Who am I?
Can you work out who these famous entrepreneurs
are?
A GALA SIR RUNS
CRAB DRAINS HORN
BEHEADED ROMAN
1 S TARTING A B USINESS
1.1 STARTING A BUSINESS ENTERPRISE
1.1 S TARTING A B USINESS
E NTERPRISE

1.1 STARTING A BUSINESS ENTERPRISE
In this topic you will learn about:

Sources of business ideas

Looking for a gap in the market

Identification of a product or market niche

Reasons for starting a business

Franchises
W HAT
IS A BUSINESS ?
You have 30 seconds to write down as many businesses as you can think of starting from
NOW!
End
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What is a business?
Why do they exist?
Who owns them?
What do the businesses you thought of have in common?
1.1 STARTING A BUSINESS ENTERPRISE
E NTERPRISE AND
E NTREPRENEURS

Enterprise


1.1 STARTING A BUSINESS ENTERPRISE
The formation of a new business or development
of a new product or service to be introduced to
the market
Entrepreneurs

A person who having generated a new business
idea develops it by setting up a business

Often viewed as someone who is willing to take
risk in setting up a new business
E NTREPRENEUR

What does an entrepreneur look like?

What are the characteristics of an entrepreneur?

What skills does an entrepreneur need?
Entrepreneurs are often thought to be creative – are you?
Draw an entrepreneur
Add labels to your entrepreneur to answer the questions posed
above
1.1 STARTING A BUSINESS ENTERPRISE
E NTREPRENEUR
Match each word from the first column with a word from the
second column to give the characteristics of an entrepreneur
opportunity
taker
risk
motivator
decision
spotter
creative
communicator
self
thinker
strong
maker
Explain what is meant by each characteristic and why it is
important to an entrepreneur.
1.1 STARTING A BUSINESS ENTERPRISE
W HY DO BUSINESSES EXIST ?

To produce goods

To distribute products

To provide a service

To help others

To meet the needs of society
To make a
profit
Not for profit
/ social
enterprises
Add an example of each of the above from your local area
1.1 STARTING A BUSINESS ENTERPRISE
S AY
1.1 STARTING A BUSINESS ENTERPRISE
WHAT YOU SEE
S OURCES OF BUSINESS IDEAS
1.1 STARTING A BUSINESS ENTERPRISE

Personal experience

Business experience

Market research

Eureka moment

Brain storming
S OURCES OF BUSINESS IDEAS
Extension:
Read more
about
Rowena and
other
inventors in
this BBC
news article.
1.1 STARTING A BUSINESS ENTERPRISE
Rowena Mead is a young mum and entrepreneur
who has invented a new style of toothbrush called
The Bugbrush. It looks a little bit like a caterpillar and
is designed so that small children can brush their own teeth
without the dangers of a hard handle or the temptation to just
chew the handle. She came up with the idea after getting
increasingly frustrated with bed time tantrums by her daughter
every time Rowena tried to brush her teeth.
Question Time
1 Explain two ways an entrepreneur such as Rowena can generate
business ideas.
( 4 marks)
S OURCES OF BUSINESS IDEAS

Have you ever thought

There must be an easier way of doing this?

I wish there was a gadget that did this for me?

I would like to be able to buy a “thingy”?
Team Task
What would you invent to make your life easier?
Could it be a viable business idea?
How would you start to research your idea?
The greatest inventors of all time!!!
1.1 STARTING A BUSINESS ENTERPRISE
S AY
WHAT YOU SEE
MARGAPKET
1.1 STARTING A BUSINESS ENTERPRISE
L OOKING FOR A GAP IN THE
MARKET

It is important to identify whether or not there is a gap in the
market
And

Whether that gap needs filling


Sometimes there is a good reason for something not existing already!
Where might you look?

Trends in the market

Bring in an idea from abroad

Market research

Meeting a personal need
What about a dog wash?
1.1 STARTING A BUSINESS ENTERPRISE
I DENTIFICATION OF A
PRODUCT OR MARKET NICHE

What is a niche?

A niche is a gap in the market

An identified need that has not yet been met

May be a specific type of person

A new product

A geographical location
Niche or no niche?
We have pet hotels, pet walkers, pet parlours and even designer pet
clothes so what about bottled water for pets?
1.1 STARTING A BUSINESS ENTERPRISE
T HIRSTY C AT ! A ND T HIRSTY
D OG !

