BUSS 1 Planning and Financing a Business

In this unit candidates are expected to have an understanding of the range of activities involved in setting up a small
business.
The examination will last 1 hour 15 minutes. It will be made up of short answers questions and extended responses
based on a mini case study. Calculations may be expected. It is worth 40% of an AS and 20% of the full A level.
Business Review
Volume 19, Number 4, April 2013 What is good analysis?
Volume 19, Number 4, April 2013 Evaluating with DISCO-M
Volume 19, Number 4, April 2013 Cracking AS Business Studies
Volume 20, Number 1, September 2013 Mastering the assessment objectives: Knowledge
Volume 20, Number 1, September 2013 Risk and reward
Volume 20, Number 1, September 2013 DEDICATE: Six tips to boost your evaluation
Volume 20, Number 4, April 2014, BUSS1: Define, analyse, evaluate

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Enterprise and entrepreneurs
Risk and reward
Opportunity cost
Motives for becoming an
entrepreneur
Government support for
entrepreneurs

You Should Be Able To:

Distinguish between enterprise and
entrepreneurs
Give examples of entrepreneurs
Explain the main motives for becoming an
entrepreneur
Discuss the concepts of risk, reward and
opportunity cost
Understand the main rewards for being an
entrepreneur
Define how business size is measured
Understand the role that small business
makes to the UK economy
Give examples of the type of help an
entrepreneur may obtain from the UK
government and other agencies
Evaluate the benefits of small businesses
to the UK economy

Materials Available
Essential reading
Wolinski and Coates Chapter 1
Other useful textbooks
Marcouse Unit 1
Surridge and Gillespie Chapter 1
AQA Business Studies: Chapter 1
Extra reading
Business Review
Volume 18, Number 4, April 2012
Harriet Sanders Ltd
Cher Wang
Volume 18, Number 2, November
2011
Enterprise 222 sports
Business Review April 2004
Michael OLeary
Business Review Nov 2003
Philip Green
Business Review Nov 1995
How much?
Business Review Nov 2006
Chasing shadows: opportunity
cost
Volume 19, Number 1
Its not all about the money

Volume 20, Number 1,

September 2013
The Cambridge Satchel
Company
Other resources
www.shell-livewire.org
www.bbc.co.uk/apprentice
www.bbc.co.uk/dragonsden
www.growingbusiness.co.uk
www.businesslink.gov.uk

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Sources of business ideas
The identification of a product or
market niche
Franchises
Copyright, patents and
trademarks

You Should Be Able To:

Understand how entrepreneurs generate
new business ideas
Understand how entrepreneurs identify
and exploit market niches
Appreciate that the limited resources
available to small businesses will limit the
research possibilities
Analyse the role of patents in protecting
new business ideas
Analyse the role of copyright in protecting
new business ideas
Analyse the role of trademarks in
protecting new business ideas
Define franchise
Analyse the advantages of using a
franchise as a method of starting a
business
Analyse the disadvantages of using a
franchise as a method of starting a
business
Evaluate the role of franchises in business
start-ups

Materials Available
Essential reading
Wolinski and Coates Chapter 2
Other useful textbooks
Marcouse Unit 2, 3
Surridge and Gillespie Chapter
2, 3
AQA Business Studies: Chapter
2
Business Review
Volume 18, Number 3, February
2011
Pink ladies: A case study in
niche marketing
Volume 19, Number 2
Setting up on line
Volume 19, Number 2
Business start up Raffertys caf
Building a business Scoop at 6
Smaller earth
Hiut denim
Volume 20, Number 1
Buying a McDonalds francshise
Other resources
www.thetimes100.co.uk
www.franchseexpo.co.uk
www.thebfa.org.uk
www.ipo.gov.uk

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered

You Should Be Able To:

Materials Available

Transforming resources into

goods and services
The nature of inputs and outputs
The nature of the transformation
process
Adding value
Developing business plans

