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Econmomic and management sciences

Grade 6

The business plan

Module 8

The business concept

Even the best entrepreneur in the world will have a hard time to successfully manage certain businesses in particular environments.

  • A needlework shop in an industrial area could hardly hope to be successful.
  • Would it be advisable to open a very smart restaurant next to the sewerage works?

It therefore is very important that the entrepreneur should do his/her homework very thoroughly before beginning with a business venture. A sound and thorough business plan will ensure that he or she will do so. In this manner all possible aspects of the business are examined before any money is invested in the venture.

The main reason why anyone becomes involved in a business is to make money . But to make money, the customers' satisfaction must be ensured. A sound business plan will help to determine whether the business would be successful. A business plan should indicate why the business would be successful in the area for which it is planned and why the product or service that is envisaged for the potential customers, will be satisfactory. Answers to the following questions should be possible:

  • What will be done?
  • How will it be done?
  • Where will it be done?
  • How will the product be stored?
  • How will the product/service be distributed to customers?
  • How will after-sales service be provided?
  • Does the product have a unique and striking name and appearance?
  • Who will be the consumers or target market?
  • What will be done?

There are five main types ( categories ) of business with which a person could become involved:

  1. raw materials
  2. production
  3. distribution
  4. sales
  5. service

Let us look at some examples:

  • delivering balloons
  • providing beauty products
  • delivering beauty products
  • bottling of mineral or pure water
  • breeding of unusual pets
  • making business cards bearing photographs
  • calligraphy
  • car-washing/polishing
  • carpet cleaning service
  • temporary child minding service
  • handwork industry
  • disc jockey
  • making dolls and toys
  • exclusive diaries and greeting cards
  • delivering food
  • gardening services
  • purchasing, wrapping, decorating and delivery of gifts
  • herb growing
  • lawn care
  • pool care
  • baby's nappy delivery service
  • pet care
  • pet sitting
  • making garden compost
  • reading service for the aged and the blind
  • second hand clothing shop
  • shopping service
  • decorating/finishing of stones for gardens
  • telephone answering service
  • window cleaning service
  • candle making
  • providing ice
  • making jam
  • growing plants

Select at least two examples from this list to enter under each business category:

Category Example
  1. Raw material
  1. Production
  1. Distribution
  1. Sales
  1. Service

[LO 4.2]

Entrepreneurs also listen to what happens around them and are continuously on the lookout for business ideas from magazines, newspapers, discussions with friends, other businesses and existing services and products. A true entrepreneur searches for ideas to change and improve existing services and products to keep consumers happy. The product/service that an entrepreneur involves him/herself with initially is frequently substituted with another or better idea according to the way in which the entrepreneur gets to know the needs of his/her customers.

Remember that an entrepreneur may believe that he/she has a profitable idea, but he/she has to consider whether it would provide enough money to make a living? The entrepreneur first has to find suitable customers and afterwards has to see to it that their needs are met through providing a suitable service/product.

How will it be done?

Example:

Marius wants to start a car wash business. He lives in an area where many people possess new cars and travel great distances daily. The cars naturally become soiled very quickly and owners seldom have time to wash their own cars, although they like to have their cars clean. A new petrol station with an automatic car wash facility, however, has just opened nearby. If a driver puts more than R100 worth of petrol into his tank at this specific petrol station, he may have his car washed by the automatic machine for only R8. This takes place in direct competition with Marius, because the service is also rendered very quickly.

Marius has calculated that, if he takes car shampoo, water and time into consideration, he cannot offer his service for less than R10. This means that the customers will rather have their cars washed at the filling station when they are filling up their tanks.

Perhaps Marius simply has to market himself correctly. Perhaps he should concentrate on aspects that are ignored by the filling station. If he is unable to beat the price charged at the filling station, he should think about emphasizing the quality of his service and the convenience to the customer.

He might have to plan his marketing around the following aspects:

  • washing the client's car at his own house;
  • including proper cleaning of alloy wheels;
  • giving the assurance that aerials will not be damaged;
  • including the cleaning and vacuuming of the inside of the car;
  • using quality products only.
  • personal and dependable service;
  • cleaning windows with a special cleaning agent;
  • not having to wait in queues, etc.

Marius will have to advertise his service seriously and concentrate on the advantages, but he should also be willing to offer a basic car wash without any extras at R5 only, so that the client will feel that he/she still has the option of choice. He would also have to be willing to listen to his clients and to ensure that he keeps a step ahead of his competitors in his efforts to satisfy his clients.

Assessment

Learning Outcomes(LOs)
LO 4
ENTREPRENEURIAL KNOWLEDGE AND SKILLSThe learner will be able to demonstrate entrepreneurial knowledge, skills and attitudes.
Assessment Standards(ASs)
We know this when the learner :
4.2 identifies a variety of possible business opportunities in the community (school co-operatives, sports, entertainment, tourism);
4.3 designs an advertising campaign to promote a product that will generate a profit;
4.4 participates in a fair or market day at school or in the community to practice and apply entrepreneurial knowledge and skills;
4.5 describes how the four elements of the marketing mix are combined in a simple business activity.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
ya I also want to know the raman spectra
Bhagvanji
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
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Source:  OpenStax, Economic and management sciences grade 6. OpenStax CNX. Sep 08, 2009 Download for free at http://cnx.org/content/col11013/1.1
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