These brands were launched to meet a
presumed gap in the market for bottled water for
pampered pets

Delicious ‘thirst quenching’ flavours

1.1 STARTING A BUSINESS ENTERPRISE

Crispy beef

Tangy fish
Top cat or in the dog house? Vote now
A SCIENTIFIC APPROACH
TO IDENTIFYING A PRODUCT OR
MARKET NICHE

Market research

Finding out what the customer wants

What already exists



1.1 STARTING A BUSINESS ENTERPRISE
Can it be improved?
Technical research

Experimenting

Testing new ways of doing something or new materials
Product development

Prototypes

Innovative thinking
C AN YOU SPOT THE NEW
PRODUCT OR MARKET ?
1.1 STARTING A BUSINESS ENTERPRISE

A bagless vacuum cleaner

You shop we drop

Share and discover what's happening anywhere
in the world right now

Games console that promotes a new form of
player interaction (exercise)

Europe’s leading low cost airline
R EASONS FOR STARTING A
BUSINESS


Why might someone want to start up their own
business?

Challenge and satisfaction

To make money

Be own boss

Government encouragement
Would you want to be your own boss?
Draw a table with two columns, labelled risks and rewards.
Make a list of the risks of starting a business and the rewards
1.1 STARTING A BUSINESS ENTERPRISE
A
NEW BUSINESS START - UP
Asif started working at PC World following his work experience when
he was 15. He enjoyed the extra money and independence he gained
from having paid employment and continued working there
throughout his GCSEs and A Levels. In the sixth form Asif studied
Business, ICT and Product Design, he considered university but
eventually decided against it and took a full time trainee managers job
at PC World. Asif is now 25 and plans to set up his own mobile
computer repair and servicing business.
Question time
1. Explain the source of Asif’s business idea
(2 marks)
2. Explain two reasons why Asif might want to set up his own
business
(4 marks)
3. Do you think Asif has spotted a gap in the market? Justify your
answer
(6 marks)
1.1 STARTING A BUSINESS ENTERPRISE
W HAT DO ALL THESE HAVE IN
COMMON ?
1.1 STARTING A BUSINESS ENTERPRISE
F RANCHISES

A franchise is when one business (the franchisor)
gives another person or business (the franchisee)
the right to trade using its name and to sell its
products or provide its services

The franchisee normally pays a licence fee and a
percentage of profit to the franchisor
Why might an entrepreneur choose to set up a franchise rather than
an independent business?
Scroll down to watch the Maid2Clean video
If you were to set up a cleaning business would you
choose a franchise such as Maid2Clean or your own
independent cleaning business?
1.1 STARTING A BUSINESS ENTERPRISE
F RANCHISES

Merits

Disadvantages

Lower risk option


Already established
Set up and running costs
can be high

Share profit

Reliant on others

Less independence in
decision making

Damage to brand
reputation




1.1 STARTING A BUSINESS ENTERPRISE
Recognised brand
Help and support
National advertising and
promotion
Tried and tested
F RANCHISES
Use the video link to visit the franchise direct
website, select up to 3 franchises you think you
may be interested in and watch the video
Team Task
Select one of the franchise opportunities from the ones viewed
above and prepare a short presentation to explain why, if you
were to open a franchise, you would choose this one.
Present your choice and reasons to the rest of the class.
As a class what were the common features of the franchises
chosen?
What were the common reasons given to justify the choices
made?
1.1 STARTING A BUSINESS ENTERPRISE
T EA T IME T REATS
Tessa runs a chain of three tea shops in the Lake District, each called
Tea Time Treats, followed by the name of the closest lake e.g. Tea
Time Treats in Windermere.
The tea shops have built a up a good reputation for fine quality teas
and delicious home made cakes to eat in or take away.
Tea Time Treats is now featured in many tourist guides for the area,
always with rave reviews.
Tessa is now keen to expand the business and is considering
offering the Tea Time Treat name as a franchise.
Question time
1. What is meant by the term franchise?
(2 marks)
2. Would Tessa be the franchisor or franchisee?
(1 mark)
3. Explain two reasons why an entrepreneur might choose to buy a
franchise from Tea Time Treats
(4 marks)
1.1 STARTING A BUSINESS ENTERPRISE
10 M INUTE T EST
1.1 STARTING A BUSINESS ENTERPRISE

State 2 reasons why businesses exist

State 2 sources of business ideas

What name is given to a not for profit business?

What name is given to a gap in a market?

State two reasons for starting a business

State two advantages and two disadvantages of a
franchise
End