1.F The Importance Of Business Concept Development

Question 1

Define business concept development.

Answer 1

“Someone could make a fortune off this idea”

• This is the starting point of a business concept
• Original idea for a good or service
• Distinct improvement on an existing product or service

Question 2

Identify some sources of a business concept.

Answer 2

• Listening to people (friends, family, customers)
• Reading magazines/the internet
• Visiting displays or exhibitions
• Accessing government statistics and research information
• Identifying a gap in the market
• Improvements that could be made to an existing product

Question 3

Explain why a gap in the market equals success.

Answer 3

It means that the new business provides something not already available. Breaking into a market that is already well served means that the new business has to do something exceptional to draw customers away from existing businesses.

Question 4

Explain the importance of business concept development.

Answer 4

It is a structured way to develop an idea, see if customers like your idea, and determine what customer market is willing to buy it.