Studied by 18 people
Made by God (A.K.A. me)
Personal motivation for starting a business
Desire, making a profit, fulfilling a market need, fulfilling a social need
Entrepreneurship
The act of starting and operating a business in response to opportunities, assuming and taking on all the potential risks in the hope of gaining a profit (individuals who take risks, identify opportunities, and bring innovative ideas to the market)
Innovation
The process of creating a new or improved good/service that add value to a business or industry (can include improvement to existing products, development of new tech, or creation of new business models)
Attributes of an entrepreneur
Must pursue business opportunities, innovative, seek growth
Examples of social needs
providing opportunities for local unemployed people, creating access to a better quality of life, providing learning opportunities for the disadvantaged
Examples of market needs
A good/service may be in demand but there is no supply for them (products that customers require that may not be available)
Examples of desire
potential for long-term financial independence, being in control of decisions that affect one’s everyday actions/activities
Business managers
They run the business on a day-to-day basis so that the business can generate profit
Characteristics of a business manager
Willing to take calculated risks, prepared to work long hours, self-disciplined, self-motivated, etc
Business entrepreneurs
They are willing to seize opportunities to start and operate a business, prepared to take risks in order to make a profit. They also tend to have a shared vision of what their business will entail, initiative as well as innovation and enterprise
Networking
the process of building relationships with other people (this is important for a businesses survival)
Skills required for starting a business
courage, determination, passion, energy, etc..
7 sources of business opportunity
1) innovation
2) entrepreneurship
3 )recognizing and taking advantage of market opportunities
4) changing customer needs
5) research and development
6) technological development
7) global markets
Recognizing and taking advantage of market opportunities
The process of identifying and evaluating potential business opportunities in the market, then making strategic decisions to take advantage of these opportunities (can involve identifying changes in customer needs, identifying gaps in the offerings of competitors, etc.)
changing customer needs
Addressing these needs that are not being met by existing products or services can create opportunities for new businesses
Research and Development
Refers to the process of investigating and creating new knowledge, technologies, or products to improve or innovate an existing product, service, or business model (this can involve basic research to understand a particular subject, applied research to develop practical solutions, and product development to bring those solutions to the market
Technological development
The development of new technology can create opportunities for businesses to create innovative products or improve existing ones
Global markets
The growth of international trade and the increasing interconnectedness of global markets can open up new business opportunities for markets
SMART goals
Specific: goals should be clear and focused
Measurable: goals should be quantifiable (should be able to put a number on it) to ensure you stay on track
Attainable: the goals needs to be realistic and achievable (how will you accomplish the goal?)
Relevant: the goals should be worthwhile and support other business goals objective or KPI’s
Time bound: goals should have a deadline
Financial goals
these include making a profit, expand the business, increase sales, increase market share, maximize ROI, improve business operations, etc
Social goals
these include community service, provision of employment, social justice, ecological sustainability, etc.
Personal goals
The personal goals of business owners may or may not be made public. It is, however, these goals that motivate the business owner which ultimately underpins the viability of the business
Decision making
The ability to identify the options available and then choose a course of action for the business
1) develop goals
2) outline the facts
3) identify alternatives
4) analyse alternatives
5) choose an alternative and implement
Steps in the process of business concept development
1) business opportunity
2) business idea
3) development of business concept
4) initial feasibility study
5) initial market research
6) formal business plan
Business opportunity
involves looking for problems that you can solve.
Ask yourself “how can this be done better”, consider how new technology could be applied in a different area
Business ideas
Involves brainstorming solutions
Read and research similar problems and opportunities, protect your idea (intellectual property), keep the idea a secret until protected, consider patents, trade markets, copy rights, design rights, domain names, etc
Business concept
Your business concept starts with your business idea, and is influenced by your goals, your motivation, and your resources
Initial feasibility study
This is an assessment of the practicality and potential for success of a proposed business idea. You need to cost, estimate and calculate.
Market research
A process involving gathering and analyzing information concerning a specific market
Business contributions to the nation - Economic
Employment: earning wages to provide the goods and services needed, and to support the businesses that supply those products
Tax revenue: businesses pay tax from profits and the 10% GST (amongst others) that can be used to provide gas services to others
Economic growth: an increase in GDP per capita increases the wealth of the average person which can be spent on improving their standard of living
Export earnings: through selling Australian goods overseas, local people and businesses can purchase overseas goods
Business contributions to the nation - Social
Employment: providing careers and social connectedness
Innovation: new ideas that improve wellbeing (contact with distant family via social media)
Corporate social responsibility: helping the community through more ethical approaches in running the business, or making contributions to the community or environment
5 methods to foster innovation and entrepreneurship
Government investment in research and development
council grants for new business
regional business start-up hubs
business mentorship
school-based entrepreneurship programs
Gov investment in R&D
direct funding, grants and tax incentives
the government funds CSIRO, universities and some businesses to undertake R&D - either alone or in a partnership with a business
tax offset (reduction in tax to be paid) for business spending on R&D
Specific programs through Aus Industry
The Entrepreneurs Program (advice and support)
regional innovation funds
Council grants for a new business
local shires or councils provide grants to new and establishing businesses if they choose to set up in council or shire area (these grants often focus on smaller businesses)
Business mentorship
These involve experienced business people to provide support for new entrepreneurs
These may be apart of a mentorship program or may be an informal arrangement
These programs may be part of a start-up hub or a local council grants program
School-based entrepreneurship programs
Schools provide opportunities for students with an interest in business to increase their knowledge and skills through formal classes/extracurricular programs
School programs include “$20 boss”, “iPab”, etc..
Regional business start-up hubs
many suburban and country locations have office space and meeting rooms that are used to support emerging businesses
small business centers Victoria offers low-cost facilities in 26 locations
Business Enterprise Centers offer facilities in 9 country towns in Vic - these hubs provide office facilities, along with support, training, and sometimes mentorship
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