business planning: Influences in establishing an SME (the business idea)

Question 1

What is a business idea

Answer 1

Where potential SME owners have a clear idea of what to sell

• a good or service different to anything in the market
• an improvement on something that is already available
• could be an original idea

Question 2

ways of identifying business opportunities

Answer 2

1. analysing and reviewing particular parts of the market to find an opening in particular goods and services
2. identifying whether other people share a particular interest or hobby. This may be the main catalyst in identifying business opportunity

Question 3

what is competition?

Answer 3

competition is
- a rivalry amoung businesses that seek to satisfy a market

• causes them to decided to sell goods or services

Question 4

broad and niche market

Answer 4

broad market: is a mass market

niche market: is a more specialised market

Question 5

ways of identifying cost of production and differentiation of the goods or services

Answer 5

1) cost = will largely depend on production techniques.

2) differentiation = is about making a product or service different, unique or better than its rivals