New Business Idea

This is some fashion laptop carry cases.Virtually all laptops/notebooks are only available with a dull, black nylon corporate carry case. People need to bring their laptop everywhere maybe for business, when they get out a fashionable laptop carry case, people may feel that they are cool. And I am sure that it will be a successful business, because it have its market, teenagers must buy them when they see it.

This is a Jelly Click Mouse.

In this 21st century, nearly everyone knows how to use a computer, and many people will have a computer at home, or even their own laptop. For example, for overseas students, they must have a computer with them, because this is a way of communication with their families and friends. Someone will use a mouse with their laptop but some won’t, if they bring their laptop, they need to carry the mouse also, and it will be heavier for them. At home, at office, you may use the computer for the whole day, and for some mouse, it’s too hard, you may also feel uncomfortable. Now this Jelly Mouse could be a winner as it feels floppy and like jelly. It so soft and so heavy, what you need to do is just blow some air inside when you want to use it. After you finish, you may just push out the air inside and become a very mini one.

Hoggard Organics' UK debut

A cash-flow forecast may predict the future, whereas a cash-flow statement describes what actually happened in the past. As predicting the future is not an easy task, constructing a cash-flow forecast may be quite difficult.

Cash-flow forecasts are important to a business because they enable it to foresee times in the future when the business will be short of money. If shortages are anticipated, the business may be able to prevent it happen.

Refer to the case study, all Hoggard Oanics’ shop managers in the UK which have done a cash-flow forecast; they may identify potential cash-flow problems in advance. They may also guide the firm towards the appropriate action. Also, it may make sure that there is sufficient cash available to pay suppliers and creditors and to make other payments is an important point. It can help to borrow money in a easy way.

But there are also some problems which using cash-flow forecasts, sales if organic food grew rapidly in the USA and had exceeded 8000 million pounds per annum, so they might have the same situation in the UK, there maybe a large number of competitors, changes in the economy, because it is a niche market, so there maybe a sudden changes in consumer taste and inaccurate market research etc…

Budget is an agreed plan establishing, in numerical or financial terms, the policy to be pursued and the anticipated outcomes of that policy. Using a budget can provide direction and coordination, it may also motivate staff and improve the efficiency. Once it motivate the staffs, and they will work harder, and there maybe a increase in productivity.

But there might be some drawbacks also, for example, because it is a niche market, not much people were working for this job before, they maybe senior manager, the allocation maybe inappropriate if imposed by them, also allocations maybe incorrect because circumstances have changed from time to time.

Case study

A business can use breakeven analysis to discover its breakeven output and the impact of changes in output on its profit levels.

Breakeven maybe useful to start-up businesses, because it is a simple, straight forward way of discovering whether a business plan is likely to succeed financially. Also a breakeven char can show the different levels of achieved. This means that business can predict its profit levels if it knows the number of units that is going to sell. Knowing the future profit levels can help a business to plan its future and strategies.

And for the most case, also for Nick Hess, breakeven can be used to calculate how long it will take to reach the level of output needed to make a profit, this will help the entrepreneur to assess whether or not the business is viable. New businesses often suffer from cash-flow problems, so it is useful for them to know when they can expect to reach a profit level. This information will help them to get financial support, such as a bank overdraft.

But also, there are some weaknesses of breakeven analysis. For example, the information may be unreliable; most breakeven charts are based on forecasts. It’s difficult to predict the number of customers who will buy the firm’s product, even with careful market research. Sales are unlikely to be exactly the same as output.

For Mr.Nick Hess and Foodeaze, they have their own USP, and it maybe a attractive point of their products. However, the opening of a new store nearby selling similar products its really affect their sales, so even the break-even they did before, it also can’t predict what will suddenly happen around them.

So breakeven is just a little value to an entrepreneur, the most important things they need to do is look around the location of the business, and do some research before starting up.