Section 1 - Aylesford School, Kent | Courage Confidence ...



Level 2 Tech Award Enterprise Planning and Pitching an Enterprise Activity Component 2Student Business PlanKS4You will be required to conduct Primary Research by completing a questionnaire for your selected business ideaModel Business Idea Cookies When asking friends and families for their opinions for business ideas many of them said that food and particularly ‘treats’ are always popular when you go to events/sales. I was aware from a school enterprise project that there was not a huge margin in selling of sweet bags/cones when you balance the time commitment. I then considered cakes but felt these have a high cost as butter for buttercream is currently quite expensive to purchase. When I visited the primary school sale before, I remembered that there were other cake traders, and there is more scope for cakes to go wrong if they do not rise and they are trickier to transport and keep looking nice so I decided if I were going to do any food item cookies would be best. I would make large cookies (size of a saucer) with large eye-catching fillings such as smarties or giant buttons. Market research: This was the most popular idea with a majority of the 18 asked saying they would look to buy food items and the average score of likelihood to purchase was a 2 so this suggest it is likely people would make the purchase of cookies. When asking for the average price people would be prepared to pay a number of responses mentioned they would expect deals e.g. 5 for ?4 or that they would only be prepared to pay more than a ?1 if they were big and looked of good quality. Pros: ? Most popular with market research ? Other food and cake stalls did sell some flapjacks/biscuits but there was no other novelty cookie seller ? Baking tools needed to make cookies are more limited than other items and the basics aren't that expensive e.g baking sheet, grease proof paper ? Likely to be popular with a wide range of customers throughout the selling time available between 6am-11am Cons: ? Baking can be time consuming to bake in quantities that will generate a good income and enough for 5 hours of trading ? There may be too many or too little cookies for the first sale whilst demand is established, and any leftover would be wasted ? Not every cookie made may be sellable so there is an element of wastage ? No previous experience of making cookies or understanding of this market ? Food allergies, labelling laws and hygiene certificates are likely to be barriers to the success of the business ? An increase of awareness of healthy eating and good habits so are people not going to want to buy sugary treats for themselves/children – especially as quite a few of the customers who come through the sale are attending the parkrun. ? Competition from other sellers who sell sweet treats and many who do this professionally ? To maintain freshness, you need to bake frequently and always the night before the event so this can become a burden Brainstorming your Business IdeaYou have been invited by the local chamber of commerce to submit a micro-business idea them. What you need to do:Instructions: Think of 6 ideas for your own micro-enterprise (small business), using market researchUse pictures to make your work more interesting. Your business idea must be legal in the United Kingdom The business should be realistic and within your skill setStart-up cost should be under ?1000- ?5000Your business ideas Section 1Bronze: Describe three potential business ideas using market research Silver: Prepare a detailed,well-structured realistic planfor a final micro-enterpriseactivity, giving detailedreasons for choice of ideasupported by individual research Gold: Prepare acomprehensive and realisticplan for a finalmicro-enterprise activity,supported by clear individual research.Select three 3 ideas (based on the six above) for your own micro-enterprise, using market researchBe creative in thinking of 3 business ideas. (Remember these must be creative ideas which you could develop into your coursework. They must be achievable. My business ideas are: (brief overview about your ideas)1.2.3. Write two paragraphs to describe business idea 1left88900What is happening in the industry of the business? Are sales increasing or are they in decline?What is happening in the economy – i.e. are we in recession or not? Are interest rates high or low? How would this affect the industry/business?Explain facts about the local area that you have found out (population, income/house prices00What is happening in the industry of the business? Are sales increasing or are they in decline?What is happening in the economy – i.e. are we in recession or not? Are interest rates high or low? How would this affect the industry/business?Explain facts about the local area that you have found out (population, income/house pricesMarket research: What market research will you carry out for business idea 1 and why?38195247620Customer NeExplain why it is important to carry out market research to find out what customers are looking for.Explain how you might carry out the research.Design a questionnaire to find out what the customer will be looking for.You need to ask questions aboutThe product/serviceLocationPriceadvertising00Customer NeExplain why it is important to carry out market research to find out what customers are looking for.Explain how you might carry out the research.Design a questionnaire to find out what the customer will be looking for.You need to ask questions aboutThe product/serviceLocationPriceadvertisingSecondary Research: Primary Research: What’s good about your business idea 1?Example: not many businesses with this ideaWhat might the problems be with business idea 1?Example: will need a license which costs ?300. It’s too expensiveWrite two paragraphs to describe business idea 2Market research: What market research will you carry out for business idea 2 and why?Secondary Research: Primary Research: What’s good about your business idea 2?Example: not many