Busness Pannng

Dentons
Word Defnition
Break even
anayss
used to determne the eve of saes that needs to be
generated to cover the tota cost of producton
Budget the busness's nanca pan for the future
Busness goas
Busness
Operatons

Busness Pan the 'road map' for future growth and deveopment
wthn a busness. It sets out the desred goas and
drecton of the busness.
Busness
pannng
correctve acton

Cash ow
pro|ecton
the changes to the cash poston brought about by
the operatng, nvestng and nanca actvtes of the
busness
EEO (Equa
Empoyment
opportunty)

Evauaton the process of assessng whether the busness has
acheved stated ob|ectves
Fnance (area of
the busness)
how a busness sources and manages the rsk of ts
fundng
Fxed cost costs that do not vary regardess of how many unts
of a good or servce are produced
Forecasts (or
pro|ectons)
the busness's predctons about the future
Grant any monetary or nanca assstance that does not
generay have to be repad
Human resources the empoyees of the busness and are generay ts
most mportant asset
Lean
manufacturng
an operatona strategy amed at achevng the
shortest possbe producton tme by emnatng
waste
Logstcs the management of busness operatons, such as the
purchasng, storage, transportaton and devery of
goods aong the suppy chan
Long term
growth
the abty of a busness to contnuay expand
Marketng a set of nteractng actvtes desgned to pan, prce,
promote and dstrbute products to present and
potenta customers. Marketng s more than |ust
advertsng.
Modfyng
(correctve
acton)
the process of changng exstng pans, usng updated
nformaton to shape future pans
Montorng the process of measurng actua performance aganst
panned performance
Ob|ectves a specc statement detang what a busness (or
ndvdua) needs to acheve n order to accompsh ts
vson
Operatona
Ob|ectves
short-term ssues and descrbe the course of acton
necessary to acheve the tactca ob|ectve and
strategc goa
Organsatona
structure
the framework n whch the busness denes how
tasks are dvded, resources are used, and
departments are coordnated.
Performance
standard
a forecast eve of performance aganst whch actua
performance can be compared
Resource
aocaton
the emcent dstrbuton of resources so as to
successfuy meet the goas that have been
estabshed
Return any prot that nvestors make from ther nvestment
Short term
growth

Stuatona
Anayss

Sx sgma
process
a process n whch 99.99% of a manufactured
products are defect free
Soca |ustce adoptng a set of poces to ensure that empoyees or
other communty members are treated equay and
fary
Strategc Goas ong-term, broad ams and appy to the busness as a
whoe
SWOT Anayss the dentcaton and anayss of the nterna
strengths and weaknesses of the busness, and the
opportuntes n, and threats from, the externa
envronment
Tactca
Ob|ectves
md-term, departmenta ssues and descrbe the
course of acton necessary to acheve the busness's
strategc goas
Tota Cost cost of producng a certan number of goods or
servces; the sum of the xed and varabe costs for
those unts
Tota Revenue the tota amount receved from the saes of a good or
servce
Varabe cost costs that depend on the number of goods or
servces produced
Vson Statement money that s nvested n sma and sometmes
struggng busnesses that have the potenta to
become very successfu
Outcomes

The student:
P1 discusses the nature of business, its role in society and types of business
structure
P3 describes the factors contributing to the success or failure of small to medium
enterprises
P4 assesses the processes and interdependence of key business functions
P6 analyses the responsibilities of business to internal and external stakeholders
P7 plans and conducts inestigations into contemporary business issues
P! ealuates information for actual and hypothetical business situations
P" communicates business information and issues in appropriate formats
P1# applies mathematical concepts appropriately in business situations


Content

Students learn to:
examine contemporary business issues to:
discuss the influence of goernment on $%&s
assess the effect of t'o changes in the business enironment on $%&s

investigate aspects of business using hypothetical situations and actual business
case studies to:
explain ho' the business plan is determined in at least one $%&
explain ho' $%&s can enter the global market for long(term gro'th
identify 'ays that $%&s gain a competitie adantage

prepare a small business plan:
based on a hypothetical or actual business
presented in a business plan)report format
Busness Pannng
1 The Roe of the Busness Pan
2 Busness Pannng process
3 Sources of Pannng Ideas
4 Vson Statement
5 Goas/Ob|ectves
6 Organsng Resources
7 Forecastng
8 Montorng & Evauatng
9 Takng Correctve Acton - Modcaton


