investigating a small business

• ethics

  moral guidelines for good behaviour
• if a business is ethical it would pay fair wages to its workers
• pressure groups

  groups of people which aim to influence government and public opinion over issues
• what are the 4 ps

  price, products, place, promotion
• what are dynamic changes

  changes in costumers taste, changes in technology, outdated goods and services
• a business is generated by having a gap in the market
• entrepreneur

  business owner
• risks


  not knowing market well, poor decision making, competition
• rewards

  financial reward, independence
• services


  non-physical
• goods


  physical
• adding value 


  branding, quality, design, convenience , USP
• Customer needs


  specific wants or needs buyers have when purchasing a product
• market research


  collecting data
• market segementation


  location, demographics, lifestyle, income, age
• a market map is used when a business wants to decide on what marget segment to target
• competitive enviroment
• businesses can compete on

  price, quality, location, product range , customer service
• aims are long term
• objective is long term]
• financial aims


  survival, sales, financial security, market share
• non-financial aims 


  social objective, personal satisification
• smart stands for specific, measurable, achievable, realistic, timely
• difference between cash and profit

  cash is record of when a bsuinesses cash flows and outflows are due, profit is total revenue
• overdraft


  when the bank allows a business to withdraw more money
• trade credit


  when a business receives goods from a supplier immediately but agrees to pay for them later
• personal savings


  the owners own money
• retained profit


  profit made and kept from previous trading years