Business Planning - 2. Influences In Establishing Smes

Front 1

Personal Qualities (6)

Back 1

Qualifications
Skills
Motivation
Entrepreneurship
Cultural Background
Gender

Front 2

Sources of Information

Back 2

+ Professional Advisers and Government Agencies

Front 3

A business idea...

Back 3

describes the core activities of the business, and the specific features and value of the goods or services it provides.

Front 4

A business opportunity...

Back 4

is something an entrepreneur can see as an avenue to success.

Front 5

Competition is...

Back 5

rivalry among businesses that seek to satisfy a market.

SME owners must decide how to make a business competitive.

Front 6

Establishment Options (2)

Back 6

Scratch
Purchasing existing business

Front 7

Market Considerations

Back 7

Businesses fail without a market for their goods or service; therefore they must always undertake market analysis.

Market analysis involves collecting, summarising and analysing information about the state of the market,

Front 8

Price (4)

Back 8

Percentage Mark-ups
Recommended Retail Price
Price Leadership and Competition
What The Market Will Bear

Front 9

Significance of Location

Back 9

Different types of businesses will be suited to different locations and the business owner must consider a number of factors when determining the most appropriate location for their particular business.

Front 10

Online Presence

Back 10

The business is no longer limited to dealing with people who can physically visit its premises.

Front 11

Types of Finance (2)

Back 11

* The business owner can contribute their own funds (equity or capital), which is an internal source of funds.
* The business can also obtain loans (debt) from external sources. There are advantages and disadvantages associated with each source of finance.

Front 12

Financial Requirements

Back 12

* The business owner must begin by listing the main expenses in setting up the business 0 establishment costs.
* The business owner then needs to estimate the running costs for a full year's operation - operating costs.
* The business owner is then in a position to calculate how much finance will be needed to commence and operate the business for the first year.
* One of the main reasons SMEs fail is due to cash flow problems which makes these calculations important.

Front 13

Business Name Registration

Back 13

Business Names Act 1962

Front 14

Zoning

Back 14

Local government controls zoning regulations. It ensures that activities such as industry and residential are kept separate.

Front 15

Health Regulations

Back 15

Each local council supplies businesses with the requirement and standards to meet in order to receive a license to operate.



* A health inspector will ***** premises regularly and often without warning to ensure the business owner/operator maintains standards.

Front 16

Trade Practices

Back 16

Trade Practices Act 1974 - protect consumers and businesses.



* Protect consumers from deceptive practices such as misleading packaging or misrepresentation of the place of promotion.
* Also deals with safety and the conditions and warranties associated with products.

Front 17

Human Resources

Back 17

One of the most important influences when establishing a SME is staffing.
If an SME owner decides to hire staff, many sources are available.
The overriding recruitment objective is to attract a pool of qualified applicants with the most suitable skills.
Skilled employees are more productive and create wealth for a business.
On-costs are payments for non-wage benefits, including long service leave, workers compensation and annual leave loading.

Front 18

Taxation is...

Back 18

the compulsory payment of a proportion of earnings to the government.
SME owners should structure their records and finances in such a way that they have the necessary information and money to efficiently manage their taxation obligations.

Front 19

Goods and Services Tax

Back 19

GST is a broad-based tax of 10 per cent on the supply of most goods and services consumed in Australia. Any business with an annual turnover of $75 000 or more operating within Australia must register for the GST.

Front 20

The Australian Business Number (ABN)

Back 20

The ABN is a single identifying number that a business uses when dealing with government departments and agencies.