BUSS1 - topic tracker

BUSS1 - Enterprise and Entrepreneurs.

Characteristics; determination/persistence ability to spot opportunties motivation to succeed  willingness to take risks

Opportunity Cost;      "The next best alternative    foregone."

Governmental Support; give grants or funds to new business start-ups reduce business costs

Motives for starting a business; more freedom at work to provide employment for the local area to make money

Risks and Rewards;    "Taking risks can be a profitable venture" lack of finance skills shortages poor infrastructure 'red tape' - regulations and legislation which limits what a business can do and which may add to the business costs.

BUSS1 - Generating and Protecting Business Ideas

Sources of Business Ideas; spotting trends identifying niche market copying ideas from other countries  taking a scientific approach

Franchising - is when the owner of a business (franchisor) grants a licence to another person or business (franchisee) to use their business idea.

Benefits of being a franchise; less amount of start-up risk usually have established brand names financing the business will be a lot easier lower advertising and promotional costs relationships with suppliers already established support and training

Possible pitfalls of being a franchise; franchisor may not have researched the business costs may be higher than expected ongoing royalties may have to be paid to the franchisor other franchisees may give the brand a bad reputation restrictions on how the business should be run required to sign non-competition clauses

Protecting a business idea; Copyright - legal protection against compying for authors, composers and artists Patent - an official document granting the holder the right to be the only producer of a newly invented product Trademark - sign, logo, symbol, or words displayed on a company's products or on its advertising

BUSS1 - Transformation Resources into Goods and Services

Inputs; Land - all the natural resources that can be used for production, including land itself, but also natural and mineral resources (e.g. oil) and animals (e.g. cows, fish)  Labour - both the physical and mental effort involved in production Capital - goods that are made in order to produce other goods and services (e.g. factories, machinery, lorries)  Enterprise - bringing together the factors of production to create goods and services.

Outputs;  Primary Industries - Natural resources Secondary Industries - Manufactured goods Tertiary Industries - Services

Adding Value - "the process of increasing the worth of resources by modifying them.added value = sales revenue - the costs of the bought-in materials, components and services

BUSS1 - Assessing Business Start-ups

Risks and causes of business failure; Finance - raising funds, problems with cash flow, uncertainty about costs Marketing - deciding on the product, forecasting demand, deciding on the target market, conducting market research, deciding on price, advertising and promotion Operations - finding suitable premises, deciding on location and production methods, identifying reliable sources of supply, new technology Personnel and the organisation - decision on recruitment, providing training, decisions on most effective organisational structure, quality of management and skills needed External factors - complying with regulations, impact of micro-economic policies, the competitive environment in which the business operates Personal problems - suitability for self-employment, providing cover for illness, opportunity cost of the business start-up

Issues to consider; the business objectives product or service being provided and whether its profitable customers' needs target market segment possibility of competition appropriate pricing and selling strategy finances any risks involved who will be involved/doing what

Questions to consider; Is there anything special about the product that would appeal to consumers? Could the product compete successfully with similar products on the market? 

Problems when business has been running a while; unexpected changes in demand for the product or service unexpected changes in costs delays and unavailability of supplies

Enterprise & Entrpreneurs

Generating & Protecting Business Ideas

Transformation Resources into Goods and Services

Assessing Business Start-ups