Starting A Business Enterprise
Specification:
1.1 Starting a Business Enterprise • sources of business ideas • looking for a gap in the market • identification of a product or market niche • reasons for starting a business • franchises |
Candidates should understand what a business is and the reasons why businesses are set up eg to produce goods, supply services, distribute products etc. Businesses should include social enterprises.
Candidates should understand the advantages and disadvantages of operating as a franchisee, rather than setting up an independent business. |
Lesson 5:
Reasons For Starting A Business And Types Of Businesses
Lesson Objectives:
- You will understand that their are different reasons for starting a business
- You will understand that their are different types of businesses
- You will be able to apply this knowledge to real life businesses
- You will understand that their are different reasons for starting a business
- You will understand that their are different types of businesses
- You will be able to apply this knowledge to real life businesses
taking_a_risk_lesson_4.ppt | |
File Size: | 1831 kb |
File Type: | ppt |
Starter:
A business is an organisation that provides a GOOD or SERVICE to CUSTOMERS who NEED or WANT them.
There are many reasons why somebody might want to start up their own business.
They might want to be their own boss and make their own decisions, rather than reporting to somebody else.
They want to keep all the profits of the business for themselves, rather than earning for the owner of the business.
They need a job and running your own business guarantees this, and hopefully that they earn money.
They have an interest or hobby that grows into a business. http://www.bbc.co.uk/news/business-22404652
They want to prove something to themselves and give themselves a sense of satisfaction.
They want to provide a service for others e.g. a post office or community centre. These are social enterprises and are set up to help society rather than to make a profit.
There are many reasons why somebody might want to start up their own business.
They might want to be their own boss and make their own decisions, rather than reporting to somebody else.
They want to keep all the profits of the business for themselves, rather than earning for the owner of the business.
They need a job and running your own business guarantees this, and hopefully that they earn money.
They have an interest or hobby that grows into a business. http://www.bbc.co.uk/news/business-22404652
They want to prove something to themselves and give themselves a sense of satisfaction.
They want to provide a service for others e.g. a post office or community centre. These are social enterprises and are set up to help society rather than to make a profit.
Question: What were the reasons behind the creation of Innocent Smoothies?
Examiner's tip: In order to decide whether or not a business is successful, it is always important to know why someone started up the business in the first place. If the original aim of the organisation was to help others, then even if it does not make a profit, it may still be a success.
Types Of Businesses:
Different types of businesses can be classified in different ways. Some businesses offer physical goods (such as furniture) and some provide services (intangible) such as education. Many businesses provide a combination (restaurant). These businesses each fall into the different sectors of the chain of production.
http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=7&Itemid=12
Different types of businesses can be classified in different ways. Some businesses offer physical goods (such as furniture) and some provide services (intangible) such as education. Many businesses provide a combination (restaurant). These businesses each fall into the different sectors of the chain of production.
http://www.businessstudiesonline.co.uk/live/index.php?option=com_content&view=article&id=7&Itemid=12
Activity:
anita_roddick_biography.docx | |
File Size: | 39 kb |
File Type: | docx |
What type of business is The Body Shop? (What does it produce?)
What sector is The Body Shop in?
What skills did Anita Roddick show as an entrepreneur?
What were the reasons for Anita setting up the business?
What sector is The Body Shop in?
What skills did Anita Roddick show as an entrepreneur?
What were the reasons for Anita setting up the business?
Lesson 6:
Sources Of Business Ideas And Looking For A Gap In The Market
Lesson Objectives:
- You will understand how people come up with ideas for their businesses
- You will understand the importance of market research and looking for a gap in the market
- You will be able to apply these points to real business examples
- You will understand how people come up with ideas for their businesses
- You will understand the importance of market research and looking for a gap in the market
- You will be able to apply these points to real business examples
dragons_den_lesson_7.ppt | |
File Size: | 274 kb |
File Type: | ppt |
Starter:
How did the start up of James Dyson's business differ from that of the guys who started Innocent Smoothies?
Starting up a business requires having an idea. This can happen after you have decided you want to start a business (Innocent) or you could already have an idea and build your business around it (Dyson).
Some entrepreneurs may notice a trend on the market and realise there is an opportunity, whereas some may have seen the idea elsewhere e.g. another country.
You can also buy somebody else's idea (a franchise - Domino's Pizza) To ensure that your idea is going to work, entrepreneurs need to conduct market research. This can be primary or secondary market research.
Some entrepreneurs may notice a trend on the market and realise there is an opportunity, whereas some may have seen the idea elsewhere e.g. another country.
You can also buy somebody else's idea (a franchise - Domino's Pizza) To ensure that your idea is going to work, entrepreneurs need to conduct market research. This can be primary or secondary market research.
market_research.doc | |
File Size: | 25 kb |
File Type: | doc |
Doing market research helps you identify key features of the market, different types of customer, competitors and trends. The trends you might look for are:
- Is the market growing?
- Are certain parts of the market growing?
- Who are your competition? (and their market share)
- Is there a niche emerging?
- Is the market growing?
- Are certain parts of the market growing?
- Who are your competition? (and their market share)
- Is there a niche emerging?
Plenary:
1. If a market is worth £2 million, and I have sales of £600,000, what is my market share?
2. Can you think of any markets at the moment that are growing, and any markets that are shrinking?
3. What are the advantages and disadvantages of market research?
1. If a market is worth £2 million, and I have sales of £600,000, what is my market share?
2. Can you think of any markets at the moment that are growing, and any markets that are shrinking?
3. What are the advantages and disadvantages of market research?
Lesson 7:
Franchises
Lesson Objectives:
- To be able to explain what a franchise is (D-E)
- To be able to give advantages and disadvantages of running a franchise (B-C)
- To be able to evaluate based on a given example whether a person should set up a franchise (A*-A)
- To be able to explain what a franchise is (D-E)
- To be able to give advantages and disadvantages of running a franchise (B-C)
- To be able to evaluate based on a given example whether a person should set up a franchise (A*-A)
what_is_a_franchise_15th_sept.ppt | |
File Size: | 309 kb |
File Type: | ppt |
Starter: Fill in the gaps.
pros_and_cons_for_the_franchisor.doc | |
File Size: | 27 kb |
File Type: | doc |
A franchise occurs when one form sells the right to use its products and/or its brand name to another business. An example is McDonald's. In return for an initial fee and a percentage of the revenue earned, franchisees can use the McDonald's name and sell their products. The franchisee own the business, but use the methods and products of the franchisor.
Activity: Complete the worksheet
advantages_and_disadvantages_of_buying_a_franchise.doc | |
File Size: | 24 kb |
File Type: | doc |
Examiner's tip: A common exam question asks you to decide whether or not an entrepreneur should buy a franchise. You need to understand the advantages and disadvantages of owning a franchise compared to running an original business. Ultimately, the decision will depend on factors such as personality (whether the entrepreneur would work well with the franchisor), the terms of the deal (the cost of the franchise) and the success of and service provided by the franchisor.
Plenary: Word Scramble