P.O.B

• Choosing a Business Location


  • Entrepreneur needs to identify the most suitable location or locations for their business
  • Many factors will affect the choice of location, including the cost and availability of land or premises
  • Chosen location will minimize total production costs while maximizing business advantages (such as the ability to attract sales and skilled labor)
• Factors affecting business location

  • Ease of access to customers
  • Source of materials
  • Key suppliers
• Geographical Setting


  The choice of area may depend on the type of business or product and its position in relation to transport facilities and other infrastructure, and proximity to customers
• Geographical Setting

  • Farming requires large areas of rural land to grow crops or rear animals
  • Locations in urban areas would clearly not be very suitable for large-scale agriculture production
• Availability of Raw Materials and Supplies


  Businesses tend to locate near to sources of raw materials or key suppliers especially if the materials they need are heavy, perishable or bulky and are needed frequently
• Availability of Raw Materials and Supplies


  • In the past, many industries developed close to the suppliers of their raw materials, such as timber, mining, coal fire power stations, food processing etc.
• Access to Roads, Ports and other Infrastructure

  Safe, efficient and reliable transportation is vital for employees to get to and from their places of employment easily, and for businesses to deliver goods to customers in reasonable time frames
• Access to Power and Water Supplies

  Many businesses require a reliable supply of power and water, as their equipment, machinery and factory plants highly depend on this to drive their business operations
• Access to Telecommunications

  Many businesses need to communicate regularly with their customers, suppliers and employees who may be based in different locations, even in other countries, and may market and sell their products online
• Access to a Supply of Suitable Labor


  As a business grows, it will need access to labor, and setting up in a densely populated area or area of high unemployment may be more suitable, as well as considering the market wage rate
• Access to Health Facilities


  Fast, free or low-cost access to modern healthcare facilities and providers may be a consideration for some businesses, especially those that use potentially dangerous equipment, hazardous materials or are engaged in high-risk activities
• Government Assistance and Regulations


  A government may offer tax incentives, grants or subsidies to business organizations to locate in areas of high unemployment, but planning laws and building regulations may restrict business location and activities in some areas
• Regulations for the Establishment and Conduct of Businesses


  1. Entrepreneur must apply to the minister of small businesses who is charged with checking and approving their application

  2. Certain business operations must be duly registered with the Registrar of Companies and in some cases with government departments

  3. A Certificate of Registration is issued which must be appropriately displayed in the place of business

  4. All businesses must be value added or consumption tax-registered
• Government Regulations


  Legal rules or standards that businesses must comply with locally, nationally or internationally, used by governments to ensure businesses do not produce harmful goods or mislead customers, protect investors and employees, and prevent damage to the environment
• Areas of business conduct regulated by governments

  • Opening hours
  • Animal welfare
  • Advertising, product safety and labelling
  • Health and safety in the workplace
  • The collection and payment of taxes
  • The publication of business accounts
  • The disposal of waste and other pollutants
  • Employment contracts
  • Planning and building requirements
  • Business licenses and trading standards
• Local government agencies

  • Trinidad and Tobago Bureau of Standards
  • Consumer Affairs Division
  • Environmental Management Authority
• Contract

  A voluntary but legally binding agreement between two or more parties
• Contract

  • Can be written, verbal or implied
  • Sets out what each party agreed to do or provide to the other party or parties
  • If either party fails to do or provide what they have promised, the other party or parties can take legal action against them to recover any losses
• Business Contracts

  • Employment contracts with employees
  • Contracts with customers to supply them with goods or services
  • Warranty agreements to repair or replace
  • Purchase contracts with suppliers
  • Loan agreements with banks or other lenders
  • Contracts for insurance with insurance providers
  • Rental agreements with the owners of the business premises
  • Partnership agreements with other business partners
• Characteristics of a Contract

  • Offer
  • Consideration
  • Intention to create legal relations
  • Acceptance
  • Competence
• Offer


  An indication of a person's willingness to enter into a contract on the terms that he/she has put forward
• Offeror


  The person or organization making the offer
• Offeree


  The person or organization to whom the offer is being made
• Express offer

  Verbal or written offer
• Implied offer


  Offer made through the conduct or gestures of the person or business representative
• Means of termination of offer

  • Rejection by the offeree
  • Death of either party
  • Insanity of either party
  • Destruction of a key element required for performance of the contract
  • Counter offer
  • Expiration of the specified time
  • Revocation of the offer
• Acceptance


  When the offeree agrees to the offer, thereby committing themselves to the contract
• Consideration


  What is being done/ given (or not being done) as a benefit/item of exchange in the contract
• Intention to create legal relations


  The parties entering into a contract must be willing to accept the consequences of failing to fulfil their legal obligations under their contracts
• Competence of parties


  Individuals entering into a contract must have legal capacity or competence, meaning they must be able to understand the agreement and the consequences of their actions
• Minors


  People under the age of 18 years
• Minors are allowed to enter into simple contracts if they are purchasing necessities – food, clothing, transportation, school items etc.
• Invitation to treat

  An announcement of willingness to enter into negotiations, not an offer that can be accepted to form a contract
• Examples of invitation to treat

  • A catalogue or price list
  • A display of goods for sale with prices
  • Advertisement of goods for sale generally
  • An offer to the public asking them to subscribe for shares in the company
  • Tender
  • Auction
• Simple Contracts


  Simple agreements between two parties, which may be verbal, written or implied by the conduct or actions of the parties involved
• Specialty Contracts


  More complex and formal written agreements, also known as deeds or contracts under a seal
• Requirements for Specialty Contracts

  • Sign the contract to accept its terms and conditions
  • Seal the contract
  • Deliver the contract to the parties involved so that each one has an identical copy of it
• Examples of Specialty Contracts

  • Deed of mortgage
  • Sale of land
  • Insurance
• Functional Areas of a Business

  • Production
  • Marketing
  • Finance & Accounts
  • Personnel/ Human Resources
  • Research & Development
  • Information Technology
• Production

  • Procuring raw materials
  • Converting raw materials to finished goods
  • Maintaining factory equipment
  • Developing quality control measures for the company's product
  • Developing production budgets and cost estimates to pass unto the finance department
  • Maintaining production records
  • Maintaining an effective inventory system
  • Warehousing finished goods