unit 2 - pupil booklet part 2

8/8/2019 Unit 2 - Pupil Booklet Part 2

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KNOX ACADEMY

STANDARD GRADE

BUSINESSMANAGEMENT

UNIT 2

STARTING YOUR

OWN BUSINESS

PUPIL BOOKLET Part2


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Name


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Unit 2 Task Checklist (continued)

Task DescriptionDateCompl

eted16 Choose Your Business Name

17a Choose Your Business Location

(Multimap)17b Describe Your Business Premises

18 Match the Mission Statements19 Write Your Mission Statement (aims)20 Who Will You Employ?21 Equipment Required22 Banks Behaving Badly23 Cash Flow Forecast24 Logo Design25 Letterhead Design26 Business Card Design27 Website Features28 Whats Wrong with the Website?29 Website Creation30 PSYBT31 Business Plan

Unit 2: Start Your Own BusinessStandard Grade Business Management Knox Academy

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Your Business

For the remainder of this unit you are going to beable to be creative and use your own businessidea.

If you cannot think of a suitable business youcould use one of the following examples:

Hairdressing

Chauffeur Driven Limousine

Mechanic

Sandwich Shop

My chosen business is:

Have you checked with your teacher?

Name Your Business

It is important to have a good business name as Nick Jenkins (founder ofMoonpig.com) describes.

Memorable Brand Word of mouth

Cant misspell

Represented in graphical format

Available on the Internet Check Nominet

Different versions .comand .co.uk

Unique name

Trademark

It wasn't that expensive to go for trademarking and it gave the name an

extra layer ofprotection.

"I employed a trade mark attorney and Moonpig is now a trade mark in the

UK and the USA. "It's such a small insurance premium. I think it's

critical as the brand name is the thing that customers really recognise."


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Points to help you decide on a name for your business

Do you want the name to reflect what your business does -

framing, moving, cleaning, building? Include your own name?

A traditional-sounding name, conveying durability and old-

fashioned values, or a modern name, suggesting a fresh,

innovative approach?

If you're likely to be trading overseas, check that the name doesn't

mean anything inappropriate in the relevant languages.

Think about callers and customers - avoid very long names,

strange wordings and unusual spelling.

Are you focusing on the local market? include Haddington

Keep your trading name creative, but your corporate name

bland. This will give you the flexibility to develop other brands and

trading names in the future.

Sensitive WordsThere are some words and expressions that you can't use in a business nameunless you have official permission.

Expression Example

Words that suggest yourbusiness is of national

importance

British, National, International, European

Words that suggest a specialstatus

Association, Authority, Chartered,Council, Institute, Society

Words that suggest a particularfunction

Charity, Insurance, Register, Trust

Words that suggest aspecialised activity

Health Centre

Words that suggestconnections with government

or royalty

Parliament, Government, Royal,Queen, Prince


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TASK 16:

Check that name you are considering is not already used, or one that issimilar exists.

You could use www.yell.com andwww.companieshouse.gov.uk to check

You wouldnt want your reputation damaged by anothercompany.

My chosen business name is:

Have you checked with your teacher?

Factors of Production

In Unit 1 you will have learned about the 4 factors of production.

Fill in the table below to refresh your memory.

In the boxes below enter some examples of each factorof productionthat an entrepreneur who produces crisps would need.

Factor of Production Example

Land

Labour

Capital

Enterprise


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http://www.yell.com/http://www.companieshouse.gov.uk/http://www.yell.com/http://www.companieshouse.gov.uk/


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Locate Your Business

Location can be extremely important unless you are doing business viaphone and/or the Internet (e-commerce)

Some thoughts that you might like to consider are:

Do you need to be near your customers?o Are you near a bus stop/train station?

o If coming by car, can they park?

Where are your competitors located?

Usually, businesses like to be visible and accessible

If you dont rely on passing trade, location is less important

If you run a business from home you must check the terms of your

deeds/lease first and ensure that your insurance covers you for

business use.

Can you locate in a less expensive area to save on rent? If you

need premises in a prime location the extra costs may be justified.

TASK 17a:

Where would you like to locate your business?

Access Multimap.com and take a screen shot of the area that youwould like to locate in.

Paste this into Microsoft Word and identifyyour nearest competitor with drawing tools.

Use the crop tool to select only the part of the image that you need.

TASK 17b:

Describe your premises in terms of size, facilities and whether you willrent or buy. You will wish to word process this to use in your businessplan later. Place a copy in your folder.


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Your Mission Statement

A mission statement is a statement that defines the purpose of a

company what it stands for i.e. what broad products or services it

intends to offer customers.

