Lesson Structure:   Starting a Small Business VBS101

There are 12 lessons:

1  Introduction to Small Businesses:

• Nature and success factors
• Primary, Secondary or Tertiary business
• Scope and Types of Businesses
• Options –size, products, positioning, legal structure, specialisation, type of industry
• What makes it a “small” business
• Key Success factors –entrepreneurship, market niche, information, reputation, flexibility
• Understanding Risk of Failure
• Set task
• Assignment

2  The Business World;

• Business structures –sole trader, partnership, companies (public and proprietary)
• Advantages and disadvantages of different types of ownership
• Small Business and the Law
• Importance of record keeping
• Regulations affecting site and operations
• Components of a legal system –lawmakers, interpreters, enforcers, administrators, advisors
• Common law rights and obligations
• Protection of Consumers
• Trade practices, trademarks, brands, business, IP.
• Business Registration
• Employment Law –employment contracts
• Business disputes –negotiation, arbitration, mediation, etc.
• Contract Types –employment, lease, sale of goods or services, insurance, etc.
• Prerequisites of a contract –what comprises a contract?
• Taxation and small business
• Insurance –private, property damage, life insurance, business insurances for risk management
• Business Case Study
• Set Tasks –researching local issues
• Assignment

3  Your alternatives – different types of ventures;

• Goods manufacturing, or services
• Factors to consider -market niche, location, goodwill, personal factors, etc
• Business terminology
• Establishing a new small business
• Considering options of buying into a franchise, buying an established business or starting up from nothing.
• What to look for when buying an established business
• Understanding franchising
• Guidelines for starting something new
• Assignment

4  Marketing;

• Nature and scope of marketing
• Purpose of Advertising
• Managing the marketing process
• The marketing concept
• Marketing goals
• Marketing plans
• Strategic marketing planning
• Marketing objectives and strategies
• Target markets
• Developing a marketing mix
• Organising the Planning Process
• Reviewing a Business Situation
• Business Mission Statement
• Establishing marketing objectives
• Broadening geographical representation
• Maximizing customer service
• Developing strategies to achieve objectives
• Increasing market share –geographical expansion, market penetration, price factors
• Analyzing market opportunities –external influences and internal influences
• General economic conditions
• Government policies and regulations
• Marketplace laws
• International influences
• Demographics
• Technology
• Changing Customer attitudes and values
• Activity of competitors
• Alternative marketing methods
• Analyzing business resources, market share, product characteristics, advertising, price, innovation potential financial capacity.
• Selecting Target markets
• Mass marketing, niche marketing, differentiated marketing, etc
• Physical basis for market segmentation
• Behavioural basis for market segmentation
• Developing the Marketing Mix
• Branding and packaging
• Understanding the price element
• Pricing methods
• Understanding the promotion element
• Public relations, advertising, sales
• Distribution
• Product life cycle
• Analyzing costs and benefits
• Managing a marketing plan
• Structuring advertising or promotions
• Publicity Marketing
• Set task
• Assignment

5  Planning;

• Scope and nature of planning
• Developing a business plan
• The planning process
• Checklist for a business plan
• Market research
• Business plan pro forma –a template for you to follow for creating a very detailed business plan

6  Basic Bookkeeping;

• What records are essential?
• The simplest approach to financial bookkeeping
• The value of financial records
• Source documents
• Cash book
• Credit sales and credit purchases
• Bank reconciliation
• Petty Cash
• The Balance Sheet
• Classification of the balance sheet
• Working capital
• Profit and loss statement
• Preparing a profit and loss statement
• The link between profit and the balance sheet
• Assignment

7  Sales Methods;

• Personal Selling
• Rules of Selling
• Types of Selling
• Types of customers
• The Salesperson -characteristics and knowledge needed
• Using the telephone
• Set task
• Assignment

8  Budgeting;

• Scope and nature of budgets
• Types of budgets
• Assignment

9  Developing a 12 month business plan;

• Planning for manpower needs
• Planning where to work from initially (eg. home, leased or purchased property)
• You will create a simple plan within the following framework, submit, and recive feedback from our academic staff on what you propose.
• Description of the Business
• Motives for Entering Business
• The Opportunity and Strategy
• The Target Market
• Relevant Experience and Skills
• Financial Assistance Required
• Financial Projections
• Financial Summary

10  Implementing a business plan;

• This lesson considers how the plan you developed might be implemented.
• Consider who is going to do the work: how will you manage to get things implemented
• Motivating employees
• Delegating work tasks
• Assignment

11  Reviewing progress in a new business;

• Monitoring performance
• Evaluating Performance
• Modifying performance
• Assignment

12 Improving profitability;

• How can profits be increased
• Business expansion and sources of finance
• Overdraft facility
• Equity Credit
• Fully Drawn Advances / Term Loans
• Bills of Exchange
• Leasing
• Inventory Financing
• Sources of Funds
• Information required when sourcing funds
• Good Management Practices
• Set Task
• Assignment

Learning Goals:   Starting a Small Business  VBS101

• Discuss the nature of small business and the skills required to run one successfully.
• Explain the legal requirements, restrictions and the costs of running a small business.
• Describe the different aspects and considerations associated with starting a new or buying an existing business.
• Explain the marketing process.
• Explain the importance of planning in the running of a successful business.
• Explain the importance of record keeping and the principles of bookkeeping.
• Determine sales and promotions strategies in small business.
• Explain the importance of budgets.
• Develop a business plan.
• Implement a business plan.
• Identify factors that affect profitability.

