Mathematics and Small Business Mathematics and Small Business Subtopic 3.1 – Planning Business Premises Subtopic Queuing Topic 3 2 Tests 1 Folio Task

Overview of Unit Subtopic 3.1: Planning Business Premises Use of space — location, facilities, costs. Subtopic 3.2: Queuing Representing queues as a graph or table with given characteristics — arrival time, service time, number of points of service at least two servers). Discussion of the efficiency of the queue — based on calculations of queue length, customers’ waiting time, server idle time. *Efficiency of the queue – comparison of arrival interval time and the service time divided by the number of servers. Subtopic 3.3: Costing Calculations Calculations of pricing structures used (one of trade discount, net cost rate, series discount). Profit-and-loss statement calculations (cost of goods sold, discussions of profit projections and business viability). Depreciation (calculation and effect on business viability). *WorkCover (calculation and effect on business viability). Calculations related to finding the break-even point. *Discussion of other insurance costs. Subtopic 3.4: Business Structures and Taxation Calculations to compare the taxation liabilities of businesses under sole trader or partnership, or different proportioning of ownership.

Starting a Small Business (background information) Do a feasibility study Have business Plan Consider finance options Determine a business structure Sole Trader Partnership Proprietor Ltd / Company Register your business name

Consider taxation issues Take out insurance cover Decide on employees Determine business documentation procedures Plan budgets and finances Prepare a marketing and advertising campaign Plan for credit and debt collection facilities Consider technology and communication requirements Plan the legal aspects

The Business Premises Location Where a business is located is important to the success of the business. This is very true for business that rely on customer support for their livelihood. If you think about a small retail shop – they need as much foot traffic through their shop as possible to ensure that they get the sales needed. The better the location the more expensive the rent

Facilities It is also important to consider the facilities needed for a business. This refers to the structures and equipment required to operate the business. For example a furniture shop will require a lot of floor space to display their goods, where as a colour copying company may only need a small office. Most businesses will require access to staff facilities – like a meal room and toilet. Sometimes it is possible to share facilities, thus making the feasibility of location easier to manage.

Leasing Costs Costs are always critical to a business. A business can either buy or lease premises. Buying often requires a large capital outlay, so many businesses will rent their premises. Leasing costs depend greatly on size, location and facilities that the building has to offer. One way to compare leasing costs is to convert the price of rent to a cost per square metre.

You business is thinking about moving to a new location. You have found two options: The first is 820 square metres and costs $2300 per month. The other is 720 square metres and costs $475 per week to lease. Which represents better value?