The mission statement also gives readers a window on the raison dtre

(the main purpose)of the company.

An effective mission statement should be concise enough for you to

describe your companys purpose and ideals in less than 30 seconds.

Where would I see a Mission Statement?

Mission Statements typically appear in business plans or alternatively

will appear in the Corporate Relations or About us sections of

websites.

Mission Statement Guidelines

A mission statement should say who your company is, what you do, what

you stand for and why you do it.

The best mission statements tend to be 3-4 sentences long.

Avoid saying how great you are, what great quality and what great service

you provide.

Make sure you actually believe in your mission statement, if you dont, its

a lie, and your customers will soon realise it.

TASK 18:

Match the following Mission Statements to these companies:


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To provide our customers withsafe, good value, point-to-pointair services. To effect and to

offer a consistent and reliableproduct and fares appealing toleisure and business marketson a range of European routes.To achieve this we will developour people and establish lastingrelationships with oursuppliers.

to organize the worlds

information and make it

universally accessible and

useful.

Establish (_______________) as

the premier purveyor of the

finest coffee in the world while

maintaining our

uncompromising principles

while we grow.

provide a global trading

platform where practically

anyone can trade practically

anything.

to build a place where people

can come to find and discover

anything they might want to

buy online.


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TASK 19:

Write a Mission Statement for your company. Your will require this later inthe unit.

You may wish to word process your Mission Statement place a copy inyour folder.

People in Your Business

What Skills and Qualifications do you have?

Which of the following skills do you have when would they be useful inyour business? Complete the following table.

Communication (good at talking and writing to people)

Numeracy (good with figures)

IT (word processing, database, spreadsheet, desk-top publishing)

Subjects that I am studying this year

My local further education college(and a course that would be useful for my business)

access the Internet for this

Who will you need to employ?


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It is likely that you will need some support. Even as Sole Trader you canemploy others.

What skills and qualities will they need? In the Human Resources Unit youwill learn that Job Descriptions and Person Specifications arerequired.

TASK 20:

Complete the table below showing job title; duties and skills required foryour employees and in addition their annual salary.

Annual Salary = rate per hour x hours per week x 52 weeks

eg 6 per hour for 35 hours a week = 6 x 35 = 210 per week

210 x 52 = 10,920 (assume that holidays, sickness etc all covered inthis)

Job Title Duties Skills Salary


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Equipment Required in Your Business

TASK 21:

Make a list of all the equipment you will need to run your business and

write an approximate cost beside each.

Look up catalogues at home or use websites to assist you.

Item Purchased from Cost


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Financing Your Business

TASK 22:

Watch the video Banks Behaving Badly and jot down some notes

below for class discussion.

Businesses in the Private Sector aim to make a profit.

Break-even is the point before making a profit where you make neithera profit nor loss in other words you cover all your costs.

As part of a business plan a Cash Flow Forecast must be prepared whichwill show that you business is likely to succeed and make a profit.

What will your income be? This has to be a guess since you dont really know how much you

will earn from selling your goods/serviceo How much can you charge?

o Can you charge less than your competitors?

o Do you have something special and can charge more?

Remember that businesses take a while to establish themselvesand may not have a high income at the start.

What are your expenses likely to be? Purchase of machinery

Purchase of raw materials

Insurance

Electricity

Telephone

Rent

Petrol

It is important to have more money coming in (income) than is

going


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out (expenditure) otherwise your business will go bankrupt.

Cash Flow Forecast

This shows money coming in and going out month by month

It lets you see if there are times where your expenditure is likely tobe more than your income

You may be able to arrange an overdraft (short term loan) with yourbank to cover these months

TASK 23:

Using a spreadsheet prepare a cash flow forecast using the

information above.

Your teacher will provide you with a template.

Be Creative: Get Yourself Known

You will create a logo

You may wish to create some business cards to hand out topotential customers and a letterhead when writing letters You should also have an onlinepresence

Logo Design

When it comes to seeing a logo that makes you wonder, Why didnt Ithink of that? what is it about the design that gives that impression?

There are five elements that can be seen in every iconic logo:

1. Its describable2. Its memorable3. Its effective without colour4. Its scalable i.e. works when just an inch in size5. Its relevant to the industry in question

If you cant describe what a logo looks like then how will you be ableto remember it?

The mark must work in black only. Remember what the logo will look like on office stationery (pens, pin

badges etc.) all those little things that can easily be overlooked.

You must differentiate yourselffrom closely associated competitors.


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Take the example of the Open University (the UKs leading distance-learning organisation.)

This is how the Open University logo appeared in the past:

TASK 24:

Design a logo for your business.This may either be using a computer program of your choice or in ink onpaper (do not use pencil for your finished logo). If you draw your logo this

can be scanned in to be used on your website and business card.


