key business paper 1🎀

• aims 


  states the overall purpose for the business. The long term goal
• objectives 


  specific, measureable targets to help meet the aims of the business
• 4financial aims for a start up 


  survival

  breakeven

  profit

  market share
• improved brand image leads to increase in sales therefore a increase in profit margins so the business has a increased likelihood of survival
• i believe one financial aim could be to break even,This leads to a first perhaps setting an objective to decrease expenses. Therefore we may see efforts to reduce cost of sales by negotiating prices with the supplier
• 2 non financial aims 


  reducing carbon footprint

  independence and control
• i believe one non financial aim could be a social objective to benefit the environment. This leads to a firm perhaps setting an objective to reduce their carbon footprint. This leads to them reducing their use of plastics when creating their products
• purpose of setting objectives 


  direction

  focus for employees

  allows planning

  measurement of success
• running costs 


  day to day costs
• fixed costs 


  does not change
• variable costs


  does change
• fixed costs 


  rent

  morgage

  salaries
• variable costs 


  wages

  utility bills

  petrol

  cost of sales
• total costs= adding all fixed costs and variable costs together
• enterprise 


  the ideas involved in starting a new business
• entrepreneur 


  person who owns and runs their own business and takes risks
• enterprise

  initial idea
• enterprise 


  another words for business
• enterprise skills


  risk taking
• what happens when you think creatively?


  improved products

  new opportunities

  improved customer service

  unique ideas and products
• deliberate creativity 


  creation of new ideas through recognised and accepted techniques
• examples of deliberate creativity 


  creating lists

  mind mapping

  combining thing together
• blue skies thinking 


  coming up with as many ideas as possible to solve a problem
• lateral thinking 


  thinking different key to find new and unexpected ideas
• why do entrepreneurs ask questions?


  helps make decisions

  identifies objectives

  identifies problems
• examples of question entrepreneurs ask 


  why do i want to start a business?

  how will i research my market?

  where shall i locate myself ?

  what if there is to much competition?
• research development➡️invention➡️

  potential products ➡️innovation➡️

  products ready to be sold
• risks of invention and innovation 


  expensive

  time consuming

  many fail to make it to the market
• how to protect business ideas

  patents

  copywright

  trademarkers