Business Start-up Basics
What stage of the business life cycle involves opening a business for the first time?
What is the start-up stage?
What is the first stage of the employment cycle?
What is acquisition?
What is the difference between debt and equity finance?
Debt is borrowed money; equity is investment from owners/shareholders.
Who owns the brand in a franchise model?
What is the franchisor?
In which stage does a business typically try to expand its market share?
What is the growth stage?
Name two pathways into business ownership.
What are opening a new business and buying an existing business (or entering a franchise)?
What is the purpose of job design in the recruitment process?
To align job roles with business needs and employee satisfaction.
What is a short-term source of finance?
What is a bank overdraft or credit card?
What is the role of the franchisee?
To operate the business using the franchisor’s systems and brand.
What is the purpose of branding in market entry?
To establish a customer base and market presence.
What tool is used to analyse sociocultural, technological, economic, environmental, political, legal and ethical factors?
What is the STEEPLE analysis?
Name one emerging recruitment technique.
What is using digital platforms (e.g. LinkedIn, online job portals)?
What is the purpose of budgeting in a start-up business?
To plan and control finances and support strategic decision-making.
What is one legal requirement of starting a franchise?
What is signing a franchise agreement (or compliance with employment law)?
What does the “P” in USP stand for in USP analysis?
What is Proposition? (Unique Selling Proposition)
What are the POLC responsibilities of a manager?
What are Planning, Organising, Leading, and Controlling?
What is the purpose of induction and training for new employees?
To familiarise them with the business and develop required skills.
What are two financial objectives of a business?
What are profitability and liquidity?
Name one financial cost associated with buying a franchise.
What is an initial franchise fee or ongoing royalty payments?
What is an example of a promotional strategy using digital platforms?
What is social media advertising?
What does break-even analysis help a business determine?
What is the point at which total revenue equals total costs (no profit, no loss)?
How do human resources objectives support business goals?
By ensuring the right people are hired and retained to improve performance and productivity.
Why is solvency important for a start-up?
It determines whether the business can meet long-term financial obligations.
How can STEEPLE analysis help evaluate a franchise opportunity?
By identifying external factors that could affect success (e.g. legal changes or economic trends).
How are SWOT and USP analyses used together during market entry?
To evaluate internal operations and compare competitors’ strengths.