businesses with this ideaWhat might the problems be with business idea 2?Example: will need a license which costs ?300. It’s too expensiveWrite two paragraphs to give a description of Business 3Market research: What market research will you carry out for business idea 3 and why?Secondary Research: Primary Research: What’s good about your business idea 3?Example: Example: not many businesses with this ideaWhat might the problems be with business idea 3?Example: Will need a license this cost ?300. It’s too expensive.Section two Choose ONE of your ideas and write a plan for the small business that you have chosen to develop.The business name: 2.1 Your business name and logo: 2.2 Strapline/Slogan: 2.3 Business overview: 2.4 What are you going to sell? What are the Aims of the micro-enterprise? TWO financial aims: Remember aims should be SMART Example: To make a profit by second year of trading TWO non- financial aims: Example: Build customer satisfaction Section 3: About your product Answer the questions below:Product or service to be sold1. What product or service offer does your business offer? 2. Why would that be a benefit to your customers? (Give 3 features and explain why they would be beneficial.)3. Is your product or service unique in any way? 4. Do you offer anything completely different to other Businesses? 5. Why would it be good that you are unique and one of a kind?Selling Price1. How much will you be selling your product for? 2. How did you decide on that? What calculations did you use?3. What happens if the price of the product is too high or too low?4. Do you have any research to back up what you are saying?Cost1. How much will your product or service cost to make? 2. How much do you need to buy materials? 3. How many staff will you need?4. How much will they cost?Section 4: Competitors right236220Think about: their location, the services they offer, how the business is a threat to your business- do they offer more products and service- their customer service 00Think about: their location, the services they offer, how the business is a threat to your business- do they offer more products and service- their customer service Describe in detail what the different companies offer and whether or not they are a potential threat to this business.-1. Why do we need to consider our competitors?3. Why do you need to keep a close eye on them? 4. Could they inform you about the sort of price you should be charging?5. Who are your competitors? Complete the table below Table of CompetitorsName and Location of Business Business Size Products or services provided Price Strengths Weakness Section 5: Market research - Identifying the target market: Primary Market Research: Design a questionnaire to find out what the customer will be looking for.You need to ask questions aboutThe product/serviceLocationPriceadvertisingIdentifying the target market: Market SegmentationExplain the different types of market segments (i.e. geographic, psychographic etc.)2. Why is segmenting the market important?Appeal to Target Market1. Who is your target market/customers?2. How can you adapt your business to appeal to certain target markets?3. Why is it helpful for you to adapt to target markets and appeal to them?How will product or service will reach market, e.g. selling direct, online or both?1. What have you done to reach your target market?2. Where will you sell your product online or in a shop?3. Will you use sales promotion/discounts to particular groups of people to attract them? Why?Establishing and sustaining sales to the target customers.1. What could you do to try to get customers interested or coming to your business instead of your competitors?2. Is there anything you can do to maintain those customers? 3. What would keep them returning to your business rather than going somewhere else?Section 6: Methods of communication with the customerselection of methods, e.g. advertising, use of social media Advertising methods What method are you planning to use Why have you selected this method How much will it cost From the table above, select three methods of advertising, which would be suitable to promote your business, explain your selection?How would your choice or advertising help you to reach our target market better?Cost effectiveness 1. Is your choice of advertising cheap and effective for a micro-business? 2. What would be the best choice of advertising for a small business with limited money?Design of promotional materials 1. Design your own advertising campaign to advertise your business or product.2. Attach a copy of your leaflet or a poster that you would use to advertise your business?3. Create a website or social media page to promote your business (include a screen shot)?Section 7: Resources required Resources required: What are the physical resources you need to start your business? 1. What materials/equipment will you need to make your product or service? How much will they cost?Physical Resources Location: where you your business be located Cost-List the materials requiredList the EquipmentFixtures and fittings Information Technology Stock Others 2. How much stock will you need at any one point?3. Why do you need to keep track of your stock?Start- up & Running Costs 1. What do you need to purchase in order to open your enterprise? 2. How much will this all cost?4. What do we need to pay on a month-by-month basis? How much salary and wages do you need to pay each month Estimate how much you will pay for gas, telephone, internet electricity and water per month 6. How much will your products or services cost to make? 7. Why is it important to know this? Create a Break Even Analysis Prepare a Cash flow Forecast Financial resources1. Identify five different sources where you could get funding to start your businesses, and what are the benefits and problems of using these sources? Where can we find funding for our businesses? The bank? The government? What are the pros and cons of different sources?Type of Finance Explain this type of finance Pros Cons Human resources, e.g. skills and roles, possible training and development needs 1. What type of staff do you need to employ? 