The purpose of business activity and enterprise
Spotting an opportunity, developing an idea for a business, satisfying the needs of customers
Written by Sarah Hilton for Revisionstation
Characteristics of an entrepreneur
Creativity, risk taking, determination and confidence
The concept of risk and reward
Revisionstation Edexcel GCSE Business 1.1.1 The Dynamic nature of business V2Revisionstation
Edexcel GCSE Business 1.1.1 The Dynamic nature of business V2.pptx
Why new business ideas come about:
Changes in technology
Changes in what consumers want
Products and services becoming obsolete
How new business ideas come about:
Original ideas
Adapting existing products/services/ideas
This is part of a complete set of teaching resources from Revisionstation which are available to buy on the site now.
This slide describes the aspects of products and services in the Philippine Setting. This slideshow describes branding in terms of the use of Products and Services.
Revisionstation Edexcel GCSE Business 1.1.1 The Dynamic nature of business V2Revisionstation
Edexcel GCSE Business 1.1.1 The Dynamic nature of business V2.pptx
Why new business ideas come about:
Changes in technology
Changes in what consumers want
Products and services becoming obsolete
How new business ideas come about:
Original ideas
Adapting existing products/services/ideas
This is part of a complete set of teaching resources from Revisionstation which are available to buy on the site now.
This slide describes the aspects of products and services in the Philippine Setting. This slideshow describes branding in terms of the use of Products and Services.
Revisionstation AQA GCSE Business 3.1.1 The purpose of business PowerPointRevisionstation
AQA GCSE Business Unit 3.1.1 The purpose and nature of business
This PowerPoint covers these topics:
understand what a business is and the reasons for starting a business (including producing goods, supplying services, distributing products, fulfilling a business opportunity and providing a good or service to benefit others)
understand the difference between goods and services, needs and wants
understand the meaning of factors of production – land, labour, capital, enterprise
define opportunity cost
define the three sectors of primary, secondary and tertiary and give examples of types of business that operate in each sector
understand the term enterprise and what is meant by an entrepreneur
outline the characteristics of an entrepreneur, such as hard working, innovative, organised and willingness to take a risk
outline the objectives of an entrepreneur, including to be their own boss, flexible working hours, to pursue an interest, earn more money, identify a gap in the market and dissatisfaction with current job
understand that businesses face a constantly changing business environment due to changes in technology, economic situation, legislation and environmental expectations
Making your small business attractive to potential employees?The Pathway Group
How do you make your small business attractive to potential employees? making a small business attractive to potential employees, how to attract employees without raising wages. creative ways to attract employees
attracting employees, how to attract the right employees
Revisionstation AQA GCSE Business 3.1.1 The purpose of business PowerPointRevisionstation
AQA GCSE Business Unit 3.1.1 The purpose and nature of business
This PowerPoint covers these topics:
understand what a business is and the reasons for starting a business (including producing goods, supplying services, distributing products, fulfilling a business opportunity and providing a good or service to benefit others)
understand the difference between goods and services, needs and wants
understand the meaning of factors of production – land, labour, capital, enterprise
define opportunity cost
define the three sectors of primary, secondary and tertiary and give examples of types of business that operate in each sector
understand the term enterprise and what is meant by an entrepreneur
outline the characteristics of an entrepreneur, such as hard working, innovative, organised and willingness to take a risk
outline the objectives of an entrepreneur, including to be their own boss, flexible working hours, to pursue an interest, earn more money, identify a gap in the market and dissatisfaction with current job
understand that businesses face a constantly changing business environment due to changes in technology, economic situation, legislation and environmental expectations
Making your small business attractive to potential employees?The Pathway Group
How do you make your small business attractive to potential employees? making a small business attractive to potential employees, how to attract employees without raising wages. creative ways to attract employees
attracting employees, how to attract the right employees
Business Basics is all about business. A business, also known as an enterprise or a firm, is an organisation involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. www.executivementors.com.au
Basic business advice for those converting part time gigs into "real" business ventures. Slides are a little wordier than usual; the Podcamp Philly Version will be a little more streamlined.
