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Evaluate issues that need to be considered when starting and running a business.

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Introduction

Business Enterprise Task 10 D1 Evaluate issues that need to be considered when starting and running a business. Business ownership This is one of the most important issue that needs to be considered when starting and running a business. I say this because the person who owns the business will have full control of the business; this will mean that they will get to make all the dictions about the business such as the amount of money spent on stock. Any profit made by the business goes to the owner; the owner can choose to keep the profit or to invest into the business. If the owner of the business is a sole trader then he will have unlimited liability, this means that if the business goes bankrupt the owner could lose his possessions such as house and car. Market Research This also an important issue because the business needs to find out what customers need and expert from them. Research helps the business to sell the product and find new customers. The business needs to carry out primary research this could be a questionnaires or a focus group. ...read more.

Middle

Financial plan This is important issue because the business needs financial plan to operate. Financial plan can include information such as cash flow; this is a forecast of what you think the business will sell and the amount of revenue that will create. From the cash flow you can create a break even graph; this will tell you the amount of products the business needs to sell before it breaks even. Financial plan can also include a profit and loss account, this is the actual amount of products the business has sold and the revenue it got from it. This will be helpful because it list all the expenses so the business will know what it has spend its money on. The business needs to pay income tax so having a profit and loss account that tells the business how many products it has sold and how much revenue it has made will help it. Task 11 D2 Look at all of your areas of weakness and treat, know recommend how the plan could be improved. ...read more.

Conclusion

I will also had out leaflets to customers, the weakness could be that they throw it away. I could improve this by identifying potential customer to handout leaflet to for example people I know who play basketball. I will also offer free coaching to customers, the weakness is that customers only come for the free coaching and don't join the league. I can improve this plan by only offering free coaching to customers who have already joined the league. Financial plan The threat to by business is that I am to close to my competitor; however I can compete with them by offering a better service to the customer such as free coaching. The business only accepts cash sales; I can improve this by offering the products on credit. Another weakness is that I am purchasing all the stock using cash, I can improve this by buying the stock on credit. It will also mean that I do not have to pay the supplier straight away. Another weakness is that I am buying too much stock, I can improve this by reducing the price of my products so I sell more or not buying lost of stock at once. ?? ?? ?? ?? Mohammed Ali Noor ...read more.

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