Business Planning PDF

Business PLanning  Unit objective SMEs play a key role in the Australian economy. Anyone can start a business if they have the desire and determination to be their own boss and are willing to take the risk to become successful. This topic will look at the importance of SMEs i...

Business PLanning  Unit objective SMEs play a key role in the Australian economy. Anyone can start a business if they have the desire and determination to be their own boss and are willing to take the risk to become successful. This topic will look at the importance of SMEs in contributing to the Australian economy. It will identify factors that contribute to the success and the failure of a business. To be successful, a new business owner will attempt to develop a unique quality that will give their business a sustainable competitive advantage. The business will need to develop a comprehensive plan for its growth, taking into account influences from both the internal and external business environments. 4 Areas of Small to Medium Enterprises 1. Definition 2. Role 3. Economic Contribution 4. Success and/or failure  Definition A small business is defined as a business that employs up to 19 people, including categories of: Non-employing businesses (sole proprietorships and partnerships without employees Micro businesses - up to 4 people (includes above) Other small business - 5-19 people A medium sized business: employs between 20 and 199 A large business: employs 200 or more people Some other definitions... The Fair Work Commission defines small business as one with up to 15 full-time employees Other definitions are based on the value of production or turnover, asset value or total revenue For example, the small business threshold adjusted to those businesses that earn less than $50 million in revenue per year Some businesses are classified by their legal structure Unincorporated Incorporated Both An "unincorporated" entity has An "incorporated" entity is one Some SMEs are not gone through this formal that has gone through a formal process and therefore does not legal process to become a unincorporated and have a separate legal identity distinct legal entity separate incorporated, where from its owners or members. from its owners or members. there are owners who Sole Traders Private Companies Partnerships Public Companies manage and supply Trusts capital and make Religious Organisations Government Owned decisions Businesses