WorkReady My Business Plan


Licensing Licensing is an arrangement where one business or organisation grants permission for another to use their product, service or intellectual property (IP) for payment. Local business A local business is any business that provides for its local population or community. This type of business can be locally owned, or part of a franchise or corporate business that is servicing the area. LOGOS A logo is the singular unique graphic or visual representation of all the brand entails. The logo is a part of the branding. It is a tool of the communication. LOYALTY PROGRAMS Loyalty programs are offered by businesses to customers who frequently make purchases. They are marketing tools to reward customers and encourage their return. These days it seems that they are everywhere, from fast food retailers to airlines. M management Management is the organisation and coordination of activities towards the achievement of business goals and objectives. Market research Market research is the process of collecting, analysing and interpreting information about a particular market, service or product. Businesses use it to make informed business decisions. Marketing plan A marketing plan is a strategic document that outlines the advertising and marketing strategy of a business, over a set period of time. It is important because it helps to set realistic and measurable marketing goals and gives direction for marketing activities. MENTOR In business, a mentor is a person who gives advise, support and guidance to somebody who is less experienced. Mentoring is a way of enhancing both personal and professional growth.

Micro-jobs A micro-job is a small job or task that is temporary, and usually completed in a few minutes, hours or days. MINIMUM VIABLE PRODUCT A minimum viable product is the first stage of the development of a product at which it can be introduced to consumers. It’s the most basic version of a product that is introduced to test the market. Mission statement A mission statement briefly describes the fundamental purpose of a business or organisation. A good mission statement defines and articulates the reason a business exists, or what it does for its customers, employees and owners. N Net profit Net profit is the profit a business makes after all operating expenses have been paid or deducted from the total revenue. Not-for profit A not-for-profit organisation does not operate for the profit or personal gain of those who run it, or any of its stakeholders. These organisations are set up for benevolent purposes and their profits are ploughed back into the organisation to support their activities. O ONLINE MARKETPLACE Traditionally, a marketplace was the space where a market, or public sales were conducted in a town. An online marketplace is the twenty-first-century version. It’s a website or app that facilitates the sale of products or services online on behalf of the business or seller. Online store On online store is a website that customers visit to purchase goods and services directly from the seller. Also known as e-retailers, online stores have many of the e-features of physical stores.

Operating costs Operating costs (also known as overheads) are all of the expenses (administrative and operational) of running a business. They are the necessary costs that keep a business running efficiently. Outsourcing Outsourcing refers to the business decision to contract an outside company or individual to perform jobs or make products for the business. P Partnership A business partnership is an entity that is formed when two or more people join efforts and resources to go into business. Business partners share the management of the business, the risks and the profits. Patents A patent is a licence or legally enforceable right placed on a device, substance, method or process for a period of time; that prevents others from copying it. PAYG PAYG is an acronym for ‘Pay As You Go’. This is a withholding system where regular, incremental payments are made to the Australian Taxation Office (ATO) towards an expected end of year income tax liability. PAYING YOUR EMPLOYEES Employees are the lifeblood of any business, and of course, employees must be paid. There are government regulations surrounding this obligation that have to be adhered to by law. PEST analysis PEST is an acronym for: Political, Economic, Socio-cultural and Technological. A PEST analysis is a study that business operators use to anticipate how successfully their product or service will resonate with consumers. It gives an indication of possible market growth and decline. This type of analysis quantifies the factors that are outside the control of the operator (external) - those being political, economic, socio-cultural and technological factors.

Pricing Pricing is an important aspect of a business’s marketing plan and is integral to determining how much profit they will make. Pricing allows a business to communicate to the customer their marketing position, for example, whether they are a luxury brand or a good money saving option, and is also an important financial decision. Privacy laws Privacy is the right of an individual to protect their personal matters from public intrusion or interference. Australia has laws to protect the privacy of individuals and regulate the handling of personal information. Product A product is any idea, item, service, or experience that has been created or manufactured to satisfy a particular want or need. Productivity Productivity is the state of being productive, or the measure of efficiency of a person, business, system etc. In business and manufacturing, productivity is measured by the rate of output per unit of input. Profit and loss In business, ‘profit and loss’ is an accounting term used to indicate trading over a particular time. A profit and loss statement (or income statement) is a summary of sales and expenses, recorded monthly, quarterly or yearly. It shows whether or not a business has made or lost money over that period of time. Public relations Public Relations (PR) are the way that companies, organisations, governments and individuals communicate with the media and the public. Public relations experts are hired to manage those communications effectively. Problem solving Problem solving is all about employing critical thinking methods to find logical solutions to difficulties or issues.

Intrapreneur An intrapreneur is somebody who behaves like an entrepreneur; but instead of working for themselves, they are employed to work within a business or organisation. Invention An invention is the creation of something innovative or original. It is a product or device that has not existed until now, and is recognised as being somehow unique. Inventor Inventors create, discover or dream up new and novel ideas, products or devices. Inventory An inventory is a complete list of legally owned items. An inventory includes property, goods and the contents of buildings. Investors An investor is somebody (either a public equity or a private individual) who provides financing with an expectation of future return on the investment, or repayment with interest. J Joint venture A joint venture is a cooperative enterprise. Two or more businesses pool their resources and expertise to share in a temporary business arrangement or activity. The members of a joint venture maintain their independence. L Labour intensive BUSINESS A labour intensive business is a business that requires a large amount of human capital (labour) to provide the service, produce the goods or get the job done. LIABILITIES In business, liabilities are the debts that a business accrues during the course of its operations. Liabilities are legal responsibilities that need to be shown on the Balance Sheet. They are a normal part of running a business, and come in the form of such things as Loans and mortgages, interest payable, wages and salaries and government taxes.

QUALITATIVE ANALYSIS Put simply, qualitative analysis measures the quality of something. Among other things, business operators use qualitative analysis, as an indication of how well or otherwise their business is faring. The indicators from this type of analysis, helps them to make more informed decisions around their operations. QUANTITATIVE ANALYSIS Quantitative analysis is the comparison, measurement, and manipulation of quantitative (numerical or statistical) data, into meaningful information. The types of data (quantitative factors), which can be accurately calculated, are material costs, labour costs, demand for product or services, inventory levels and Interest rates. R Registering a business A business name is a title under which a business trades. It identifies a business to its customers and differentiates it from competitors. The name of a business is often one of its strengths, especially if the business is well regarded by consumers and the community. RETURN ON INVESTMENT Return on investment (ROI) refers to the money that is invested in a business, and the return on that money based on net profit. It shows how successfully investment dollars are being used to generate profits. Risk management Risk management in business is the practice of identifying and assessing risks, and developing the strategies to manage them. S Share economy business The share economy is an economic model where people borrow or rent assets that are owned by someone else. Instead of consumers relying entirely on commercial businesses and arrangements, the personal physical assets and skills of individuals, are consumed as services.

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