3.2 How will the business be run?  (Page 2/2)

Remember that the client does not buy a product/service only. The relationship with the client is part of the service/product. Many entrepreneurs fail when it comes to this aspect of the business.

Clients want to feel that they are important. A reliable client can become the greatest asset of a business. For this reason the entrepreneur has to be focused on what keeps clients happy continually.

• Will the product have a unique and striking name and appearance?

The best way to ensure the success of a business is to make it prominent. It must not merely offer another product. It has to stand out among the rest with a unique name and logo. Try to reach the target group and try to offer something that is not available from your competitors.

Example:

Peter earns a good income from taking care of lawns for homeowners in his immediate vicinity. He distinguishes himself from persons offering the same kind of service, by allowing his clients to determine for themselves when their lawns need more or less attention. He then takes it further by not only cutting the grass and the edges, but also fertilizing lawns according to what is required, adjusting the irrigation and mowing schedule to the growth rate of the grass. Peter also uses a roller type lawn mower because this provides the best results. He refers to himself as "the lawn expert who makes grass his business" and makes a point of knowing everything that is to be known about all different types of grass. He will also provide clients with advice on lawns or sections of lawns that do not do well because of the microclimate of a particular garden or area in a garden. He can also justifiably advertise the fact that” his” gardens/lawns are the best in the neighbourhood.

• Who will be the consumers or target market?

Clients form the most important part of the business. Without them there would not be a business. It therefore is important to know who your clients would be, long before you start your business.

Try to think of people who might become clients and answer the following questions:

• Are the prospective clients able to afford the product or service?
• Name three other entrepreneurs/businesses that provide a similar service or product in the vicinity.
• Why would clients decide not to buy from them?
• How will possible clients become aware of your business?

[LO 4.2]

• What is the existing competition?

Every business has to deal with many different competitors. The situation of one business being in constant competition with another creates opportunities for a creative entrepreneur. He/she has to find the weaknesses of the competitors and utilize these to his/her own advantage.

Businesses that offer the same product/service are not the only ones that compete with you. Those that offer a different kind of product/service also compete against you. One window washing enterprise must not regard only a similar enterprise as competition, but must also be aware of the competition offered by something like a brand of window cleaner that does not require rubbing dry, but merely has to be applied and then rinsed off.

Remember that the consumer is not only on the lookout for lower prices, but factors like neatness, accessibility, good marketing and personal service also attract consumers.

Assignment

• Will there be buyers for the product/service?

Study the following questionnaire and use it as a guideline to help you decide on whether an enterprise is viable.

1. What is the name of the enterprise?
2. What is the product/service?
3. Why do you want to market it / sell it?
4. Who are the clients?
5. How does the product/service address the needs of the clients?
6. Which areas will be served?
7. Who are the competitors?
8. Why would clients prefer this enterprise above another?
9. Where are the premises?
10. What are the positive aspects of the premises?
11. What are the weaknesses of the location?
12. Why were the particular premises selected?
13. What is the proposed price of the product/service?

1. How will the product/service be introduced to the community?
2. How do the prices differ from those of the competitors?
3. Why is there a price difference?
4. Which media will be used to introduce the product initially?
5. What message do you want to convey to the clients?
6. Is the product restricted to a particular season?
7. If YES, what will you do off-season?
8. Are there specific regulations that have to be adhered to concerning the product?
9. What do the members of your family have to say about your plans?

[LO 4.2, 4.5]

Design an advertisement that will promote your product/service.

[LO 4.3]

Assessment

Learning Outcomes (LOs)

LO 4

ENTREPRENEURIAL KNOWLEDGE AND SKILLS

The 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.