What to Look for When you Want to Invest in a Company by Geoffrey ByruchGeoffrey Byruch
For people who are looking to invest in a company, I have given a well-detailed layout of the "homework" you should be doing before you make any type of commitment. Stocks and other various projects are great, but make sure you do the back-end work to better prepare yourself for your investment.
Learn how to build, scale and sell a successful business. Your true success will be based on how well you track what you're doing, and how quicly you make adjustment.
Edexcel iGCSE Business 1.1.1 Businesses can have several objectives.pptxRevisionstation
PART OF THE REVISIONSTATION TEACHING RESOURCES PACK FOR EDEXCEL IGSE BUSINESS
Businesses can have several objectives:
• financial aims and objectives - survival, profit,
sales, market share, financial security
• non-financial aims and objectives - social
objectives, personal satisfaction, challenge,
independence and control.
Edexcel iGCSE Business 1.1.2 Why business aims and objectives change.pptxRevisionstation
PART OF THE REVISIONSTATION TEACHING RESOURCES PACK FOR EDEXCEL IGSE BUSINESS
1.1.2 Why business aims and objectives change as
businesses evolve:
• in response to market conditions, technology,
performance, legislation, internal reasons.
Edexcel iGCSE Business 1.1.1 Businesses can have several objectivesworksheet....Revisionstation
PART OF THE REVISIONSTATION TEACHING RESOURCES PACK FOR EDEXCEL IGSE BUSINESS
Businesses can have several objectives:
• financial aims and objectives - survival, profit,
sales, market share, financial security
• non-financial aims and objectives - social
objectives, personal satisfaction, challenge,
independence and control.
AQA A Level Business 311 Nature and purpose NEW SPEC.pptxRevisionstation
Why businesses exist
Business objectives such as:
Profit
Growth
Survival
Cash Flow
Social
Ethical
The relationship between mission and objectives
Why businesses set objectives
The measurement and importance of profit:
Revenue (also known as turnover or sales)
Fixed Costs
Variable Costs
Total Costs
AQA A Level Business 312 Different business forms NEW SPEC.pptxRevisionstation
Reasons for choosing different forms of business and for changing business form
Different forms of business:
Sole traders
Private limited companies
Public limited companies
Private sector organisations
Public sector organisations
Non-profit organisations
Social Enterprises
Issues with different forms of business include:
Unlimited and limited liability
Ordinary share capital
Market capitalisation
Dividends
The role of shareholders and why they invest
Influences on share price and the significance of share price changes
The effects of ownership on mission and objectives
AQA A Level Business 312 Different business forms NEW SPECworksheet.docxRevisionstation
The role of shareholders and why they invest
Influences on share price and the significance of share price changes
The effects of ownership on mission and objectives
AQA A Level Business 311 Nature and purpose NEW SPEC worksheet.docxRevisionstation
Why businesses exist
Business objectives such as:
Profit
Growth
Survival
Cash Flow
Social
Ethical
The relationship between mission and objectives
Why businesses set objectives
The measurement and importance of profit:
Revenue (also known as turnover or sales)
Fixed Costs
Variable Costs
Total Costs
NEW Pearson Edexcel International A Level Business (131) 1 The Market Revisionstation
NEW Pearson Edexcel International A Level Business (131) 1 The Market
BRAND NEW FOR 2022 / 2023
Complete teaching resources for a whole lesson including a PowerPoint and worksheet
Written by Sarah Hilton for Revisionstation
a) Mass markets and niche markets:
characteristics
market size and market share
brands
b) Dynamic markets:
online retailing
how markets change
innovation and market growth
adapting to change
c) How competition affects the market
d) The difference between risk and uncertainty
Edexcel A Level Business 4.1.1. Growing economies Revisionstation
Edexcel A Level Business 4.1.1. Growing economies
a) Growth rate of the UK economy compared to emerging economies
b) Growing economic power of countries within Asia, Africa and other parts of the world
c) Implications of economic growth for individuals and businesses:
trade opportunities for businesses
employment patterns
d) Indicators of growth:
Gross Domestic Product (GDP) per capita
literacy
health
Human Development Index (HDI)
Whole pack is available on the website to buy
Written by Sarah Hilton for Revisionstation
Revisionstation: Edexcel GCSE Business 2.1.1 Business growth V2.pptxRevisionstation
Methods of business growth and their impact:
Internal (organic) growth: new products (innovation, research and development), new markets (through changing the marketing mix or taking advantage of technology and/or expanding overseas)
External (inorganic) growth: merger, takeover
The types of business ownership for growing businesses:
Public limited company (plc)
Sources of finance for growing and established businesses:
Internal sources: retained profit, selling assets
External sources: loan capital, share capital including stock market flotation (public limited companies)
Full Theme 2 pack available to buy on the Revisionstation site
Revisionstation Edexcel A level Business 3.1.1 Corporate objectivesRevisionstation
Edexcel A level Business
a) Development of corporate objectives from mission statement/corporate aims
b) Critical appraisal of mission statements/corporate aims
This is part of a complete set of teaching resources from Revisionstation which are available to buy on the site now.
