Welcome to Unit 8 Review of Units 6-9

1. Welcome to Unit 8Review of Units 6-9

2. Unit 6 Money Matters

3. One of the most important matters that can affect every business is money- • Where it comes from (income), • Where it goes (expenses), and • How much do you need to stay in business.

4. Where does the money come from? Income can come from: • Commissions from suppliers • Service charges • Fees from clients

5. What can be a business expense? Every business has • Fixed, • Variable and • Semi-variable or mixed expenses.

6. Fixed Expense • Rent • Insurance premiums • Salaries • Subscriptions to trade publications • Professional memberships fees • Office furniture

7. Variable Expense Variable are expenses that change proportionately to a change in business. • Part-time salaries • Commissions to salespeople • Familiarization trips • Corporate dividends

8. Mixed Expenses Expenses that change with business volume but not to a great extent. • Utilities such as electricity • Advertising • Telephone • Office supplies

9. What does an income statement tell you?

10. The income statement tells you how much money came in and from where; • How much money went out and to where; • Whether there is a net loss or net gain. A gain indicates a profit was made.

11. An income statement is basically: • Total Revenues: a list of income for the month and where it came from; all monies that have been brought into the business. • Total Expenses: a list of all monies that went out and where they went.

12. What is a Balance Sheet?

13. A balance sheet is a financial statement detailing a company’s assets, liabilities and owner’s equity.

14. What might be assets and liabilities?

15. Assets are office supplies owned by the company, money in a bank account, or money owed to the company. • Liabilities are monies that are being paid out such as salaries and taxes, a business car payment, or ARC payments. (weekly accounting of sales of airline tickets)

16. Owner’s equity would be the amount of money that owners would receive if they sold all of a firms assets and paid all of its liabilities. This could come from shares of stock and dividends in larger corporations. A balance sheet shows a company’s financial condition at one point in time.

17. A balance sheet will tell if a company has enough money on hand to pay bills and if the assets are used efficiently, if there is cash to meet liabilities and how profitable the company is.

18. Unit 7 Home-Based Agents

19. What are some issues and concerns in owning your own business? • Lack of socialization or interaction with others. • Support from other departments such as advertising, accounting or tech support.

20. What might be some benefits of a home-based business? • Cost-cutting of expenses such as rent, utilities, salaries, benefits, and other payroll related requirements such as social security and worker’s comp insurance. • The internet has made it possible to conduct business from just about any location.

21. No commute time, business clothes (unless meeting a customer) and no gas for a car! • Can be home more with the family.

22. There are three different home-based categories: • Employees that are hired from a home office but do their work from home. • Independent contractors, full or part-time that are not hired by an agency • Travel counselors that own and operate their own agency

23. While working from home an agent must be able to have relationships with others in the industry in order to conduct business transactions.

24. Two Support Groups NACTA (National Association of Commissioned Agents) OSSN (Outside Sales Support Network) • Both of these organizations provide numerous information and benefits to members. You can see the benefits on page 349 of the text.

25. The Business Plan No matter what business a person opens it is helpful to have a business plan.

26. Information provided on a business plan includes: • Your business expectations. These should be detailed and thorough and include your expected income or salary, how long do you expect before the business will generate the income, number of employees, part-time or full-time, their salaries and benefits.

27. 2. The business concept- what is the niche, who is your competition, concerns for seasonality or a slow market and how you will handle these issues. 3. The mission statement. This is the purpose of the business.

28. Objectives of the business- what are the goals of the business and what are your expectations for long term goals. 5. Income projections-do you need funding from a bank such as a loan. What are the 1 year and 3 year business incomes? Other expenses?

29. 6. The business name. You will have to make sure the name is free to use and not held by another company.

30. Legal or Accounting Requirements A lawyer or accountant can help to set up corporation papers or other legal documents for a business. What are some of these documents?

31. Office Supplies and Equipment Office space must be set aside and used completely for business in order to take as a tax deduction. If you work off your dining-room table this won’t be considered as an office.

32. Office Furniture Desk and chair File cabinet Shelves for travel related books.

33. Equipment • Business telephone with a business number; don’t use your home number. • An 800 number might be necessary if you plan to have clients outside of your local calling area.

34. Have an answering machine or voice mail with a professional sounding message. • A good computer with fax capabilities

35. An Internet provider. • Computer software for an accounting program or web design if you plan to handle these yourself are also necessary.

36. Unit 8 Finding a Job

37. The purpose of this lesson is to begin the process of targeting your job search. The purpose of a successful job search is more than just deciding on what your ideal job is.

38. The text identifies three different categories in the travel industry: • Non-personal phone work. • Personal Intermediary of services. • In-person supplier of services.

39. Non-personal phone work A job such as a reservationists or sales represented that primarily does work over the phone. You do not meet the customer directly however, you must still have a pleasing personality and voice in order to make the sale.

40. Personal Intermediary of Services This job involves contact with the customer and could be the travel counselor, a food and beverage manager at a hotel, or a convention manager.

41. In-person supplier of services This job is one directly involved with the customer as they travel and deal with customers face to face. These are hotel desk clerk, tour guide, ticket agents, flight attendants to name a few.

42. The First Job Often a person has big expectations for a first job; but, this job is one that you use as a stepping stone to other possibilities. Some things to think about are:

43. What experience will you gain? Use this job to learn more about your field of interest. • How will this job benefit your career? • What is the salary? • Is it competitive with other similar businesses? • What are the benefits? • Where is the location?

44. What is the purpose of a resume?

45. The main purpose of a resume is to get you an interview! It is a summary of your "occupational self" on paper.

46. Standard resume categories are: • Personal Data • Career Objective • Education • Work Experience • Skills • Professional Organizations/Awards • Certifications/License • For the travel industry personal travel should be included.

47. Who should you use for a reference??? • Supervisor or foreman • Plant superintendent • Assistant manager or manager • Pastor, banker, or lawyer • Co-worker or civic contact • Life-long family friend

48. Personal Data • First name, middle initial, and last name. • If you prefer to be known by another name, put it in parenthesis. For example, Wilbur (Bill)Street addressCity, State (spelled out), and zip code(Area code) and telephone number

49. Objective • A statement of your search intentions. • In an objective, be specific! Use two or three lines maximum! Avoid being too general--it would be better to not have one.

50. Work Experience or Work History • Start with the most recent first and work back. • List the job title, employer's name, city and state, and dates of employment.