http www bized ac uk Business Survival and
http: //www. bized. ac. uk Business Survival and Growth BTEC Business Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Where’s the Profit? • Profit is one of the rewards of setting up in business • It pays back the business owner for taking an entrepreneurial risk • Profit is the money that’s left after you’ve taken away your costs from your sales revenue Profit = Sales - Costs Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Costs and Revenues 1 Even before you sell anything, your business will have costs: • • • Developing your product or service Researching your market Buying raw materials Finding premises Recruiting staff Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Costs and Revenues 2 • You calculate revenue by multiplying the number of items sold by their price • Once you deduct all your costs from your revenue, you have the profit you have made • More on this can be found at: http: //www. bized. ac. uk/learn/business/ accounting/busaccounts/notes/oprofex. htm Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Overview of Profit is: The difference between costs and revenues • The reward to the entrepreneur for taking a risk • The ‘return’ on the money used to run a business • A sign that people want to buy the product/service Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Objectives over Time • Survival • Financial security • Market growth • Image • Meeting the aims of stakeholders (see http: //www. bized. ac. uk/glossary. htm to search for a definition and follow URL links) Copyright 2006 – Biz/ed
http: //www. bized. ac. uk Market Share Growing businesses usually take a greater share of their market. This may give them: • • • More security More profit (? ) Greater control in their market… but also, More demands on their time and resources Additional activity? Copyright 2006 – Biz/ed
- Slides: 7