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

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Our Business Ideas

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Business Name

Business names should be:• Short• Easy to remember• Relevant• Free of copyright

How to choose a name:• Brainstorm• Internet• Yellow Pages

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Design a Logo

• A logo identifies your business

• It should be:– attractive– eye-catching– simple

• Examples:

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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

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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

Bank 300,000

LIABILITIES

Capital 300,000Mr.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

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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?

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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

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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?

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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

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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

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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

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