Business Studies An Integrated Approach to BookKeeping Starting

Business Studies An Integrated Approach to Book-Keeping

Starting a Business • Pick a business idea (idea generation) • Brainstorm in groups of two/three

Our Business Ideas

Business Name Business names should be: • Short • Easy to remember • Relevant • Free of copyright How to choose a name: • Brainstorm • Internet • Yellow Pages

Design a Logo • A logo identifies your business • It should be: – attractive – eye-catching – simple • Examples:

Research • Why is research important? • Where can you find information? • List ways you can conduct research?

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

Assets and Liabilities • What is an asset? • What is a liability? Overdue • What assets would the following businesses have? – Supermarket – Farm – Garage • What liabilities would the following have? – Supermarket – Farm – Garage

Keeping Records • Why do businesses keep records? • What records should we keep? – Records of daily transactions – Final accounts for the end of year

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, 000

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

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?

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 an invoice will be sent to you

Marketing Mix • Product – e. g. i. Pod 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?

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

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

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

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