1852723
Description
Mind Map by Alice Rogers, updated more than 1 year ago
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Created by Alice Rogers
over 9 years ago
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Starting a
Business
- Why are businesses set up?
- Financial
- making a fortune, or
just a steady income
- making a fortune, or
just a steady income
- Personal
- independence, being your
own boss, difficulties finding
another job, or has an idea
to put into practice
- independence, being your
own boss, difficulties finding
another job, or has an idea
to put into practice
- Helping others
- e.g starting up
a charity
- e.g starting up
a charity
- Financial
- What are the
Aims of a
business?
- Profit
- in order to survive
- in order to survive
- Market share
- e.g to be the biggest in thier market
- e.g to be the biggest in thier market
- Quality
- e.g to have the best
quality product possible
- e.g to have the best
quality product possible
- Expanding
- e.g as quickly/much
as possible
- e.g as quickly/much
as possible
- Satisfy customers
- improve customer
service
- improve customer
service
- Limit environmental Damage
- 'Not-for-Profit'
- earn enough to cover costs,
any extra (surplus) goes back
into the business or to charity.
- earn enough to cover costs,
any extra (surplus) goes back
into the business or to charity.
- Public sector
- owned by the government
- owned by the government
- Profit
- Entrepreneurs
- someone who takes
on the risks of
enterprise activity
- reward of a successful
enterprise activity is profit
- can involve starting a new
business or expanding an
existing one
- e.g. by finding a
gap in the market
- the will usually do this by
using thier own money
as well as loans etc.
- e.g. by finding a
gap in the market
- someone who takes
on the risks of
enterprise activity
- Ownership structures
- Sole Traders
- Easy to set up
- be your own boss
- you decide what
happens with profit
- long hours
- unlimited liability
- Easy to set up
- Partnerships
- more ideas
- share ideas
- more capital goes
into the business
- each partner is legally responsible
for what the others do
- some have limited liability
- disagreements
- more ideas
- PLC's
- Limited liability
- must have memorandum
of association
- must have article
of association
- owned by shareholders
- Limited liability
- Sole Traders
- Franchises
- give other firms the
rights to sell their
products for a fee
- branded franchises
- buy the rights to trade under
the mane of the franchisor
- they pay a % of the profits
- e.g fast food industry
- buy the rights to trade under
the mane of the franchisor
- do not have much control over the business
- give other firms the
rights to sell their
products for a fee
- Aims and objectives
- survival
- Profit
- growth
- market share
- environmental
sustainability
- ethical considerations
- customer satisfaction
- objectives help them
achieve their aims
- the objectives act as
clear targets for for
firms to work towards
- businesses use the
objectives to measure
their success
- numerical targets are easier
to analyse and compare
- non-numerical targets are trickier to use
- survival
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