Assessing Business Start-Ups 3.0 / 5 based on 2 ratings ? Business StudiesASAQA Created by: amyCreated on: 19-05-13 14:32 Key Terms BUREAUCRACY- often referred to as 'red tape'. These are the rules and regulations that businesses have to abide by. SME- a small or medium enterprise. The common abbreviation to describe small businesses. SWOT ANALYSIS- an assessment of the strengths, weaknesses, opportunities and threats of a business, market or product. FIXED CAPITAL- that is employed in assets of durable nature for repeated use over a long period. WORKING CAPITAL- the cash available for day-to-day operations of an organization. ECONOMIES OF SCALE- the reduction in long-run avearge and marginal costs arising from an increasae in size of an operating unit. COLLATERAL or SECURITY- something pledged as security for repaymeent of a loan. 1 of 3 Key Business Start-Up Objectives Clear Objectives Survive! Manage Cash Flow Gain Market Share Invest Profits 2 of 3 Key reasons for failure Poor Cash Flow Management- one of the main reasons for business failure. Inadequate Market Research- the market never stands still. are you still using the same research as a year ago or worse still no research at all? Unexpected Changes to Demand or Costs- tastes and fashions might change fast or you might find changing economic factors raise your costs. Strong Competition- the market leaders might be too powerful and the brand loyalty of customer too strong for you. Poor Supply Chain- suppliers might let you down with no products to sell and angry customer 3 of 3
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