Edexcel A Level Business
a) Mass markets and niche markets:
characteristics
market size and market share
brands
b) Dynamic markets:
online retailing
how markets change
innovation and market growth
adapting to change
c) How competition affects the market
d) The difference between risk and uncertainty
Pearson Edexcel International A Level Business (431) 1 Growing economies Powe...Revisionstation
This is part of the Edexcel International Business A Level teaching bundle available from Revisionstation.
a) Characteristics of developed, developing and emerging
economies.
b) Growing economic power of countries within Asia, Africa and other
parts of the world.
c) Implications of economic growth for individuals and businesses:
• trade opportunities for businesses
• employment patterns.
d) Indicators of growth:
• gross domestic product (GDP) and GDP per capita
• human development index (HDI).
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
How libraries can support authors with open access requirements for UKRI fund...
OCR GCSE Business: 1.1 the role of business enterprise PowerPoint
1. OCR GCSE
Business
1.1 The role of business enterprise
and entrepreneurship
Business 1
(1 Business
Activity)
2. Lesson objectives
• The purpose of business activity and enterprise
• Spotting an opportunity, developing an idea for a business, satisfying the
needs of customers
• Characteristics of an entrepreneur
• Creativity, risk taking, determination and confidence
• The concept of risk and reward
3. Starter
• Which of these best describes you?
1. Creative
2. Risk taker
3. Determined
4. Confident
5. The purpose of business activity introduction
• There are lots of purposes of business activities, but the three main
ones that OCR would like you to be able to discuss are:
1. Spotting a business opportunity
2. Developing ideas
3. Satisfying the needs of customers
6. Definition: Entrepreneur
• An entrepreneur is a person who takes a business risk in the hope of
gaining a reward. Usually that reward is profit.
7. 1) Spotting an opportunity
• A successful business will be one
that spots an opportunity to make
a profit
• This could be an idea that no-one
has thought of before, for example
Trunki luggage
• The opportunity could be where
there are lots of businesses already
making a healthy profit
• The entrepreneur may also spot an
opportunity to trade and also make
a difference to society, this is called
a social enterprise Watch the video, how did the entrepreneur
spot a business opportunity?
8. 2) Developing an idea for a business
• Once an entrepreneur has spotted
a business opportunity or had a
good idea they will then need to
turn this into a working business
• The next stage will be to get some
market research to see if there is a
real demand for the product or
service
• Then the entrepreneur will need to
write a business plan to attract
funding so they have money to
start the business Research find out how Kath Kidston
started her business
9. 3) Satisfying the needs of customers
• Customer needs are the things that
customers require when buying a
product or service
• A successful business will identify
the needs of customers
• The entrepreneurs will need to
listen to their customers to find out
what their needs are
• The entrepreneurs will then decide
what products or services they can
provide or produce that will satisfy
these needs
Watch the video, how does this business
satisfy the needs of its customers?
11. Definition: Characteristic
• A characteristic is a typical noticeable quality of something or
someone. For example, you might be; musical, funny, artistic, sporty
and so on.
