Business AOS2

internal environment

The factors inside the business that impact on day to day planning, activities and success.

ie. employees and resources.

external environment

consists of factors outside the business that impact either directly (operating or indirectly (macro)

operating

external environment factors that businesses have some control over. (direct impact)

ie customers and resources

macro

external environment factors that businesses have no control over. (indirect impact)

ie technology considerations and legal requirements

incorporation

A process through which a business becomes a separate legal entities from its owner/s.

sole trader

A business with one owner.

partnership

A business with between two to twenty owners.

company

A business which is set up as its own separate legal entity.

private limited company

A company with up to 50 private shareholders.

public listed company

A company which openly trades its shares on the ASX

social enterprise

A for-profit, private sector business which generates income from commercial trade with the intent of achieving social objectives.

government business enterprise

A private sector business which is owned and controlled by the government and exists to fulfil commercial purpose of making a profit.

online business model

A business model where the business carries out its main activities and sells its products via the World Wide Web (Internet).

eCommerce

Transacting (buying or selling) products online.

bricks and mortar business model

A business which has an established physical store or office through which it carries out its commercial activities through face-to-face interaction with customers.

franchise

An arrangement when a business sells the rights to distribute its products and use the business name to others.

importer

A business which purchases overseas materials/products for production and resale in its home country.

exporter

A business which sells Australian -made goods/services to overseas customers.

goodwill

The reputation of a business which is regarded as a ‘quantifiable asset’ of the business and calculated as part of its value when it is sold

purchasing a existing business

When an established business (including a franchise) is purchased, it is already operating and everything (i.e. stock, equipment, premises, employees, existing customer base, reputation, etc.) is included in the purchase.

establishing a new business

Establishing a new business (i.e. starting from scratch) involves literally building the business from the ground up. There is no existing premises, staff, etc. – only a business concept on paper!

Resources

Any material, component or other asset used in a business.

Natural resources

Any naturally existing material or asset in nature (e.g. timber).

labour recouses

People (employees) who provide their knowledge, skills, effort and experience to a business.

capital resources

Tools, buildings, machinery, etc. used by a business to create its final goods/services.

Business location

Business location is the physical or non-physical place that a business operates from.

shopping centre

A shopping centre is a large enclosed building complex containing a variety of stores, restaurants, and other businesses, designed to provide a one-stop shopping and entertainment experience for consumers.

shopping strip

A commercial area with a row of retail stores and businesses located along a busy street or road. Typically, shopping strips offer a variety of goods and services, including clothing, food, and entertainment. They are popular destinations for consumers looking for convenience and easy access to multiple stores in one location.

online business

Type of business that operates through the internet. It can be a website, an app, or a social media page. It allows customers to purchase products or services, and communicate with the business online.

equity capital

Type of funding obtained by a company in exchange for ownership shares. It represents a long-term investment in the company's growth and profits.

debt capital

Type of financing obtained by a company through borrowing money from lenders or issuing bonds. The company is required to pay back the borrowed amount plus interest over a predetermined period of time.

grant

Definition: A sum of money given to an individual or organisation for a specific purpose, usually related to research or a project.

overdraft facilities

A financial service that allows customers to withdraw more money than they have in their account, up to a pre-approved limit. The bank charges interest on the overdrawn amount until it is repaid.

legal support services

Services that assist businesses with research, document preparation, and administrative tasks. They help to provide efficient and effective legal services to clients.

financial support services

Services designed to provide financial assistance to individuals or organisations. These may include budgeting, financial planning, debt management, and investment advice. Financial support services aim to improve financial literacy and help individuals and organisations achieve their financial goals.

community based support services

Services provided to individuals or groups within a community to support their physical, emotional, and social well-being. These services may include counselling , education, advocacy, and referrals to other resources. The goal is to improve the quality of life and promote self-sufficiency within the community.

formal networks

interconnected groups of people and official organisations that assist in offering professional support to business owners. Formal business networks can be established through business associations and aim to provide advice and support from a large number of professionals

informal networks

unofficial interconnected group. An informal network includes family, friends, and social media that may offer advice and information to business owners.

business mentors

experienced and knowledgeable business person who provides guidance and advice

business plans

A document outlining the strategy and financial projections for a new or existing business. It includes market analysis, product/service details, and funding needs.

Executive summary

overview of the business plan that is included at the beginning of the report. It will provide a brief description of a business’s philosophy, the products being sold, and the strategies to achieve business objectives.

Business brand

outlines what a business believes to be its vision, and what sets it apart from other businesses. Features outlined in this section could include the business’s name, logo, and slogan.

Business owners

outline the owners’ roles and responsibilities, as well as their skills, qualifications, and past experiences. This description provides an understanding of the individuals leading the business

product

a detailed description of the products that a business plans to or is currently offering. Possible innovations and competitive advantages would also be stated. The product section would also estimate customer demand and outline the price of the product.

Operations plan

details of a business’s production process, including suppliers, inventory, and equipment. The location and facilities to be used for the business’s operations could also be stated.

marketing plans

business’s marketing strategy when it is starting up and operating. The strategy could state who a business is wanting to sell its products to, how a business aims to com

Financial plan

evaluates the financial feasibility of a business. It estimates a business’s initial and ongoing costs, as well as sales and cash flow. The financial objectives of a business are also included to establish clear goals in terms of revenue and profit.

Corporate social responsibility

The CSR section outlines how a business plans to maximise its positive community impact and minimise its environmental damage by implementing sustainability strategies.

Supporting documents

The supporting documents section includes the evidence and additional documents that a business may need to qualify its planned business strategies and decisions. The documents could include licences, qualifications, contracts, and advertising material.

SWOT analysis

a planning analysis tool that helps a business identify its internal strengths and weaknesses, as well as any external opportunities and threats

Corporate social responsibility (CSR)

the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions.