Setting Up A Business

Homework 1

2009-11-25T13:35:00.000-08:00

1. I think it is possible to haven an unexpected exame. Not in the case we had given
in the role play because there the teacher annouced that there will be an unexpected exam but if the teacher doesn't say anything at all before. In that case the students would go to school not knowing that there might be an unexpected exam at all ad what it could be possibly about therefore it is a surprise

3rd Chapter (Unit3) Working Capital

2009-10-22T18:12:00.000-07:00

Today I am going to summarize chapter 3.3 Working Capital of unit 3
Every business needs cash in order to keep running. It is needed to pay regular costs for example wages. The amount of working capital shows the stock of money that is available for a business to pay for its immediate costs and expenditure (running costs) .A lack of working capital means that a firm has not enough money to finance its regular operations. Based on that information it is easy to guess that most business collapse due to a lack of working capital
So due to the information above it is important to know the following terms :
The term liquidity refers to how an asset can be turned into cash so highly liquid assets can be converted to cash easily without losing their value.
The term insolvency simply refers to the inability for a company to pay off its debts.
The term liquidation is the result of insolvency. A firm has to sell off all assets so that the money owed can be repaid.
Cash is a current asset and is the money that a business receives from the sale of goods and services.
The term debtor refers to organizations/ people that owe money to a business as businesses sometimes allow customers to buy something but pay later.
Stocks are for example raw materials, half-finished or finished goods that can be used in the manufacturing process.
It is also good to know about the term current liabilities that are considered liabilities of the business that are to be settled in cash within the fiscal year . This includes overdraft, creditors and tax.
A business has to manage their working capital very carefully as there is often a delay between paying costs of production and receiving the actual cash from the customer.

On the other hand side holding the many current assets in the business could be wasteful because it could be invested in expansion for the business for example in other words it should not have too much liquidity. Liquidity is measured in current ratio which compares the value of current assets with the value of current liabilities.
Cash flow forecasts show the expected movement of cash into and out of a business per time period and are based on cash inflow (inflow from sales revenue), Cash outflow (outgoings, expenses) and net cash flow which is the difference between cash inflows and cash outflows.
Reasons for making a cash flow forecast are that banks and other lenders require a cash flow forecast to evaluate financial health of the business seeking external finance, it helps managers to identify periods of potential cash shortage and also helps the planning process for a business.

2nd Chapter (Unit 2) Motivation

2009-10-19T17:10:00.000-07:00

I have to apologize for my delayed post but better late than never. Last time I summarized chapter 1.7 of unit 1 about Growth and Evolution in business of the IBD book Business and Management.
Today I will talk about Motivation, chapter 2.5 of unit 2.
What is motivation? Motivation is the desire, passion and willingness to complete a task or a job with enthusiasm. It can be also defined as a way of getting people to do something you want or people want to do for themselves. Motivation is really important for businesses and managers need to understand how to motivate their staff in order to achieve the business’s organizational objectives and aims.
Benefits of a motivated workface are:
-higher profit
-higher job satisfaction which leads to improved product and better quality
-better industrial relations as it reduces the chances of conflict
-reduces the cost of hiring staff
On the opposite sides demotivated workforce prevents a good performance of a business. So managers have to be aware of the following demotivation signs:
-low quality output
-poor punctuality
-disciplinary problems
-high percentage of workforce that miss work
-high wastage level
Motivation can be classified in intrinsic or extrinsic.
Intrinsic motivation means that people engage in an activity out of their own desire. It is for example challenging stimulating or satisfying for them.
Extrinsic motivation means people engage or participate in an activity because of the benefits and rewards such as wages, salaries, bonuses or recognition and praise.
Theories have been developed over the years investigating how to motivate people.
One of those famous theories was made up by Frederick Taylor an American engineer and inventor who assumed that employees get motivated by money. He also believed that higher productivity could be achieved by setting output and efficiency targets related to pay.
Maslow an American psychologist believed in the psychological need of workers. He made up five levels of needs which he called the hierarchy of needs. Starting with lowest level from Physiological need (water, food, air, warmth and sleep)to Security needs ( daily structure and routine, protection from harm as well as retirement income) to Social needs ( being accepted) and can be satisfied by communication for example, to esteem need ( recognized by others) up to the last level of self-actualization( forces that drive a person to become the best that they can be)
Another theory was made up by Frederick Herzberg that there are two categories of factors affecting the level of motivation one are hygiene factors (physical) and the other ones are motivator ( psychological)
He said that Motivators like achievement, advancement, personal growth, responsibility, recognition and interesting tasks are causes of satisfaction and hygiene factors such as company policy, rules, relationship with peers or supervisors, security, salary and wages and working condition are causes of dissatisfaction.

2009-10-15T14:15:00.000-07:00

https://www.ibid.com.au/ibid/web.nsf/authorslookup/83?opendocument
http://www.ib-source.com/title_info.php?id=4531

Business and Management written by Paul is an excellent Business studies book used for the International Baccalaureate Diploma which includes absolutely all basics on over 700 pages you need to know about business. I love it!
There are a few chapters I was particular interested in and I think it is worth to summarize some of them.
Starting with UNIT 1
Chapter 1.7 Growth and Evolution of unit 1 (BUSINESS ORGANIZATION AND EVIRONMENT) looks at encouraging forces for growth and evolution of different businesses as they pursue to expand the size of their functioning state. Established businesses have many reasons why they aspire to grow. Examples for this are economics of scale, gain a larger market share to gain more market power and simply for survival reasons as they are risks by only focusing on one market and rivals in the industry. These reasons summarized are determined to gain more profit. There are two methods of business growth known as internal (organic) and external (inorganic) growth. Internal Growth means that a business grows internally by using its own resources to raise the scale of its operations and sales revenue and is financed by the profit of the business. This includes also reducing or raising the price, advertising and promoting, improving product and selling in different locations. External growth however occurs through dealing with outside organizations so the growth comes from alliances or takeovers of other businesses. This method is much faster and it is a fast way of reducing competition by simply taking over a rival. Also working with other businesses means sharing practice and good ideas. A big disadvantage of this method is the high costs especially the takeover bids. Last but not least a method of growth called franchise is introduced which is a form of business ownership where a person/ business buys a license to trade using another firm’s name, logo, brand and trademarks. The benefits of franchising are that the parent company experiences rapid growth without having to risk huge amounts if money as the franchisee pays for the outlet itself, allows national and international occurrence and growth of economic of scale. Nevertheless it is expensive for individuals to buy a franchise and they have to pay a significant percentage of their revenues but in the other hand they have lower start-up costs and they benefit from the large scale advertising used by the famous parent company.
Next chapter is following tomorrow :D

Revision

2009-10-14T12:57:00.000-07:00

In today's business lesson we heard a really intersting presentation about NLP.
I would like to revise a bit about this presentation and explain what NLP is.

NLP means neuro-linguistic proramm and is a discipline that enables people to unblock the structures of human communication and execllence by doing so they are able to communicate and think in a more effective way.It explores the way we think (neuro), we communicate ( linguistic) and als our behaviour and emotions ( programm).

Learning from these relationships persuades people to change the way they traditionally think and act, adopting new, far more successful models of human excellence, more effectively. This action is also called modelling. Because NLP is such a powerful way of transforming the way people think and act it is used in business management, psychology, sales and all forms of personal development.

You want more inormation about NLP? Check out this videos....

A lesson about NLP with Michael Beale

25 points about the impact on a business of developments in technology

2009-10-04T05:14:00.000-07:00

easy commuication e.g : telephone,mobile phone, Internet, e-mail, fax)
less face to face communication
higher costs for companies as communicational divces have to be provided
easy marketing on the internet
easy selling on the internet
easy to set up a business via websites
web design infuences the amout of sold products
easy market reseach
easy to contact potential customers via telephone, adverts on TV, magazine
people often ignore advert via telephone and TV as they prefer to see a product for real
easy to come across and controle competative companies
more competition as it is easy for everybody to set up a business
easy distribution (cars, lorries,airplane)
easy to sell a product international
affiliation with other companies
easy financial controle (calculator,computer programms)
stock market
as the product has to improve to be competative the costs of prduction become higher
workers can be replaces by machines
lower costs for workers
companies spend a lot of money in machines,marketing,electonical devices,distribution,internet etc.
as it is easier to produce things there is a bigger production
professional writing with computer programms
documents can be saved on a computer less paper work
large data bases

Starting to write a Business Plan

2009-09-28T16:26:00.000-07:00

The Lapdesk

The lap desk is designed for office work, meetings, travelling or just simply for work at home

Designed by

Hebden Design Limited

Written by

Stella Ohlendorf

28 September 2009

Contents
Introduction
Main Body Plan
Executive summary

Introduction:

The following business plan introduces general methods to promote our product and how to make huge profit by selling it. Included are analysis of market,SWOT,HRM,marketing plan,finance.
The lapdesk was designed to make it more comfortable for students and business man to take notes if no desk is nearby and to support their health by preventing a wrong sitting position. Good comfort stands for more concentration, more motivation and participation, mental and body health.
Each new product that promises help and a way to get thing easier done is popular. Nowadays many young people suffer from back damages because of awkward sitting. Combining a folder with a desk which are attached by foldable side supports create the perfect angle surface to write and supports the user’s back health which in first place means an innovate way to take care about your back health and secondly to have a improved concentration
It is planned to advertise the lapdesk in health, lifestyle and students magazines as well as on the television in a 10 seconds spot.

Main body of plan:

Product
This practical lap desk is designed for office work, meetings, travelling or just simply for work at home. Lap desk makes it easier to write down notes quickly when no table or desk is nearby. Basically lap desk is a folder that has two foldable side supports which attach one side of the folder to the other creating the perfect angle surface to write on thus you mind sitting awkwardly which causes back damage. Inside the lap desk is also space to hold A4 paper and CDs

Price per Lapdesk : 30

Market
The lapdesk has a wide range of market.
The lapdesk will be available for students starting at the age of 6 as it is especially important to primary school students to take care of the back’s health at a young age.There will be a special model of the lapdesk for children aged 6-12.Another focus will be set on businessman and other people who assist to meetings, conferences and other similar activities which involves sitting and writing and who want to take advantage of this practical desk which stops to compromise their backs when sitting in an unhealthy position. The lapdesk Customers which have this need will be the main target group of the sales
Also retailers play an important role in selling the lapdesk as they are the first economic entity after the consumer.
In addition to that a big amount of lapdesks will be sold to companies that will need them for meeting and business trips for employees.
As already mentioned will the lapdesks be distribute to the retailer industry, stationery shops and book shops. By direct distribution the costs will be kept low by avoiding hiring a third distributor.

SWOT

Strenghs:

Weakness: Competition, there a similar inventions.

Opportunities:

Threats:

following

Web Plan Summary

Sales and marketing

Advertising :
The Lapdesk will be advertised in an aproximatley 10 second television commercial. This is the most effective way to catch people attention, to make them curious and to show them exactly how the lap desk works.

Estimated costs : 10.000 for 10 second television advert, including studio,filming team and equipment,actor or presentor of the lapdesk and required props

In addition to a television advertisement another in from of magazine commercial is planned.

Suitable magazines would be for example students magazines, magazines that approach workers (business people) like economical,financial,business or political magazines and lifestyle magazines. A magazin advertisement catches easily the attention of their reader by flicking through, gives significant information and also reminds on the televsion commercial

Estimated costs: 5.000 for a whole page in a magazine, including photo team and equipment,model

Implement of selling:

Distribution to stationary shops and healthy lifestyle shops.

Direct distribution to universities, companies and schools.

E-Commerce:

Online shop on our website.
http://www.homebusinessnetwork.co.uk/node/179

Special offer: 10 lapdesks for 250

50 lapdesks for 400

100 lapdesks for 850

Management Team:
following

Executive Summary :
following

2009-09-27T05:44:00.000-07:00

This is an e-book i am reading which supports me setting up my own business.

It is a motivational personal development and self-help book written by Napoleon Hill.It was published in 1937 during the Great Depression. Hill introduces the characteristics of achievers and developed 15 laws of success intended to be applied by anybody to achieve success.

The book is intended to teach us that success comes to those who become
success conscious. Failure comes to those who allow themselves to become failure
conscious as well as helping you learn the art of changing your mind
from failure consciousness, to success consciousness.

Chapter 1 :

This chapter starts telling two stories of two men named Barnes and Darby who went about to transate their desires into reality by thinking,being determined and taking the next step beyond the point at which they felt defeat had overtaken them rather than giving up on their desires.

Chapter 2:

following....

