Contents of a business plan tutor2u externalities

Remember to include drawings and interest when adding the total overhead cost to the direct costs. Consumers may lack perfect information At one level, market provision of health care and education may not provide a socially optimum outcome because consumers may not be aware of all the benefits of such goods, and may behave in a foolish manner - they may choose to spend their money on demerit goods such as cigarettes, alcohol and pornography, rather than making adequate provision for their own and their children's medical and educational needs.

Figure 1 Under-consumption of a merit good. Those who use more energy - with big cars and foreign holidays - would have to buy more carbon points, while those who consume less - those without cars, or people with solar power - would be able to sell their carbon points.

Remember that the people assessing your business are likely to be very busy. What are their development needs. Evaluation — problems with environmental taxation There is a growing body of economists who argue that reliance on environmental taxation is an ineffective way of promoting environmental improvement, indeed that some taxes are prone to government failure.

A market system only takes effective demand into account; that is, demand backed by the ability to pay the asking price. The Business This section should briefly describe the purpose and goals of the business.

However, society at large receives the benefits of a more highly skilled, adaptable and thus more efficient workforce, which is one of the key ingredients of economic success - the West German post-war 'economic miracle' has, in part, been attributed to its highly educated and trained workforce.

High energy users could then buy them - motorists who had used their allocation would still be able to buy petrol, with the carbon points drawn from the bank and the cost added to their fuel bills.

Premises The reader is already aware of the logic behind your choice of premises; here describe the premises themselves, including details of any necessary licences, health and safety requirements, planning permission, etc. Most banks look for at least some security, particularly if they are being asked to provide the bulk of the finance.

Detailed supporting information can be included in the appendices. To reduce total UK emissions, the overall number of points would shrink each year. This is known as differentiation.

Include an explanation of how you will monitor business performance from start up. Remember that your plan is neither a static document nor simply a tool with which to get funding; it is an evolving statement of all the ideas, research and actions which you are employing to ensure the survival and growth of your business.

If you choose a differentiation strategy, quality and service is, within reason, more important than price. Health care generates a number of positive externalities; for example, if all people receive adequate levels of healthcare, the nation's workforce is likely to be fitter and healthier, less working days would be lost through sickness, and this would have beneficial effects on the level of output and economic growth; vaccinations and preventative health care which prevent the spread of contagious diseases such as small-pox and whooping cough, clearly not only benefit the individuals receiving the treatment, but also the rest of society at large.

A possible market-based solution to this problem would be that of private medical insurance; in the same way that it is obligatory for all motorists to take out some form of car insurance, everybody could be required to purchase a minimum level of health insurance to guard against unforeseen contingencies.

Another advantage is that the revenue from a traded pollution permits scheme can be re-cycled into other schemes for environmental improvement. Outline the research that you have undertaken — both primary and secondary research are important — including summary information in tables or graphs.

Contents Of A Business Plan

Avoid jargon wherever possible; a reader wanting more detailed information on technical aspects of your product will ask for it. Will you phase in additional products or services as you start to make more money.

The marketing plan to achieve these objectives should be described using the 4Ps. I also happened to be starting my little adventure right when unemployment rates in the US were at an all-time low.

This problem of under-consumption is illustrated in Figure 1 below. Financial Requirements Indicate how much money or other assets will be invested by yourself and any partners. Business Week, September Carbon Emissions Trading Emission trading is regarded by many as the future of environmental protection and improvement in the UK, European and international economy.

There is an unequal distribution of income Perhaps a more basic reason for the market tending to under-provide merit goods is that, given the highly unequal distribution of income, and the widespread poverty such as exists in most economies today, many people would be unable to afford adequate education, health care and housing in the absence of state provision or subsidy.

You can now think about writing the summary.

IB Economics/Comprehensive Syllabus Outline

Managing your business Describe how you will manage and organise your business. The main aim of environmental taxation is to: Taxes reduce output and raise prices, and this might have an adverse effect on consumer welfare.

Microeconomics SL

Thus, on the grounds of equity, it may be decided that such merit goods as health and education should be provided free on the basis of need rather than according to ability to pay.

An externality can be either positive or negative. Society also benefits in less tangible ways as it could be argued that educated people are less prone to crime and racial intolerance, although this argument is obviously not foolproof. How profitable is it. It may also help to explain how the price has been derived.

Externalities in Business

Explain how you will promote what you have to offer, for example, through advertising, direct mail, door-to-door leaflets, social media campaigns, etc. If pollution taxes are raised in one country, producers may shift production to countries with lower taxes. How you meet those opportunities will be a function of the quality of your planning, of your flexibility of approach, and of how you develop and use your plan.

Elements of a Business Plan There are seven major sections of a business plan, and each one is a complex document.

Edexcel (A) Economics A-level revision guide

Read this selection from our business plan tutorial to fully understand these components. Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

Outline the main factors that a business will consider when choosing the most 3 appropriate method of production The target market. Related Interests Documents Similar To Tutor2u Production Methods Introduction Worksheet. Transport generates externalities causing market failure because the price of transport does not always reflect the full social cost to society.

Eg a transatlantic aircraft generate significant negative externalities. Businessplan how to writeiness plan our blog for startups template plans pdf download definition tutor2u online grocery store business free dummies include course | fostersr many of these programs are available online and there is a wealth of video tutorials and written content to help you learn how to use them.

Contents of a business plan

business plan formats. Edexcel Economics A-Level Revision Guide. Simple and clear explanations. Relevant diagrams and evaluation to go with basic definitions and concepts. Recently updated.

Contents of a business plan tutor2u externalities
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