• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Different Aspects that will affect preparation for Businesses. If a new business does not inform all appropriate government bodies of its existence at an appropriate time then it may suffer because it will not be paying taxes and will even be breaking law

Extracts from this document...


Different Aspects that will affect preparation for Businesses If a new business does not inform all appropriate government bodies of its existence at an appropriate time then it may suffer because it will not be paying taxes and will even be breaking laws by simply existing. You must always register with Companies House before you start your business so you know your business is following all laws appropriately and paying VAT and Corporation Tax fully. You should also always adhere to these laws and regulations because they will help you stay legal and avoid issues that can sometimes result in court. Similarly, a business should always obtain an appropriate license for itself; otherwise it may result in your business not being able to be incorporated. If this is not allowed then you cannot run the business as a legal entity. Finally, make sure that you keep the records required by the government because these are needed by HMRC to track if you have been paying your taxes, not being fraudulent and staying legal in your expenditure. Keeping Records As stated above, keeping the appropriate records is a legal requirement for all businesses in the United Kingdom. There are many different ways of recording these and a variety must be kept. This includes: Sales Records - It is important that these businesses have to keep records of all their sales and make these as accurate as possible. ...read more.


If a company does not research its competitors it can also suffer because it may be overwhelmed by them within the starting period. Competitors may steal your customers if they are charging better, or if you have few, you may be overwhelmed with the people that want to buy your product and you cannot cater to them until it is too late. To avoid problems a business can easily go into other shops and see how they are going in the current economy, see their prices and product range. A business that has a good customer care package and build relations with customers will cause problems for new companies because customers will not want to leave the old company, especially if the new one doesn't care much about its customers. To combat this, always make sure that your company is prepared to sacrifice some of its profits in the short term in order to keep customers happy. It will probably result in the customers returning if, for example, they have a gift card. When setting prices you should always consider competitors prices and what customers are willing to pay because if you charge too much, they will not buy any products, but if you charge too little, you may end up with less profits than desired. Use break even charts to find the best way for you to break even, but do not forget to use the questionnaire to make sure your customers are willing to pay these prices. ...read more.


Businesses should always monitor and forecast cash flows so they can see what is and will happen to them in terms of capital. You should always monitor your cash flow to see any past patterns and to check that you currently are not losing money. This can help show you if your strategies are working currently. Also, you should always forecast your cash flow to prepare for the future. Forecasting can help you start building up a margin of safety before an economic recession, for example. This can sometimes mean the difference between keeping and losing your company to bankruptcy. Businesses should always set clear objectives and financial priorities to make sure that they know what to do in the coming periods. Objectives will help you direct the business and its areas, while financial priorities will also help you invest in what is vital and will benefit your company. You can also invest in certain areas of your business in order to make sure that they are performing to capacity. A key financial priority for a business looking for new products is Research and Development, who will help think of new ideas for future products. If you do not direct your capital or set clear objectives for the future then your company may not keep up with the competitive market since it will not have up to date products, the areas may not be functioning together and you may not be achieving anything since you are not aiming for it. ?? ?? ?? ?? Bryn Roberts 11L ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Business, Companies and Organisation, Activity section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Business, Companies and Organisation, Activity essays

  1. Functional Areas Report

    The major ones are listed below: * Oral communication * Video communication * Written communication * Graphical communication Each of these methods has advantages and disadvantages according to the sort of information being communicated. Oral communication Tesco always without a doubt will use oral communication at there store.

  2. Functional Areas

    They have to make sure they give reasonable budget targets. o Sales budget: to forecast the income that will be received by McDonalds from their sales. o Production Sales: to plan the number of items produced and to work out what they will cost.

  1. business aims and objectives

    I will be waiting for your replay in this matter. Therefore please let me know as soon as possible. Thank you Yours faithfully Sainsbury's questionnaire and answers Q1. Do you believe that Sainsbury's advert campaign is virtuous enough to attract customers?

  2. Business Law.

    Another problem with the limitations on bank loans is that expansion is usually only possible through ploughing the profits of the business back into it The funds can come from a number of sources: 1.

  1. Business Plan. After putting a lot of thought into what kind of business we ...

    * Water pollution because of people dumping waste. * Noise coming from factories and traffic. * Natural habitats being destroyed because of building works on premises. These can be controlled by such things as: o Special laws which unauthorized firms to pollute the environment. o Making petrol and diesel prices higher so people do not use their car as much as they normally would.

  2. IGCSE Businesses Studies Revision Notes

    tariffs - Taxes on imported products Import quota - Physical limit to the quantity of a product that can be imported Appreciation - Exchange rate increases, importing cheaper, exports expensive Depreciation - Exchange rate decreases, importing expensive, exports cheaper Higher interest rates in a country would encourage foreign banks and

  1. Aims and Objectives of businesses e.g Richards paints and Ikea

    they also have expanding ranges of paints and environment friendly coating which include low VOC and waterborne paints have greatly assisted many of our customers to reduce their emissions in line with the requirements being imposed by local authorities. (YOU WILL FIND THIS INFORMATION IN MY RICHARDS PAINTS RESEARCH FILE)

  2. Describe the Business Purposes of Four Different Businesses.

    Warburtons is a family business, now the company is headed by a relative of Thomas Warburton, Jonathan Warburton. Warburtons is the most popular bread in UK ahead of Kingsmill and Hovis. Warburtons has 24% of bread market share in UK and their product are the second best selling food and drink brand in UK.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work