1.1b Dynamic Flashcards
Define Entrepreneurs
Someone who can recognise an opportunity to raise money and take the risk involved
Why is it a risk to start up your own business
Virtually every decision costs money and there is a lot of personal pressure
What are the characteristics of successful entrepreneurs pt1
Clearly visualise goals
They focus strongly on customers and their needs
They are modest
They react quickly to opportunities
What are the characteristics of successful entrepreneurs pt2
They have a short attention span
They are impatient to grow a business
They are able to change direction
They understand the time it takes to achieve a goal
What should be thought about when opening a business
The business idea and whether it will make profit
Where it should be
Who the target consumers will be
How the products compares with competition
Why do new business ideas come about?
- Advances in technology, e.g introduction of fast and reliable broadband internet.
- Changes in consumer needs, e.g increased interest in gluten and dairy free foods.
- Products and services becoming obsolete, e.g VHS videotapes.
How can changes in technology provide business opportunities?
- Makes expensive technology affordable
- E-commerce and mobile commerce (m-commerce)
- Social media
How is e-commerce beneficial?
The barriers to starting up a small business have decreased, as entrepreneurs don’t have to rent physical premises before they can begin trading. Instead they can bring their new business ideas straight to the marketplace.
How is social media beneficial?
- Relatively inexpensive way to promote businesses and to intact with existing and potential customers.
- Encourages customers to talk to one another about the business’s products or services.
- Allows businesses to communicate easily with these customers and encourage them to buy their products.
- Reduces the work involved in marketing.
How do products and services become obsolete?
- Products have a limited lifespan, and at some point, will no longer be sold.
- Advances in technology mean that older technologies are replaced, and this can create new business ideas.
- Changes in fashion or taste.
How do businesses identify customer needs?
- Asking customers to fill out feedback questionnaires or surveys.
- Trialling new products as marketing opportunities.
- Using data to identify customer needs e.g reviewing a customers previous purchases.
- Using demographic data
What is Farfetch and what does it do?
- International fashion website that helps small independent fashion brands and boutiques sell their clothing to a global audience.
- Using Farfetch’s platform allows these retailers to keep their own independent identities while boosting their position in the market.
- Farfetch aims to help the small retailers compete wit much large fashion companies, using technology entrepreneurship to allow small businesses to succeed.
What are payment platforms?
They enable businesses to take online payments from customers. They are usually free for the customer to use, but take a small amount of commission from the seller.
What is the marketplace?
The activities involved in buying and selling particular types of goods or services, in competition with other companies.
How do new business ideas come about?
They may:
- Adapt an existing product or service to keep up with changes in consumer trends.
- Create a completely original product or service to satisfy a new or previously unknown customer trend.