12. Which characteristic best describes you?
calm
good listener
stylish
happy
driven
excitable
joker
dependable
optimistic
introverted
sophisticated
trendy
posh
geek strong
13. Characteristics of entrepreneurs introduction
• There are lots of characteristics that entrepreneurs might have but
the 4 that the OCR exam board would like you to know are:
1. Creativity
2. Risk taking
3. Determination
4. Confidence
14. #1 Creativity
• Successful entrepreneurs are
creative
• Creativity opens the door to new
business opportunities
• Creativity is a way of thinking
that inspires, challenges and
helps entrepreneurs to satisfy
their customers’ needs in a new
and exciting way
• Creativity can make businesses
competitive
Watch the video and get ready to share one fact
you learnt from watching it
15. #2 Risk taking
• There is more on risk and reward
later in this PowerPoint
• An entrepreneur is someone
who we dined as taking a
business risk in the hope of a
reward (usually profit)
• Many entrepreneurs have taken
risks to get their businesses to
where they are now, perhaps
they left a secure job or took out
a loan
• Read this article and find out:
• Who is Adam Frisby?
• What is his business?
• How is he a risk taker?
16. #3 Determination
• Determination means a decision or
the focus to get something done,
the ability to continue to try to do
something although it is difficult
• Entrepreneurs may not succeed at
first they may need to make many
versions of their first product, they
may have to start at the bottom
and work up
• Successful entrepreneurs have the
determination to keep trying with
their business
• Visit this website and find out:
• Who is Jo Nicholls?
• How did she show determination?
17. #4 Confidence
• Confidence is the quality of being
certain of your abilities as an
entrepreneur
• There is an expression in business
that “people buy from people, not
companies” and having confidence
will help the entrepreneur to: make
sales, gain new suppliers, influence
customers and so on
• Are you a confident person? Do
you know someone who is
• Watch this video clip and find out:
• Who is Jamal Edwards?
• How does he demonstrate having
business confidence?
20. Rewards of business introduction
• There are lots of rewards to
owning and running a business.
• Here are some of the main ones:
• Be your own boss
• Keep all profits
• Take holidays
• Sense of satisfaction
• Flexibility
• Motivating
• Job protection
• No commute
• Lifelong learning
• Social enterprise
• Work-life balance
• Career progression
• Get ready to make some notes
on these rewards
21. Be your own boss
• A reward of setting up your own
business is that you could be your
own boss
• Being your own boss means the
entrepreneur gets to make the
major decisions in the business
• They can also change the business
if they want to
• Many people would like to have
this degree of control in their
working lives, which motivates
them to start their own business
• Read this article and find out
about Charlotte, what is her
business?
22. Keep all the profits
• The formula for profit is:
Profit = Total revenue – Total costs
• A reward of setting up a
business is keeping all the profit
that the business makes
• As time passes and the business
trades, equipment may break or
get old and the entrepreneur
may need to invest some of the
profit back into the business
23. Freedom to take holidays
• One advantage of running a business is that
the owner can take holidays when they want
• This means they could have holidays out of
peak times when prices are cheaper
• They could also take more holidays, and book
them when it suits them
24. Great sense of satisfaction
• Opening a business can bring a great
sense of satisfaction to the owner
• If their work is something they love, it
can make them happy to run their
business
• If their work is meaningful, they will
be more likely to stick with it in the
long run, which means they may be
more successful as a result
• Research has shown that finding
meaning in work increases:
motivation, empowerment, career
development, individual performance
and personal fulfilment
• Read this article and find out
• Who is Andrew Brooks?
• What did he invent?
• Why would this product give him
satisfaction to invent?
25. Flexibility
• A good reward of running a business is
that the work pattern can be flexible
• This means the business owner can
start late, finish early, work the hours
they want
• However running a business can mean
they work more hours than a regular
job, especially when it first starts up
• They may also need to hire plenty of
trustworthy staff, who can work
unsupervised, when they are not
there
26. Higher motivation and morale
The government says these are some
of the benefits of starting your own
business:
• Better work autonomy (being able
to make your own decisions)
• Better work challenge
• Financial benefits (capacity to earn
more money)
• Family legacy, which means
starting a business you can leave to
your kids
27. Job protection
• Giving up the security of a full time
job to start a business can be risky
• One huge benefit of having a
business is that the owner is the
boss, so they cannot be fired from
their own company
• The job will last as long as the
business trades
• It is important to have regular
money coming in to meet all the
financial commitments like a
mortgage or car payments
• Read the article and find out:
• Who is Katelyn
• What is her business?