1 The Role of the Business Plan
The rst task of anyone wantng to commence a busness s to undertake
thorough pannng.
The pannng w provde the foundaton on whch the busness w be
but.
Strong, rm foundatons w usuay resut n a successfu busness.
Sma - Medum Enterprse (SME)
SMEs pay an mportant roe wthn the Austraan economy. These roes ncude:
Provdng empoyment for about 5.3 mon peope
Produce 50% of a products produced each year
Generate an ncreasng amount of tota exports
Provde a wde range of products used by arge busnesses
Earn more prots and pay more taxes than arge busnesses.
Athough the ndvdua ehorts of each SME may appear nsgncant, ther tota
mpact s extremey mportant and can be seen as the 'engne room' of the
Austraan economy. In recent years, SMEs have created many |obs, become
more nnovatve and are ncreasngy enterng overseas markets.

A busness cassed by the number of empoyees, sze and ega structure.

Denton of Sma to Medum Enterprse (SME)
No unversay accepted denton of SME
Most wdey accepted s based on number of empoyees:
Mcro - fewer than 5
Sma - 5 to 19
Medum - 20 10 199

Other Characteristics of SMEs
Independenty owned and operated
Not domnant n ndustry
Buk of capta provded by owner
Personased servce
Loca (but not aways)
Persona quates

Roe of SMEs
Empoy about 73% of peope workng n prvate sector
Produce about 50% of a products n Austraa
Account for 20% of a R&D spendng

Economc Contrbuton
SMEs contrbute to Austraa's:
GDP (50% of Austraa's GDP)
Empoyment (7.5 mon |obs)
Baance of payments (sma but growng rapdy)
Innovaton (20% of R&D spendng)

Success or Faure of SMEs
Fve keys to SME success:
Entrepreneura abtes
Access to nformaton
Fexbty
Focus on market nche
Reputaton

SME Faure
About 71% of a SMEs fa wthn the rst 5 years of operaton
Many reasons for faure, ncudng:
Undercaptasm
Lack of pannng
Managera ncompetence
Inuences n Estabshng a Sma to Medum Enterprse
Persona Ouates
Ouacatons
Few or no forma quacatons requred
Sks
Obtaned through experence, educaton and/or tranng
Motvaton
75% of SME owners spend 50 hours/week or more, 25% put n 65
hours/week or more
Entrepreneurshp
Rsk taker, sef-condent, drven, kes beng around peope,
bounces back from faure
Cutura background
Some cutures are more supportve of entrepreneura actvty
Gender
More men than women start sma busnesses, but women
entrepreneurs growng faster

Sources of Informaton
Professona advsors
Accountants, soctors, bank managers and management
consutants
Government agences
Sma Busness NSW (smabz.nsw.gov.au)
Busness Enterprse Centres (becaustraa.org.au)
Busness.gov.au
Other sources
Chamber of commerce
Trade assocatons
Austraa Bureau of Statstcs
Sma Busness Assocaton (smeaustraa.asn.au)

The Busness Idea - Competton
The word needs yet another Myspace or Frendster except severa years
ate. We' ony open t up to a few thousand overworked, ant-soca, Ivy
Leaguers. Everyone ese w then |on snce Harvard students are so coo. -
Facebook
We' se books onne, even though users are st scared to use credt
cards on the web. Ther shppng costs w eat up any money they save.
They' do t for the convenence, even though they have to wat a week for
the book. - Amazon
We are budng the word's 20th search engne at a tme when most of the
others have been abandoned as beng commodtzed money osers. We'
strp out a of the ad-supported news and porta features so you won't be
dstracted from usng the free search stuh. - Googe
Peope w use ther nsecure AOL and Yahoo ema addresses to pay each
other rea money, backed by a non-bank wth a cute name run by 20-
somethngs. - PayPa
Fters! That's rght, we got ters! - Instagram
It's ke ema, SMS or RSS. Except t does a ot ess. It w be used mosty
by geeks at rst, foowed by Brtney Spears and Chare Sheen. - Twtter