How i made it

2009-09-24T00:00:00.000-07:00

For Business studies i am reading a book called 'how i made it' written by rachel bridge who is the Enterprise Editor of The Sunday Times.

The book is collection of 40 of the best stories of ideas and innovation from the world of growing business

It introduces 40 successful entrepreneure and explains how they managed to turn their dream into reality.

They are talking about how they decided what to do,how they started,how they got the money they needed and how they went about it. It is also dealing with their ups and downs on the road to success.

It is a very inspiering book for everbody who wants to make business out of an idea

2009-09-23T23:58:00.000-07:00

Tasks:
a. modify the product
All modifications that could to be made need to be paid with the initial budget so before modifying a product it should be released first as it was designed in first place to get customers responses to the product and their opinion. After a profitable business is set and money is eared, ideas for modification can be collected and realized
Possible modification for the lap desk could be a little foldout light running by battery

b. market the product

The Lap desk

Summary: This practical lap desk is designed for office work, meetings, travelling or just simply for work at home. Lap desk makes it easier to write down notes quickly when no table or desk is nearby. Basically lap desk is a folder that has two foldable side supports which attach one side of the folder to the other creating the perfect angle surface to write on thus you mind sitting awkwardly which causes back damage. Inside the lap desk is also space to hold A4 paper and CDs

Marketing plan consists of the following:
PEST analysis
SWOT analysis
Distribution to stationary shops and healthy lifestyle shops
Advertising (posters and in magazines)
Website (Onlineshop)
1 or 2 employees

Beginning with a budget of 25000 pounds
Estimated costs:
Production of lap desks :15000pounds ( price of production per folder ca. 12 pounds)
=1250 lap desks to sell 34.99 pounds each
=43750 pounds profit
Distribution: 3000 pounds
Advertising: 2000 pounds
Employees: 1000 pounds

PEST

The lap desk is basically for everyone who has a job obliged with writing, meetings or students. It makes it easier for the target group to write important thing quickly down if no desk is nearby and the important aspect is that it supports a good sitting posture for a healthy back.

SWOT

Strengthens : Needed by many office workers, businessman, students et.
Weaknesses: Competition, there are comparable inventions

Marketing plan for Luigi's Rotating Spagetthi Fork

2009-09-23T15:21:00.000-07:00

Summary: Our product the Luigi's Rotating Spaghetti Fork is an invention never ever seen before and designed for people who struggle with turning their pasta by fork and have to put a lot effort into it trying not to get dirty. This innovative practical battery powerd device makes it easy for everyone to turn pasta thus you stay clean. Buying Luigi's Rotatong Spaghetti Fork will make your life better; you will never ever experience embarrising moments again by struggeling eating you spaghetti.

The package includes four batteries and an instruction.

Special offer : Buy three get one free

Price: 19.99 pounds

Our marketing strategy will include:

PEST analysis

SWOT analysis

advertising (TV,posters, in magazines)

website with online shop

special offer: buy three get one free

distribution to householding shops

PEST
Luigi's Rotating Spagetthi Fork is made for everybody at every age. It helps elderly people saving effort because they don't have to rotate the fork by hand. It would also a great help for children as it can be quiet difficult for them to turn spagetthis on a fork. People at every age had a lower chance to get their clothes dirty hence they have got less washing which saves the environment and money.

SWOT
Strengths:

New product which has almost no competition

The chances to sell a big amount of the product are high because the demand of forks needed buy each cusomer will be the number of forks of a cutlery set also the number offers ( buy X get Y free) convinces to buy more than just one and in addition four batterie four free

Weaknesses:

Conservative people would see this product as a waste of money

Starting a marketing plan

2009-09-23T12:18:00.000-07:00

To start my marketing i will use this webside :

http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073869186

It is a tutorial that shows you how to write a marketing plan :)

4 of the 400 latest and greatest small business ideas

2009-09-23T11:24:00.000-07:00

 Last-Minute Child Care /Emergency Babysitting
CONCEPT: Parents are occasionally or even often let
down by babysitters who fail to turn up or call in sick.
Rather than cancelling their plans, parents can instead
turn to a small business that specializes in providing
babysitting at the last minute – for a higher hourly fee.
STRENGTHS: Unique selling point; last minute =
higher fees; huge client catchment; home-based means
low overheads apart from marketing; staff paid on a perjob
basis; senior-friendly small business.
WEAKNESSES: Making sure that your own sitters are
reliable as it is your unique selling point; finding and
keeping good reliable sitters.
REAL WORLD BIZ: http://lastminutebabysitting.com;
www.news.com.au/dailytelegraph/story/0,22049,22988
430-5014717,00.html

Personal comment:
I think this is a really good business idea because loads of parents would use this
service if there is an emergency or unexpectedly they have to be somewhere and can't take care of their child they need to someone to do it.

