Theme 1: Investigating a small business Flashcards
define enterprise
business
define entrepreneur
the person who starts a business taking a calculated risk
define goods
a physical product that can be held (tangible), used and stored
define services
intangible actions
define dynamic
always fluctuating
define obsolete
no longer wanted/in use
define innovation
new ideas, creations and methods
why is the market dynamic?
- customer needs/demands change
- new features, tech
- things become obsolete
define added value
the difference between the cost of making (input) and the price you are selling it at (output)
define USP
Unique Spelling Point - a feature a business that has to stand out from the competition
how can a business add value? (3)
- focus on target audience
- design
- have USP
- branding
- convenience
- quality
how can a business benefit from adding value? (3)
- charging a higher price
- attracting more customers
- competing with competitors
what are some rewards for enterprise? (3)
- profits
- capital gains (made by selling part/full of the business)
- self-esteem
- independence
- satisfaction
what are some risks for starting a business? (3)
- no investment
- loose time
- loose passion
- financial instability
- debt
- business failure
define aim
states the overall purpose for the business (long terms goal)
define objectives
specific measurable targets to help meet the aims
what does SMART stand for?
Specific
Measurable
Attainable
Relevant
Time-based
what categories are there in customer needs?
- price
- quality
- choice
- convenience
how can a business meet customer needs?
- mass market
- personal relationships with customers
- niche market
define market research
gathering info about the market and customer needs in order to inform business decisions
why research the market?
- reduce the risk of failure
- find out customer needs
- predict and be prepared for market changes
what are types of market research?
- primary research
- secondary research
what are examples of primary research methods?
- Interviews
- Observation
- Questionnaire
what are examples of secondary research methods?
- internet
- businesses’ own sales records
- government stats
what is the research process?
- identify what needs to be found out
- choose research method
- data gathered and analysed
define sample
a small group of people within the population which is chosen to be surveyed