Work Ready
IN THIS LESSON
Filter your idea to see if it really makes sense...
…like if people can afford to buy what you’re selling.
SWOT Analysis
This refers to knowing your strengths, weaknesses, opportunities and threats. By threats we mean businesses like yours that are your competitors. After you decide to start a business, research your idea, know what makes it good and what weakens it, and also what opportunities you can use to help your business succeed.
Research Your Idea
This is also called market research. Speak to people about what they expect from certain products and services, use the internet, speak to people who are already in business and get as much information as possible. Network!
TIP: WEAKNESSES ARE OPPORTUNITIES!
When comparing your strengths and weaknesses, don’t give up or be too hard on yourself. Your weaknesses are not a failure. They’re an opportunity to improve your ideas and plans. The best entrepreneurs are ones that never give up.
Refine Your Idea
Filter your idea to see if it really makes sense, like if people can afford to buy what you’re selling. If you want to open a salon for young people, does it make sense to sell weaves that cost thousands of rands? Filtering your idea will make it stronger. Figure out who your target market is, and what their spending power is.
Important Words You Need to Know:
It’s important to know words that are used in the business world.
Here’s the most common words and what they mean:
Assets are the tools and equipment you buy for your business, for instance hair dryers for your salon.
A business plan is a document with your goals and how you plan on meeting them.
A business proposal is a document that tells clients and funders about your business, the service or products you’ll be offering and how your business will compete with others like it.
More Important Words You Need to Know:
Capital is the money used to start and run a business.
Expense is the amount of money that is needed to pay for or buy something.
Liability is the money that your business must pay back, like a loan.
Important Things to Remember
Look for ideas that solve an important problem in your community.
Examine your idea to see which aspects of it make sense and those that don’t.
Research your idea by speaking to experts and potential customers.
Know your strengths, weaknesses, opportunities and threats.
Have a business plan with your goals and objectives.
Be practical and ask yourself if your idea makes sense.