 Specialist Car Importer
CONCEPT: A market has always existed for exotic and
slightly unusual used cars for buyers with more
individual taste in cars. Depreciation, the car importer’s
best friend, means that cars can be purchased in one
territory, freighted to another and sold for a handsome
profit. Depreciation, for example, in Britain is among the
most severe in the world and cars imported from the UK
to other right-hand-drive (RHD) markets can sell at a
considerable profit. Possible car types: E-type Jaguar, XK
Jaguar coupe (1997-2006), Nissan Skyline, Nissan
300ZX/350Z, Toyota Supra/Soarer, BMW M3/330
coupe/M5 sedan, Mercedes SL, older Porsche 911/928/
944 Turbo/968, Ferraris. In short, a specialist car
importer works out which territory across the whole
world offers the most profitable importing opportunity
and goes from there.
STRENGTHS: Great for car-lovers; unique cars =
higher prices; can get big deposits or entire price for car
before committing to importation; senior-friendly small
business.

Pesonal comment:
You would make a lot of money by the profit althought it can be hard because you always have to check the foreign currency exchange rate and buy the cars for a low prices at te right time.

 Home Renovation Planner/Project Manager
CONCEPT: Home property development or remodelling
is actually considerably more complex than many
amateurs realize until it is too late and many expensive,
avoidable mistakes that could have been avoided were
not avoided. A growing band of experienced remodelling/
property project managers are thus emerging who take
care of the owner’s complete development – for a
considerable fee. Oh and by the way, home renovation is
a $350 billion+ a year industry in North America.

STRENGTHS: May be possible to manage several
projects at once using same trustworthy tradespeople;
expandable business; can get management fee in
advance.
WEAKNESSES: Detailed understanding of logistics of
property development and remodelling are essential;
strong interpersonal skills and management essential;
some clients can be indecisive, change their minds
constantly mid-project or just be generally difficult.
REAL WORLD BIZ: http://www.renplan.com/

Personal comment:
I think any people would use this service because the majority of people are unexperienced
in renovation

 Used Musical Instrument Dealer
CONCEPT: eBay’s Hot Items list (bestsellers) at
http://pages.eBay.com/sellercentral/hotitems.pdf
proves that there is a pretty significant market for used
musical instruments. If music is one of your passions,
being a dealer in such instruments could be a lucrative
side or even primary business. If you are wondering
where to source such items, ask eBay’s established sellers
by posing as an interested buyer who is concerned about
where the item came from and its history. By revealing
this information to you, you too can source instruments
there. This could also be a healthy spinoff from a music
tuition small business, like the ‘School of Rock’ small
business on Page 203 or the band rehearsal room small
business on Page 211.
STRENGTHS: Relates to music - it beats selling life
insurance!; very low overheads if conducted online
and/or from home; fun.
WEAKNESSES: Slow selling inventory - that’s why
keeping a close eye on eBay’s hottest sellers at the above
web address is essential; established competitors in your
area.
REAL WORLD BIZ: www.elderly.com;
www.palmguitars.nl; www.daddys.com;
www.usedmusicalinstrument.com;
http://pages.eBay.com/sellercentral/hotitems.pdf

Personal comment:
If the instruments are in a good condition many people would use this service because new instruments can be quite expensive and not everybody who plays an instrument can afford one

Homework

2009-09-23T04:51:00.000-07:00

1. Complete the functions chart: HRM, Marketing etc
2. Learn the posters in the corridoors
3. Learn how to use blogger etc - explore the functions
4. Take FOUR of the 400 ideas and visit the sites. Then look at the advantages and disadvantages. Here is an example...
5. Read and review and comment on the books being loaned to you...

2009-09-22T11:23:00.000-07:00

Helloooo :D
finally i created my blog for business