Business Week 1

Why do businesses exist?

Businesses sell goods or services in order to get a profit off of them. Goods are items that can be bought whereas services are actions that are not stored.

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What is spotting an opportunity?

Spotting an opportunity is when a business identifies a gap in the market and fills that gap with their service or good.

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What is developing an idea?

A business can develop an idea by inventing something, innovating something or adapting something. An invention is when an entirely new product is created whereas innovation is when an invention is tweaked and modified. An adaption is when an invention is

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Satisfying the needs of customers.

A business exists to satisfy the needs of a customer and to make profit from this. Needs are something that is essential and wants are something a customer would like.

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Characteristics of an Entrepreneur

An entrepreneur needs many vital characteristics, these are:
Creativity
Risk-taking
Determination
Confidence

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Risks

Here are some risks in starting a new business:
Financial loss
Lack of security
Business failure

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Rewards

Here are some rewards in starting a business:
Profit
Success
Independence

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Market Research

Market research is when a business uses ways to find out about their target market, and the ideal things they would like to see in the business. This allows the business to know what to shape their image / product around.

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Purpose of Marketing

Marketing allows the business to reduce risk of failing as they know what a customer would like and would not like.

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Qualitative Research

Qualitative research is based on longer, more detailed responses. These responses can be obtained through ways such as interviews and focus groups.

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Quantitative Research

Quantitative research is based on shorter, less detailed responses but with many more people. These responses can be obtained through ways such as surveys.

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Get Revising

Business Week 1

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