The Business Idea

• The business concept is the foundation on which the company's operations are built.
• An economy is a system set up to determine what to produce, how to produce and whom production will be distributed to.
• Economic contribution to the nation refers to how businesses give back to the country financially, such as providing employment and boosting taxation revenue, increasing economic growth, exporting goods and services and investing in research and development.
• Entrepreneurship refers to the act or process of starting and operating a new business in response to a presented opportunity, assuming all risk in hopes of earning profit.
• Characteristics of entrepreneurs include pursuing business opportunities, innovation and seeking growth.
• Motivations for beginning a business may include a desire for personal or financial independence, to earn profit, to fulfil a social need (making the world or community a better place) or to fulfil a market need (identifying a gap in the market).
• Examples of social needs: providing opportunities for local unemployed people, focusing on environmental need, creating access to better quality of life for disadvantaged members of the community.
• Characteristic of a business manager: self-motivated and self disciplined, organised, logical and calculated, dedicated, innovative.
• Characteristic of entrepreneurs: shared vision (future plans and goals shared with rest of team), initiative (taking first step unprompted), innovation (creating something new or improving something significantly) and enterprise (effort made by someone to creatively or boldly achieve something new).
• Sources of business opportunity include innovation, market opportunities, changing customer needs, R&D, technological development and global markets.
• Goal setting is important for businesses to earn a defined purpose and something to aspire to. It sets a direction for the future of a business and allows owners to measure results as well as track progress.
• A SMART goal is Specific, Measurable, Achievable, Realistic and Timely.
• Financial goals include making a profit, increasing sales, increasing market share, expanding business, maximising return on investment, improving the way the business operates.
• Social goals include community service (supporting community welfare activities), provision of employment, social justice and ecological sustainability.
• Personal goals include improved financial security and higher income.
• Decision making is the ability to identify available options and choose a specific course of action from the alternatives. Business owners should assess their idea before starting a business and determine the likelihood of it being successful.
• Sources of business concepts can come from a person's own experiences, their interests, their abilities or their imagination.
• Inspiration for ideas can be generated by listening to people for ideas of what goods/services aren't readily available or are wanted, reading magazines/books and researching on the internet, visiting displays and exhibitions, accessing government statistics, identifying a gap in the market not currently being satisfied or determining improvements that could be made to something already existing.
• Intellectual property is a potential business owner's idea or concept. It is any creation of the mind such as a brand, invention, design or artistic creation which might have commercial value or provide a competitive advantage.
• Common methods for protecting IP include: trademarks, patents, copyrights, design rights, domain names.
• Market research is a process involving gathering or analysing information concerning a specific market. It is an in-depth investigation into consumer needs and problems associated with marketing goods and/or services as well as competitor weaknesses.
• Feasibility studies are an assessment of whether a proposed business idea will be viable by looking at the current business environment, consumer needs, operational costs and possible value.