Business Opportunities

Question 1

Meaning of business opportunity

Answer 1

A business opportunity is an idea for a product or service that will meet needs or desires and that can be sold or leased to earn an income

Question 2

Practical examples of business opportunities

Answer 2

📌Successful companies like Apple were not satisfied with selling computers
📌They looked for other opportunities and have made a fortune from selling products such as ipods, iPhones, ipads and other accessories

Question 3

IMPORTANCE OF ASSESSING NEEDS AND DESIRES

Answer 3

📌Needs and desires are the key to successful business opportunities
📌Every need and every desire are possible business opportunities
📌If you see a need that is not met, you have a guaranteed market
📌Sometimes an entrepreneur will invent a new product for which there is no existing desire or market

Question 4

MARKET RSEARCH

Answer 4

Market research is the systematic gathering, recording and analyzing of data about the marketing of goods and services

Question 5

IMPORTANCE OF MARKET RESEARCH

Answer 5

📌Conduct market research regularly because people’s taste, habits, behaviors and desires change constantly
📌Gathers facts and opinions in an objective way to fine out what goods and services people want to buy

Question 6

DESIGN A RESEARCH INSTRUMENT

research instrument

Answer 6

📌We use research instrument to find out about people’s needs and desires, for e.g a questionnaire could be used, or the people could be interviewed
📌Design a good instrument that will give you complete and accurate information

Question 7

DESIGN A RESEARCH INSTRUMENT

Answer 7

📌Developing a research instrument
📌Decide what information you need
📌Ask simple and clear questions
📌Test the questions

Question 8

PROTOCOL AND ETHICS

Answer 8

📌The research should be conducted with the willing cooperation of participants
📌If search is taking place within an organisation, it must be approved first

Question 9

ETHICAL

Answer 9

📌It’s does not harm the environment
📌The product or service should be safe
📌It does not break any law or infringe on any copyright

Question 10

DIFFERENT between INTERNAL & EXTERNAL MARKET RESEARCH

Answer 10

INTERNAL MARKET RESEARCH

📌An internal analysis looks at factors within your business such as your strengths and weaknesses

EXTERNAL MARKET RESEARCH

📌An external analysis looks at the broader business environment that affects your business

Question 11

STEPS FOR DATA COLLECTING

Answer 11

1. Identify your potential MARKET or markets
2. Identify WHERE the markets are and plan how you will reach them
3. Decide if you want to mail or EMAIL the questionnaire
4. Decide whether interview will be FACE TO FACE or via telephone
5. Decide HOW MANY people you want responses from
6. TRAIN PEOPLE to interview potential customers without influencing the answers
7. Plan a TIME LIMIT for collecting the data

Question 12

SWOT ANALYSIS

Answer 12

STRENGTHS
📌 Strengths refer to anything that the business and it’s resources are good at, and that can be used to it’s advantage

WEAKNESSES
📌A weakness is something the business lacks or cannot perform very well. It’s an internal factor that hampers development

OPPORTUNITIES
📌opportunities refer to the external options that can be used to the advantage of the business

THREATS
📌Threat are factors outside of the business that threaten the existence or success of the business

Question 13

Use a SWOT analyse the viability of a business opportunity

Answer 13

1. Conduct a SWOT analysis
2. Analyse the impact of the strengths
3. Analyse the impact of the weaknesses
4. Analyse the impact of the opportunities
5. Analyse the impact of the threats
6. Compare the positive and negative rankings
7. Compare the results
8. Make a decision