Introduction to business

Balance Sheet

Things to know when doin a balance sheet

ONLY 4 $$$$

Left side = Right side

1 Period in Time

Assets

Anything worth a dollar value

Accounts reciveable

Money for which Your company has made but haven't got yet.

Liabilities

Money owed that haven't paid yet

Accounts Payable

The money a business owes another business for a good or service.

Owners equity

Net worth (What's left over)

The difference between what you own and what you owe.

Two fundamental Roles in Marketing

To sell what a business makes

To manage a business’s brand or brands

Fundamental Accounting equation

A = L - OE

Income statements

Revenue

Money earned from performing a service or selling goods.

Expenses

Money you pay to be able to run a business

Money already paid

Net income

Profit is when your Revenue are greater then your costs, expenses, to run the business.

Net loss

When your Expenses are Greater than your Revenues

Income statement Equation

Revenue - Expenses Net income (loss)

Marketing is the process that connects suppliers with end users

Two fundamental Roles in Marketing

To sell what a business makes

To manage a business’s brand or brands

Branding

Brand name

A word, or group of words, to distinguish a businesses product from its competitors

logo and Trademark

A business combines their name with a symbol of their own

Slogan

A short catchy phrase to keep customer hooked on to company/business

Six to eight words in a slogan

Colour

Colour plays a huge part in branding and it will attract certain people biased on how you use each one. i.e. Warm Colours send an outgoing, energetic message and Cool Colours are calmer and more reserved.

Colour also plays a big part emotional because some colour make you feel different then others.

Marketing Mix

4 P's

Product

Packaging

Packaging Strategies

container or wrapper for a product

design of the container

protection of the product

info printed on the container

attract attention of consumers

Place

Place Strategies

Where a product is to be distributed

Location for stores?

This is Important because if your trying to sell winter gear and you are selling it in Florida you won't have very good sales but if you sell it in Alberta or any where more north you will get better sales.

Price

Price Strategies

Reflect what a customer is willing to pay

What image to project

What competitors are selling their products for

- Price of a product will often be determined by the quantity demanded

- if the demand is high, people will be willing to pay more

Promotion

Personal Selling

person to person

expensive to keep good

salespeople (High stress)

tries to persuade customer to buy

Telemarketing

personal selling over the phone, fax

2 C's

Competition

Benefits

Competitive Market

The competitive market is when multiple producers compete with each other to satisfy the wants and needs of a large number of consumers that want the same thing. i.e. Soda companies like Pepsi, Coke, Root Beer and Dr. Pepper are all competing for customers that want soda.

Direct competition

Very similar products addressing the same need

Bauer vs CCM

Apple vs Samsung

GMC vs Chevrolet

Indirect competition

The options are not directly related to each other.

For example with 15 dollars in your pocket you can ether -

Go watch the new avatar Movie

Go get snacks from the 5 conners gas station

Go get quick pizza

Consumers

Target markets can be segmented in two ways

Demographics

Age

Gender

Family Life Cycle i.e.. newly married vs young family vs seniors (empty–nesters)

Income

Ethnicity

Life style

Lifestyle: covervative exciting

trendy ,economical

Social class: lower middle upper

Opinion: easily led or opinionated

Activities and interests: sports,physical, fitness, shopping and books.

Attitudes and belief: environmentalist, security

Credit Cards

Borrow money

Like a Check

Have to pay it off

Charges interest

Better fraud protection

Debit Cards

Takes money straight from your bank account

Only may incur fees if You over draft your account

Like using liquid cash

Savings

Allow you to set money aside for emergencies, save for a large purchase or build funds for your education – while keeping your money readily accessible.

You can also make compound interest in savings accounts.

Chequing

For money that you plan to use for day-to-day spending or to pay bills.

Rule of 72

Goal is to find how long it will take to double your money and how much interest it will take to do that

# of years = 72/ Interest

Interest = 72/ # of years

Methods of payments

Salary

Get paid the same amount every pay not paid for any O/T

Commission

Get paid for every item you make. The more you make, the more money you get.

Piece work

Get paid for every item you make. The more you make, the more money you get.

Hourly + O/T

Get paid a set amount per hour. If any O/T you will get paid extra

Deductions

Two different deductions

Mandatory gov’t and any voluntary amounts taken off of your gross pay.

Budgeting

3 T's

Track

Once you start tracking, you may be surprised to find you spend hundreds of dollars a month on eating out or other flexible expenses.

Trim

Cutting back is usually a better place to start than completely cutting out.

BE REALISTIC

Target

In the short term, you won’t feel as much stress when your bills arrive. In the long term, you may find yourself heading for a more secure financial future.

Main topic

Three leadership Styles

Autocratic

This is when the person or group in charged and is not open to new ideas “It’s my way, or the highway!” and Tells others what to do.

Cons

Members know how to do the job

Trying to team build

Members want variety

Pros

Members don’t know how to do the job

Little time

Members don’t know each other

Democratic

This is when the person or group in charged and supports teamwork, asks before tells, all members are involved but leader has final say.

Pros

Members are interested

Members know how to do the job

More time

Cons

Group is not interested (lazy)

Members don’t know how to do the job

Members don’t like each other

Laissez-Faire

This is when the person or group in charged and Gives little or no direction, nor motivation to team members, advice is offered only if asked and no one seems to be in charge.

Pros

Members really like the job and know

how to do it

True teamwork effort

All members know what has to be done

Cons

Members don’t value each other

Members don’t know how to do the job

Group needs to be told what to do

Positive Leaders

These leaders use something good to motivate employees

independence

Development opportunities

acknowledgement

Raises, bonuses

lieu time off

Negative leaders

These leaders use punishment with employees

Days off without pay

Reprimanding in front of others

assigning unpleasant job tasks