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BS Unit 1.1: Starting a Business Cheat Sheet by

Business Studies cheat sheet for GCSE

Topic 1.1: Starting A Business - Defini­tions

Business
an organi­sation or system where goods and services are exchanged for one another or for money
Entrep­reneur
a person(s) who sets up their own business
Enterp­ris­e/Firm
a business or a company
Social Enterprise
an activity that achieves a reward for society
Gap In The Market
an unmet customer need or a group of potential customers who are not yet purchasing a good or service
Market
the way buyers and sellers are brought together
Mass Market
a large market; a produc­t/s­ervice aimed at a wide range of people
Niche Market
a small, specia­lised market; a produc­t/s­ervice aimed at a small group of people
Franchise
when one business (see Franc­hisor) gives another person or business (see Franc­hisee) the right to trade using its name to sell its products or provide its services
Franchisor
the company that allows an individual (see Franc­hisee) to run a location of their (the franch­isor’s) business
Franchisee
someone who buys and runs a location of a franchise
Stakeh­older
anyone who has an interest (or stake) in a business
Primary Stakeh­older
essential to the success or failure of the business (e.g.: customers)
Secondary Stakeh­older
feel they are involved in the organi­sat­ion’s future (e.g.: pressure groups)
Internal Stakeh­older
people who’re already committed to serving your organi­sation (e.g.: board members)
External Stakeh­older
indivi­duals or groups from outside that’re affected by the conseq­uences and outcomes of an organi­sat­ion’s decisions (e.g.: suppliers)
Sole Trader
a person who is the only owner of a business, entitled to keep all profits after tax has been paid but liable for all losses (unlimited liability)
Partne­rship
a legal form of business operation between two or more indivi­duals who share management and profits
Private Limited Company (Ltd)
can only have between 2 – 50 members; shares are sold privately among family­/fr­ien­ds/­col­lea­gue­s/etc
Public Limited Company (Plc)
has shares that can be publicly traded on a stock market
Dividend
the share of the profit that shareh­olders get from a company
E-Commerce
the buying and selling of goods and services over the Internet; also for advert­ising
Website
a location connected to the Internet that maintains web pages
 

Advantages Of Franch­ising

Lower risk option
Already establ­ished
Recognised brand
National advert­ising and promotion
Tried and tested

Disadv­antages Of Franch­ising

Set up and running costs can be high
Damage to brand reputation
Reliant on others
Less indepe­ndence in decision making
Shared profit

Unlimited Liability

Respon­sible for all debts
Must pay off debts using own money
May have to sell house/car in order to pay debts off

Limited Liability

Means that investors can only lose money they've invested and no more
Cannot lose their personal posses­sions if the business goes into liquid­ation
Owners only lose the money they invested in the business
 

Things To Think About When Moving Locations

Labour costs
Availa­bility of land
Labour skills
Financial help
Close to custom­ers­/market
History and tradition
Transport links

The Internet Factor

opport­unity to compete with large companies
sell products in online and mail-order services
upsurge forcing businesses to sell online as well

Objectives

Survival
Profit
Growth (including employees)
Increase market share
Break even
Brand awaren­ess­/re­cog­nition
Popularity
       

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