2. What skills do the different job holders need in order to be good at their job?4. What would be your monthly staff costs? Section 8: Risk Assessment1. Identify and explain 6 risks involved in starting up this business?2. How you plan to overcome these risks and issues should they arise?The Complete, 12-Step Guide to Starting a Business“A step by step guide to starting your own Business. A condensed guidance of the key factors you need to consider when starting your own Business” your own business? Follow our beginner's guide“This article examines the practicalities of starting your own Business and gives a beginner’s perspective on issues that start up Enterprises are likely to face” Up a Business“The government website gives some fantastic guidance on how to set up a Business and also provides links to real pieces of documentation that would help an Entrepreneur establish a Business” Complete 35 step guide for Entrepreneurs starting a Business“This article gives a more comprehensive guide to starting your own Business and covers most aspects of the Business plan that Pearson/BTEC expect to see” BBC ‘Bitesize’ – Enterprise has several videos that might be appropriate including:Promoting products at a market stall; bbc.co.uk/education/clips/zwj4kqtYoung Entrepreneur:bbc.co.uk/education/clips/ztqs34jExploring business and enterprise at Reading Festival:bbc.co.uk/education/clips/z8vm6sgNext: Think about the skills you will require to pitch your business idea Business Pitch Preparation Slide 1: Your Business Logo and NamePlan:YOU MUST: Give a small explanation stating why you chose to design your logo the way did and what made you settle on your Business nameSlide 2: Description of the Business and products you are selling.Plan:YOU MUST: Justify why you have chosen to offer the particular products/services that you are offering. Is this based on research? Do you think the idea will be popular in the local area?Slide 3: Financial and Non-Financial ObjectivesPlan:YOU MUST: Justify why you have set these objectives. Do you think the objectives are realistic? Did you design them bearing in mind you are a new Business? Or with a social goal in mind (i.e. recycling)?Slide 4: Price of products and cost of materialsPlan:YOU MUST: Justify why you have chosen to price your products as you have. Is this based on research (hopefully), will your price help you beat your competition? Consider how much your products/services cost to make. Did this come into the decision?Slide 5: Demographic of your BusinessPlan:YOU MUST: Explain why knowing your demographic (target market) would be useful to your Business. How would it allow you to advertise/produce products/services that would appeal to them?Slide 6: Promotional activities you are going to conduct (how did slide 5 influence this)Plan:YOU MUST: Justify your choice of promotional methods. Why did you choose them? Did you choose your activities based on your target market? Did the cost of the activity and the fact you are a new Business affect your decisionSlide 7: What resources do you require?Plan:YOU MUST: Explain the physical, financial and human resources you require. Explain how each of them is likely to make your Business successful. Give specific examples from each category (physical, financial, human)Slide 8: What methods of short and long term finance does your Business propose usingPlan:YOU MUST: Justify why you have chosen types of short and long term finance. What made you decide on your short term finance? What made you decide on your long term finance?Slide 9: Break even analysisPlan:YOU MUST: Explain how you calculated your breakeven point. Do you think it is realistic? Are your costs too high? Do you need to sell your product for more?Slide 10 - Cash Flow ForecastPlan:YOU MUST: Explain the key features of your cash flow forecast. E.g. net cash flow, outflows etc. Justify how this cash flow forecast has given you confidence that your Business will be profitable.Slide 11 - Human Resources (what jobs will your Business require and what skills these will people need to possess?)Plan:Refer to earlier slideSlide 12 SWOT Analysis (if you have completed it)Plan:YOU MUST: Explain your key opportunities and threats. Explain how you will take advantage of your opportunities and try to minimise your threats.Slide 13 Risk AssessmentPlan:YOU MUST: Explain what your risks are and how they will impact upon the business. What can you do to overcome these risks? GOLD Multiple Choice Questions – 20 credits1.What is the name given to the investigation of the customers and competition of a potential Business idea?a.Promotionb.Market Researchc.Start up2.What are the two main categories of objective a new Business should set itself? a.Financial and Non-Financialb.Start up and Operatingc.Short and Long Term 3.Which phrase bests fits the following description: “A group of people or customers who you will predominantly aim your products at”?a.Audienceb.Consumersc.Target Market4.Which of the terms below involves the breaking down of customers into groups or sub sections?a.Market Segmentationb.Market involvementc.Market Teams5.Which of the terms below is a form of sales promotion?a.Buy one get one freeb.Public Relationsc.Advertising6.Which of the terms below represents a Physical Resource a Business would need to operate?a.Intellectual Propertyb.Copyrightc.Machinery7.Which of the terms below is a short term method of Finance a Business may choose to use?a.Mortgageb.Bank Loanc.Trade Credit8.Which of the terms below is a long term method of finance a Business may choose to use?a.Credit Cardb.Trade Creditc.Mortgage9.The point at which a Business has covered all its costs is called:a.Break Evenb.Cash Flowc.Profit and Loss10.What is the name given to a common internal and external risk assessment tool?a.SWOTb.PESTLEc.Contingency ................
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