Define inputs and outputs

Understand that a business is involved in
converting inputs into outputs
Distinguish between the primary,
secondary, tertiary and quaternary sectors
in the economy
Recognise the changing importance of
these sectors in economies as they evolve
Define added value
Understand the importance to business of
adding value
Outline the content of a business plan
Understand the purpose and value of a
business plan to a small business
Be aware of the benefits and problems of
drawing up a business plan
Explain the sources of information
available to small businesses when
drawing up a business plan
Evaluate the benefits of a business plan
for small business start-ups in particular
situations

Essential reading
Wolinski and Coates Chapter
3, 4
Other useful textbooks
Marcouse Unit 4
Surridge and Gillespie Chapter
7, 4
AQA Business Studies:
Chapter 3, 4
Extra reading
Business Review April 1998
Planning for the future
Business Review Sept 2006
Klein Caporn A new business
Business Review Feb 2007
The added value of breakfast
Business Review April 1998
Planning the future
Other resources
www.thetimes100.co.uk
www.innovation.gov.uk/value
added/
www.businesslink.gov.uk
www.businessballs.com

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered

You Should Be Able To:

Materials Available

Conducting start-up market

research

Define market research

Distinguish between primary and
secondary market research
Suggest methods of primary research
Suggest methods of secondary research
Explain the difference between
quantitative and qualitative data
Suggest methods of collecting quantitative
data
Suggest methods of collecting qualitative
data
Recognise the financial and other
constraints on the collection of valid data
for small firms
Define a random, quota and stratified
sample
Discuss the factors affecting the choice of
sample
Evaluate the usefulness of market
research for small firms in given situations

Essential reading
Wolinski and Coates Chapter 5
Other useful textbooks
Marcouse Unit 7
Surridge and Gillespie Chapter
5
AQA Business Studies Chapter
5
Extra reading
Business Review Sept 1999
Market Research
Other resources
www.marketresearchworld.net
www.mrs.org.uk
www.thetimes100.co.uk

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Understanding markets:
The nature and type of markets
The importance of demand
Types of market segmentation
Market size, market growth and
market share

You Should Be Able To:

Define market
Give examples of different types of market
Analyse the advantages and
disadvantages of different types of market
Explain the key factors affecting demand
Define market segmentation
Give examples of ways in which markets
may be segmented
Recognise the benefits and drawbacks of
market segmentation
Calculate market share, market size and
market growth

Materials Available
Essential reading
Wolinski and Coates
Chapter 6
Other useful textbooks
Marcouse Unit 8
Surridge and Gillespie
Chapter 6
AQA Business Studies
Chapter 6
Extra reading
Business Review April 2001
Customer segmentation
Other resources
www.examstutor.com/busine
ss/resources/studyroom/mar
keting/market_analysis

BUSS 1 Planning and Financing a Business

Week

Learning Objectives
Choosing the right legal
structure:
Sole traders
Partnerships
Private limited companies
Public limited companies
Not for profit organisations
Raising finance for business:
Loan capital
Overdrafts
Venture capital
Personal sources
Ordinary share capital

You Should Be Able To:

Outline the main features of a sole trader
Outline the main features of a partnership
Outline the main features of a private
limited company
Outline the main features of a public
limited company
Outline the main features of a not for profit
organisation
Assess the benefits and drawbacks of
each form of business structure
Understand the difference between
incorporated and unincorporated
businesses
Explain the processes involved in starting
each form of business
Suggest an appropriate legal structure in
given situations
Distinguish between internal and external
sources of finance
Explain the different types of finance
available to different firms
Understand the benefits and drawbacks of
different sources of finance
Understand the need to find an
appropriate source of finance

Materials Available
Essential reading
Wolinski and Coates
Chapter 7, 8
Other useful textbooks
Marcouse Unit 6, 9
Surridge and Gillespie
Chapter 8, 9
AQA Business Studies
Chapter 7, 8
Extra reading
Business Review April 1996
Starting a small business
Volume 20, Number 1,
September 2013
New sources of finance:
Crowd funding, Kickstarter
and P2P
Other resources
http://www.bized.co.uk/educ
ators/1619/business/strategy/present
ation/busownership2.ppt
www.socialenterprise.org.uk

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Locating the business:
Technology
Cost
Infrastructure
The market
Qualitative factors
Employing people:
Types of employees in small
business
Using consultants and advisors

