1 Starting a Business Who am I Can you work out who these famous entrepreneurs are A GALA SIR RUNS CRAB DRAINS HORN BEHEADED ROMAN 11 Starting a Business Enterprise 11 Starting a Business Enterprise ID: 420132
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1.1 Starting a Business Enterprise
1 Starting a Business
Who am I?Can you work out who these famous entrepreneurs are?A GALA SIR RUNSCRAB DRAINS HORNBEHEADED ROMAN
1.1 Starting a Business EnterpriseSlide2
1.1 Starting a Business Enterprise
In this topic you will learn about:
Sources of business ideasLooking for a gap in the marketIdentification of a product or market nicheReasons for starting a businessFranchises1.1 Starting a Business EnterpriseSlide3
What is a business?
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You have 30 seconds to write down as many businesses as you can think of starting from NOW!
1.1 Starting a Business Enterprise
What is a business?
Why do they exist?
Who owns them?
What do the businesses you thought of have in common?Slide4
Enterprise and Entrepreneurs
Enterprise
The formation of a new business or development of a new product or service to be introduced to the marketEntrepreneursA person who having generated a new business idea develops it by setting up a businessOften viewed as someone who is willing to take risk in setting up a new business1.1 Starting a Business EnterpriseSlide5
Entrepreneur
What does an entrepreneur look like?What are the characteristics of an entrepreneur?
What skills does an entrepreneur need?1.1 Starting a Business Enterprise
Entrepreneurs are often thought to be creative – are you?
Draw an entrepreneur
Add labels to your entrepreneur to answer the questions posed aboveSlide6
Entrepreneur
Match each word from the first column with
a word from the second column to give the characteristics of an entrepreneuropportunitytaker
risk
motivator
decision
spotter
creative
communicator
self
thinker
strong
maker
Explain what is meant by
each characteristic and why it is important to an entrepreneur.
1.1 Starting a Business EnterpriseSlide7
Why do businesses exist?
To produce goods
To distribute productsTo provide a serviceTo help othersTo meet the needs of society1.1 Starting a Business Enterprise
To make a profit
Not for profit / social enterprises
Add an example of each of the above from your local areaSlide8
Say what you see
1.1 Starting a Business Enterprise
IDEASlide9
Sources of business ideas
Personal experience
Business experienceMarket researchEureka momentBrain storming1.1 Starting a Business Enterprise
How did Imran Hakim come up with the idea for the iTeddy?Slide10
Sources of business ideas
1.1 Starting a Business Enterprise
Rowena Mead is a young mum and entrepreneur who has invented a new style of toothbrush
called
The Bugbrush. It looks a little bit like a caterpillar and is designed so that small children can brush their own teeth without the dangers of a hard handle or the temptation to just chew the handle. She came up with the idea after getting increasingly frustrated
with
bed time tantrums by her daughter every time Rowena tried to brush her teeth.
Question Time
1 Explain two ways an entrepreneur such as Rowena can generate business ideas. ( 4 marks)
Extension: Read more about Rowena and other inventors in this BBC news article.Slide11
Sources of business ideas
Have you ever thought
There must be an easier way of doing this?I wish there was a gadget that did this for me?I would like to be able to buy a “thingy”?
1.1 Starting a Business Enterprise
The greatest inventors of all time!!!
Team Task
What would you invent to make your life easier?
Could it be a viable business idea?
How would you start to research your idea?Slide12
Say what you see
1.1 Starting a Business Enterprise
MAR
GAP
KETSlide13
Looking for a gap in the market
It is important to identify whether or not there is a gap in the market
AndWhether that gap needs filling Sometimes there is a good reason for something not existing already!Where might you look?Trends in the marketBring in an idea from abroad
Market research
Meeting a personal need
1.1 Starting a Business Enterprise
What about a dog wash?Slide14
Identification of a product or market niche
What is a niche?
A niche is a gap in the marketAn identified need that has not yet been metMay be a specific type of personA new productA geographical location1.1 Starting a Business Enterprise
Niche or no niche?
We have pet hotels, pet walkers, pet parlours and even designer pet clothes so what about bottled water for pets?Slide15
Thirsty Cat! And Thirsty Dog!
