n4 business in action n5 understanding business how do small businesses operate reasons for setting...

N4 BUSINESS IN ACTION N5 N4 BUSINESS IN ACTION N5 UNDERSTANDING BUSINESSUNDERSTANDING BUSINESS

HOW DO SMALL HOW DO SMALL BUSINESSES OPERATEBUSINESSES OPERATE

REASONS FOR SETTING UP A REASONS FOR SETTING UP A BUSINESSBUSINESS

N4 BUSINESS IN ACTION N5 UN4 BUSINESS IN ACTION N5 UNDERSTANDING BUSINESSNDERSTANDING BUSINESS

LEARNING INTENTIONS AND LEARNING INTENTIONS AND SUCCESS CRITERIASUCCESS CRITERIA

Learning Intentions:Learning Intentions:

I understand why I understand why

people start a businesspeople start a business

and where they get and where they get

their ideas fromtheir ideas from

Success Criteria:Success Criteria: I can explain how I can explain how

business ideas are business ideas are identifiedidentified

I can explain how I can explain how businesses create businesses create wealthwealth

I can describe the I can describe the benefits of starting a benefits of starting a businessbusiness


Where do the Ideas come Where do the Ideas come from?from?

If you were thinking about starting up a new business, where would If you were thinking about starting up a new business, where would youryour

ideas come from?ideas come from?

CHALLENGE!CHALLENGE!In small groups, imagine that you have the knowledge, In small groups, imagine that you have the knowledge,

skillsskillsand Capital necessary to start up a new business. and Capital necessary to start up a new business.

Exchange ideas about new business ideas that you think Exchange ideas about new business ideas that you think peoplepeople

would want and make a list of these.would want and make a list of these.

Discuss each idea carefully prior to selecting the 3 that youDiscuss each idea carefully prior to selecting the 3 that youthink are the best.think are the best.


Did your ideas come from …Did your ideas come from …

A completely new idea for a good or serviceA completely new idea for a good or service The belief that your idea for a good or service can The belief that your idea for a good or service can

improve existing goods and servicesimprove existing goods and services Developing a hobby that you enjoyDeveloping a hobby that you enjoy Combining 2 existing ideasCombining 2 existing ideas Solving a problem that you have identifiedSolving a problem that you have identified Spotting a gap in the marketSpotting a gap in the market

These are the main ways that business ideas areThese are the main ways that business ideas areidentified.identified.


Spotting a Gap in the Spotting a Gap in the MarketMarket

The gap in the market might be providing aThe gap in the market might be providing aproduct or service in a completely differentproduct or service in a completely differentway. way.

LoveFilmLoveFilm rents DVDs, but they captured the rents DVDs, but they captured the market by sending them through the post rathermarket by sending them through the post ratherthan following the video shop model, adding than following the video shop model, adding convenience and a huge list to choose from. convenience and a huge list to choose from.

Moonpig did exactly the same with greeting cards.Moonpig did exactly the same with greeting cards.

http://www.google.co.uk/imgres?imgurl=http://profile.ak.fbcdn.net/hprofile-ak-snc4/50555_6375237421_6880_n.jpg&imgrefurl=http://www.facebook.com/LOVEFILM&usg=__fPwZooDqluk-Ni37J24YKS9YMBQ=&h=200&w=200&sz=10&hl=en&start=2&zoom=1&tbnid=nb4MUfqFxj-sVM:&tbnh=104&tbnw=104&ei=lwHGT-aSJo3Y8QOXl5GHBg&prev=/search%3Fq%3Dlovefilm.com%26um%3D1%26hl%3Den%26safe%3Dactive%26sa%3DN%26tbm%3Disch&um=1&itbs=1


TASKTASK

Now do Worksheet 3 in your jotters.Now do Worksheet 3 in your jotters.


CREATING WEALTHCREATING WEALTH

Another reason for starting a business is Another reason for starting a business is toto

create wealth:create wealth: for the business and its owner(s)for the business and its owner(s) for the staff employed in the businessfor the staff employed in the business for other businesses used as suppliersfor other businesses used as suppliers

We can show this on a diagramWe can show this on a diagram


Creating WealthCreating WealthBusinesses produce goods and services to meet customers’ wants. (1)

Customers buy goods and services to satisfy their wants. (2)

Wealth is created for businesses and for their employees and owners. (3)

Customers have money to spend from their wages and want other goods and services. (4)


TASKTASK

Using the internet, research the followingUsing the internet, research the following

local business:local business:

www.hydrasun.comwww.hydrasun.com

Write a report or prepare a powerpointWrite a report or prepare a powerpoint

about how this business creates wealth forabout how this business creates wealth for

the business, its owner(s) and its staff.the business, its owner(s) and its staff.


The Benefits of BusinessThe Benefits of Business

What do businesses and their owners getWhat do businesses and their owners get

out of starting a business?out of starting a business?

CHALLENGE!CHALLENGE!

Discuss in pairs what you would hope to Discuss in pairs what you would hope to getget

from owning and running your own from owning and running your own

business.business.


DID YOU HAVE ANY OF THESE DID YOU HAVE ANY OF THESE ……

Making more money than if you were Making more money than if you were just employed in a businessjust employed in a business

Being your own boss and the boss of Being your own boss and the boss of othersothers

Being enterprising and innovativeBeing enterprising and innovative Helping the local community (creating Helping the local community (creating

wealth)wealth) Being charitable (giving something Being charitable (giving something

back)back)

n4 business in action n5 understanding business how do small businesses operate reasons for setting...

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