Influences In Establishing A Small To Medium Enterprise
Syllabus Requirements• personal qualities – qualifications, skills, motivation, entrepreneurship, cultural background, gender
• sources of information
• the business idea – competition
• establishment options – new, existing, franchise
• market – goods and/or services, price, location
• finance – source, cost
• legal – business name, zoning, health and other regulations
• human resources
– skills
– costs – wage and non-wage
• taxation – federal and state taxes, local rates and charges
v In your BAU groups complete the following activities designed to provide detail for each of the influences above in the context of your previously proposed businesses i.e. applying theory to a real business situation.
v You must create a Weebly website for your group (including an update of information from your existing PowerPoint presentations). I will provide you with a login and password to a free Weebly creation facility.
v Use your text book and http://www.studyismybuddy.com/11-bus-planning.html
v Assume that you are developing your business here in the Hills district.
a. Sources of information
i. Your textbook describes various sources of information. Select 3 that you think would be the most useful when researching your business.
1. Justify why you have chosen these three
b. The business idea – competition
i. Outline who is in competition with you?
1. Locally?
2. Nationally?
ii. List the businesses that are in the local area the same as yours
iii. How long have the 3 largest been established?
iv. Can you place them on a map within various km radius?
c. Establishment options – new, existing, franchise
i. What are the definitions for a new, existing and a franchise type business?
ii. Are there any franchise options for your type of business?
iii. What are the start up costs you would need to consider if you purchased:
1. A new business?
2. An existing business?
3. A franchise?
iv. What other options are available for you?
v. Useful websites:
a. http://www.smallbiz.nsw.gov.au/
b. http://www.business.nsw.gov.au/doing-business-in-nsw/starting-a-business
c. http://www.franchisebusiness.com.au/
d. http://australia.businessesforsale.com/australian/search/Businesses-for-sale-in-Sydney
d. Market – goods and/or services, price, location
Market analysis involves collecting, summarising and analysing information about the state of the market, customers, the threats and opportunities that the market presents, and any advantages or disadvantages that the business is likely to have over its competitors.
1. Describe ways in which you could collect the market information.
2. Write 1 sentence to describe why each one is important to understand as a business owner:
a. Who are your customers?
b. What do you know about them?
c. What is their age and gender?
d. Why do they buy your product(s)?
e. What do they see as your strengths and weaknesses?
f. How can you gain more customers?
g. Who are your competitors?
h. How many do you have?
i. What do your competitors offer that you do not?
j. What are you really selling?
k. To whom would you like to sell?
ii. Price: One of the most crucial decisions that any business owner has to make is to determine the prices at which goods and services are provided to customers
1. Describe the 4 approaches to price development
2. Which one is the mot suitable for your business?
a. Why?
iii. Location: Different types of businesses will be suited to different locations- a suitable location might be a shopping centre or retail shopping strip, or the business owner may choose an online presence or prefer a home-based business.
1. What are the factors for consideration for your business?
2. List the 4 possible locations; justify your preferred location for your business.
e. Finance – source, cost
i. List & describe the 7 Questions to consider when assessing finance for a business
ii. What are the two sources of finance that are available to small business owners?
iii. Which is most appropriate to your business? Why? (Hint: You may want to complete this question after you have looked at the costs section of this task)
f. Legal – business name, zoning, health and other regulations
i. Consider the legal requirements of starting your business.
1. What do you need to register your business name?
2. Why would you want to register a business name?
3. What are zoning and health regulations?
4. What other regulations should be considered?
5. What professional advisers should an SME consider approaching?
a. Provide a brief description for each.
6. Outline and provide examples for the Trade Practices Act and its importance to business
g. Human resources
i. List the main sources of employees available to a business
ii. What are the important human resource requirements that an SME must deal with once they have employed staff?
h. Skills
i. What is the overriding objective of recruiting?
ii. Provide a list some of the skills you would be seeking for a non management member of staff
i. Costs – wage and non-wage
i. What is the difference between wage & non-wage?
1. List examples of non-wage (on costs) for an employee
ii. What do anticipate your first year of costs to be? Create a spreadsheet showing the explicit roles and salaries you can expect to pay.
1. If using casual staff state how many hours per week your staff will be working
iii. Useful websites:
a. www.seek.com.au
j. Taxation – federal and state taxes, local rates and charges
i. What taxes do you need to consider?
ii. Why?
iii. What is the difference between federal & state taxes?
iv. Who do you have to pay when?
v. What are local rates and charges?
vi. How do they apply to your business?
vii. Useful websites:
1. http://www.ato.gov.au/
2. http://www.osr.nsw.gov.au/lib/doc/factsheets/ofs_st1.pdf