1. Business resource needs
1.1. The people and objects that are needed for a business to function
1.2. Natural resources: water, air supply, sun (solar), land
1.3. Labour resources: people required for the business to operate - employees, contractors, suppliers, builders
1.4. Capital resouces: essentially anything that isn't people or a natural resource. Eg; tables, chairs, buildings, coffee machine
2. Business locations
2.1. Owners must consider the following when making location decisions: - visibility - cost - proximity to customers - proximity to suppliers - proximity to competitors - proximity to complementary businesses
2.2. Shopping centre - eg; Chadstone - high visibility - high cost of lease - close to competitors - close to complementary businesses
2.3. Shopping strip - high foot traffic - close to complementary businesses - high visibility
2.4. Online business - less visbility - online competitors - competing with online and bricks and mortar businesses - cheaper to run
2.5. Import/Export - tax and fees with importing/exporting - global business attracts more customers - selling to suppliers rather than direct to customers
3. Sources of finance
3.1. Internal finance - contribute your own funds (equity and capital) - ask family and friends
3.2. External finance - debt by borrowing - government grants
3.2.1. Debt - bank overdraft - when bank account can go into negatives to cover a short period of time before pay - bank bills - used for large purchases like cars - leasing - gym equipment, furniture - trade credit - when trade services are provided and an invoice given with terms like 7 or 30 days - mortgage - usually for property
4. Business support services
4.1. Solicitors, accountants, bank managers used by the business but get paid in return
4.2. Federal, State and Local Governments also provide support to business owners if it is in their interests to boost the economy or support a particular type of business
4.3. Formal networks: Chamber of Commerce, Victorian Institute of Teaching
4.4. Informal networks: Facebook groups, family and friends
4.5. Business mentors: usually an experienced business owner who can provide support and guidance to someone starting out
5. Corporate Social Responsibility in business planning
5.1. a business should consider the environmental, social and economic elements of their operations
5.1.1. Failure to do this can result in loss of customers, negative publicity and low staff morale
6. Purchasing an existing business or establishing a new business
6.1. Existing business: - already established customer base - can't choose your own name, takes time to establish yourself as the new owner - likely instant income - can operate immediately
6.2. New business - costly to set up and begin operating - full ownership over decision making relating to products, ideas, marketing etc
7. The relationship between the internal and external environments
7.1. Internal environment includes: - employees - managers - location - legal business structure
7.1.1. The business has more control over these factors than the operating or macro environments
8. Types of legal business structure
8.1. Sole trader
8.1.1. simplest form of business ownership
8.1.2. unlimited liability
8.2. Partnerships
8.2.1. Usually 2-20 owners
8.2.2. unlimited liability
8.3. Company
8.3.1. Incorporation
8.3.1.1. Private company
8.3.1.1.1. legal entity separate from its owners
8.3.1.1.2. limited liability
8.3.1.2. Public company
8.3.1.2.1. available on the stock exchange
8.3.1.2.2. limited liability