Starting a Business - stakeholders, objectives and more

Starting a Business - stakeholders, objectives and more

1. SET UP BECAUSE...

   • financial
   • personal
   • to help others
     • enterprise

2. AIMS

   • to survive
   • to make a profit
   • to expand

3. ENTERPRISE

   • example; charity
   • helping another business

4. SOLE TRADER

   • ADVANTAGES
     • easy to set up
     • be your own boss
     • can decide what happens to the profit
   • DISADVANTAGES
     • long hours
     • unlimited liability
       • have to sell everything you owe, if the business goes into debt

5. PARTNERSHIP

   • 2-20 PARTNERS
   • ADVANTAGES
     • more owners, more skills
     • more capital can be put into the business
   • DISADVANTAGES
     • each partner is legally responsible for what the others do
     • unlimited liablility
     • more arguements

6. Ltd

   • Limited Liabitily
   • Shares can only be sold to friends and family
   • ADVANTAGES
     • Cant lose more than the business invests
   • DISADVANTAGES
     • more expensive
     • have to publish accounts every year

7. FRANCHISES

   • example; McDonalds
   • FRANCHISING
     • other companies can use your name
   • FRANCHISORS
     • the firm selling the products = FRANCHISEE
   • ADVANTAGES
     • buying the right to use the name
     • promoting the business quicker
     • increases market share, increases size of the firm
   • DISADVANTAGES
     • only be able to sell the companies products
     • have to run the business according to the fRANCHISOR
     • poor standards = bad reputation

8. AIMS, OBJECTIVES AND BUSINESS SUCCESS

   • SURVIVE
   • PROFIT
   • MARKET SHARE
   • CUSTOMER SATISFACTION
   • OBJECTIVES
     • short term aims
     • more specific
     • need to be sustained
     • can show if the business is successful or not
       • businesses compare their objectives with performance.

9. STAKEHOLDERS

   • anyone effected by the business
     • internal
       • inside the firm
         • employees
         • owners
     • external
       • outside the firm
         • customers
         • suppliers
         • locals
   • EMLOYEES
     • want job security
       • want decent wages, good working conditions
     • want promotion prospects
   • SUPPLIERS
     • business gives them an income
     • benefit the most when objectives are about growth
   • LOCALS
     • provide good jobs
     • sponser local activities
   • CUSTOMERS
     • want high quality - low prices

10. BUSINESS PLAN

    • outline of what the business will do, and how
      • can convince banks for a loan
      • can show if this is a bad idea or not
    • 7 sections
      • personal details
      • mission statement
      • objectives
      • product description
      • product details
      • staff requirements
      • finance

11. LOCATION

    • location of raw materials (suppliers)
      • close as possible
      • lower delivery costs
    • labour supply
      • near high unemployment
    • location
      • close/near to competitors
    • GOOD COMMUNICATION
      • telephone etc