Entrepreneurship
This domain tests how an electrical technician can run a small service or trading business. The exam covers opportunity identification, market survey, costing, pricing, break-even, record keeping, licences and basic finance.
Core rules
- A market survey estimates demand, competitors, prices and customer needs before money is invested.
- Cost has fixed and variable parts. Fixed cost does not change with each job; variable cost rises with each job.
- Contribution per job = selling price - variable cost. Break-even quantity = fixed cost / contribution.
- Working capital is needed for rent, wages, tools, transport and spare parts before customers pay.
- Keep invoices, purchase bills, GST records where applicable and a simple cash book. Register the business and obtain required licences.
Worked example
A repair shop has fixed costs of ₹20,000 per month. Each job has variable cost ₹100 and is priced at ₹300. Contribution = 300 - 100 = ₹200. Break-even = 20,000/200 = 100 jobs per month. The shop must complete more than 100 jobs to make a profit, before considering tax and owner's drawings.
Traps
Do not price only by matching a competitor without knowing your cost. Do not ignore working capital. Do not mix household and business cash. Do not skip records because the business is small.