28. Cut the commute / work from home
• Some business owners started their own
company as they grew tired of a long commute
to work
• Having their own business is so that they can
either have a shorter commute or that they can
work from home
• Many business owners are looking to cut their
carbon footprint too, can you explain carbon
footprint?
29. Owners can learn a lot about business
• Owners of a business will find that
they learn a lot from the process of
opening and running a company
• They may learn finances,
accounting, how to manage staff,
customer relations, dealing with
suppliers, purchasing and
production techniques
• Learning while doing is often easier
than learning by reading
• This is why students should
consider joining their school Young
Enterprise program
• Read this article and find out:
• Who is Ellen?
• What is her business?
• How is her business helping her life?
30. Social enterprise
• Owners may wish to open a social
enterprise
• This is a business that is started
with the aim of helping people or
the planet
• For example the business may be
set up to help tackle social
problems like homelessness, or to
improve communities
• Watch the video, can you explain
the difference between a normal
enterprise and a social enterprise?
31. Better work / life balance
• Video HERE
• Being able to have a better work
life balance means being able to
work but still have time to see
the family, watch the TV, or to do
a hobby
• Working for yourself means the
business owner can change the
balance and work less and make
time for their hobbies
32. Open ended career progression
• Some business owners may start-up their own
company so that they can develop their career
• As soon as you start a business you become a
managing director even if you were a sales
assistant before
33.
34. Definition: Risk
• A business risk is one that may lead to failure to achieve the goals of
the organisation, for example to not make a profit (called making a
loss) or to not help (in the case of a social enterprise).
35. Risks of business introduction
• There are lots of risks of owning
and running a business.
• Here are some of the main ones:
• IP issues
• Cyber attacks
• Economic problems
• Poor reputation
• Employment laws
• Financial risks
• Change in tastes and trends
• Cash flow problems
• Natural disasters
• Failure to plan
• Staff training
• Operational risks
• Staff reliability
• Commercial risks
• Get ready to make some notes
on these risks
36. IP issues
• IP stands for Intellectual Property
• IP can be protected by patents,
trade marks and copyright and
gives business ideas their value
• IP rights protects the work of the
entrepreneur: designs, inventions,
writing, performances or research
• If IP is stolen or copied the
entrepreneur risks losing their
business
• Watch the video on Intellectual
Property
• Can you now explain IP to someone
else?
37. Cyber attacks
• A cyber attack is an attempt by
criminals to disable computers or steal
data
• A report from the Federation of Small
Businesses has found that small firms
are collectively attacked seven million
times per year, costing the UK
economy an estimated £5.26 billion.
• Can you name 4 ways that a business
may get a cyber attack e.g. spyware?
• How would a business be impacted by
a cyber attack?
38. Economic problems
• The UK economy is all the activities
that are to do with manufacturing,
production and selling of products
and services in the country
• In a recession or times of economic
or political instability customers
tend to save rather than spend on
non-essential items
• This means that the business may
have less customers and make less
profit
• What do you think happens in an
economic boom?
39. Poor reputation
• If a business provides poor customer
service, or suffers a problem, then it
may have a poor reputation
• This can lead to loss of sales, loss of
revenue and loss of profitability
• This can lead to job losses
• Read the article, how did the Smiler
crash impact Alton Towers?
40. Employment laws and regulations
• All businesses in the UK must
obey the employment laws
• For example they must pay the
minimum wage or above, if they
don’t they are breaking the law
• Research to find out:
• What is the current minimum
wage (for all ages)
• What is the living wage and how is
it different to the minimum wage?
41. Financial risks
• Starting a business can be a financial
risk for the owner
• The owner may put their own cash and
other assets (e.g. a van) into a business
• If the business does not do well then
the owner could lose their money,
which is why many businesses become
a private limited company (ltd) to
protect the owner
• If the owner borrows money from a
bank to finance the business, they still
have to pay this back (with interest),
even if the business does not do well
42. Change in tastes and trends
Consumer tastes change over time
which means that a business is at
risk if they don’t keep up with
current trends
Have a look at this range of toys, how many of
these did you have?
