Entrepreneurship and Workplace Practices
Domain focus
Entrepreneurship and Workplace Practices tests business planning, costing, pricing, cash flow, legal compliance, customer retention, and workshop management. Expect simple calculations and ethical workplace choices.
Core rules
- A business plan states the service, market, location, equipment, staff, costs, and expected revenue.
- Separate fixed costs from variable costs. Contribution per job = price − variable cost. Break-even jobs = fixed costs ÷ contribution per job.
- Price must cover materials, labour, overheads, and a margin. Cash flow differs from profit; credit sales can starve a workshop.
- Keep invoices, warranties, stock records, and statutory registrations. Train staff and maintain safety. Track stock and reinvest profit carefully.
- Retain customers through clear estimates, on-time delivery, and honest recommendations.
Worked example
Fixed costs are ₹20,000 per month and each service contributes ₹500 after variable costs. Break-even = 20,000 ÷ 500 = 40 services per month. The reasoning is that each service contributes ₹500 toward fixed costs; below 40, the workshop makes a loss.
Traps
Ignoring owner's salary, underestimating fixed costs, selling only on lowest price, and allowing uncontrolled credit are common errors.