Information on Starting a Small Business

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Information on Starting a Small Business document sample

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posted:: 8/16/2010
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BUSINESS CONCEPT
ASSESSMENT
Workbook
Business Concept Assessment Workbook

Table of Contents
1 WHY START A SMALL BUSINESS? ..........................................................3
WHY START A SMALL BUSINESS? .............................................................3

MOTIVES FOR STARTING AND OPERATING A SMALL BUSINESS .................4
TEN MYTHS OF STARTING A SMALL BUSINESS………………………..… 5

2 MARKET RESEARCH [QUESTION 8] ........................................................ 6
TYPES OF MARKET RESEARCH…………………………………………...6

PPRIMARY RESEARCH ..................................... …………………………6
SECONDARY RESEARCH ...........................................................................7

3 MARKETING YOUR BUSINESS [QUESTION 9 & 10]……..………………8
INTRODUCTION ....................................................................................…8

WHY PEOPLE BUY ....................................................................................8

PROMOTION AND SELLING .....................................................................10
4 COMPETITOR ANALYSIS (QUESTION 11) ..............................................11
STRENGTHS AND WEAKNESSES..............................................................12

5 FINDING THE MONEY TO START [QUESTION 22] ..............................15
TYPES OF BUSINESS LOANS.. ..................................................................16

SOURCES OF FUNDS................................................................................17

6 INFORMATION AND RESOURCES ...........................................................18

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Business Concept Assessment Workbook

Starting a Small Business
My Notes
Why Start a Small Business?
Completing the following sentences should help you to better understand
your personal motivations for starting a small business:

1. I am going to start my own business because:

2. I want to start my own business but:

3. My main motivation for starting a business is:

4. When I talk about starting my own business, my family, friends
and relatives think:

5. People are successful in business because:

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Business Concept Assessment Workbook

Motives for Starting & Operating a Small
Business
My Notes

What do you think are the top six motives of people starting a small
business?

List the top six motives of people continuing a successful business

Research shows that these motives are relatively universal. However,
market conditions and the state of the economy will affect the ranking of
importance of each item.

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Business Concept Assessment Workbook

Ten Myths of Starting a Small Business
My Notes

Before starting your business, consider whether or not you
may be falling for some of the common myths about starting
a business.

1. It’s easy.
2. I can get a government grant to get started.

3. My product or service will sell itself.

4. I will be able to enjoy lots of leisure time because
I’m my own boss.

5. I can hire someone to do the stuff I don’t like to do.

6. I will get rich.

7. I don’t have to like what I do to make money in my
business.

8. The competition is really poor at what they do.

9. I can do it cheaper than everyone else can.

10. Because I have better quality, everyone will want my
product or service.

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Business Concept Assessment Workbook

Market Research
My Notes
Types of Market Research

There are two types of market research: primary and secondary. You may
find your need to do both in order to prepare your marketing plan.

Primary Research
Primary Research is information that you collect. You may collect the
information personally or hire somebody to collect it for you. Primary
research may be necessary and helpful to provide information in areas that
secondary research cannot. Sources of primary research include:

 Personal Interviews
 Telephone Surveys
 Observational Techniques
 Mail Surveys
 Focus Groups
 Personal Interview or Telephone Survey

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Business Concept Assessment Workbook

Market Research (continued)
My Notes
Secondary Research
Secondary Research uses information that already exists. You will collect
information according to the questions you have about:
 demographics
 customer characteristics
 environment

Demographics
Examples of statistics available include:
 Population of trade area, number of households
 Gender, age, income, occupation, education

Customer Characteristics
You will also need to determine who your ideal customers are:
 What proportion of the population has a need for your product?
 How does that translate into actual numbers?
 Is your product viewed as a necessity or a luxury?
 What price are they willing to pay?
 What do they presently buy, and where do they buy it and why?
 How often do they buy?
 What is important about your product or service to customers?
 Who in the household/business makes the decision?

Environment
There are many outside influences that may positively or negatively affect
the success of your business. Environmental influences include:
 Governmental regulations and incentives
 Social and cultural changes
 Economic forces
 Technological change

You might begin with Secondary Research, then conduct some Primary
Research to test your assumptions or refine the information you receive. A
complete market research program will likely include both.

Some sources for Secondary Research are:

 School Board Office and Regional Government Offices
 Downtown Business Associations and Trade Associations
 Newspapers, Radio, TV, internet
 Statistics Canada and B.C. Statistics
 Trade Publications, magazines, library

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Business Concept Assessment Workbook

Marketing Your Business
My Notes
Introduction
Many new business owners believe that if they produce a quality product
at a good price their business will establish itself in the marketplace.
Although this could be the case, it is very unlikely that your business will
“sell itself” without any thought given to how it will be marketed.

THE CUSTOMER IS NOT BUYING

YOUR PRODUCT OR SERVICE
THEY ARE BUYING THE

SOLUTIONS AND BENEFITS
YOUR PRODUCT OR SERVICE PROVIDES

Why will they buy from you?
1. Why People Buy
People buy goods and services to satisfy their needs and wants. These might be
physical needs – food, shelter, clothing, transportation, etc. People also buy to satisfy
emotional needs – prestige, safety, pleasure, convenience, comfort, etc. Once a
person’s basic needs have been met, their purchases are largely motivated by
emotional needs.

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