Are they the same as toys available now?
43. Risk of not managing cash flow
• Cash flow is the flow of money in and
out of a business, you will learn more
about this later in the course
• A business needs more money coming
in than going out to survive, and that
money also needs to come in on time
or they cannot pay their overheads
(bills)
• Being prepared for a cash shortage
using an overdraft is a sensible idea
for a start-up
• Most businesses now prepare a cash
flow forecast so they can see when
they might have a cash shortage, and
to arrange finance with a bank
44. Natural disasters
• A disaster can strike any
organisation, large or small. It can
arrive in the shape of storm, flood,
fire, earthquake and even a
tsunami
• It may take some time for the
business to return to normal
operation after an incident
• Climate change means UK
businesses must plan for extremes
of weather such as flooding
• Watch this video and find out:
• What was the impact of the weather
on these farm businesses?
45. Failure to plan for the future
• If a business fails to plan for the
future it may risk losing out to
competitors
• A business must have a clear
strategy and plan if it is to
survive in a today’s dynamic
business world
• For example Blockbuster failed
to take up the Netflix offer as
they had no digital strategy
• Watch the video and find out:
• What was Blockbuster?
• Why did it fail?
46. Staff training and safety
• A business needs to train its staff
so that they can; operate
machinery safely, work a till,
deal with customers or sell
products and services
• Well trained staff can give the
business a good reputation
• A business also needs to look
after the safety of staff an obey a
number of UK laws on Health
and safety at work Have you ever had any fire safety training?
47. Operational risks – break down of equipment
• Many businesses have a variety of machines or
equipment, including computers
• Many businesses run their machines 24/7 and cannot
afford machines to stop in the event of a break-down
e.g. bread factories
• When machines break down there is the cost to fix
the machine plus the cost of lost production time
48. Staff – reliability
• A business will need reliable staff who turn up on time, every day,
ready to work
• Without reliable staff a business will not be able to offer the right
level of customer service
• This can have an impact on reputation, revenue and profit
49. Commercial risks
• If a supplier fails to supply goods or
services to a business, this could be
critical
• If customers cannot get the
product or service they need, they
may go elsewhere, especially if
there are lots of substitute
businesses selling the same good
or services
• If customers do not pay on time,
then this may cause cash flow
problems for the business who will
need to pay their suppliers Research: find out why KFC ran out of chicken in 2018
50. Plenary – take the quiz, would you make a
good entrepreneur?
51. Glossary – business terms to learn
• Entrepreneur; A person who is prepared to take a risk in the hope of
a reward (usually profit)
• Profit; This is what is left when total revenue (money into the
business) minus Total costs (money out of the business). If the figure
is a minus then the business has made a loss
• Product; A product is a tangible item that you can use e.g. a car, a pair
of scissors, a chainsaw
• Service; This is an action that someone performs for you e.g. to cut
down a tree, to give you a haircut. It is intangible which means you
cannot touch it e.g. car insurance.
Editor's Notes
This should lead to a good discussion if the students have the characteristics to become a successful entrepreneur.
This is Kath Kidston
She started with a small shop in London which she sold tea towels and restored furniture
One day she had 1500 bed sets turn up at the store, an ordering mistake
She turned these duvet covers into aprons, washbags, hats and swimsuits and so the brand was born
Need: for example that pet owners want pet food specific to their breed
Products to satisfy that need: for example bespoke dog food that is made just for that particular pet
This is so kids can choose one word which sums them up – a way to engage the class they can draw a circle or sign their initial over one word
This is Jo Nicholls
She started in 1997 making “Lily-Flame” candles in her kitchen
She then bought a van and travelled round the country for 8 years selling her candles at craft markets
She slept in the van, and once it broke down and took all her takings to fix it
She made no profit for 3 years
Eventually she decided with her partner Luc to sell wholesale to retailers instead and landed a big order with Lakeland
He biggest customer is now John Lewis
This is Jamal Edwards
He started SBTV when he was a teenager on a council estate in London, he is now worth £8million
He started with a mobile phone, a camera and a passion for music
He realised he could upload grime music direct to YouTube and cut out the music producers
His channel has 730,000 subscribers