Running a businessStartup costs are what every entrepreneur has to think about before opening a business. (You may need to ask a bank for an loan (préstamo) to meet some of the costs) Ongoing costs: They are fixed costs/expenses that continue. -Rent is the money a business pays to use a building, such as an office, shop or storage unit. -Utilities like water, gas, electricity, Internet and a telephone line have to be paid for. -Insurance is a service that companies pay regularly, so in case somebody has an accident or the building is damaged, it ensures that it will be covered. -Staff's salary: employees must get paid. Variable costs are the ones that vary according to how many sales the business makes. -If the business makes a product, it will need materials to manufacture and package it. -Promotional costs change depending on how much advertising is used. There may be peak seasons (for example, holiday periods) when it’s a good idea to run bigger ad campaigns. -Commissions are sometimes paid to employees for the sales they make, and if they meet sales targets (objectives), they receive a bonus. -There might be shipping costs if products are delivered to customers (for example, from an online shop). Saving moneyCashflow is money coming in and money going out. Money is always in motion. SAVING MONEY -Piggy bank. We can save small coins and break it open when the bank is full. Its quick and easy, but money doesn't earn interest and it can get lost or stolen. -Bank account. Money is safe in the bank and might earn interest (a low one), but many banks charge a fee for having an account with them. If you save your money in a savings account with a bank, it isn’t actually in your account. The bank uses it to make a profit for itself. It gives you a small percentage of that profit as interest, and you can ask for your capital back whenever you want. SPENDING LESS -Taking advantage of special offers and bargains. -Making a personal budget to minimise expenses and maximise savings. Distinguish between fixed expenses (same amount of money every month) and variable expenses (that may vary). How?
Socially responsible companiesThe main objective of every company is to earn money and make a profit. However, nowadays the number of companies that support social programmes is rising (enviromentally friendy, NGOs, charities...). Some examples are Atresmedia, PepsiCo, Danone...
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AuthorTeacher Belén Archives
May 2017
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