Ms Haron - GCSE Business - P2 Friday 11th December 2015 TEACHERS DESK Board Door Balween Asil Mulki Lidia Ria Get out your Finance worksheet ready to hand in inside your HW folder. Get out your Finance worksheet ready to hand in inside your HW folder. Jack Trish Anthony Yassir Shuyeb Bonnie 2 mins to sit down 1005-1007 Nasir Nice Mason Imran Rabbab Charlotte Maruf Sam Jahangir Shamar Edmond Brijesh Simran Rahat Yugesh Harry Aditya Joe Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 Homework Get out your Finance worksheet ready to hand in inside your HW folder. 0 mins Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 Learning Objectives - You have 3 minutes to write these down whilst I collect in homework 1 To define profit and how it is measured 2 To calculate profit in a business scenario 3 To understand what a business owner can do with profit 5 mins 1007-1012 Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

STARTER: What did we do last lesson? Ms Haron - GCSE Business - P2 Friday 11th December 2015 STARTER: What did we do last lesson? 5 mins 1012-1017 We will read the text above together TASK: 1 - Pick out the costs 2 – Pick out the £ numbers that are the Fixed and Variable costs in the text Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 STARTER: Answer the questions on your worksheet You have 10 minutes 10 mins 1017-1027 Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO1: What is profit? Profit is the monetary return for taking a risk. Who can remember what the profit/loss formula is? Profit/loss= Total _______ - Total _____ 3 mins 1027 - 1030 Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

LO2: Lets try to work it out Profit or loss? Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO2: Lets try to work it out Profit or loss? Profit/loss= Total Revenue - Total costs Revenue Costs Profit or Loss? If: Total revenue greater than total costs Total costs greater than total revenue Total revenue = total costs = Profit = Loss = Break-even A £100,000 £75,000 £25,000 (profit) B £125,000 £25,000 (loss) 5 mins 1030 - 1035 Write the working in your exercise book Profit/loss = _____ - _____ Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

LO2: What about in the Starter example? Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO2: What about in the Starter example? How much profit do they make over a year giving 2,000 pet grooming sessions? (3) Profit = Total Revenue - Total costs Profit/loss = ______- _______ = ______ 2 mins 1035 - 1037 Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

LO1: Two Ways of Measuring Profit Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO1: Two Ways of Measuring Profit Profit in absolute terms The £ value of profits earned E.g. £50,000 profit made in the year Profit in relative terms The profit earned as a percentage of revenues achieved or investment made E.g. £50,000 profit from £500,000 of revenue is a profit margin of 10% 5 mins 1037-1042 Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO3: The profit choice Once a profit has been made, the owner of the business has a choice: 1. Take the profit out of the business e.g. - Pay dividends to shareholders - Draw money out as an owner 2. Re-invest the profit in the business e.g. - new machinery & technology - Open new locations - Buy more stocks 3 mins 1042 – 1045 or Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 Think Pair Share On your own Talk to your neighbour Tell the class 3 mins in pairs – 5 mins as a group 1045-1058 – Think and discuss then share ideas with the class for each point If you made £10,000 profit in your pizza delivery business, would you draw money out of the business or re-invest it to make more profit? You have 3 minutes to discuss it in pairs Think about: How much more you could make if you re-invest? What you would re-invest in? What could you do with the money you drew out Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 LO3: Written answer If you made £10,000 profit in your pizza delivery business, would you draw money out of the business or re-invest it to make more profit? You have 5 minutes until the end of the lesson to answer this question in your exercise book. I would draw the money because… I would reinvest the money in ______ because… Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Why should you reinvest profit into a business? Ms Haron - GCSE Business - P2 Friday 11th December 2015 Why should you reinvest profit into a business? An important and cheap source of finance Decision is in the control of the entrepreneur Profits are flexible – can reinvest some or all Shareholders will usually be supportive If time, this can supplement the Think Pair Share task Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit

Ms Haron - GCSE Business - P2 Friday 11th December 2015 Dealing with a loss Many start-ups make losses Costs incurred before trading begins Takes time to build up revenues Plenty of action that can be taken Keep tight control of costs, particularly fixed costs Try to minimise waste Don’t take on too many people or expand too quickly unless the business can afford it Wednesday, 14 November 2018Wednesday, 14 November 2018 Profit