Is competition essential for long-term business success? Explain with examples.
Competton can be usefu for ong-term busness success to ensure the busness
s motvated to be nnovated and create more products. For exampe, when
Vodafone was n ts prme, t ceased creatng more nnovatve technooges,
provdng the opportunty for competng busnesses to capture the target market,
ncudng Optus and Testra. Competton aso ensures that prces reman at a
reasonabe prce for consumers.
Estabshment optons
3 man ways of estabshng ownershp n a busness:
1 Startng a new busness yoursef
2 Buyng an exstng busness
3 Buyng nto a franchse

Startng a new busness yoursef
Advantages Disadvantages
Freedom to set up
exacty as you want
Owner can drve pace
of growth and change
No goodw that
needs to be pad
If funds are mted,
can start on sma scae
Hgh rsk
Dmcut to obtan nance
Tme needed to deveop
suppers, customer base and empoy
stah
May be consderabe perod
before generates prots

Buyng an exstng busness

Buyng a franchse
Advantages Disadvantages
Franchsor often provde
tranng
Immedate benet from
franchsor's goodw
Equpment and
premses desgn usuay
estabshed
Advertsng strategy
often exsts
Voume buyng often
possbe
Franchsor contros
operatons
Prots must be shared wth
franchsor
Franchsor often charges fee
for advce
Franchsee may fee ke an
empoyee
Franchsee must share
burden of franchsor's busness
mstakes
Market
Maret Anal!sis
In order to determne whether there w be actua demand for a good or servce,
busnesses shoud undertake market anayss. A varety of methods can be used,
such as surveys, questonnares and focus groups.

Maret Anal!sis "uestions
What are the demographcs of our potenta customers?
Why do they want to buy our products?
What do they see as our strengths and weaknesses?
Advantages Disadvantages
Saes to exstng
customers w generate ncome
Good hstory ncreases
kehood of success
Easer to obtan
nance
Equpment avaabe
for mmedate use
Exstng empoyees
can provde assstance
May be dmcut to change
mage f busness had poor reputaton
Dmcut to assess vaue of
goodw, so may overpay
Success of busness may have
been due to prevous owner's
personaty and contacts
Some empoyees may resent
change
Who are our compettors?
What do our compettors oher that we dont?

Prce
What methods can busnesses use to work out what prce they shoud se at?
Percentage mark-ups
Recommended reta prce
Prce eadershp and competton
What the market w bear

Locaton
Dherent busnesses are suted to dherent ocatons. Optons ncude:
Shoppng centre compex
Reta shoppng strps
Onne presence
Home based busness

Fnance
Fnance refers to the funds requred to carry out the actvtes of a busness.
Source
Two man sources of funds:
Debt - borrowed money that must be repad wth nterest
Equty - an ownershp nterest n a busness
Sources of #inance$
Credt unon
Trust fund
Banks
Famy
De%t #inance
Advantages:
Dont have to se ownershp of busness
Tax ehectve (nterest costs are tax deductbe)
Dsadvantages:
Interest must be repad regardess of whether the busness s protabe
Prncpa must eventuay be repad or renanced

T!&es of de%t fnance
Short term (ess than 1 year), ncudes bank overdrafts, credt card debt,
commerca bs, commerca paper and trade credt
Medum term (1 to 5 years), ncudes expanson, new equpment,
deveopng new products
Long term (more than 5 years, ncudes busness oan, ne of credt,
mortgage and eases
E'uit! #inance
Refers to the funds contrbuted by the owner/s.
Advantages:
No nterest needs to be pad, and dvdends are ony pad f and when the
busness s protabe
Prncpa doesnt need to be repad
Dsadvantages:
Seng ownershp n the busness reduces the potenta upsde f the
busness s successfu
There s an opportunty cost to equty n a busness

Cost of Fnance
W depend on:
Type of nance (e.g. secured, unsecured)
Source of nance (e.g. bank, budng socety, credt unon)
Term of nance (e.g. maturty)

#inancial Re'uire(ents
Costs of runnng busness can be spt nto:
Estabshment costs: xed costs of settng up the busness (e.g. stock,
equpment, ega fees)
Operatng costs: ongong costs of runnng the busness (e.g. wages, rent,
nterest)
Lega Consderatons
There are severa ega ssues that must be consdered when settng up a
busness. These ncude:
Busness name regstraton and trademarkng - Busness Names Act 1962,
Trade Marks Act 1995
Zonng: Loca counc determnes whether partcuar busnesses can
operate n specc areas
Heath reguatons for busnesses deang wth foods, whch ncude reguar
vsts by heath nspectors http://www.foodauthorty.nsw.gov.au/penaty-
notces/defaut.aspx?tempate=resuts
Trade Practces Act 1974 - aw whch protects both consumers and the
busness. It protects consumers from deceptve or mseadng practces, and
t reguates the trade practces of busnesses.
Consumer and Competton Act 92010), whch s desgned to protect
consumers from deceptve practces http://www.youtube.com/watch?
feature=payer_embedded&v=uE8BB-oNRw

