Barclays Practice 1

First activity
1. Financial services - are the economic services provided by the finance industry,
which encompasses a broad range of businesses that manage money, including credit
unions, banks, credit-card companies, insurance companies, accountancy companies,
consumer-finance companies, stock brokerages, investment funds, individual
managers and some government-sponsored enterprises.

2. Enterprise - an organization, especially a business, or a difficult and important

plan, especially one that will earn money.

3. Business startups - Startups are companies or ventures that are focused around a
single product or service that the founders want to bring to market.
4. Entrepreneur - is an individual who creates a new business, bearing most of the
risks and enjoying most of the rewards. The entrepreneur is commonly seen as an
innovator, a source of new ideas, goods, services, and business/or procedures.

5. Business opportunity - is a packaged business investment that allows the buyer to

begin a business.

6. E-commerce - is the activity of electronically buying or selling of products on

online services or over the Internet. Electronic commerce draws on technologies such
as mobile commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems.

7. Market research - is an organized effort to gather information about target markets

or customers. It is a very important component of business strategy.[1] The term is
commonly interchanged with marketing research; however, expert practitioners may
wish to draw a distinction, in that marketing research is concerned specifically about
marketing processes, while market research is concerned specifically with markets.

8. Primary research is defined as a methodology used by researchers to collect data

directly, rather than depending on data collected from previously done research.
Technically, they “own” the data.

9. Secondary research is a research method that involves using already existing data.
Existing data is summarized and collated to increase the overall effectiveness of
research.

10. Quantitative is based on quantities obtained using a quantifiable measurement

process.
11. Qualitative is multimethod in focus, involving an interpretive, naturalistic
approach to its subject matter.

12. Target market is a group of customers within a business's serviceable available

market at which a business aims its marketing efforts and resources. A target market
is a subset of the total market for a product or service.

13. Questionnaire is a research instrument that consists of a set of questions or other

types of prompts that aims to collect information from a respondent.

14. Sole trader is a business structure whereby one individual runs and owns the
whole business.

15. Partnership is an arrangement where parties, known as business partners, agree to

cooperate to advance their mutual interests.

16. Plc is a company whose securities are traded on a stock exchange and can be
bought and sold by anyone.

17. Franchise is a type of license that a party (franchisee) acquires to allow them to
have access to a business's (franchisor) proprietary knowledge, processes, and
trademarks in order to allow the party to sell a product or provide a service under the
business's name.

18. Marketing mix is a foundation model for businesses, historically centered around
product, price, place, and promotion (also known as the "4 Ps").

19. LLC is the US-specific form of a private limited company. It is a business

structure that can combine the pass-through taxation of a partnership or sole
proprietorship with the limited liability of a corporation.

20. Creditor is an entity (person or institution) that extends credit by giving another
entity permission to borrow money intended to be repaid in the future.

21. Debtor is a company or individual who owes money. If the debt is in the form of
a loan from a financial institution, the debtor is referred to as a borrower, and if the
debt is in the form of securities – such as bonds – the debtor is referred to as an
issuer.

22. Stock is a type of investment that represents an ownership share in a company.

Investors buy stocks that they think will go up in value over time.

23. Cash flow is the net amount of cash and cash-equivalents being transferred into
and out of a business. At the most fundamental level, a company’s ability to create
value for shareholders is determined by its ability to generate positive cash flows, or
more specifically, maximize long-term free cash flow (FCF).
24. Business plan is a written document that describes in detail how a business—
usually a new one—is going to achieve its goals.

25. Budgets is a financial plan for a defined period, often one year. It may also
include planned sales volumes and revenues, resource quantities, costs and expenses,
assets, liabilities and cash flows.

26. Shareholder (also known as stockholder) is an individual or institution (including

a corporation) that legally owns one or more shares of stock in a public or private
corporation.

27. Stakeholder an independent party with whom each of those who make a wager
deposits the money or counters wagered.

28. Assumptions - something that you accept as true without question or proof:

29. Sales forecasts are the process of estimating future sales. Accurate sales forecasts
enable companies to make informed business decisions and predict short-term and
long-term performance.

30. Equity - the value of the shares issued by a company.

31. Asset is a resource with economic value that an individual, corporation, or

country owns or controls with the expectation that it will provide a future benefit.

32. Hire purchase is an arrangement for buying expensive consumer goods, where the
buyer makes an initial down payment and pays the balance.

33. Trade credit is the credit extended to you by suppliers who let you buy now and
pay later. Any time you take delivery of materials, equipment or other valuables
without paying cash on the spot, you're using trade credit.

34. Collateral is an asset that a lender accepts as security for extending a loan. If the
borrower defaults, then the lender may seize the collateral.

35. Startup is a company or project initiated by an entrepreneur to seek, effectively

develop, and validate a scalable business model.

36. Capital is a financial asset that usually comes with a cost. Companies report
capital on the balance sheet and seek to optimize their total cost.

