My Business Idea
Unit 10
Starting a Small Business
Your task is to prepare a business plan
for a small business of your choice
Local Business
Starter Activity
• Think about your local area, what businesses
already exist?
• List as many business as you can and include
what they do
• Are all the businesses successful?
Activity 1
Business Ideas
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Paper shop
Nail bar
Sweet shop
Games shop
Music Shop
Computer shop
Hair dressers
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Clothes shop
Shoe shop
Toy shop
Cake shop
Florists
Ink cartridge
refilling
• Sandwich shop
Business Ideas!
You need to pick an idea for the business you are going to
start up. But before you do this there are a few things you
need to think about.
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Will your idea work?
Is it realistic?
Is the business needed in the area?
Will you get customers?
Will you have competition from similar businesses?
(McDonalds and Brighouse Burger Bar!)
Will you buy an existing business are start a new business?
What is the name of your shop?
– A good name can attract lots of customers
Activity 2
Your Idea!
Now you have decided on a business and name….
1. What will you sell or offer?
– Be clear and detailed on what you will sell and offer
– Try to keep your idea simple! It will help you later
– Do you have a Unique Selling Point (USP)?
– Are there any alternatives to what you will sell
(Laptop/Computer)
2. What did you have to considered before you came up
with the final decision?
– Competition, Business Name, and Alternatives
Unique Selling Point
This is what makes your business different from the
competition – what makes you better than the rest
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Loyalty card
Free chocolate
Young and trendy
Champaign whilst you wait
The cheapest
Best quality
Customer service
etc
New or old
New
 Don’t have bad reputation
 Make it your own
 Simple
 Don’t have to find old
business
 Don’t have to pay extra for
buying someone else’s
business
× Have to buy all equipment
× Have to do lots of
advertising
× Find new customers
Old
 Already established
 Already have equipment
 Have customers
× Might have bad reputation
× Might be hard to find
× Might have to pay extra
Will you buy a new business or an old
business?
1.Explain three advantages and
disadvantages for both Old and New?
2.What will your business go for and
why?
Activity 3
Ownership
Now you have to decide what type of ownership you want. You have a
few options:
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Sole Trader
Partnership
Private Limited Company (LTD)
Public Limited Company (PLC)
Use the fact sheet on the common drive to find out about the different
types of ownership and decide what is best for you.
Think about….
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Will you run the business on your own
Will you have a partner
What will unlimited liability mean for your business
Ownership
• Can’t be a limited company because you are new and don’t have
enough money!
• Will have to be either sole trader of Partnership
• Partnership – can share jobs, more money to put in (2), can have
holidays, more expertise BUT share profits, could argue, can’t make
own decisions, you are equally responsible for each others mistakes
• Sole Trader – can be own boss, make own decisions, keep all profits,
freedom to do what you want with business BUT only one lot of
money in, difficult to take holidays, only your ideas
• BOTH have unlimited liability – so if your business fails and cannot
pay the debts it owes your personal possessions can be taken to pay
the debts of the business – your car, house etc
Activity 4
Location
Where will you locate your business?
Location is important because you need to be accessible by your
customers and you want people to see your shop to attract new
customers. Being too close to competitors can be bad but it could also
have its advantages if you are the better business.
Think of three different locations for your business and compare them
briefly?
– Brighouse, Halifax, Huddersfield etc…
– Town centres, small village, busy main road etc…
– Are any near competitors, similar shops or parking
– What are the advantages and disadvantages of each
– Is it on a main road or near a busy location like a bus or train station
Which location will you pick and why is it best?
Activity 5
Target Market
This is who you will be aiming to attract to your
shop:
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Men, Women or Children
Young people – like modern things
Parents (middle age people) – lots of these about
OAP – lots of spare time
Young professionals – lots of money
Remember it must be suitable for your shop –
don’t be a nail bar and target men
Target Market
Who will your business target? (Describe the
type of person)
Why will these people be interested in your
business?
Objectives
Objectives are what a business set and want
to achieve. Without a clear objective a business
would not develop. Objectives help a business to
focus on what they want.
Most business want to:
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Survive
Sell or provide good and services
Beat competition
Make a profit
Long Term
Expand
Short Term
Objectives
All business must have targets and objectives. You need to
briefly explain why?>>>>>>>>
This is especially true of a new business. My main long term
objective will be to?>>>>>>
As well as this I will have the short term objective(s) to make
sure my business >>>>>>>>>>>>>>>>>>>>>>
External Influences
• Competition – the more competition the harder it will be for you
to succeed – must be different – better quality, cheaper, unique
• The economy – we are in a recession which means that people are
spending less because they are losing their jobs – negative
• Social Trends – Fashions change and you have little or no control
over this
• Seasonal Factors – will the weather affect your business?
What external influences might affect your business? And why?