Human resources
When estabshng an SME, the owner needs to decde how many, f any,
empoyees w be requred to operate the busness.
Man sources of empoyees are:
Advertsements
Word of mouth
Schoos, unverstes or TAFEs
Recrutment agences
|ob servce Austraa

Empoyee sks
Empoyers must match the sk requrements of the |ob vacancy wth the sks of
potenta empoyees.
Empoyers can ether:
Recrut peope who have the requred sks
Provde tranng to mprove the sk eve of exstng empoyees

Empoyee costs
The tota cost of an empoyee s more than the wage/saary pad. These are
caed non-wage or on-costs.
These non-wage costs often account for around 30-40% of the tota
remuneraton package, and ncude:
Superannuaton
Sck eave
Hoday pay
Recrutment costs

Taxaton
The man federa taxes mposed on busnesses ncude:
PAYG on behaf of empoyees
Goods and servces tax (GST) of 10%
Company tax (30% of taxabe ncome)
Capta gans tax - cacuated on prot made on sae of assets
Frnge benets tax - tax on the provson of a benet to an empoyee eg.
Cars for prvate use, ow-nterest oans, entertanment expenses, housng &
accommodaton - n pace of saary or wage - pad by empoyer at 48.5%
The man state taxes mposed on busnesses ncude:
Stamp duty on transfer of assets
Land tax (pad on and vaued at more than $406,000, but prmary
resdence and farms exempt - cacuated as $100 pus 1.6% of and vaue
mnus threshod)
Payro tax (5.45% f wages above $750,00 per year
The man oca government taxes and charges mposed on busnesses ncude:
Rates based on vaue of and
Water and sewerage charges waste management servces deveopment
and budng approva fees

The Busness Pannng Process
A business plan is a written statement of the business's goals and the steps
taken to achieve them.

Ele(ents of a Business Plan
1 Executve summary
2 Busness goas
3 Strateges
4 Busness descrpton and outook
5 Management and ownershp
6 Operatona pans
7 Marketng pans
8 Fnanca pans
9 Human resource pans

Benefts of a %usiness &lan
Identes busness strengths and weaknesses
Heps test the vabty of the busness
Indcates the owner's abty and eve of commtment
Forces the owner to thnk through the detaed steps as to how the
busness goas w be acheved

Sources of Pannng Ideas
Informaton for pannng s obtaned from dherent sources wthn and outsde the
busness.

Stuatona Anayss
A stuatona (SWOT) anayss s a technques for gatherng the nformaton
for use n a busness pan. It nvoves dong an nterna assessment
(strengths and weaknesses) and an externa assessment (opportuntes and
threats)


Vson, Goas and/or Ob|ectves
The vson statement broady states what the busness aspres to become.
Why is a vision statement important?
It heps gude and drect the busness owners, managers and empoyees.
It heps create a busness's cuture - Googe's "You can make money
wthout dong ev."
It acts as a benchmark aganst whch to measure a the busness's
decsons and operatons.

Goas and Ob|ectves
Vson statements are broad, whe goas and ob|ectves are more specc.
Goas are strategc ong term (years) ams
Ob|ectves are tactca (months) and specc (SMART)
E)a(&le
Part of Googe's vson statement mght be that you can make money
wthout dong ev
A goa mght be to ncrease market share
An ob|ectve mght be somethng more specc such as ncreasng
Gma's actve user base by 10% by September 2013
Types of Goas
There are 3 man types of goas owners try to acheve:
Fnanca - ncrease prot, market share, ncrease share prce
Soca - provdng empoyment, ecoogca sustanabty or communty
servce
Persona - acheve nanca securty, work a four day week, successfuy
grow a busness

Long Term Growth
In order to acheve prot maxmsaton, a busness must am for ong term
growth. Strateges that rms can adopt to acheve ong term growth ncude:
Lsten to customer feedback
Deveop supper and customer partnershps
Ongong product nnovaton

