Learning Aim A

Task 2 Help

Justification

A detailed explanation of why you have chosen your final idea, supported by your individual research findings

You must thoroughly explain which business idea you are choosing with supporting evidence (Market Research). When justifying your choice of business idea, you must refer to all factors to consider. When referring to finance and costings this only needs to be discussed briefly. Eg. This business idea is likely to cost a large/small amount because ...

(See lessons in R:\Business\BTEC Tech Award - Business Enterprise\Component 2\HT2\VNW for help on each factor)

Resources Available:

Physical

Location - Do you need a physical location(shop, warehouse, home) or an online location?
Materials - What raw materials will you need? Tell me what they are and why you need them.
Equipment - What equipment do you need? E.g walking boots, sewing machine?
Fitting and Fixtures - Do you need table & chairs for your shop? A window display for your shop? Tell me what you need.
Information Technology - Do you need a computer , printer, internet and any specific software? Tell me what you need.
Stock - What do you need to buy in and why? This may link to how much you think you are going to sell.

Human Resources

What are human resources?
What do you need to consider when starting a new enterprise?
How many people will you need to employ?
What will their job roles be?
How many hours will they be working?
How much will you be paying them (check the current national minimum wage)?
What are their skills and training needs?
Think about other employment law i.e gender, maximum hours allowed to work, holidays, working conditions etc.

Financial Forecasts

Start up Costs

These are costs that will be incurred before your business in operational. What resources require purchasing before you start to operate?

Running Costs

An enterprise will need to plan the costing and pricing of its products carefully. Costings cover all of the costs associated with the provision of the product. This will include:

fixed costs (costs that do not change according to changes in output) – such as electricity and water bills, rent or insurance costs
variable costs (costs that change according to changes in output) – such as the raw materials that make up the product. For example, if an enterprise plans to make jumpers, it may need to rent space in a factory or buy sewing machines. It would also need to buy fabric, zips, cord, labels and so on.

Costing and Pricing

What are your total costs for each idea? If the start up costs are high, is it a realistic business idea?

How much will you charge for your products? refer to your primary and secondary market research. Will your business be running at a loss (costs higher than selling price)? Does this make your idea unrealistic?

Methods of Communication and Promotion

How will the enterprise be launched?

How will the enterprise be promoted so that customers are aware of its existence?

What will be the message of the enterprise?

How enterprises communicate