Business Management HL

• Adding Value


  the difference between the value of outputs and value of inputs
• Land


  spaces to operate from
• Capital


  Money and machinery
• Enterprise


  the ability to creat added value effectively
• Labour


  Workers
• Primary Sector


  extracting raw material

  ex: coal, fishing, agriculture
• Secondary sector


  manufacturing raw materials into finished goods
• Teritary Sector


  providing a service to the general public
• Quaternary Sector


  knowledge based activities that share information

  ex: law firm
• Why start a business


  independence

  financial gain

  share an idea

  gain experience
• Risks of Starting a Business


  lack of finance

  marketing

  managerial inexperience

  STEEPLE
• Business Plan


  1) executive summary

  2) misson/vision statement

  3) problem and solution

  4) market

  5) SWOT analysis

  6) sources of finance