Business Studies An Integrated Approach to Book-Keeping Mr.Poole Business Studies

Starting a Business Pick a business idea (idea generation) Brainstorm in groups of two/three Mr.Poole Business Studies

Our Business Ideas Mr.Poole Business Studies

Business Name Business names should be: Short Easy to remember Relevant Free of copyright How to choose a name: Brainstorm Internet Yellow Pages Mr.Poole Business Studies

Design a Logo A logo identifies your business It should be: – attractive – eye-catching – simple Examples: Mr.Poole Business Studies

Research Why is research important? Where can you find information? List ways you can conduct research? Mr.Poole Business Studies

Finance What is capital? How can you raise capital? – Savings – Loans – Grants – Other ideas.... List your local financial institutions and agencies that provide grants to start-up businesses Mr.Poole Business Studies

Assets and Liabilities What is an asset? What assets would the following businesses have? – Supermarket – Farm – Garage What is a liability? What liabilities would the following have? – Supermarket – Farm – Garage Overdue Mr.Poole Business Studies

Keeping Records Why do businesses keep records? What records should we keep? – Records of daily transactions – Final accounts for the end of year Mr.Poole Business Studies

Balance Sheet Shows a picture of the assets and liabilities of a business on the last day of the trading year Total assets should always equal total liabilities If we invest €300,000 in our business and lodge it to the bank, our balance sheet would look like this: Balance Sheet as at 31/12/xx€ ASSETS Bank300,000 LIABILITIES Capital300,000 Mr.Poole Business Studies

Business Transactions All business transactions must be recorded List five transactions that your start-up business may have, e.g. purchasing the premises by cheque Mr.Poole Business Studies

Purchasing Stock We need goods to sell in the business Goods which we buy to sell are known as “stock” Stock in our business will be an asset Stock is bought at cost price and sold at a higher price What type of stock will your business need? Mr.Poole Business Studies

Business Documents It is important to shop around for the best value for money when buying stock Stages involved: – Send a letter of enquiry to several suppliers – A quotation will be sent to you by each supplier – Compare the quotations – Send an order to the supplier who best suits your needs – Goods will be delivered and an invoice will be sent to you Mr.Poole Business Studies

Marketing Mix Product – e.g. iPod touch Price – e.g. €229 Place – e.g. Music stores, Amazon.com, Apple Store Promotion – e.g. TV & Magazines adverts, merchandising, special offers What is the Marketing Mix for your product? Mr.Poole Business Studies

Methods of Promoting Your Product Personal Selling – “one-to-one” communication with the customer Sales Promotion – e.g. 2 for 1, 50% extra free, coupons Advertising – e.g. TV, radio, internet, newspaper, magazine Public Relations – e.g. Sponsorship Mr.Poole Business Studies

Selling Stock A combination of promotion methods can be used to maximise sales What methods of promotion will your business use? Design an advert that could be used either as a brochure or inserted in print media – A good advert should attract attention, achieve interest, create desire and result in action Mr.Poole Business Studies

Profit Profit is the difference between the cost price and the selling price of a product If the product is sold below cost price, the business makes a loss Gross Profit/Gross Loss is calculated in the Trading Account Net Profit/Net Loss is calculated in the Profit and Loss Account Mr.Poole Business Studies

Finally... At the end of the year, a business will have to present the following to its shareholders: – Trading, Profit and Loss Account – Balance Sheet – Annual Report Mr.Poole Business Studies