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Our Business Ideas Mr.Poole Business Studies
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Business Studies
An Integrated Approach to Book-Keeping
Mr.Poole Business Studies
Starting a Business
• Pick a business idea (idea generation)• Brainstorm in groups of two/three
Mr.Poole Business Studies
Our Business Ideas
Mr.Poole Business Studies
Business Name
Business names should be:• Short• Easy to remember• Relevant• Free of copyright
How to choose a name:• Brainstorm• Internet• Yellow Pages
Mr.Poole Business Studies
Design a Logo
• A logo identifies your business
• It should be:– attractive– eye-catching– simple
• Examples:
Mr.Poole Business Studies
Research
• Why is research important?• Where can you find information?• List ways you can conduct research?
Mr.Poole Business Studies
Finance
• What is capital?• How can you raise capital?– Savings– Loans– Grants– Other ideas....
• List your local financial institutions and agencies that provide grants to start-up businesses
Mr.Poole Business Studies
Assets and Liabilities• What is an asset?
• What assets would the following businesses have?– Supermarket– Farm– Garage
• What is a liability?
• What liabilities would the following have?– Supermarket– Farm– Garage
Overdue
Mr.Poole Business Studies
Keeping Records
• Why do businesses keep records?• What records should we keep?– Records of daily transactions– Final accounts for the end of year
Mr.Poole Business Studies
Balance Sheet• Shows a picture of the assets and liabilities of
a business on the last day of the trading year• Total assets should always equal total
liabilities• If we invest €300,000 in our business and
lodge it to the bank, our balance sheet would look like this:
Balance Sheet as at 31/12/xx €ASSETS
Bank 300,000
LIABILITIES
Capital 300,000Mr.Poole Business Studies
Business Transactions
• All business transactions must be recorded• List five transactions that your start-up
business may have, e.g. purchasing the premises by cheque
Mr.Poole Business Studies
Purchasing Stock
• We need goods to sell in the business• Goods which we buy to sell are known as
“stock”• Stock in our business will be an asset• Stock is bought at cost price and sold at a
higher price• What type of stock will your business need?
Mr.Poole Business Studies
Business Documents
• It is important to shop around for the best value for money when buying stock
• Stages involved:– Send a letter of enquiry to several suppliers– A quotation will be sent to you by each supplier– Compare the quotations– Send an order to the supplier who best suits your
needs – Goods will be delivered and an invoice will be sent to
you
Mr.Poole Business Studies
Marketing Mix
• Product– e.g. iPod touch
• Price– e.g. €229
• Place– e.g. Music stores,
Amazon.com, Apple Store
• Promotion– e.g. TV & Magazines
adverts, merchandising, special offers
What is the Marketing Mix for your product?
Mr.Poole Business Studies
Methods of Promoting Your Product
• Personal Selling– “one-to-one” communication with the customer
• Sales Promotion– e.g. 2 for 1, 50% extra free, coupons
• Advertising– e.g. TV, radio, internet, newspaper, magazine
• Public Relations– e.g. Sponsorship
Mr.Poole Business Studies
Selling Stock
• A combination of promotion methods can be used to maximise sales
• What methods of promotion will your business use?
• Design an advert that could be used either as a brochure or inserted in print media– A good advert should attract attention, achieve
interest, create desire and result in action
Mr.Poole Business Studies
Profit
• Profit is the difference between the cost price and the selling price of a product
• If the product is sold below cost price, the business makes a loss
• Gross Profit/Gross Loss is calculated in the Trading Account
• Net Profit/Net Loss is calculated in the Profit and Loss Account
Mr.Poole Business Studies
Finally...
• At the end of the year, a business will have to present the following to its shareholders: – Trading, Profit and Loss Account– Balance Sheet– Annual Report
Mr.Poole Business Studies