These brands were launched to meet a presumed gap in the market for bottled water for pampered pets
Delicious ‘thirst quenching’ flavoursCrispy beefTangy fishTop cat or in the dog house? Vote now1.1 Starting a Business EnterpriseSlide16
A scientific approach
to identifying a product or market niche
Market researchFinding out what the customer wantsWhat already existsCan it be improved?Technical researchExperimentingTesting new ways of doing something or new materials
Product development
Prototypes
Innovative thinking
1.1 Starting a Business EnterpriseSlide17
Can you spot the new product or market?
A bagless vacuum cleaner
You shop we dropShare and discover what's happening anywhere in the world right nowGames console that promotes a new form of player interaction (exercise)Europe’s leading low cost airline1.1 Starting a Business EnterpriseSlide18
Reasons for starting a business
Why might someone want to start up their own business?
Challenge and satisfactionTo make moneyBe own bossGovernment encouragementWould you want to be your own boss?1.1 Starting a Business Enterprise
Draw a table with two columns, labelled risks and rewards.
Make a list of the risks of starting a business and the rewardsSlide19
A new business start-up
1.1 Starting a Business Enterprise
Asif started working at PC World following his work experience when he was 15. He enjoyed the extra money and independence he gained from having paid employment and continued working there throughout his GCSEs and A Levels. In the sixth form Asif studied Business, ICT and Product Design, he considered university but eventually decided against it and took a full time trainee managers job at PC World. Asif is now 25 and plans to set up his own mobile computer repair and servicing business.
Question time
Explain the source of Asif’s business idea (2 marks)
Explain two reasons why Asif might want to set up his own business (4 marks)
Do you think Asif has spotted a gap in the market? Justify your answer (6 marks)Slide20
What do all these have in common?
1.1 Starting a Business EnterpriseSlide21
Franchises
A franchise is when one business
(the franchisor) gives another person or business (the franchisee) the right to trade using its name and to sell its products or provide its servicesThe franchisee normally pays a licence fee and a percentage of profit to the franchisor
1.1 Starting a Business Enterprise
Why might an entrepreneur
choose
to set up a franchise rather than an independent business?
Scroll down to watch the Maid2Clean video
If you were to set up a cleaning business would you
choose
a franchise such as Maid2Clean or your own independent cleaning business?Slide22
Franchises
MeritsLower risk option
Already establishedRecognised brandHelp and supportNational advertising and promotionTried and testedDisadvantagesSet up and running costs can be highShare profit
Reliant on others
Less independence in decision making
Damage to brand reputation
1.1 Starting a Business EnterpriseSlide23
Franchises
1.1 Starting a Business Enterprise
Use the video link to visit the franchise direct website, select up to 3 franchises you think you may be interested in and watch the video
Team Task
Select one of the franchise opportunities from the ones viewed above and prepare a short presentation to explain why, if you were to open a franchise, you would
choose
this one.
Present your choice and reasons to the rest of the class.
As a class what were the common features of the franchises chosen?
What were the common reasons given to justify the choices made?Slide24
Tea Time Treats
1.1 Starting a Business Enterprise
Tessa runs a chain of three tea shops in the Lake District, each called Tea Time Treats, followed by the name of the closest lake e.g. Tea Time Treats in Windermere.
The tea shops have built a up a good reputation for fine quality teas and delicious home made cakes to eat in or take away.
Tea Time Treats is now featured in many tourist guides for the area, always with rave reviews.
Tessa is now keen to expand the business and is considering offering the Tea Time Treat name as a franchise.
Question time
What is meant by the term franchise? (2 marks)
Would Tessa be the
franchisor
or franchisee? (1 mark)
Explain two reasons why an entrepreneur might choose to buy a franchise from Tea Time Treats (4 marks)Slide25
2 Minute Test
State 2 reasons why businesses exist
State 2 sources of business ideasWhat name is given to a not for profit business?What name is given to a gap in a market?State two reasons for starting a businessState two advantages and two disadvantages of a franchise
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1.1 Starting a Business Enterprise