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Business Planning- influences in establishing SME's Summary - Coggle…
Business Planning- influences in establishing SME's Summary
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a business
must establish a price that will be competitive and still high enough to provide an acceptable level of profit
must comply with government laws and industry-specific regulations, such as registering their name with the relevant state government department.
a new business will need to do something different and better than all the competitors to gain a competitive advantage.
must comply with all health and safety regulations to protect employees, customers and the community.
must comply with the Competition and Consumer Act 2010 (Cth), which makes it illegal to engage in anti-competitive behaviour
should find information about the market, trends in consumer spending and legal sources, helps with better plans and decisions to gain an advantage over competitors
business owners
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The cost of debt finance is the interest rate charged. there are additional fees when borrowing funds. Debt finance must be repaid and includes loans, overdrafts, commercial bills and debentures.
must ensure the employee has the appropriate skills, experience and professionalism
Investors providing equity finance (including venture capital) will expect a return that is better than other investment choices they could make as well as a share of the ownership.
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Taxation and non-wage costs are the financial costs of employing staff in addition to their wage or salary
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entrepreneurs
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can choose to; establish from scratch, take over existing business or become franchise, or buy out employer and take over as new owner
when selecting location consider visibility, costs and location of suppliers and customers
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