Organsng Resources
Once a busness owner has decded on the vson, goas and ob|ectves for a
busness, the next stage n the pannng process s the organsaton of resources.
Organsaton of resources nvoves workng out:
What s to be done
Who s to do t
How t s to be done
What sort of resources does a business have?
Money
Empoyees
Storage
Factores

Operatons
The sorts of questons that need to be addressed by the operatons functon
ncude:
What type of capta equpment and raw materas are needed?
Whch suppers w be used to purchase the capta equpment and raw
materas?
What w be the mpact of the raw materas and capta equpment
purchases on nance?
What storage, warehouse and devery systems are requred?
What eve of tranng w be requred for workers?

Marketng
The set of activities which are designed to satisf a customer's needs and wants.
The busness must:
Have a marketng pan
Ensure a aspects of the busness are n ne wth the marketng pan e.g.
adequate resources, personne

Fnance
The funds re!uired to operate a business.
Busnesses need to nd the most approprate source e.g. savngs, oans
Decsons such as: amount of equty, potenta oss of contro, access to
government grants (payment whch does not have to be repad for thngs
such as R & D, nnovaton and exportng)

Human Resources
The activities associated with managing the people of the business.
Decsons nvove recrutment, seecton processes, compance wth egsaton
such as ant-dscrmnaton and equa empoyment opportuntes.

Forecastng
#orecasts (or pro|ectons) are the busness's predctons about the future.

A busness needs more than |ust nformaton about present busness condtons.
It aso needs nformaton about possbe future events.

They hep wth e*ective pannng:
Labour
Raw materas
Money/nance
Budng
"# main $usiness %unctions&
Tota Revenue
Total revenue s the tota amount receved from the saes of a good or servce
and s cacuated by mutpyng the seng prce (P) by the quantty (O) of unts
sod. Ths can be represented mathematcay as:

P x O = TR

Saes forecastng data:
Can be gathered by usng market research technques such as customer
surveys
Are more precse f the busness has some prevous saes hstory to act as
a gude
Good for orderng stock/suppes
Tota Cost
The costs nvoved n operatng a busness can be broady cassed as ether
xed or varabe costs.

#i)ed costs are costs that do not vary regardess of how many unts of a good
or servce are produced.

+aria%le costs are costs that depend n the number of goods and servces
produced. Varabe cost, therefore, w ncrease f more goods and servces are
produced and decrease when fewer goods and servces are produced.

The total cost of producng a certan number of goods or servces s the sum of
the xed costs and varabe costs for those unts. Ths can be represented
mathematcay as:

FC + VC = TC

It s possbe to forecast tota cost by estmatng the change n varabe costs at
dherent eves of producton. Fxed cost w reman the same.
Break-even Anayss
Brea,even Anal!sis
Brea,even anal!sis determnes the eve of saes that needs to be generated
to cover the tota cost of producton.
Tota cost of producton ncudes:
Fxed costs
Varabe costs

Saes above the break-even pont w mean a prot; saes beow the break-even
prot w mean a oss.

Break-even anayss s an mportant pannng too because management can
determne the eve of saes requred to obtan a prot. It can aso be used to
determne the ehect on prot f saes ncrease or decrease. Ths pannng too s
used n the strategc pannng stage, before budgets are prepared.

The break-even saes quantty can aso be cacuated by usng the formua:

Ouantty = Tota xed costs / (Unt prce - varabe costs per unt)
Cash Fow Pro|ectons
The cash -o. &ro/ection shows the changes to the cash poston brought
about by the operatng, nvestng and nanca actvtes of the busness.

By ookng at these gures we can predct the future on:
Cash payments we w receve (Accounts Recevabe)
Cash payment we w need to pay (Accounts Payabe)

The cash ow pro|ecton s an mportant too for cash ow management. It ohers:
The SME owner a cear ndcaton of how much capta nvestment the
busness dea requres
A bank oans omcer evdence that the busness s a good credt rsk

Overa, ths nformaton w pont out perods when busness expenses are too
hgh or tmes when a short-term nvestment s possbe to dea wth a cash
surpus.
Montorng
'onitoring is the process of measuring the performance of the business.
Montorng nvoves two steps:
Estabshng performance forecasts (or estmates)
Measurng actua performance

Evauatng
Evaluating is the process of comparing the performance estimates with the
actual performance.
The busness s askng "Have we acheved what we panned to acheve?"
Frms w montor and evauate ther budgets, of whch saes and prot and
mportant components.

