Business Essentials: Finance, Legalities, and Management

Posted on Mar 5, 2025 in Economy

Product Planning

  • Product Details: Detailed information about the product or service, including labor hours and investment costs.
  • Product/Service Description: Characteristics such as color, texture, volume, weight, and materials.
  • Number of Units Produced
  • Production Phases: Organized steps in the creation process.
  • Computation Time: Total time required (including pauses and downtime).

Employment and Contracts

  • Employment Contract: Agreement between the worker and the business.
  • Collective Bargaining Agreement: Contract negotiated by employer representatives to regulate working conditions.

Warehouse and Investments

  • Warehouse Management: Insurance, stock control, and security measures to protect inventory.
  • Investments: Expenditures by the employer on assets (premises, machinery, tools, vehicles, installations, furniture, and initial setup).

Sources of Financing

  • Equity: Capital from investors (often small amounts).
  • Loan: Funds received upfront, with interest payments from day one. Early repayment may incur penalties.
  • Factoring
  • Funding by providers
  • Bank Overdraft: An extended check facility.
  • Discount Commercial Collection: Discounting bills of exchange or promissory notes with a bank for a commission and interest.
  • Lease: Applicable only to movable property. The lessor maintains the asset. No minimum term, and the full fee is deductible.
  • Leasing: Can include immovable property. The lessee maintains the asset. Minimum terms apply (2-10 years for furniture and buildings). Fee deduction is limited.
  • Credit Line: Funds available to the client, with interest charged only on the amount used. Funds can be withdrawn at any time to address liquidity shortages.
  • Subsidies

Avoid relying solely on short-term solutions to address liquidity issues.

SME Definition

  • SME (Small and Medium Enterprise): Defined as having fewer than 250 employees, a balance sheet total of no more than €40 million, or an annual turnover of no more than €27 million. Must not be owned by larger enterprises or groups with over 25% capital.

Decision Making and Costs

  • Decision Making: Involves investment plans and product development.
  • Costs: Expenses incurred in obtaining the product.
  • Financial: Crucial for determining economic viability.
  • Confirmation: Paying punctually.

Credit accounts can help manage cash deficits.

Legal Form

  • Legal Form: The structure of a company, which must be communicated to the administration, customers, and suppliers.

General Legal Requirements

  1. Legal Requirements: Space requirements, regulations, or legal frameworks.
  2. Liability of Promoters: The extent to which promoters are responsible for business debts.
  • Limited Liability: Liability is limited to the company’s assets. Personal assets are protected.
  • Unlimited Liability: Personal assets of the partners can be used to cover business debts if company assets are insufficient.
Number of members Capital contribution made by members of a society in money or goods jobs Two groups esodendiferenciar taxation income tax of individuals (Income tax) may be directly or objectively estimate Ways subjected to corporate taxes IS

Franchising

  • Franchisor: Provides a product or service and the associated know-how.
  • Franchisee: Receives the product, brand, and know-how.
  • Royalty: A fixed or variable payment made to the owner of a right in exchange for permission to use it.
  • Know-How (Expertise): The methods and techniques for managing and operating a business.

Taxation and Community

  • Individual Income Tax: Paid by the employer.
  • Dune Community Members: Members of a common land association.

One-Stop Business Centers

  • One-Stop Business: Centers that facilitate business creation through integrated processing and entrepreneurial support.