Chapter 1 Business Idea Flashcards
(31 cards)
Entrepreneur
Setting up a business ,taking on financial risks in the hope of profit
Personal Motivations starting a business
Financial Independence,
Personal independence,
Making a profit
Fulfill a market need,
Fulfill a social need
Financial Independence,
Having control of finances therefore determining your own income
Personal independence
Full control over of their business planning to day, financial control
Making a Profit
Motivation to earn significant income
Fulfill A Market Need
Finding a market where consumers desire a certain good or service is vital for a business owner
Fulfill a Social Need
Fulfilling a social need like a market provides a business with a positive objective
Managers
Employees responsible for the successful operation of a business
Successful Entrepreneurs
-Demonstrate Management skills
-Assume calculated risks
-Innovation
-Understand needs, market and competitors
-View Failure an opportunity to learn
Business Success
Quantitative (Key Performance indicators KPI) INCLUDES BELOW
-Net Profit
-Percentage of Market Share
-Number of Sales
-Qualitive (Include business impact on society)
Innovation
The action or proccess of innovating. Developing a new method, idea or product
Market Opportunities
Businesses that identify and meet market gaps that don’t yet exist
-Identify Gap
-Changing customers prefrences
Changing Customer Needs
Desire to purchase goods an services
Impacts
-Trends
-Economic conditions
Research and Development
Research
-Study of a subject to discover new facts or information
Development
-The steady growth of something that has become advanced
Aims
-Create new Products, by testing effectiveness
-Sample customers
Technological Development
Technology
-Allows businesses to offer innovative solutions to improve efficiency to users
Development
-The steady growth of something that has become advanced
Global Markets
The proccess by which businesses develop international influence or start scaling on an international scale.
Types of Goals
Social Goal
-Objectives focused on the improvement of performance related to people an planet
Financial Goal
-Improving commercial success,
-including profit
Goal Setting
Proccess of deciding what you want to achieve.
-Provide clarity and direction
Business concept development
A process of successfully refining, amplifying and enhancing the basic idea of a product
SMART Goals
-Specific
-Measure able
-Attainable
-Realistic
-Timed
Decision Making
Process of acting upon the best information available in order to determine the most appropriate course of action
Market Research
A form of survey research into attitudes opinions and behaviors of customers and services
Initial Feasibility studies
Research determines the likely success of a new business concept
Economic Welbeing
State of a country or region in terms of production and consumption of goods and services and the supply of money