Montorng and Evauatng Budgets
A budget s a busness' nanca pan for the future, and contans pro|ectons of
ncome and expenses over tme.

Montorng and Evauatng Saes
Montorng and evauatng saes s crtcay mportant to determne the
ehectveness of marketng strateges. Busnesses w examne saes
performance:
Overtme
By geographca area
By product ne

Montorng and Evauatng Prot
As prot s one of the man goas of busness, montorng and evauatng prot s
a key ndcator of performance. Prot s mportant as both a return for owners
and as a potenta source of future fundng for the busness.

Takng Correctve Acton
If the actua performance of a busness s fang beow the forecast performance,
ths provdes an opportunty to take correctve acton. Ths may nvove aterng
marketng strateges, modfyng operatona processes or stah changes.
Crtca Issues n Busness Success and Faure
Around 70% of SMEs fa wthn ther rst 5 years. Whe there are many reasons
why SMEs can fa, there are some crtca ssues that are mportant for a
busnesses.

Busness Pan
"By fang to prepare, you are preparng to fa" - Ben|amn Frankn
"A goa wthout a pan d |ust a wsh" - Antone de Sant-Exupery
It s essenta that busnesses deveop a busness pan that sets out what they
are tryng to acheve, and how they ntend to acheve t.
Whe busness pans may dher n ther deta, they a contan some key
components:
Cear statement of busness goas
Pan for achevng those goas
Standards for measurng performance
A busness pan shoud take a ot of work and thought, and needs to be
presented n a professona manner as t w be read by bank managers,
potenta nvestors, nanca advsors, potenta drectors etc.

Management - Stamng & Teams
"The magc formua that successfu busnesses have dscovered s to treat
customers ke guests and empoyees ke peope." - Thomas | Peters
'anagement is the process of working with and through other people to achieve
the goals of the business in a rapidl changing environment.

Much of the success of a busness depends on havng satsed and motvated
empoyees. Ths means that s essenta that owners spend enough tme and
money on the recrutment process.

Trend Anayss
Trend anayss s the process of nvestgatng changes over tme and ookng for a
trend n order to predct the future. Trend anayss heps owners forecast factors
such as:
Saes
Tota revenue
Tota operatng costs
Gross and net prot

Identfyng and Sustanng Compettve Advantage
Busness success depends on ganng a compettve advantage n the market.
There are two basc ways that a compettve advantage may exst:
Cost advantage
Dherentaton advantage
Some of the ways that a rm may mantan a compettve advantage ncude:
Patents and trademarks
Propretary know-how
Instaed customer base
Reputaton of the rm
Brand equty

Avodng over-extenson of nance and other resources
Overextenson of nancng means that rms often borrow too much, and f ther
revenue pro|ectons turn out to be overy optmstc they can defaut (be unabe
to pay the nterest and/or prncpa) on ther oans.

One cause of overextendng nance s nadequate busness pannng; owners
underestmate the xed costs of estabshng ther busness and borrow more
than they ntended.

Common ways that busnesses overextend ncude:
Purchasng rather than easng premses, capta equpment and vehces
Empoyng too many stah
Purchasng too much stock
Purchasng or easng hgh speccaton capta equpment or t-outs
before busness pan s proven

Usng Technoogy
Improvements n technoogy have enabed busnesses to:
Reach potenta customers throughout the gobe
Source ow cost suppers, wherever they may be found
Keep track of empoyees and shpments

E)a(&les of technolog! in %usiness
Payments - EFTPOS, Paypa, Square, NFC
E-Commerce - Ebay, Amazon, Zappos, Etsy
Communcaton - mobe phones, VOIP, Googe coordnate
http://www.googe.com/enterprse/mapsearth/products/coordnate.htm
Manage busness nformaton - SAP, PeopeSoft
Automaton
http://www.ted.com/taks/rodney_brooks_why_we_w_rey_on_robots.htm

Economc Condtons
Changng economc condtons can nuence busness success or faure
A boomng economy (strong growth) can ncrease demand for many goods
and servces, partcuary uxury goods
Whe a sowng economy can reduce demand for many goods and
servces, some busnesses do we n these tmes (qudators; dscount
reta; gambng; CCC)