You Should Be Able To:

Describe the quantitative factors involved
in deciding a businesses location
Describe the qualitative factors involved in
deciding a businesses location
Recognise that the factors will have
differing importance for different firms
Make and justify a location decision for a
given firm
Understand the difference between full
time, part time and temporary workers
Explain the benefits and drawbacks of
each to small firms
Understand the need for a flexible
workforce and how it may be achieved
effectively

Materials Available
Essential reading
Wolinski and Coates
Chapter 9, 10
Other useful textbooks
Marcouse Unit 10
Surridge and Gillespie
Chapter 10
AQA Chapter 9, 10
Extra reading
Business Review April 2003
Business location
Business Review Sept 2004
Location,location,location
Other resources
www.thetimes100.co.uk
www.bized.co.uk
www.businesslink.gov.uk

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Cost, revenues and profits
Break even analysis

You Should Be Able To:

Define and give examples of fixed costs
Define and give examples of variable costs
Define revenue
Calculate total costs
Calculate revenue
Define and calculate profit and losses at
different levels of output
Understand why profit is important to firms
Define and calculate contribution and
contribution per unit
Define and calculate break-even
Draw a break-even chart
Use a break-even chart to make decisions
Evaluate the usefulness of break-even
analysis

Materials Available
Essential reading
Wolinski and Coates
Chapter 11, 12
Other useful textbooks
Marcouse Unit 12, 13
Surridge and Gillespie
Chapter 12, 13
AQA Business Studies
Chapter 11, 12
Extra reading
Business Review Feb 2003
The importance of profit
Business Review April 2002
Break-even analysis
Business Review Sept 2004
Simple break-even
analysis

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Cash flow forecasting

You Should Be Able To:

Explain the difference between cash and
profit
Understand why cash is important as well
as profit
Understand how a profitable firm may be
short of cash
Understand the sources of information
available to small firms when drawing up
cash flow forecasts
Evaluate to usefulness of a cash flow
forecast
Amend a cash flow forecast given new
information

Materials Available
Essential reading
Wolinski and Coates
Chapter 13
Other useful textbooks
Marcouse Unit 14
Surridge and Gillespie
Chapter 14
AQA Business Studies
Chapter 13
Extra reading
Business Review Feb 1995
Cash flow forecasts
Business Review Sept 2003
Cash flow
Other resources
www.businesslink.gov.uk/bd
otg/action/detail/?
type=RESOURCES&itemld=
1076801242

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Setting budgets:
Income, expenditure and profit
budgets
The process of setting budgets
Problems of budget setting
Assessing business start-ups

10

You Should Be Able To:

Understand what is meant by a budget
Explain how budgeting aids financial
planning
Differentiate between income, expenditure
and profits budgets
Understand how budgets are set
Discuss the problems involved in setting
budgets, especially in small firms
Understand why budgets need to be
monitored
Recognise that clear business objectives
are needed to evaluate success

Materials Available
Essential reading
Wolinski and Coates
Chapter 14
Other useful textbooks
Marcouse Unit 15, 16
Surridge and Gillespie
Chapter 15
AQA Business Studies
Chapter 14
Extra reading
Business Review Nov 2004
Budgeting

BUSS 1 Planning and Financing a Business

Week

Material To Be Covered
Assessing business start-ups:
Objectives of start-ups
Strengths and weaknesses of a
business idea or plan
Why start-ups can be risky
Why start-ups may fail

11

You Should Be Able To:

Recognise that clear business objectives
are needed to evaluate success
Analyse why different entrepreneurs will
have different objectives for their business
Suggest the main determinants of success
Suggest the main reasons for failure
Evaluate the success or otherwise of a
business start-up

Materials Available
Essential reading
Wolinski and Coates
Chapter 15
Other useful textbooks
Marcouse Unit 16
Surridge and Gillespie
Chapter 16
AQA Business Studies
Chapter 15
Extra reading
Business Review April 2004
Starting an e-business
Business Review Sept 2004
Practical problems of startups
Other resources
www.bbc.co.uk/dragonsden