Business topic one

spotting a business opportunity
1. a business needs to meet the needs and wants of the customer by providing goods and services
  1. good - a physical item that can be purchased be a consumer
  2. service - a non-physical item that can be purchased
2. 1 in 3 businesses close down within 3 years
Research
1. Who the customers are
2. what products/ services do they want
3. how often would the customers buy the product
4. competitors
5. How to get the information
  1. own knowledge
  2. research of the business in the area
    1. observation
    2. yellow pages
  3. visit competitors businesses
  4. asking questions
customer profling
1. customers buying habits/ preferences
  1. customer profile from this information
2. use market segmentation
  1. the market is broken down into different groups of customers
    1. this is done according to their needs and prefronces
  2. segments
    1. age
    2. gender
    3. income
    4. geographical area
    5. ethnicity
    6. religious groups
    7. socio-economic groups
      1. population is groupes acording to their income and job description
    8. lifestyle
    9. hobbies
how to start up a small business
1. it is about starting something of your own
  1. have to ask
    1. why
      1. the main motive for starting a business is desire
      2. satisfaction/ achivement
      3. be own boss
      4. money
    2. who
      1. personal qualities
        determination
        resillience
        enthusiasm
        persuassion
        hard working
        decisive
    3. how
      1. production
      2. suppliers
      3. customers
      4. markets
understanding customer needs
1. how to start up a successful business
  1. do something new
  2. do something that already exists but better
  3. do something that already exists but cheaper
  4. all of these rely on knowing what people want and need and the understanding of business and suppliers
    1. a gap in the market
2. things to consider
  1. target market/ market segment (types of customer)
  2. layout of shop
  3. facilities
  4. offers/ discount/ customer loyalty cards
  5. product range
  6. location
  7. price/ quality
3. questions to answer
  1. what types of customer will be attracted to your shop?
  2. price?
  3. pacagine?
  4. location?
  5. theme?
  6. products
  7. customer needs?
  8. how will you meet customer needs?
  9. why?
competition
1. other business in a certain market that offers similar goods or services to you
  1. they may be
    1. a lower price
    2. of better quality
2. competitions benefits consumers as it
  1. forces a firm to offer good quality products and services
  2. keep prices low
  3. firms become more INNOVATIVE
3. competion causes problems for business as they
  1. may need to cut costs by cutting staff - bad for staff and maybe customers
  2. take short term action
    1. price cutting
    2. this may damage the business in the long term
  3. start unethical practices
    1. dumping waste materials
    2. sweat shops
added value
1. it is the increased wroth a business creates for a prod, the difference between the price the business paid and it is able to charge.
2. how to add vale
  1. cutting costs
  2. higher price
  3. additional featuers
    1. USP
  4. convenience and speed
  5. design
  6. quality and brand
3. importance
  1. to pay for bills
  2. wages
  3. profit

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Business topic one

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	Created by Sophia Hinchliffe about 8 years ago