GCSE Business Studies. Topic 1 - Starting a Business

Transcription

1 GCSE Business Studies Topic 1 - Starting a Business Name: - 1 -

2 Contents A Enterprise: what is business 3 B Finding a gap in the market 13 C Franchises 21 D Business objectives 26 E Business objectives: measuring success 33 F Business objectives: stakeholders 37 G Business plans 44 H Business risk and uncertainty 51 I Legal structure: sole trader and partnership 57 J Legal structure: limited and unlimited 63 K Locating the business

3 The majority of businesses exist to make a profit by providing things that people need and want. We all need food, drink, clothing and shelter to survive and there are businesses in place to provide us with these items. There are also products, which we may want to own but don't necessarily need them to survive. List some brand names of products below that you use regularly, and state whether they are a need or a want. Need Want - 3 -

4 Businesses are set up to provide goods and services to consumers. Using the list below match up if you feel it is a good or a service. Visit to dentist Good Dry cleaners Pencil Service Chocolate bar Stationary Insurance Extension: Describe a range of goods and services you would find in your local leisure centre

5 Some businesses exist to produce the goods and others to sell them. For example, Coca-Cola manufacture soft drinks and Tesco sell them in their supermarkets. Why do you think Coca-Cola don't sell their own products direct to customers? Tesco may also produce their own brand drinks to compete against Coca-Cola in their supermarkets, why do they do this?

6 Most people start their own business in order to make money, but what other reasons could there be for you if you launched your own enterprise? Extension: Explain why you think more people do not try and start their own business

7 Sir Richard Branson is a famous entrepreneur from the United Kingdom, having set up hundreds of different businesses. What kind of personal qualities do you think he has that have helped him to become successful? Extension: Try and name some other entrepreneurs and describe why they have been successful

8 When someone sets up a business for the first time, they are likely to need different resources to help get them started. Describe what these could be. Extension: What are the dangers of a business buying too much stock before it opens? - 8 -

9 Use the article on page 10 to help you answer the following questions. What are social enterprises? What examples of social enterprises already exist? - 9 -

10 What finance is available for social enterprises? How popular are social enterprises in the UK?

11 Social Enterprises Article A social enterprise is a business that trades for a social and/or environmental purpose. It will bring Grants are also available from various initiatives including the Big Lottery Fund, various trust and in most or all of its income through selling goods foundations, and from local authorities and or services and will reinvest any profits back into the business or other good causes. government departments. As social enterprises operate as businesses they should also be able to access finance from more traditional avenues such Social enterprises cover many different industries, as high street banks including The Co-operative ranging from Cafedirect: the UK's largest Fairtrade Bank. hot drinks company; Green-works, who take office furniture that would have been sent to the landfill Recent estimates state that there are around and offers it at a large discount to charities and 68,000 social enterprises in the UK, employing other organisations. The Big Issue, the Eden around 800,000 people and contributing at least Project and Jamie Oliver's restaurant Fifteen are 24bn to the economy. Other useful facts include: well known examples of social enterprises. People who are looking to start a social enterprise may have to raise finance. There are different ways they can do this including approaching Big Society Capital - the world's first social investment bank, which was launched in % of social enterprises are concentrated in the most deprived communities. 58% of social enterprises reported growth last year. 57% of social enterprises predicted growth next year