Area of Study 1: The Business IdeaArea of Study 2: External EnvironmentArea of Study 3: Internal Environment

Area of Study 1: Legal requirements & financial considerationsArea of Study 2: Marketing A BusinessArea of Study 3: Staffing A Business

• Identify the range of personal motivations behind a business start-up.

• Recognise the personal characteristics and qualities possessed by successful entrepreneurs.

• Categorise different sources of business inspiration for innovative business ideas and opportunities in the market.

Students will learn the following:• The personal motivation behind starting a business such as the desire for independence both financially and personally, to make a profit and to fulfil a market and/or social need.• The characteristics of successful business managers and business entrepreneurs and how these characteristics contribute to business success.• Sources of business opportunity including innovation and entrepreneurship, recognising and taking advantage of market opportunities, changing customer needs, research and development, technological development and global markets.

Students should be able to:• Identify business opportunities.• Define, describe and apply relevant business management concepts and terms.• Acquire, record, interpret and share business information and ideas.• Research and analyse case studies and contemporary examples of business management applicable to planning a business.• Apply business management knowledge to practical and/or simulated business situations.

Factors to think about when considering a business opportunity

• Brainstorming• Competitive advantage• Decision making• Demographic• Entrepreneurship

Effective decision making is an integral component of a successful business operation.

Managing a business involves making decisions about all aspects of the business.

Many key decisions are made prior to business commencement. These include:

• personal suitability to start and operate a business. This involves asking: Is this business right for me?

• where to look for inspiration for business ideas

• the business concept (type of business).

The first step for a person starting a business is to conduct a self-evaluation focusing on the following:

• Personal motivation, or reasons, for going into business must be examined.

• A self-appraisal of personal skills, abilities and personality type should be completed.

• Personal and business objectives must be established and clarified.

People decide to start a business for a variety of reasons, including:

• a desire for independence and to be their own boss

• potential wealth and financial independence

• self-worth: many see business ownership as a means of recognition as a successful person potential for flexible working hours and conditions

All of the above reasons are valid…

• potential their personal objectives in starting a business

…however, a person starting a business must assess whether or not they are doing so for the right reasons.

They must clearly identify and evaluate:

• the things that are important to them

• whether the business idea can realistically satisfy their personal objectives

To be successful in business requires numerous skills. Some of these will be specific to the type of business; others will be generic. They include: …

• Communication skills:

• Technical skills and appropriate qualifications

• Time management skills:

• Planning and organisational skills

• Administrative skills:

• Analytical skills:

• Computer skills:

• Negotiation skills:

• Leadership skills:

Certain personal qualities recognised as being advantageous to starting a business. These include:

• Ability to think outside the square

• Preparedness to take risks

• Confidence

• Innovative thinkers

• Vision• Flexibility and ability to change direction when required

• Ability to work independently without requiring guidance

• Capacity for hard work.• Willingness to accept responsibility.

• Ambition: needed to achieve long-term goals.

• Ability to be practical

• Ethical

• Resilience

• Innovation, or new, improved products or methods of doing things, is often the impetus for a new business venture.

• An innovation can be a whole new product or a variation on an existing product that improves it, such as colour, design or features.

• An entrepreneur combines an element of risk taking with their own knowledge assets and skills in order to make a profit.

• Entrepreneurship involves designing, launching and running a new business. Entrepreneurs are often innovators.

• A successful business entrepreneur is able to see opportunities others have failed to recognise.

• The source of most business opportunities is change

• As society's needs and wants change and evolve, so too do the types of goods and services people want to purchase.

Customer needs and wants change and evolve. Some examples of this are:

• If the type of people (demographic) moving into an area is changing, so too will the products that market seeks to buy.

• If government changes a law, often a business opportunity emerges.

• As lifestyles change so does consumer demand.

• Many entrepreneurs have converted a hobby into a money-making opportunity.

• Brainstorming and SWOT analysis are tools for creative problem solving, identifying strengths and weaknesses, generating ideas for new businesses or products.

• The media is often a source of ideas for a business concept. Regular observation of the media can provide inspiration and innovative ideas.

• Trade shows and exhibitions are sources of ideas. These provide opportunities to see new products, obtain ideas and maybe opportunities for the rebranding of existing products.

A business may spot a change creating a favourable condition that the business can take advantage of.

Often such a change creates a gap between customer demand and supply.

An entrepreneur is able to recognise signs in customer needs and wants.

Successful businesses recognise changes in consumer demand and take advantage of these.

This is known as recognising a gapin the market.

Looking overseas can reveal innovation and ideas that have not yet reached Australia.

The first person to import a new idea from overseas can profit very handsomely.

Often franchises that have been successful overseas are successfully introduced into the Australian market.

Research and development is often the source of business ideas.

It is possible to identify new products and technologies for potential development through observation of a particular target market.

Another option is to research and develop ways of adding value to an existing product for consumers.

The development and impending availability of new technologies is often a source of ideas for a new business.

For example, the growth and development of the World Wide Web, coupled with the handheld devices capable of mobile internet access…

…has enabled the formation and development of many new business ideas. Airbnb and Uber are two examples.

A brilliant piece of technology or an innovative idea is not the only criteria for a potentially successful business idea.

There must also exist a market, or group of consumers who are prepared to purchase the product at a price that will provide a profit to the business.

For a business concept to be an attractive proposition for development, there must be a strong possibility of a return on the investments made.

In order for the potential of income to be made the following criteria must exist:

• Real demand.

• Return on investment.

• Freely available resources & skills.

• Market competitiveness.

• Objectives of risks must be feasible/achievable.

There are always opportunities for potential business development. The trick is to identify and locate them.

Successful entrepreneurs are constantly looking for innovative ideas that can be translated into ideas for new business.

Changes in lifestyles, fashions, trends, laws, economic situations, demographics and world events are all indicators of potentially altered consumer demands and buying habits.

A business operator should always keep an ear to the ground.

Thank You