Finance

Businesses need to consider how they will fund their activities when starting up as well as during their day-to-day operations. Various costs need to be covered, such as equipment, stock and paying bills.

Sources of finance

Cash flow

The management of cash and cash flow is important as it can prevent a business from failing. Cash flow is the way that money moves in and out of a business and its bank accounts.

Financial terms and calculations

Financial terms and calculations includes revenue, costs, profits and loss, average rate of return, and break-even. These financial elements inform key decisions in every business.

Analysing financial performance of a business

Analysing financial performance in business is key to achieving success. Businesses use key financial statements to help them achieve this.

Human resources

Organisational structures

Businesses use organisational structures to illustrate job roles and responsibilities. Organisational structures show who each employee reports to in their job.

Recruitment and selection

One of the most important aspects of a business is its employees. Businesses must have good recruitment and selection techniques in place so that they find the best employees when they need them.

Motivating employees

Motivation determines how hard employees are willing to work for a business and how productive a business is. A business can motivate its employees through financial and non-financial methods.

Training

Businesses train their employees through a variety of methods to improve knowledge and enhance skills. This has many benefits for both the business and the employees.

Business operations

Production processes

A business must choose the right production method to suit its needs. They also have a choice between keeping surplus stock or using just-in-time stock control in order to meet customer demand.

The role of procurement

Procurement are responsible for the purchase and management of stock and supplies. Procurement have to decide which suppliers to use and hold a vital role in the supply chain.

The concept of quality

Quality is essential to a business’ success. Customers must be happy with the products and services they receive. If they are not, a business is unlikely to gain a good reputation or repeat customers.

Good customer service

Some businesses rely on good customer service to give them an advantage over their competitors. This can start before a customer has made a purchase and continue afterwards.