Unit 2: Part 1

Understand why business ideas are successful

Successful ventures: ways to meet customer needs, eg products or services; identifying new customer needs, eg life coach, social networking websites; methods of meeting established customer needs, eg online, healthcare services, leisure products, DIY products, leisure services; the ideas and actions of creative young business men and women such as Tanya Budd, Rose Grimond, Sergey Brin, Mark Zukerberg; importance of the vision

Measures of success: eg financial, social, customer satisfaction; meeting identified customer needs; finding innovative solutions to meet customer needs.
 

Learner outcomes - Part1:

• The learner should question real entrepreneurs about how their ideas were developed and about the ideas that were discarded.
• Learners should explore the stories of entrepreneurs with whom they can identify. A list of young entrepreneurs has been supplied in the content of the unit but this is indicative only and a variety of media and activities are available to carry out the investigation.
• Learners need to think in terms of meeting customers’ needs or aspirations as being the basis for all enterprises and to explore how often new ideas meet established needs in an innovative way.
• Learners are required to become adept at identifying the difference between the features of a product or service and the perceived benefits to the consumer. For example, the features of training shoes are that they are made of lightweight material and have thick soles, and the benefits are that they bring comfort and make the wearer feel like an athlete.
• New social enterprises could form part of this research even for those who are not considering developing a social enterprise.

Unit 2: Part 2

Be able to assess the suitability of a business idea

Idea selection and reasons: estimating resources required to develop ideas; own time; others’ time; skills; finance; premises; area of interest; personal commitment to the idea; selecting the idea that is most appropriate:

• Likelihood of success or failure: access to prospective customers; existing demand; estimating profitability.
• Identification of major barriers for a start-up business: eg large start-up costs; cash flow; licences.
• Longer-term benefits: links with vision; skill development; passion for idea.

Learner outcomes - Part 2: 

• The learner requires a different type of thinking, although learners still should envisage a future that is different from the present.
• Learners now need to become more critical and consider the feasibility of business ideas.
• Learners should work through several of their own business proposals, discussing the challenges and advantages of each and agreeing which one has the greatest chance of success, before going on to assess the ideas they have produced.

Unit 2: Part 3

Be able to articulate a coherent vision for a new business idea

Business ideas: product or service; features of typical ‘targeted’ customers: age; location; interests; concerns; the benefit to customers or consumers of product or service; difference between ‘benefits’ and ‘features’

Plan: vision, concept, possible customers, possible routes to market, strategy for dealing with competitors, ideas for financing, ideas for implementation, ideas for expansion, ideas for closure (if appropriate), eg selling a business, closing a business.

Learner outcomes - Part 3:

• The learners need to take an idea and explain how it could be developed over a period of at least two years. If learners are planning to undertake other units in the BTEC Level 2 in Enterprise and Entrepreneurship then they should select an idea that is manageable for this qualification.
• If learners have undertaken Toolkits for Idea Generation, they should be able to select an idea from the outcomes of this unit.
• Otherwise, learners should develop an existing idea that has been the subject of their learning for learning outcome Part 1.

Unit 2: Part 4

Be able to use sources of help and support in developing a new business

Sources: Business Link; bank manager; other businesses; advice agencies

Networks: Chambers of Commerce; trade associations; professional bodies; friends and family; charities and voluntary organisations

Consult: eg for advice about business ideas; ensuring security of the idea.

Learner outcomes - Part 4:

• The learner needs to investigate sources of advice and guidance as well as supporting networks that would be relevant for their selected business idea development.
• Learners should research relevant local resources. A visiting speaker such as an entrepreneur or someone from a business body would support learning.
• Learners should consult sources of advice and guidance, and networks for help in planning ideas, ensuring that they are confident of the security of the idea.