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.