Unit 17 Starting a Small Business P - Present the Initial Business Idea

WHAT ARE WE LEARNING?Today we will be learning about why people start their own businesses as well as some of the ideas we have for our own small businesses.

WHAT SKILLS ARE WE DEVELOPING? Identify – What could I do as my business? Investigate – What do people think of my

idea? Decide – Which business am I going to

“start”? Analyse – Who would my competitors be?

What makes my business special (USP)? Justify – Why have I chosen this idea?

Groups: Whenever group work is required for this

assignment, you will be working with the following students and the group leader is responsible for ensuring all members of the group complete the task:

Group 1: Lee, Andrew, Ethan, Nick, George, Levi (Group Leader)

Group 2: James, Tom J, Aiden, Jake, Billy, Charlie (Group Leader)

Group 3: Josh W, Matt, Alfie, Omar, Adam, Josh B, Toni(Group Leader)

Group 4: Chloe, Ashley, Chris, Kye, Shane, Cameron (Group Leader)

Group 5: Tom F, Simone, Georgie, Ryan, Ellis, Hariije (Group Leader)

To begin:Why should I start my own business??In groups, list at least five reasons why

someone might want to start his/her own business.

Identify:Ideas Produce a brainstorm of at least 7 ideas.

Try to include a wide range of ideas and think about your target audience.

Your ideas must be: Small scale- a smoothie

stand –YES, a whole café-NO!

Legal Manageable Something you could do in

Folkestone Sensible

Identify:IdeasChoose your 5 best ideas. Produce a table in Word of advantages and

disadvantages to identify the best idea.

Idea Advantages Disadvantages

Fruit selling- our group would sell fruit in courtyards at break time…….

•Easy to do•Is healthy•Not been done before.

•Will need to buy fresh fruit. •May not be popular

Bracelet making

•Could be popular• Could make lots of money.

•Time consuming to make the bracelet. •would need to buy the resources

Investigate: OpinionsProduce a table to find out peoples opinions

of your 5 chosen ideas. Use a scale to investigate how much other

students like your idea. Idea:

1 2 3 4 5

Not a good idea Excellent idea

Decide:Final IdeaProduce a presentation about your final idea.

The final idea (What is your idea? What are you selling? Where are you located?)

What type of business is it? Sole trader, Partnership or franchise.

Analyse:What are the features of my business?Please add to your presentation including:

Your Unique Selling Point (USP)/ why is your business idea so attractive

One business aim and two SMART objectives for your business

Who your competitors will be? Why will your business be profitable? What are your

price ranges A STEP analysis.

Social Technological Equipment Personal

Justify:Why have I chosen this idea?Why you have chosen this idea- is there a

demand or gap for the business? What are the benefits of your business to

Folkestone?

Aims and ObjectivesFor P1 - Analyse

What are aims?All businesses have aims they want to achieve. These are the long-term visions or goals of a business.

Key aims: Profit maximisation – making as much profit as possible Survive – if a business is in difficult times or a new business Break-even – making enough money to cover costs (no profit

and no loss) Growth – to sell more goods or services or to open other

branches Service provision – offering a new service or improving

existing services to attract new customers Market share – taking business away from their competitors Develop relationships with other businesses – offering joint

ventures

What are objectives?Objectives are more specific than aims. They are targets which are set to help achieve the overall aims of the business.

SMART Objectives:

Specific There is a clear definition, often including a number, for example saving £20 a week

Measurable This means achievement can be checked.

Achievable This means you can reach your target if you stretch yourself a little.

Realistic This means that the target is sensible so that you stand a chance of achieving it.

Time-related Every objective should have a date for achievement or review. You should set a time limit to review your progress.

Aim or objective?

To make a profit

To increase profit by 10% in the next 12 months

To break-even within the next 6 months

To grow

To open 5 new outlets over the next 2 years

Your business ideaStep 1: Researching the market

how much competition is there?who are the competitors?what features make them stand out?is there a gap in the market?

Profile of two successful businesses in a competitive market.

Your business ideaStep 2: Select a product or service

what will your business do?how can it be different to the competition?

Step 3: Defining your target customerwho are your potential customers?how does this match the characteristics of the local market?

Step 4: How will your product or service meet customer needs?do your answers to step 2 match your answers to step 3?

Benefits and FeaturesFeatureA specific

characteristic of a good or service

BenefitWhat the feature

adds to the customers experience or enjoyment

Feature?

Benefit?

Features and benefits Does the advert show features or benefits or both?

Who is the target market?

How does the product meet the

needs of the target market?

Why should successful businesses

understand both the features and the benefits of

their products or services?