1c) Complete the following table for 6 records that a business must keep:
TASK 2
2a) Preparatory Stage:
2b) Planning Stage
2c) Implementation Stage
TASK 3
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The most suitable source of money for my business would be a bank overdraft as the interest would be lower if I made an agreement with the bank and the money could help with running costs for a few months before I broke even.
- Start-up costs:
Businesses need money to get them started. There are two basic costs associated with starting a new business, capital costs and start-up working capital.
Start-up costs for my business would be: premises, furnishings (shelving), equipment (till), security/safety equipment (fire extinguishers and burglar alarms).
- Importance of a good cash-flow:
A good cash-flow is important so that you know how much money you will spend in advance. Having one means you can plan any extra expenses and avoid getting into debt months before it would happen. If it is a wrong and invalid cash-flow then it could lead you to think that you have excess money when you don’t. This could lead you to spend more and you can get into debt.
- Importance of organizing and controlling expenses and income:
Controlling expenses and income is important otherwise your business would be chaos. Without controlling and organizing your income, money could go missing, you could be making mistakes or errors, or you might be a victim of fraud, without even knowing it. Not controlling and organizing you expenses could result in you spending more money than necessary, being in debt without knowing it, or you might be charging people a price way below the price you purchased it for originally.
- The role of HM revenue and customs:
It is a department of the Government responsible for collecting taxes and payment of some forms of support. It is responsible for direct taxes, including income and corporation, capital taxes, such as inheritance tax, and environmental taxes, such as air passenger duty. Other responsibilities are national insurance contribution, child benefit, and other forms of support.
- How you can measure the financial success of a business:
The most common way is financial worth. The more a business or person is worth; the more successful they are considered to be. Financial success is measured by using the company’s profits for the year. Future growth and profits are also used sometimes to help create a better result.
g) The financial risks you would face by starting your own business:
Some risks you may encounter when starting a business are;
Losing Money – Businesses require an investment. If the business fails this and more can be lost.
Security of Income – Employed people have the security of a wage every month. Running your own business means that you don’t have this safety. Your income is based of how good the business is going and profits. It is unlikely you’ll get a holiday or time off without losing money.
Other Financial Charges – Starting a business means that personal planning becomes difficult. For example; banks often like proof of a safe, guaranteed income when applying for a mortgage.
Survey
What sports shops do you shop in?
- Sports World (5)
- JJB (2)
- JD (3)
- Other (0)
How often do you shop there?
- More than once a week (0)
- Once a month (3)
- Once every few months (1)
- Less than once a year (6)
What sports do you do?
- Football (6)
- Tennis (1)
- Dance (1)
- Cricket (2)
- Other (0)
How often do you do these sports?
- More than once a week (7)
- Once a month (1)
- Once every few months (0)
- Less than once a year (2)
What brand do you buy?
- Nike (7)
- Addidas (2)
- Other (1)
(-) is the total people.