1. THE BUSINESS IDEA – INSPIRATION AND PLANNING
CHAPTER 1
THE BUSINESS IDEA – INSPIRATION AND PLANNING

2. Starting a business
Effective decision making is central to starting and running a successful business.
There are a number of factors that should be considered before starting any business.

3. Starting a business
An individual must also assess their PERSONAL SUITABILITY for starting a business.
This involves looking at:
The personal motivation for starting the business
Any personal skills and qualities, and whether these are applicable in the business
The compatibility of personal and business goals.

4. Starting a business MOTIVATION for starting a business can include:
A desire for independence
The potential to make money
Self-worth
Flexible hours and conditions
To overcome unemployment
Family tradition
To cover a market gap
To fulfil a social need.

5. Skills and qualities of successful business operators
Successful business operators often have several of the following SKILLS:
Communication skills
Planning and organisation skills
Financial skills
Analytical skills
Time management skills
Information technology (IT) skills
Negotiation skills
Leadership skills.

6. Skills and qualities of successful business operators
The following QUALITIES are often advantageous for business owners:
Resilience
Vision
Flexibility
Ability to think innovatively
Ability to work independently and accept responsibility
Ability to learn from mistakes
Willingness to work hard
Ambition
Ethics.

7. Starting a business TASKS Activity 1.4 – Social Enterprise
Read Case Study Social Enterprise
Answer ALL Questions
Read Case Study Motivation and Skills
Read Case Study 1.3 – Personal Qualities

8. Sources of business opportunity
Innovation
Generally refers to changing or creating processes that improve products or increase efficiency.
Entrepreneurship
Involves designing, launching and running a new business. Successful entrepreneurs are often able to think and work in innovative ways.

9. Sources of business opportunity
Successful entrepreneurs are often able to recognise and take advantage of market opportunities that others haven’t seen.
New opportunities can emerge from:
Changing Demographics (people moving into area)
Changing Customer needs (Gap in the Market)
Global Markets (looking overseas for ideas or products)
Research & development (new or improved products)
Technology Development / Improvements (doing thing better, faster or cheaper)

10. Sources of business opportunity
A business will often undertake a SWOT analysis to help identify opportunities and threats.
Strengths
Weaknesses
Opportunities
Threats

11. Sources of business opportunity
Opportunities can also be found by tapping into global markets, research and development (R&D) and through advancements in technology.
A business idea is viable if there is:
Real demand for the good/service
Return on investment
Market competitiveness.

12. Sources of business opportunity
TASKS
Activity 1.6 – Business Ideas
Activity 1.7 – Bus Opportunities
Exam Practice Questions

13. Sources of business opportunity
Task
Activity 1.6