Your learning experience with ADL will not only depend on the quality of the course, but also the quality of the person teaching it. This course is taught by Michael Booth and your course fee includes unlimited tutorial support throughout. Here are Michael’s credentials:

 
Michael Booth
B.Sc (Hons) Chemical Engineering, (University of Leeds), MSc with Merit Computer Science, (University of Kent), Executive Associate, Institute of Independent Business International

Michael has over 20 years experience in industry with a diverse academic background incorporating executive management, chemical engineering, and computer science. Michael has an international background and has worked as a technical director, production manager, and operations manager throughout companies across the world. He recently completed his MSc in Computer Science from the University of Kent, and is an executive associate of the Institute of the Independent Business International.

Below are listed only a few of the hundreds (if not thousands) of possible businesses a person might enter:

a/ Home Services ‑Cleaning, garden care, ironing, rubbish removal etc.

b/ Plant Nursery – Garden Design

c/ Craft ‑ sell through markets or wholesale to shops.

d/ Party Plans (e.g. Kitchen ware, Cosmetics, Home goods).

e/ Retail Shop

f/  Publishing ‑freelance writing, publishing yourself, etc.

g/ Office Services ‑typing, serviced offices, etc.

h/ Mail Order businesses

i/  Equipment:

• renting or leasing equipment
• hire yards
• contract earth moving etc.

j/  Child Care

k/ Tourism and recreation:

• organizing holiday packages, tours etc.
• fitness centres/programs
• provision of recreation facilities.

STARTING A NEW BUSINESS

Things to Consider

The Market Niche 

This is best when competition is weak, non‑existent, or not keeping up with the growing market or customer demands/requirements. It can be good if customer loyalty is not a factor, or if you can bring customers with you.  Keep in mind that once you approach a niche market, a larger competitor may decide to move into that market.  Be prepared for competition, even if it doesn’t exist in the early days.

Personal Aspects

Starting a new business can be more of a challenge and more satisfying when you are successful. You can start when you are ready, or you can start part‑time initially.  You have the freedom to introduce your own ideas and style from the beginning. However, there is more worry and pressure; it requires certain skills and attitudes; and takes time to research, decide, organise and become competent.

Goodwill 

You start with a clean slate with potential customers; the cost of buying the ‘goodwill’ price premium, of an existing business, is excluded. It is hard, however, to predict volume and market patterns, and there is generally a greater risk of the business failing because of the need to build‑up a customer base.

Location 

You can choose your own site for your business in the best available area, or the area that best suits you (e.g. close to home). If you are going to have leased facilities you will be able to have the full lease period: however, good sites may be all occupied, and choosing an alternative site may involve a bit of uncertainty. You might also have to upgrade any new premises to meet regulations, your own requirements, to provide the necessary décor, or services for your customers.

Staff 

When starting a new business you can start small, and hire people to fit your particular needs and style. When looking at staff, consider what weaknesses you may have and try to select some staff with strengths in those areas.

Equipment and Stock

You can select the most modern equipment or choose fresh stock, however, it takes time to select, ship, and install these.  Costs are high for new equipment and stock, and a sensible balance between the risk of failure and such costs should be considered.

Financing 

You can start small, BUT many costs are commonly not foreseen.  Suppliers may require cash on delivery (C.O.D.), financing may be hard to come by, and initial cash flow can make servicing debts difficult.

BUSINESS TERMINOLOGY

The business world has a language all of its own.  Do you know the meanings of ALL of the terms listed below?

FRANCHISE – A company grants a business operator the right to offer the services or goods of that company (sometimes exclusively) within a specified area. The business then has the right to use the company’s marketing facilities as well as their expertise and trademarks.                           

WHOLESALER – A business that sells its goods to a retailer usually in large quantity and at reduced pricing for re-sale

ENTREPRENEUR – A person who sets an enterprise (or several) using their own money and skills.                          

SOLVENCY – A business is solvent when it can pay all its debts

LIQUIDITY – Having fluid assets that can be readily converted into cash                             

RECEIVERSHIP – A business under receivership has been appointed a receiver through the courts to manage the property and receive/distribute the monies of the business to the creditors

PROFIT – The gain or money made by a business after all running costs are deducted                                          

PRODUCTIVITY – The amount of work (or goods) efficiently produced

OVERDRAFT – To draw on your bank account over and above the amount of available funds:usually under a formally arranged agreement between you and the bank.

