A lack of ideas.
Only providing a service.
A willingness to take risks.
Rent of the business premises
Raw materials used in production
Packaging of the finished products.
Cash Flow Forecast.
She will benefit from limited liability.
She could raise finance from selling shares.
To have greater control within the business
She would take all of the profits.
She would have the ability to make her own decisions.
It would involve greater risk.
Sonia’s costs had risen by 30% in the past 6 months.
Sonia has calculated her yearly income tax as £795.
There is an 80:20 chance of Sonia’s business failing.
Sonia has estimated that demand will rise by 10% over the next 6 months.
A reduction in fixed costs due to lower repayments on her overdraft.
A worsening net cash flow position.
A rise in sales due to higher levels of consumer spending.
A greater chance of rivals entering the market.
A fall in sales due to lower levels of consumer spending.
An increase in fixed costs due to higher repayments on her overdraft.
Providing high quality tuition.
Operating as a sole trader.
Providing a personalised service.
Operating in a competitive market.
Providing a service for the community.
He would not have to pay any tax.
He would have no stakeholders.
Customer service would not be so important.
A recognised brand name.
Access to help and advice when running his business.
Identifying new products and new ways of making products.
Identifying a gap in a market for a new product.
New business ideas which are profitable.
The process of transforming new ideas into products that can be sold.
Avoids having to ask the ‘what if?’ question
Increases the calculated risk
Generates competitive advantage
Avoids the need for lateral thinking.
Prevents another business from using his brand name.
Provides the right of ownership of an invention or process.
Is an insurance policy which provides protection from financial loss.
Ensures he will not make a loss for 20 years.
Being able to produce his product cheaply.
Recognising a need in the market-place.
Being a keen cyclist.
Knowing who his possible competitors were.
Having a large amount of personal savings.
The cost of importing pasta from Italy stays the same.
His net cash flow will improve.
The euro price of pasta will rise.
His import costs will rise.
The price of wheat will fall.
Charles will have to pay more for his pasta.
The cost of wheat will rise.
The demand for wheat will fall.