MIX REVIEW Flashcards
(54 cards)
is a short and precise description of the basic operation of
an intended business. Before you start a business, you need to have a
clear idea of the sort of business you want to run.
business idea
refers to an industrial category, such as farming, fishing, food
processing, garments, construction, furniture, beauty salon, stationery, etc. Your
talent, family background, experience, hobbies or interests often inspire you to
develop a certain field of business.
field of business
There are four main types of businesses:
Manufacturing
Service Provision
Wholesaling
Retailing
are businesses that use raw materials, such as leather, waste
material, wood, cloth or metal and make new or different products out of
those materials. Some examples of manufacturing businesses are shoemakers,
dressmakers, furniture makers, paper producers and farm equipment
manufacturers.
Manufacturing
providers are people whose businesses sell a particular service, such as
transportation, tours, hairdressing, banking, deliveries, construction, repairs,
cleaning, painting, nursing, etc. If you enjoy working with people and satisfying
their specific needs, providing services may be your forte
Service Provision.
are businesses that buy large quantities of certain goods from
manufacturers and resell those goods to retail outlets, who then resell them to
individual consumers.
Wholesaling
purchase ready-made goods from wholesalers or suppliers for resale at a
profit. Some examples of retail businesses are grocery stores, appliance stores, clothing
stores, stationery shops, computer and mobile phone shops, etc.
RETAILERS
One method people often use to decide the most suitable business idea is a ___________. It helps
you focus on the possible areas and the potential advantage of each idea.
SWOT ANALYSIS
are the specific positive aspects which will give your proposed business an advantage
over similar business ventures and the competitors. It could be that you propose to sell a better
quality product or that you have a location which is more accessible to your customers
STRENGTH
the things that your business will not do as well as other businesses.
WEAKNESSES
are on-going potential developments that will be good for your business.
OPPORTUNITIES
are events that may negatively affect your business
THREATS
By talking to possible future customers or suppliers and to
members of the business community, you can gather useful
information about the factors that would affect your business
idea.
FIELD STUDY
Collecting information for your business gives you an opportunity to
promote your business idea and to present yourself as a potential
entrepreneur.
CONDUCTING INTERVIEWS
Their views are essential to your understanding of whether or not your
proposed product is important to them and if you need to modify your idea to meet their needs.
Potential customers:
Their views will reveal the challenges
of competition that you would face, as well as other issues related to your potential business.
Competitors, suppliers and entities with financial resources:
Find out the lending requirements to determine whether borrowing for a new
business is possible
Financial institutions:
These are people who would know a lot about the type and
field of business you want to go into and/or a lot about your potential customers.
Key informants and opinion leaders:
is a model of the
invention that puts into practice
all the things that were written in
the inventor’s journal.
PROTOTYPE
used to describe a product
will be notably different from anything else on the
market. The first smartphones or first electric cars were
based on original product concepts.
Original product concept
describes a product
built off an existing product but offers new features or
design improvements.
Augmented product concept
Key elements of a strong product
concept
Introduction
Description of the Product/Industry/
Technical aspects
Target market
Unique value proposition
Manufacturing strategy
Pricing strategy
Plan a Marketing Strategy
It should indicate the
importance of the project and the
proponent’s background and their desire to
establish the business.
INTRODUCTION
a list of expected
product measurements
TECHNICAL ASPECTS
