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12 Cards in this Set
- Front
- Back
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What is enterprise? |
An enterprise must contain, initiative, risk takers and having the ability to solve problems. Without these your business may fail as you would not expand. |
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Thinking creatively/Blue Sky's Thinking |
Blue Sky's thinking is when a group of people come together to generate as many ideas as possible. A positive is that you generate many ideas however a negative could be that it is easy to go off topic i.e. from cars to tarmac. |
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Thinking creatively/ 6 thinking hats |
It is used to look at decisions from a number of important perspectives. A positive thing would be that you get a wide range of ideas however it consumes a large amount of time. |
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Taking a calculated risk |
Calculated risk is when a business owner/CEO may look into projects and devises the success rate or failure rate. This then can be put into perspective when releasing a product or service. The risks involved could be that you get a false conception of what is yet to come i.e. you estimate a certain income but it is less than what you thought it would be. |
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Invention and Innovation |
Invention is where a new method or product is released whereas innovation is editing a previous product by changing what it does, how it looks or how it works. Although inventions cost more they could bring in more money depending on how big your brand is, however innovation may cost less but may not sell as well, because the change may not be considerable. |
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Business plans |
Things are needed are: Risk Takers Initiative Cash forecast Product life cycle Financial support Things that may go wrong could be that the business may not have enough money to sustain itself. |
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Business Projects |
Some financial objectives could be: profit, a sustainable cash flow, living comfortably. On the other hand some non-financial objectives could be; being your own boss, raising awareness and helping the local community. All objectives are important because it allows the owner to see the outcome of their business. |
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Estimating revenues, costs and profits |
Revenue - This is income Costs - The cost are what you need to pay whether it is fixed or variable Profits - Is the money that you can spend on yourself or your business. It is important to do this because you can estimate what you can invest in and also you can take a record of where your money is going. |
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Estimating revenues, costs and profits |
To find out total revenue you must : TR = P X Q (total revenue= price x quantity) You can rearrange this equation to find the other factors. |
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Forecasting cash flow |
Cash inflow - Money received by an organization as a result of its operating activities. Cash outflow - Money paid out by an organization as a result of its operating, financing or investing activities. |
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Forecasting cash flow |
We need to know where our money is going because we need to know what we can spend the profits on and what we need to save for the next month costs. Some consequences to no cash flow could be over-spending, debt and failure of business. |
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Obtaining finance for a business |
Advertising, primary /secondary research and finally inventing new products. If someone was to use advertising , a positive outcome would be, more people are seeing there product and may become interested. However advertising costs a lot if you do not get the customers. If you were to research a positive would be finding enough information to change your business however a negative could be getting the wrong interpretation of it and so your business would be affected. Finally making a new product would promote your business however this would cost a lot time and money. |
