Easy Start 1Define the following key words: Asset, Liability, Gross profit, Net Profit, Creditor, Debtor, Cashflow, Balance sheet, Profit & loss, Expenses, Revenue, Fixed costs, Variable costs, Total cost and Break Even.

Discuss and explain your expenses from Section B. Try and add detail. If you are just repeating yourself make a reference to the section where I can find it 2Describe and explain your expected start up and running costs for your business.

3. Describe and explain your expected income / revenue for your chosen business.  What is or are the prices of your products? Create a price list, explain the level (quality, quantity)  What are your expected sales per week or per month?  Find your average price  Average price x Expected sales (per month) = Monthly Income  Explain how you decide on that demand  Explain if your demand changes throughout the year

4. Open up ‘unit 2 accounts’ Receipts (Income)  Cash sales – number sold x unit price  Credit sales – Do you plan on allowing any purchasers to buy now pay later  Capital Introduced – Your money that you are investing  Loans – Your business loan

Expenses  Drawings – How much are you going to pay yourself?  Wages – How much are you spending on staff per month  Rent  Rates – £150 Council tax  Insurance – Business, car, shop. If you are paying yearly not monthly just enter the yearly sum in the month you are paying it.  Bank Charges – Usually charges for exceeding overdraft limit or other services you have requested  Loan Repaid Capital – How much of your loan are you paying off each month  Loan Repaid Interest – How much do you pay in interest each month  Bank Overdraft interest – If you have an overdraft it usually has an amount of interest  Opening Stock – How much stock (finished products) do you have left over from last month  Trade Purchases – How much you are spending on raw materials for the next month. Bear in mind you should buy a couple of months ahead and you need to have enough stock to meet demand  Energy – Gas, Water, Electricity – Atleast £100 per month and more if you are operating machinery  Advertising and Promotion –  Equipment – Probably costly in first month, includes tills etc  Motor Vehicles – Purchasing of motor vehicles  Leasing – Are you leasing (specific method of buying something) anything? Could be car, equipment  Petrol/oil/maintenance – Think about how much transport you require and the cost of fuel. Allow some contingency for vehicle repairs etc.  Print/ Stationary/ Phones – Everyone will need a business phone line and printer