors of production
Be able to identify and fill a gap in the market, attract customers in innovative ways, and to promote the business as being different from others in the same market. Requires original ideas.
What it means to be innovative
overview of the business and its strategies. Executive summary
Executive summary
the physical goods used by industry to aid in the production of other goods and services, such as machines and commercial vehicles.
Define Capital goods
Why do businesses fail
Poor record-keeping
Lack of cash
Poor management skills
Innovative, Commitment and Self-Motivation, Multi-Skilled, Leadership Skills, Self-Confidence and an ability to bounce back, Risk-Taking
qualities of a successful Entrepreneurs
forces the business owner to think about the proposal
gives the owner and managers a clear plan of action to guide their actions and decisions
benefits of Benefits of a business plan
the benefit of the next most desired option which is given up.
the benefit of the next most desired option which is given up.
Opportunity cost
What is an example of adding value
Jewelry shop: a well-designed shop window display, attractive shop fittings, well-dressed and knowledgeable shop assistants, and beautiful packaging for each jewelry price greater than the extra costs involved.
Sweet manufacturer: extensive advertising of the brand of sweets to create an easily recognised name and brand identity, attractive packaging, and selling through established confectionery shops compared to widely open vending machines.
Other valid responses
Have an idea for a new business
To create a business plan
To invest some of their own savings and capital into the business
Accept the responsibility of managing the business
Accept the possible risks of failure
Relying only on a business plan can overlook the fact that it is based on predictions.The business plan must be supported by market research.
The business plan can make entrepreneurs inflexible.
This can lead to options or future profits and growth are then rejected.
the limitations of a business plan
a business with mainly social objectives that reinvests most of its profits into benefiting society rather than maximising returns to owners.
Social enterprise
Businesses identify the needs of customers
They purchase necessary resources to allow production to take place
They produce goods and services which satisfy customers’ needs, with the aim of making profit
What do businesses do
What do businesses do
An entrepreneur runs their own company. while an intrapreneur is responsible for innovating within an existing organization
the difference between Intrapreneur and entrepreneur
-Executive summary, Description of the business opportunity, Marketing sales strategy, Management team personal, Operations, Financial forecasts
Key points of a business plan