Business BTEC

• Stakeholders are people that are intrested in the business.
• Lenders - to know if 'they will pay' the lender back
• Suppliers - to know if 'they will pay' the suppliers for their goods
• Owners and managers - to know 'what strategy to use'
• Government - to know 'how much tax' they need to pay
• Customers - to know 'what types and qaulity' of products/services they sell
• Employees - To know 'job security'
• The 4 ways to segment your target market are geographic, demographic, psychographic, behavioural
• The 5 stages of the product lie cycle are product development, introduction, growth, maturity and decline.
• 2 causes of cash flow problems is too many bills to pay at once and debtors take too long to pay you.
• 2 benefits of doing cashflow forecasts are potential problems are spotted and know when to purchase expensive items.
• 2 issues of not doing a cashflow is you may run out of money and not have enough cash to pay employees/suppliers running costs
• 2 ways to improve cashflow is by getting a bank loan and selling off inventory (current assests)
• 2 consequesnces of improving cashflow is possibly poorer quality products and possibly unhappy customers
• 2 reasons to budget: Financial planning tool and plan for emergencies
• Types of expediture are capital expenditure, labour, production, promotion and Overheads