Business - 1.1.1 - 1.3.1

Enterprise

Entrepreneurial activity. Can also mean a business or company.

Features of a small business (5)

Limited staff, smaller marketing budget, less access to finance, fewer years of trading history, personal relationships with customers

Entrepreneur

someone who creates a business, taking on financial risks with the aim of making a profit from the business

Consumer

someone who buys and uses goods and services

Obsolete

out of date or not used anymore

Risk

the likely chance of a negative event occurring such as a business failing

Reward

the positive outcome of running a business such as making a profit

Profit

total revenue minus total cost

Success

when a business achieves its aims and objectives

Failure

Where a business fails to achieve its aims and objectives. Failure often refers to financial failure when a business makes a loss or becomes insolvent

Added value

The difference between the selling price of a product and the cost to produce

Goods

Physical objects such as clothes or shoes

Services

Non-physical products like a taxi journey

Unique selling point (USP)

Something that makes a product stand out from its competitors

Choice

an act of choosing between two or more possibilities

Customer needs

the things that customers require when purchasing a product or service.

Convenience

A product or service's ability to fit in well with a customer's lifestyle or routine, the ease with which it can be used and/or its easy to reach location

Market Research

The process of gathering information about the market and customers' needs and wants in order to help inform business decisions

Primary research and examples

any type of research that you collect yourself. Examples include surveys, questionnaires, focus groups and observation.

Secondary research and examples

The data has already been collected and published. Examples include gathering research from places such as the internet, market reports and the government

qualitative data

non-numeric data that aims to find out people's opinions and what they think

Quantitative data

numerical data that can be analysed mathematically using stats

Segmentation

the process of breaking something up into smaller parts

Demographics

information and statistics that relate to the structure of the population

Lifestyle

The way in which customers live their lives, including the things they do in their spare time

Market mapping

The process of creating a diagram that maps all of the products in a market against two common features, for example price and quality

Direct competition

a competitor who sells the same type of product or service

Indirect Competition

a business that provides competition because it sells a substitute product

Customer service

How a business looks after its customers before, during and after they make a purchase

SWOT analysis

A study undertaken by a business to identify the strengths, weaknesses, opportunities and threats

Aims

a broad goal or achievement

Objectives

like an aim, but more specific and measurable

Survival

where a business can generate enough revenue to keep trading

Market share

a percentage of the total market occupied by a business in terms of sales revenue or products sold

personal satisfaction

Where a business owner will setup and run a business because they take pleasure and have an interest in what they do / sell.

Financial security

When a business generates enough income to meet their needs

Social objectives

Business objectives linked to providing positive outcomes for the community or environment.