37. Overdraft an extension of credit from a lending institution when an account

reaches zero.

38. Bank loan - the extension of money from a bank to another party with the
agreement that the money will be repaid.
39. Credit card is a payment card issued to users (cardholders) to enable the
cardholder to pay a merchant for goods and services.

40. Sources of finance for business are equity, debt, debentures, retained earnings,
term loans, working capital loans, letter of credit, euro issue, venture funding etc

41. Mortgage is a debt instrument that the borrower is obliged to pay back with a
predetermined set of payments.

42. Venture capital is a form of private equity and a type of financing that investors
provide to startup companies and small businesses that are believed to have long-term
growth potential.

Second activity
Barclays is a major global financial service provider which estimated more than
436,000 new business started up in England and Wales in 2008. The Barclays has
their own global credit card business, called Barclaycard. Barclays` also has
subsidiaries, such as Barclays bank LLC (Russia), Barclays Bank PLC (UK),
Barclays Investment Bank, Barclays Partner Finance, etc. The main activity of
Barclays finance new businesses with overdraft, which allows the business to spend
more than the funds available in its accounts up to an agreed limit, a business credit
card, which enables a business to borrow flexible amounts quickly and for a short
period of time.

Questions
1. Which sector does Barclays work in?

Tertiary sector.

2. How many employees does Barclays have?

156000 employees worldwide.

3. What was the total income earned by Barclays in 2008?

23billion£.

4. How many new businesses ‘started up’ in 2008, according to Barclays?

436000 new businesses.

5. What is an entrepreneur?

An entrepreneur is someone who has an idea for a business and is prepared to take
the risk in setting up a business to exploit the idea.
6. Why might someone set up their own business?

They don’t want to work for anyone else, they may not be able to get a job, they may
feel that they can do a better job than is currently done, may have been made
redundant, may need to earn some extra income etc.

7. There are different types of business. What are the choices?

Sole trader, partnership, ltd and franchise (arguable).

8. Why is it imperative that market research is done before setting up a business?

So that they know what the customer wants, is there a demand for that product, how
much are they prepared to pay and who their potential competitors are. Minimizes
risk of failure and helps to decide whether the venture is potentially viable.

9. What sources of finance are available to an entrepreneur?

Own savings, selling of personal possessions, bank loan; overdraft; credit card;
friends and family, mortgage of house; venture capitalist.

10. Why should an entrepreneur write a business plan when setting up his / her
business?

So that the entrepreneur has looked at all the angles (marketing, sales, stock,
legislation of the business, has a deep understanding of direction and potential sales –
best case and worse case. It is also required when trying to raise finance through
loans or venture capitalists as they want to know when and if the business has the
potential to pay back the loan.

11. What help is available to entrepreneurs who are in the process of setting up or
running their business?

Local banks, government schemes like Business link.

Activities
1. A well-structured business plan, including budgets, can help a new business to
avoid such problems. A business plan provides a forecast of costs and revenues over
the planning period. It sets out how sales will be achieved and how the business is to
be financed. Banks expect to see a business plan before agreeing to any loan request.
Many banks provide tools to help owners draw up business plans. It is important for a
new business to have clear budgets. A budget is based on the business objectives and
identifies key factors, such as what money is needed, for what purpose and where it
will come from.

There are some helpful notes below on how to prepare a business plan
When you write your business plan, you don’t have to stick to the exact business plan
outline. Instead, use the sections that make the most sense for your business and your
needs. Traditional business plans use some combination of these nine sections.

1. Executive summary

Briefly tell your reader what your company is and why it will be successful.

2. Company description

Use your company description to provide detailed information about your company.
Explain the competitive advantages that will make your business a success.

3. Market analysis

You'll need a good understanding of your industry outlook and target market.

4. Organization and management

Tell your reader how your company will be structured and who will run it. Describe
the legal structure of your business. Use an organizational chart to lay out who's in
charge of what in your company.

5. Service or product line

Describe what you sell or what service you offer. Explain how it benefits your
customers and what the product lifecycle looks like.

6. Marketing and sales

There's no single way to approach a marketing strategy. Your strategy should evolve
and change to fit your unique needs.Your goal in this section is to describe how you'll
attract and retain customers. You'll also describe how a sale will actually happen.

7. Funding request

If you're asking for funding, this is where you'll outline your funding requirements.
Your goal is to clearly explain how much funding you’ll need over the next five years
and what you'll use it for.

8. Financial projections

Supplement your funding request with financial projections. Your goal is to convince
the reader that your business is stable and will be a financial success.

9. Appendix
Use your appendix to provide supporting documents or other materials were specially
requested. Common items to include are credit histories, resumes, product pictures,
letters of reference, licenses, permits, or patents, legal documents, permits, and other
contracts.

1. Sole trader; 2.Limited liability; 3.Venture; 4.Creditor; 5. Entrepreneur; 6.Limited

company; 7. Cash flow; 8.Financial.