MORTGAGE – An amount of money that is advanced by a financial institution to you and secured by an asset such as a residential or commercial property

EQUITY – The difference between the value of property and (deducting) all  monies owed on it     

LIQUIDATION – A company is wound up or goes bankrupt

ASSETS – Property including machinery owned within a business or personally     

BILL OF LADING – Is a final receipt showing the type, quantity and weight of items carried by a shipper or carrier for a consignee.  It is a contract that defines the terms and conditions of carriage

LIABILITIES – Debts that a business, person or company is responsible for                        

ACCOUNT – A statement of specific money dealings

PUBLIC COMPANY – A floated company i.e. shares of a public company can be bought on the stock exchange                               

PRIVATE COMPANY – A company that is owned privately by one or more persons and is not publicly floated: i.e. you can’t buy shares in the company on the stock exchange

EBook to compliment this Course

Business Operations EBook

This concise guide is your invaluable handbook on improving your existing business.  Learn about managing people, legal issues, finance, risk management and much more. 

Business Operations

by John Mason

Business Operations eBook course online. In the daily operation of a business, some days will challenge you and some will inspire you. Most of them however will be just part of the daily routine of normal business operations. Unfortunately your business will not run itself – goals need to be set and decisions need to be made in order to achieve these goals. This book talks you through all of the different aspects involved in running a business from finance and forecasting to staffing changes and legal issues.

Contents:

CHAPTER 1 THE DAILY CHALLENGES OF RUNNING A BUSINESS 

• Day to day operations 
• The changing face of business 
• Some golden rules of busines

CHAPTER 2 – PEOPLE 

• Business interaction
• A physical presence
• Employing the right people
• Golden rules

CHAPTER 3 – THE LAW

• Legal systems
• Trading across borders
• Employment law
• Consumer law
• Intellectual property rights
• Taxation law

CHAPTER 4 – FINANCE

• Funding
• Taxation
• Managing costs
• Debt collection

FREQUENTLY ASKED QUESTIONS

Here is a list of the most often asked FAQ’s.

General

Q. Why should I enrol with the Academy for Distance Learning?
A. Here at ADL, our students are our priority – we treat everyone as a unique individual.

Q. Do I need to buy text books?
A. No, as each module has been written by highly qualified industry professionals. The content of the material is presented in such a way that text books are not required. However, if you require additional reading your tutor will be able to supply a list.

Q. What happens if I have to stop studying for a while? (eg. become sick, go on holidays, have a baby, move house, etc)
A. It’s OK to take a break and start up your study at a later point in time. Just let us know.

Q. Is there an age limit?
A. There is no maximum age limit. We do however, have a minimum age limit of 18 years. Below that age parental consent would be required.

Q. Are your courses up-to date?
A. Our courses are revised and updated on a rotation system.

Q. Do you have a Cancellation policy?
A. Yes. We have a cancellation policy that is fair and equitable. For further details please click here.

Q. Will I have any opportunity to engage with other students?
A. We have a Student Community group based on facebook! If you don’t have a facebook account already, you could make one just for talking with fellow students on the group.

Enrolment

Q. When can I enrol/start?
A. You may enrol and start at any time of the year – it’s all self- paced.

Q. Can I study from anywhere in the world?
A. Our courses are available to anyone, anywhere in the world from the comfort of your own home. The course content is relevant to any country, culture or economy.

Q. How long do I have to complete the course?
A. You complete the course at any time that is convenient for you.

Q. Completing a 100 hour module – how long will it take?
A. For some students a 100 hour module will take approximately to 3- 6 months to complete. Others take less time and some even longer.

Assessment

Q. Assessment – how does it work?
A. For each 100 hour module you are assessed by assignments (at the end of each lesson) and a final one and a half hour exam (or you may elect to complete a Project, instead of sitting the exam) – the choice is yours – you sit for the exam in your own location.

Q. I don’t cope well with exams – what can I do?
A. You may elect to undertake a Project (set by your tutor) instead of sitting the exam. Projects are completed from your home and can usually take a couple of weeks to complete.

Q. If my assignment is not up to standard is there an opportunity to resubmit my work?
A. Yes –

Q. How many assignments do I need to complete for each module?
A. At the end of each lesson, there is an assignment – so if a course has say, 10 lessons, there would be 10 assignments.

Q. I am having difficulty attending workshops/industry meetings, what can be done?
A. If your course requires attendance at workshops, conferences, or industry meetings; alternative arrangements can be made in your country.

Qualifications

Q. Can I customize my diploma/higher qualification?

A. Not all educational institution’s certificates /diplomas meet everyone’s needs. The opportunity to Design Your Own Diploma at the Academy (subject to our approval) is an added bonus, not found at other colleges. You choose modules that you think will help you in achieving your goal.

Q. What do I get when I complete the course? Will I receive a transcript?
A. At the completion of all courses and providing all assignments and exam requirements have been met, you will receive your Award and a Transcript.

Tutors

Q. Our tutors – who are they?
A. We appoint Tutors and require that they must be currently active in their industry, with at least 5 years’ experience in their chosen profession.

Q. Can I contact my tutor at any time?
A. Yes – you have unlimited access to your tutor via email through our Online Classroom. You can always leave a message with ADL requesting your tutor to contact you. You decide on how much or how little contact you wish to have.

Q. Practical work – How is this done?
A. To find out more about this part of the course please visit the section on How Our Courses Work here.