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TASK 25:

You will send many letters out from your business and will require aletterhead.

Create a letterhead which includes your business name, address andlogo.

You should use a word processing program for this. Make the top margin0.5 and ensure that the letterhead only takes up the top section of thepage.

An example of the Knox Academy letterhead is shown below:


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Business Cards

Business cards are cards bearing business information about a companyor individual.

They are shared during formal introductions as a convenience and amemory aid.

A business card typically includes the giver's name, company (usually witha logo) and contact information such as street addresses, telephonenumber, fax number, e-mail addresses and website.

Traditionally many cards were simple black text on white card; today aprofessional business card will sometimes include one or more aspects ofstriking visual design.

TASK 26:

Using a program such as Microsoft Publisher,design a business card for your business.

Remember to include your logo from Task 23.

Your teacher will show you some business card examples

Website Design

TASK 27:

What makes a good website is the first place to start when designing awebsite.

Using Amazons website (www.amazon.co.uk) list 10 features that youthink are useful and add to the usability of the site.


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http://www.amazon.co.uk/http://www.amazon.co.uk/


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TASK 28:

Watch the video Whats Wrong with the Website and jot downsome notes below for class discussion.

Even if you were not intending to create a website for your businessimmediately, you'll probably be using email and want to have a presence

on the web at some point in the future.

Choosing a domain name:

The website address for example, mynewbusiness.co.uk - is known as adomain name. For most businesses based in the UK, a name ending with.co.uk is suitable. Your email address will normally include this name for example, [email protected].

To reserve a domain name for your business, you need to register itthrough an agent, who will charge a small annual fee. You should do thisas soon as possible - even if you're not going to use your domain namestraight away.

Registering your domain name:

Decide on a suitable domain name for your website - if youare unable to use one that exactly matches your business name.

You can use numbers as well as letters. Hyphens can be used toseparate words - but you can't include spaces, full stops or otherpunctuation. It's a good idea to have a few alternative names incase your first choice has already been taken.

Check whether the name is available and register withNominet - the official registry for UK domain names.

TASK 29:

Create a simple website for your business includingcontact details and the products/services that you provide.Remember to include your logo, mission statement etc.

Your teacher will give you a login for the Edubuzz system, if you do notalready have access.


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mailto:[email protected]:[email protected]


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Business Advice

When starting up a business it is a good idea to seek advice from otherswho have experience of supporting people in business or have runbusinesses themselves.

Some of the places that you can get business advice from are:

Friends/family

Your business partner

Bank Manager

Lawyers

Accountants

The local Council Planning Department

The Princes Scottish Youth Business Trust

TASK 30:

Watch the video on the PSYBT Website. It can be found in the AboutUs section of the website.

Jot down some notes below:

Business Plan

TASK 31:

You are now about to prepare a Business Plan based onall the information that you have gathered in this unit.

You may prepare the Business Plan as a report (seecontents on next page) or as a PowerPoint presentationto give to your Bank Manager.

The Business Plan shows that you have taken steps to reduce the risk ofthe business enterprise and will possibly convince the Bank Manger to giveyou a loan.


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Business Plan Outline

General details

about the business

Its name

Its objectives

Its proposed location

Type of ownership (eg sole trader,partnership or limited company)

Human resources The key people in the business Their skills

Their positions of authority andresponsibility

Wages and salaries

The product orservice

What will be produced or provided

The quantity to be produced orprovided

The price of the product or service

Whether or not market research hasbeen done

The market What market is being targeted ( egwhat age group young or old)

Size and potential growth of themarket

Results of market research

Intentions about advertising andpromotion

Premises andequipment

Location of premises

Cost of premises and equipment

Type of premises and equipment

How much equipment is required

Expected lifespan (eg ten-yearlease)

Profit estimates Forecast of sales Costs and break-even point

Projected timescale for profit-making

Cash flow Cash budgets for future period Expected income and expenditure

Where income will come from

How much of a loan or overdraft isneeded

Where the initial funding will comefrom all from the owner(s) or


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partially from a loan or grant


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Business Plan Helpsheet

Your final Business Plan should contain:

1 Front cover, with your Business Name, logo and thewords Business Plan, presented attractively.

2 Contents page

3 Brief description of your business ie product orservice, target market

4 Your Mission Statement

5 The location of your business

6 Equipment

7 Staffing

8 Sources of finance, cash flow forecast

9 Letterhead/business card

10 Website details

Make sure your layout is consistent:

same font

use of footers

line spacing


unit 2 - pupil booklet part 2

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