BUSS1 - Some Topic Thoughts for May 2012

Our BUSS1 topic tracker outlines how the BUSS1 specification has been covered so far in the real exam papers. May 2012 will be the 8th sitting of BUSS1 and you can see from the topic tracker that some core topics have been examined regularly. However, there are other topics which are yet to appear in the paper and it is worth making double-sure that these are addressed in the final stages of revision…

BUSS1 has some core elements that any well-prepared student simply must focus on.

For example, the calculation and interpretation of break-even has been included in every paper in some way. The format of BUSS1 questions has changed in recent papers and, increasingly, students are being encouraged to use their calculation and/or interpretation of break-even in other parts of the paper too - for example in helping to evaluate whether the case study startup is likely to achieve its key objectives.

It is absolutely essential in the preparation for BUSS1 that students focus on break-even and also the close link to cash flow forecasting. This is perhaps the most fundamental part of the BUSS1 specification - it is almost impossible to imagine an exam case study which doesn’t address break-even and/or cash flow - they are crucial to any startup business. For example, a startup that can reduce its fixed costs will lower its break-even output and will also reduce its cash outflows, meaning that less startup finance is required.

Other topics which appear regularly include:

Calculation of expected profit

Analysis of the benefits (and possibly drawbacks) of bank overdrafts as a source of finance for startups

The definition of market segments and the benefits to a startup of targeting a niche segment

Definition of different types of market and the calculation of market size

The types and usefulness of primary market research

Students should make sure they are familar with all of the above popular topics.

Over the course of a specification cycle it is to expected that the whole spec will be examined at least once in some way. It is interesting to note some BUSS1 topics that have not yet appeared in the first 7 papers. No guarantee, of course, that they will appear in the May 2012 paper, but it is worth spending a little time making sure that revision has covered potential “debut” topics, which include:

Motives for starting a business

Sources of a good business idea

Secondary market research (primary research has been examined twice)

Flexible working

Social enterprise as a method of startup organisation / objectives

Contents and limitations of a startup business plan

Internal sources of finance (including personal sources)