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1.5 - Coggle Diagram

- - - - Limited liability
      - Company and owner's finances are seperate
    - - +
        
        Financial records remain relatively private
        
        More flexible than a plc
      - -
        
        Complex to set up
        
        Cant sell shares to the public, limited shareholders
  - - - Limited liability
      - Company and owner's finances are seperate
    - - +
        
        Wide shareholder base so spreads risk
        
        More finance available from more shareholders
        
        More attention for the business/ brand
      - _
        
        Risk of hostile takeovers
        
        Lack of financial privacy- performance is available to view and be scrutinised/ analysed
  - - - Ads
        
        More skills involved, more specialisation available to you
        
        Simple and flexible
        
        Shared liabilities
        
        Private finances
        
        More funds available than to a sole trader
      - Disads
        
        Still unlimited liability
        
        Decision making is shared so can cause arguements
        
        If theres an issue with one partner, partnership is dissolved, death, resignation or bankrupcy
        
        Requires lots of trust or written agreements
  - - - Advantages
        
        Cheap and easy to set up
        
        Sole trader keeps all profit
        
        Full control over decisions
        
        Privacy with financial records
        
        Motivation for the business to succeed is high because it directly affects the success of the individual, this wouldn't be the case for someone working at the amazon factory for example
      - Disadvantages
        
        Unlimited liability
        
        Limited funds available
        
        Difficult to find cover when ill if completely sole
        
        Only one person may not have specialist skills and would need help
  - - - Initial fee
      - Annual fee
      - Buys supplies from franchisor
    - - _
        
        Risk to reputation if someone acts under your name
        
        Loss of control
      - +
        
        Rapid expansion without lots of effort, franchisee does most of the work
        
        Franchisee is motivated due to own capital being in the business
    - - +
        
        Lower start up risk
        
        Established business- brand and product awareness
        
        Experienced assistance
        
        Proven to work
      - _
        
        Lack of control- rules must be followed- must buy supplier from franchisor
        
        High cost- start up fee and annual
- - - - Personnel
      - Finances
      - Stocks
  - - - Finding ideas
        
        Personal experience
        
        Business experience
        
        Brainstorming
        
        Market research
      - Drawing up a business plan
        
        Contents
        
        Marketing strategy
        
        Key skills of the entrepreneur and other employees
        
        Market information
        
        Operations
        
        Business products or services
        
        Financial forecasts
        
        Executive summary
        
        Will be used internally or externally by potential investors
        
        Purpose
        
        Help identify problem areas
        
        Set targets which can be checked in development
        
        Ensure healthy financial structure is developed
        
        To provide realistic expectations
        
        Secure external funding
      - Deciding on legal structure
      - Raising finance
      - Asking if the idea can add value
      - Conducting market research
    - - Uncertainty- is too unpredictable to be quantified
      - Risk- can be quantified with probability
    - - Providing a service/ product
      - Personal satisfaction
      - Be own boss
      - Money
      - Fulfilling a dream
  - - - Creative
      - Positive and self- motivated
      - Good communication skills
      - Risk taker
      - Decision maker
    - - Organisation
      - Problem solving
      - Literacy and numeracy
      - Team working