booklet 1 - lesson 1 (sources of business opputinity

Question 1

Business motivations

Answer 1

Reason to start a business”
-Financial Independence=support yourself
-Personal Independence=own decisions
-Make a profit=benefit financially
-Fulfil a market and social need= create or improve a product

Question 2

Source of business oppurtunities

Answer 2

Where and how opportunity arose to start the business:
1. INNVATION
2. ENTREPRENEURSHIP
3. MARKET OPPURTUNITIES
4. CHANGING CUSTOMER NEEDS

Question 3

INNOVATION

Answer 3

Innovation is transforming into reality a new idea about a product or a service, or it could be a new
way of doing things.
Characteristics:
* new efficient processes can save time, money and create less waste
* allows business to grow
* helps business to adapt to the changing marketplace
* gives a competitive advantage

Question 4

ENTREPREUNERSHIP

Answer 4

Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks
Characteristics:
* Seeks out new opportunities
* Manages business activities
* Takes calculated financial risks
* Experiences business success

Question 5

MARKET OPPURTUNITIES

Answer 5

Market opportunities refers to chances to increase trade caused by the changing trends in a market.
The key is to be able to recognise a market trend. This could also be an opportunity where there is a gap in the market.

Question 6

CHANGING CUSTOMER NEEDS

Answer 6

Busy
* Wants convenience
* Wants 24/7 trade
* Wants supportive home services such as cooking, cleaning and childcare

Technologically savvy
* Has access to information
* Compares competitors
* Shops online
* Is able to give reviews and use social media

Demanding
* Has high expectations of corporate social responsibility to people and the environment
* Has high expectations of excellence in product quality
* Is health and safety conscious
* Is aware of consumer laws and rights when shopping

Question 7

What is a “Gap in the Market” ?

Answer 7

when you’ve identified something that customers needs, but isn’t currently available.
-completely unique
-improvement on exisiting idea
-introduce + create to different market