Provide a sample job costing and production schedule for a specified activity.

A technique to keep track of all the labour and material costs for each job required.

5. Provide an accurate description of the legal responsibilities governing contracts.

An agreement made by 2 or more people and consists of the offer and the agreement

 

The three legal responsibilities include:

 

•         The Supply of Goods and Services Act 1982.

          This act covers the work done by professional along with any products supplied. Anyone who is supplying a service to you is including in this be it a dentist or a local café.

 

•         Contractual Agreements

This is either a verbal or written agreement between 2 or more persons that is legally binding. First there is an offer made and them accepted by the other parties. A promise of payment of some form, an agreement on when it will be done and the terms and conditions (fulfilling the promise)

 

•         Quotes and Estimates.

 

An estimate is a guess on how much the work will cost, it is usually based on the sellers past working experience and on what they can see there and then.

 

A quote is the price that you will pay no matter how much work is involved. You should have a quote put in writing and should include what is to be done, the time it is to be done in and any materials required.

 

 

4. Provide an accurate description of financial management techniques, including financial forecasting and cash flow management.

Financial management techniques is the planning, monitoring and organising of your company resources and ensuring that nothing is wasted, and that profits are gained.

Some techniques that can be used are

 

Setting goals:  Have a good clear understanding of what you are aiming to achieve

Budget creation:  List all sources of outgoing and incomings make a realistic budget that you can stick to.

Budget maintenance:  Keep an eye on your budgets by tracking expenses

 

Financial forecasting is thinking about and preparing for the future and controlling the cash flow of your company. When starting out this is more difficult to do as it is really a best guess of what will happen financial with your business and new businesses will not yet have the trading history needed.  

 

Cash flow management allows you to monitor and estimate the amount of cash you will have at any one time, allowing you to see the cash outflow and inflow. A cash flow analysis should be done often so you can prepare and deal with any cash issue that may arise.

3. Provide an accurate definition and explanation of a business plan

The business plan is possibly the most important part of starting up your business. A business plan is a written document and it should outline what you want to gain in your business and how you plan to achieve it. A business plan should include results of market research and competitor analysis.  A standard business plan could include the following:

1.    Executive summary: Highlights the key points and summarises the business plan

2. Company Description: Start-up plans and history
3. Product or Service: What is it that you are selling
4.  Market Analysis: Who is your target audience and how do you plan to reach them
5. Strategy and Implementation: Dates, budgets and responsibilities
6. Management Team: Key team members , strengths and HR management
7. Financial Plan: Cash flow, profit and loss, balance sheets

2. Provide an accurate definition and explanation of a risk management plan.

In business no matter how well you plan things, positive and negative risk can and will occur. To minimise the impacts that it can cause a risk management plan should be put in place. This plan is usual prepared by a project manager which also included a risk assessment matrix.

1. Provide an accurate description of potential sources of start-up capital

Start-up capital is the money required for when your new business venture is beginning. You should ensure that you have a strong business plan plus a clear idea of the amount of money you will need and where it's needed. This money can be obtained from various sources such as:

Banks

 You could apply for a business loan where you would pay back a monthly payment along with the added interest and any fee’s. The issue with bank loans is you may not have the credit to obtain the loan in the first place and if you do get the loan and are then unable to make the repayments then this can also effect your personal credit rating

Family & friends

 This is one with the most potential risk as should your business fail then you run the risk of losing the person who loaned you the money and possibly in a worst case scenario they could take you to court to get their money back. On a positive note borrowing from someone you know is a lot easier and faster. You should be just as prepared in your pitch for the cash from friends and family as you would if asking the bank and consider having a written agreement drawn up.

Angel investors

Angels are individuals who invest their own personal money into a start-up business or entrepreneurs in return for equity or convertible debt. Usually an Angel who invests in a company has some form of business experience within that industry.

Venture Capital

Venture capitalist are professional who invest in business venture, they look to receive returns of up to 25% and can invest in the business from anywhere between 3 and 7 years. They usually only invest in business that have a high growth prospects.