Business Management - Unit 1 AOS 1

Personal motivation for starting a business

- Desire for financial and personal independence

- To make a profit

- To fulfil a market need

- To fulfil a social need

Business Opportunities

- Innovation

- Market opportunities

- Changing customer needs

- Research and development

- Technological development

- Global markets

Characteristics that successful managers and entrepreneurs have

- A vision

- A initiative

- Innovation and enterprise

Goal setting in businesses

- Financial goals

- Social Goals

- Personal goals

Contribution to the nation

- Economic growth

- Tax revenue

- Improves Australia's 'balance of payments'

- R&D and innovation

- CSR and social wellbeing

Protecting a business idea (IP)

- Trademark

- Patent

- Copyright

- Design rights

- Domain name

Define 'Entrepreneurship'

The act of starting and operating a new business, in response to opportunities, assuming all the risk, in the hope of making a profit

Aspects of entrepreneurship

- Pursuing business opportunities

- Innovation

- Seeking growth

Financial independence

The capacity to support your lifestyle without having to be employed or depend on others

Personal independence

The capacity to be in control of decisions that affect one's everyday actions or activities

Market need

When a product or service is needed by people, however it is not currently available

Social need

Helping solve a problem in society - helping people

A vision

Successful entrepreneurs know in what direction they want their business to go

Initiative

When a person is proactive and actively takes steps towards achieving their vision

Innovation

Creating a new idea or making a significant improvement to an exisiting product or process

Enterprise

The 'business' aspect of being an entrepreneur. This is where the entrepreneur takes a risk to launch a product/service to determine whether the market is interested in their idea

Market

A group of buyers and sellers who are buying/selling a particular product or service

Recognising market opportunities

Successful entrepreneurs are able to identify and take advantage of opportunities that other people don't necessarily recognise

Examples of market opportunities

- Changing demographics

- Changes in government regulation

- New hobbies

- Lifestyle changes

Changing customer needs

Filling a gap in the market

The opportunity for a business to enter into an area of a market not currently being serviced

Examples of changes in customer needs

- The importance of convenience

- People are more environmentally conscious

Research and development (R&D)

Some businesses can initiate new technology by dedicating money and employees to develop new technology

Technological development

Some businesses take advantage of existing technology and use this as a source of business opportunity

Examples of technological development

- AirBNB

- Uber

- Google maps

- Online banking

Global markets

Opportunities for businesses to expand into overseas markets or import ideas/products

Financial Goals

Goals that relate to a businesses financial positions

Social goals

Goals that contribute to the community and minimise impact on the environment

Personal goals

Goals that are specific to the business owner, often publicly shared

SMART Principle

Specific, Measurable, Attainable, Relevant, Time Bound

Business concept development

Where the entrepreneur takes a business idea and starts shaping this into an actual business. Involves goal setting and protecting a business idea

Protecting business idea: Intellectual property

A creation of the mind such as a new invention, a brand, a design, or an artistic creation

Examples of intellectual property

Trademark, patent, copyright, design rights, domain name

Market research

A process of systematically collecting, recording and analysing information concerning a specific market

Feasibility study

An assessment of the practicality and potential for success of a proposed business idea

What does a feasibility study involve?

- Assessing the market

- Consideration. of operations

- Analysis of commercial feasibility

- Analysis of the business owners management ability

- Understanding the competitors

Corporate social responsibility (CSR)

Managing a business in a way that improves the welfare of the community. This includes considering the welfare of all stakeholders and also the environment. Its alsoa bout going over and above legal obligations.

What does the government do to encourage innovation

- Government grants

- Tax discounts

- Education

- Regional start up hubs

How do businesses help our country?

-Creates jobs

- Creates tax revenue

- Provides needed products and services