The Business Idea

• What is the concept of entrepreneurship?


  A person who acts upon their own idea, creating their own product for the current market
• What is the personal motivation behind starting a buisness?

  An opportunity to pursue their interest or desire to become financially independent.
• What are the characteristics of a successful entrepreneur?

  Innovative, Risk taking, Persistent, Dedicated
• Why is goal setting importance?

  It is important as it can give you a clear vision and help to reach targets
• Mission Statement: describes does and how it will achieve its visions;

  S-Smart: goals should be clear and focused

  M-Measurement: goals should be quantifiable

  A- Attainable: goals should be achievable

  R- Relevant: goal should be worthwhile

  T-Time bound: a deadline should be set
• What is the importance for decision-making?

  Decision making is the ability to identify the options available and then choose a specific course of action from the alternatives.

  Steps:

  1. Develop Goals
  2. Outline the facts
  3. Identify alternative solutions
  4. Analyse the alternatives
  5. Choose one alternative and important
• What is the importance of the business concept development?

  The source of a business concept may come from a person's own experiences, interests, abilities or imagination.

  • listening to people
  • determining improvements for existing products
• What are the five methods of protecting a business idea?

  1. Trademark: is a right that is granted for a name or word as the owner has exclusive rights to use it for commercial purposes.
  2. Patent: a right granted for any device, substance or method for the business owner.
  3. Copyright: this is a free and automatic protection of original works for music or writing.
  4. Design rights: rights given to the owner to commercially use or licence a design.
  5. Domain name: a potential owner can register a domain name so nobody else can register it. (eg. website)
• What is the difference between business opportunities and business concept development?

  Business idea is a concept for a new product or service. A business opportunity is a situation or market gap that can be targeted for potential profit.
• What is market research?

  Market research is the process of analysing and collecting data information concerning a specific market.

  The questions:

  1. Who will buy the product?
  2. Why will they buy the product?
  3. How big is the market?
• What is initial feasibility studies?

  Is an assessment that is taken of the practicality and potential for success of a proposed business idea.
• What is an economy?

  A system set up to determine what to produce, how to produce and whom to produce?
• What contributions do businesses make to the economic/social wellbeing?

  • R&D(Research and Development): they do this in order to expand their knowledge of products and processes. (finding new ways to do things)
  • Social wellbeing: how well people live nation wise and is able to measure GDP, income and the level of employment as well as consumption of goods/services.
• How does the business corporate social responsibility?

  The business needs to consider how it can go above its basic legal requirements to improve the welfare of its stakeholders, employees, customers and wider community.
• What are the methods of the culture of a business innovation?


  R&D(Research and Development): federal state governments support businesses to conduct R&D via direct finding grants and tax incentives.

  Council grants: Melbourne has small business grant programs that provides financial assistance.

  School based programs: one popular program is called '20' 'Boss' and is organised by a youth foundation.

  Regional business start-up hubs: business centres provide subsidised premises and services to new and emerging businesses.
• What is the technological development?


  refers to the applications of knowledge that have changed people's lives and changed the way in which businesses operate.