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1.3 Putting a business idea into practice

4 dot points across 4 inquiry questions. Click any dot point for a focused answer with worked past exam questions where available.

What goals does a new business set, and why do they differ between businesses?

What business aims and objectives are; financial aims and objectives (survival, profit, sales, market share, financial security) and non-financial aims and objectives (social objectives, personal satisfaction, challenge, independence and control) when starting up; and why aims and objectives differ between businesses.
A focused answer to Edexcel GCSE Business 1.3.1, covering what business aims and objectives are, financial aims (survival, profit, sales, market share, security) and non-financial aims (social, personal satisfaction, challenge, independence), and why they differ between businesses.
6 min answer →

How does a business work out its revenue, costs, profit and break-even point?

The concept and calculation of revenue, fixed and variable costs, total costs, profit and loss, interest, the break-even level of output and the margin of safety; and the interpretation of break-even diagrams, including the impact of changes in revenue and costs.
A focused answer to Edexcel GCSE Business 1.3.2, covering the calculation of revenue, fixed and variable costs, total costs, profit, interest, the break-even level of output and the margin of safety, and interpreting break-even diagrams.
9 min answer →

Why can a profitable business still run out of money?

The importance of cash to a business (to pay suppliers, overheads and employees, and to prevent insolvency), the difference between cash and profit, and the calculation and interpretation of cash-flow forecasts (cash inflows, cash outflows, net cash flow, opening and closing balances).
A focused answer to Edexcel GCSE Business 1.3.3, covering why cash matters, the difference between cash and profit, and how to calculate and interpret a cash-flow forecast (inflows, outflows, net cash flow, opening and closing balances).
8 min answer →

Where does a start-up get the money it needs, and which source fits best?

Sources of finance for a start-up or established small business: short-term sources (overdraft and trade credit) and long-term sources (personal savings, venture capital, share capital, loans, retained profit and crowd funding), and their suitability.
A focused answer to Edexcel GCSE Business 1.3.4, covering short-term sources of finance (overdraft, trade credit) and long-term sources (personal savings, venture capital, share capital, loans, retained profit, crowd funding) for a start-up or small business.
7 min answer →