BTT Summative Part 1
Monday, April 27, 2009 // 8:59 AM
Flash and Dreamweaver test next monday!
We talked about the summative today!
- Summative: to create a legal and viable (something realistic) business in Ontario
- Dumb ideas: Ferrari dealership
- Think about: Are you wasting your time working at McDonalds?
- Level Four: when you hand in your final product at the end of May, Mr Case will look at this and say its perfect and you can start the next day.
Level Three: All steps are complete but it might not work.
Level Two: Probably wouldnt work, have to change a couple of things.
Level One: Mr Case laughs?
Zero : did not finish.
- Alot of people run into trouble because they think of one of two things: Retail or food preparation
Problems with retail:
Let's say you wanted to sell basketball equipment, what problems will you encounter that will make this business not viable?
- Where are you going to buy equipment?
- e.g. buy from sport chek, sell at higher price to turn profit
- wholesale is cheaper, retail is more expensive
- wholesale is in larger quantity, buy in bulk
It is possible to buy wholesale & sell retail, but there are other issues.
Supply - Have to be able to purchase the equipment.
- Buy basketballs from US, you must pay shipping & duty(tax)
Basketball in US = $20. Shipping: $10 Duty: $10 = no profit
- To do importing, must research all laws and you have taken into all the taxes, shipping, etc applicable
Storage:
- need place to store
- need some on hand (stock)
- need money upfront to pay for stock
- store = full stock
- Renting store = insurance, electricity, water, security alarm, etc [must take into consideration]
- you need licenses from the city
Food Service Industry:
- e.g. hot dog stands, bubble tea stand
- food industry needs licensing, permits, etc
- submit inspections
- Catering: need to be approved for selling food, providing food
Everyone for wednesday, come up with a business idea that they are going to do.
Run your idea to 3 people, 2 your age 1 adult.
Be critical of an idea, think of all the flaws of your business scheme.
In Ontario, three different kind of businesses:
Sole proprietorship - one person only who is in charge of the business, you own the business, all yours. you can have employees but one person OWNS the business. e.g. small stores (Smith's variety store),
Partnership - Two or more people who are in charge of the business, own the business. Usually have equal share but not necessarily. [if you are in a partnership & you want to do it alone, you can buy the partner out (pay his portion of the company)]
Corporation - Legal entity that is set up. With a corporation, the corporation exists seperately from the owner. (e.g. you can sue the corporation and not the owner) You can tax the corporation differently than the person. Exists independently of the owner. Tax benefits of being a corporation. Corporation can be owned by multiple people. Set up with "shares". More supply = things aren't worth as much. More Demand= Things are worth more.
Labels: business, corporation, demand, duty, food, legal, license, ontario, partnership, preparation, profit, retail, sole proprietorship, stock, summative, supply, tax, viable, wholesale