1. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Section 1 Spotting a business opportunity

2. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall What is business enterprise? Business enterprise is about starting up something of your own! Entrepreneurs are able to spot opportunities and take risks.

3. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Reasons include: desire, challenge, a sense of achievement! independence, responsibility, doing things your way! money, profits, making a fortune! Why start up a business?

4. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall The following will be useful: personal qualities: determination, resilience, enthusiasm, hard working, willing to take risks skills: planning, organisation, listening, persuading, managing others resources: specialist knowledge, access to finance and advice. Who starts a business?

5. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall How to start a business? Lots to consider, including: trial a business idea while still working or jump straight in? buy a franchise or start up independently? which location to choose? whether to draw up a business plan?

6. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Do something new … that people want! Do something that already exists … but do it better! Do something that already exists … but at lower cost! Three ways to start a business

7. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall What is involved? Starting a successful business involves: learning about people’s wants and needs understanding what other businesses are currently supplying turning any gaps between the two into opportunities!

8. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Market research means collecting, analysing and interpreting data. The starting point is secondary research. The next step is primary research. Primary research can be quantitative or qualitative. Understanding customer needs

9. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Effective demand: the quantity of a product that customers want to buy and are able to afford! What factors would affect the demand for the following: ‾Budget airline flights ‾A new games console from Sony ‾Tickets to a music festival ‾Sunscreen Product trial will hopefully lead to repeat purchase! Customer demand

10. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall ‘Competition brings out the best in products and the worst in people.’ David Sarnoff, former president, RCA What do you think? Competition

11. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Analysing the competition might involve: customer research retailer research breaking the product or service down. Competitor strengths and weaknesses

12. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Added value: the difference between the cost of materials and the selling price. It pays bills and wages, as well as generating profit to finance growth. How many different ways of adding value can you think of? The need to add value

13. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Start a franchise? Franchise owner speeds up expansion income from royalties free to concentrate on developing new products Franchise buyer chance to acquire a pre-tested business support to run the business, but … loss of independence has to pay royalties

14. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Which city or town? Which part of the city or town? Which immediate features? Matching the above with other influences, such as size and cost? Picking the right location

15. EDEXCEL BUSINESS for GCSE © 2009 Ian Marcousé and Naomi Birchall Now make sure you understand… adding value demand curve effective demand entrepreneur franchise innovative market map market research market segments market share primary research qualitative research quantitative research repeat purchase royalties secondary research unethical unique selling point