Guidelines on Learning Aim A
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Learning Aim A: Explore potential ideas for a micro-business start-up
A.P1. Describe the potential business opportunities for a micro-business start-up
1. What is the potential opportunity (gap in the market)
- You may run a SWOT analysis for your selected micro-business start-up and that of the industry.
- Size of the business- Describe at least 5 different new micro business ideas (employing no more than 4 people and explain how these ideas were generated).
- Review your business choices and narrow down to one business idea and explain why you have chosen this idea (Decision Matrix).
- Business Structure/ Ownership- Which type is used (Sole trader, Partnership, Limited company etc.).
- The application of business model canvas: Activities, Customer relationships, Customer segments, Key partners, Value proposition, Resources, Cost structure, Channels, Revenue streams.
- Good/ Product or Service and/or market covering range of ideas for product design and development which is realistic and viable that you will try to sell.
- Offer benefits, its purpose, processes (location, potential market by covering demographics or market segmentation including expectation, pattern of buying/ shopping habits of target customers), how you would get the product to the customer.
- Business Activity (Primary, Secondary, Tertiary sector of activity).
6. Processes- Manufacturing, Outsourcing, Sourcing, Channels to market.
7. Organisational form- Structure of business form breakdown onhow communication in business will be used, roles and responsibilities of each employees/partner or chain of command and what each person will do specifically).
8. You should have concluded with a paragraph stating which one of the explored ideas (including several supporting justifications for the selected idea over the others).
A.P2. Review the factors that need to be considered to start up a micro business
1. I have reviewed how at least 4 factors from below will impact my new micro business:
- Capability and core competencies
- Time constraints
- Financial constraints
- Potential stakeholder influences
- Access to physical resources (equipment/ machinery etc.)
- Availability of IT (IT)
- Environmental influences (PEST factors should be explored)
- Internal risks (HR issues, Technology, Physical, own skills/ experience)
- External risks (Economic, Legislation, Political, Nature, Competitors)
2. You should have explored at leastfour factors (from the list above) and explained the extent to which they could pose a risk to your chosen micro business idea.
3. You should have explored and weighted the significance of the internal/external factors and explained which factors may have more impact than others on your micro business idea.
4. You may usea decision matrix to ‘weigh up’ options OR to weigh up factors for your chosen idea.
5. You should end with a conclusion that summaries the reasons forand against your selected business.