Unit 2 Lesson 1 Definition, Purpose, and Market Need Identification

• Customer needs are Non-technical and reflect customers' perception of the merchandise, not the particular style or specifications
• A realistic business plan accounts for the feasibility of implementation
• Composing a business plan is tedious but essential for an effective business that will endure the startup stage
• Three factors of a good business plan

  • Realistic
  • Specific
  • Followed through
• A business plan can be written before or during the first few years of the enterprise to guide the entrepreneur on beneficial strategies
• Considerations for collecting data

  • What information do you actually need?
  • What information is available?
  • What information will be useful?
• Business Plan


  A written description of the business that will be established in the future
• It's important to only collect the data that you actually need
• The business plan is the blueprint of the proposed business
• Purposes of a business plan

  • Test the feasibility of the business idea
  • Give the new business the best chance of success
  • Secure funding
  • Make business planning more effective
  • Attract investors
• Customer needs identification using the 4-step method

  1. Gather raw data

  2. Interpreting data

  3. Organizing data

  4. Reflect the process
• A business plan is a written description of the business that you will establish in the future.

  
  

  You can either write a business plan in the early stage of your business or for the growth of your established business
• Identifying customer needs is the method of determining what a client needs from a product
• Why prepare a business plan?

  1. To test the feasibility of your business idea
  2. To give your new business the best chance of success
  3. To secure funding
  4. To make business planning more effective
  5. To attract investors
• A realistic business plan accounts for the feasibility of implementation.
• 4 things to do to Identify customer needs

  1. Gather raw data
  2. Interpreting data
  3. Organizing the data
  4. Reflect the process