Business AS2 Internal environment)

Type > Sole Trader (unincorporated)

‎‎‎‎‎Key terms:

• Singular owner'

‎ Advantages: ‎

• Complete Control

• Cheap and easy set up

‎ Disadvantages:‎

• Unlimited liability

• Workload and pressure

Type > Partnership (unincorporated)

‎‎‎‎‎Key terms:

• 2 - 20 owner

• “General Partnership” = equal responsibility and liability

• “Limited Partnership“ = different responsibility and liability

‎ Advantages:‎

• More Capital

• More expertise

• Shared workload

‎ Disadvantages:‎

• Unlimited liability

• Disagreements

Type > Public (incorporated)

‎‎‎‎‎Key terms:

• LTD (Separate entity)

‎ Advantages:‎

• More Capital

• Limited liability

• Spread risk

‎ Disadvantages:‎

• Cost of formation

• Must provide reports

• Corporate tax

Type > Private (incorporated)

‎‎‎‎‎Key terms:

• PTY LTD (Separate entity)

• Max 50 shareholders

• all shareholders must agree to sell shares

‎ Advantages:‎

• More control then public

• Limited liability

‎ Disadvantages:‎

• Corporate tax

• Growth limit

• Liquidity

Type > Social enterprise

‎‎‎‎‎Key terms:

• Social cause

• Needs revenue

• provides employment

‎ Advantages:‎

• Employment

• Help economy

• Meets social needs

‎ Disadvantages:‎

• Hard to get capital

• 2 focuses (revenue and social goal)

Type > GBE (Government Business Enterprise)

‎‎‎‎‎Key terms:

• Government owned

‎ Advantages:‎

• Gov capital

• Healthy competition
  

‎ Disadvantages:‎

• Heavily affected government change

Model > Online (GENERAL)

‎‎‎‎‎Key terms:

• Internet

• Website

• Non-physical

‎ Advantages:‎

• Low-cost

• Data

• Global

‎ Disadvantages:‎

• Competition

• Trust

• Tech

Model > Online (Ad-based)

‎‎‎‎‎Key terms:

• Advertising-revenue-based

• User-traffic

‎ Advantages:‎

• Free-access

• High-reach

‎ Disadvantages:‎

• Unstable-revenue

• Ad-blocking

• Freemium competition

Model > Online (Freemium)

‎‎‎‎‎Key terms:

• Free-users

• Paid-upgrade

‎ Advantages:‎

• Upselling
  

‎ Disadvantages:‎

• Low-conversion

• Slow-revenue

• Low-paying-users

Model > Online (Brokerage)

‎‎‎‎‎Key terms:

• The Middleman

• Commission-fees

‎ Advantages:‎

• No-inventory

• Scalable-network

‎ Disadvantages:‎

• Low-commission

• Bypass-risk

Model > Online (Merchant)

‎‎‎‎‎Key terms:

• Own-products

• Inventory

‎ Advantages:‎

• High-control

• Profit-margins

‎ Disadvantages:‎

• Inventory

• Logistics-costs

Model > Bricks-and-mortar

‎‎‎‎‎Key terms:

• Physical-store

• Face-to-face

‎ Advantages:‎

• Customer-trust

• Hands-on

‎ Disadvantages:‎

• Rent, wages, bills

• Limited-reach

Model > Direct-to-Consumer

‎‎‎‎‎Key terms:

• No middleman

• Direct-sales

‎ Advantages:‎

• Higher-margins

‎ Disadvantages:‎

• Marketing-costs

• Delivery-logistics

Model > Franchise

‎‎‎‎‎Key terms:

• License-agreement

• Trade rights

‎ Advantages:‎

• Established-brand

• Tested system

• Support

‎ Disadvantages:

• Limited-control

• fees

Model > Importer

‎‎‎‎‎Key terms:

• Buy-overseas

• Sell-domestic

• Foreign-markets

‎ Advantages:‎

• Lower-costs

• Product-variety

‎ Disadvantages:‎

• Exchange rate

• Shipping-delays

• Logistics

Model > Exporter

‎‎‎‎‎Key terms:

• Buy or create domestic

• Sell-overseas

• Foreign-markets

‎ Advantages:‎

• Market-expansion

• Helps national economy

‎ Disadvantages:‎

• Tariffs

• Logistics

Starting a business (from scratch)

‎‎‎‎‎Key terms:

• New-business

• Full-ownership

‎ Advantages:‎

• Full-control

• Flexibility

• Not paying for Good-will

‎

‎ Disadvantages:‎

• High-risk

• Word-load

• Costly

Purchasing existing business

‎‎‎‎‎Key terms:

• Existing-business

• Ownership-transfer

‎ Advantages:‎

• Established-customers

• Immediate-revenue

• Existing assets

• historic data

‎ Disadvantages:‎

• Hidden-problems

• Paying for Good-will

Natural Resources

‎‎‎‎‎Examples:

• Raw-materials

• Limited

• Land,

• Water

• Mineral

• Oil

• Sunlight

Labour Resources

‎‎‎‎‎Key terms:

• Human

• Time and Effort

• Workers,

• Employees

• Technicians

• Teachers

• Doctors

• Designers

‎

Capital Resources

‎‎‎‎‎Key terms:

• Equipment

• Man-made

• Production-aid

• Machinery

• Tools

• Buildings

• Vehicles

• Computers

Finance > Internal

‎‎‎‎‎Key terms:

• Bootstrapping,

• Angel

• Shares

• Crowdfunding
  

‎ Advantages:‎

• access to expertise

• No-interest

‎ Disadvantages:‎

• Limited-capital

• control risk

Finance > External

Examples:

• Short-term loans (Short-term)

• Bank bills (Short-term)

• Overdrafting (Short-term)

• Trade credit (Short-term)

• Long-term loans (Long-term)

• Leasing (Long-term)

• Government grants (Long-term)
  

‎ Advantages:‎

• Fast-access

• Large funds

‎ Disadvantages:‎

• High-interest

• must repay quickly (Short-term)

• spreads cost over time (Long-term)

• conditions/restrictions (Long-term)

Business Location (5 factors)

1. Visibility

2. Accessibility

3. Cost

4. Competition

5. Complementary

Support

1. Lawyers/Accountant

2. Competitors

3. Previous owners

4. Grants

5. Networks

3 levels of planning

1. Strategic (2-5 yrs)

2. Tactical (1-2 yrs)

3. Operational (Up to 1 yr)

Planning process

Setting = Establishing an objective

Analyze = SWOT

Developing = Developing and evaluating planning alternatives

Implementing = Selecting and implementing the plan

Monitoring  = Monitoring and reviewing the results

SWOT

Strengths (INTERNAL)

Weaknesses (INTERNAL)

Opportunities (EXTERNAL)

Threats (EXTERNAL)