The business idea Flashcards
BUSINESS OPPORTUNITY
a set of circumstances that a person can perceive as being an avenue to success
Innovation
the process of creating a new or significantly improving good, service or process
eg. vegemite, hiring a food chemist to make something out of brewers yeast. it not going well then advertising as nutritional it was a success
Entrepreneurship
innovators may sell their product or idea to a person willing to take the risk of starting a business and then working to build that business, this person is called an entrepreneur
Research and development
is a set of activities undertaken to improve an existing product, create new products and improbe production
businesses undertake R&D to expand their knowledge of products and processes
Personal motivations for starting a business
the success or failure of a business largely depdends on the owners ability and enthusiasm.
personal motivations may include
desire for independance, to fullfill a market need, to make a profit and to fullfill a social need
social vs market need
a social need refers to a businesses that concertrates on helping the environment or the community it is in whereas a market needs is recognising there is a demand for a product but nothing available.
Importance of goal setting
A business goal decribes what a business expects to accomplish over a set period of time. without a goal a business has no clearly defined purpose and nothing to aspire to.
you can make a goal using SMART
specific, measurable, attainable, relevant and time bound
Financial goal
may be to make a profit, a profit is whats left after business expenses have been made or to increase sales may be done by selling products at a lower price
Social goal
to adopt strategies that benifit the community as well as acheiving financial goals
community service - may sponser events or run programs within community
ecological sustainability - protect the environment
Personal goal
normally not public, but still motivate the business owner
Characteristics of business managers
business managers run the business day to day, they make calculated decisions and minimises risks around the workplace
self motivated, self diciplined, leardership qualities, able to work long hours
Characteristics of an entrepreneur
a person who is willing to seize oppurtunities to start and operate a business and are prepared to take risks in the hope of making a profit
initiative, innovation and enterprise, shared vision
Business concept
initial or original idea about a product, good or service,or a distinct improvement or change to an existing product.
sources of business concepts are books or research, a potential ‘gap in the market’, listening to people.
The relationship between business opportunity and concept development
the development of a business concept is when a business owners takes the initial idea that has arisen from possible opportunities and begins to turn it into an actual business. the concept is influenced by personal goals and qualities of the owner.
Market research
is the process involving gathering and anaylysing information concerning a specific market
- identifying - what info is needed to make a decision about the potential of the business
- gathering - relevent info together from appropriate sources
- anaylysing and interpreting - the relevant results to extract clear info about what will asist in decision making. gives an owners the idea of the market conditons
