Enterprise and business planning

• Primary sector


  • Providing the food we eat
  • Farming, supplying the power we use through mining or extracting oil from the North Sea
  • Producing raw materials during processing food, making clothes, designing and manufacturing electronics
• Entrepreneur


  For an entrepreneur who is starting a small business for the first time, it is rarely just about money-even so, earning a decent income in the form of profit will be a major focus
• Satisficing


  Decision making that aims for a satisfactory result, and not using all energies trying to maximise income
• how to identify business opportunities 


  a business opportunities occur when a markets needs exist, they also occur when a new entrepreneur wants to start and run a business, an opportunity occurs when there is a new product.
• what is a business plan


  a business plan is a plan with clear objectives for the business and how the business intends achieve theses objectives.

  it is an ongoing plan and is for future guidance.
• what is a primary sector

  provides goods that we need
• what is a secondary sector


  it provides us with massive amounts of consumer goods that we want
• what is teritary sector

  private companies that provide gyms etc
• why do people start their own business

  1. gain profit
  2. turn a hobby to a business
  3. use redundancy money
  4. be their own boss
• what is the difference between needs and wants

  needs - what people need to survive such as water

  wants- what we desire such as designer
• what is an entrepreneur 


  an entrepreneur is a person who starts and runs their own business
• key characteristics of an entrepreneur

  • risk taking
  • hard working
  • having initiative and proactiveness
  • being creative
• why are entrepreneurs important to the UK economy


  Entrepreneurs from the secondary sector, buy resources from the primary sector and they sell it to the teritory sector
• what is a marketing and operation plan

  • marketing plan - based of field and desk research, it needs to establish the size of the market and needs of the consumers
  • operations plan - where the business will be located, production of methods
• what is the human resources and financial plan

  • human resources - the number of employees with skill and qualifications they require.
  • financial plan - looks at forecasting such as cash flow, sale forecasting break even analysis
• what are the potential benefit of a business plan


  sets a clear set of instructions on how to run a business

  allows a business owner to check progress
• what are drawbacks to a business plan

  market research costs time and money

  inaccurate business planning causes failed investments