Generating a Business Idea with Limited Funds: Activity

Topics: Business, Small business, Franchising Pages: 8 (2407 words) Published: September 20, 2014
Small Business, Entrepreneurship, and Franchises

ACTIVITY:
This activity is designed to encourage students to appreciate the process of generating business idea with limited funds. Anybody can come up with a good business idea regardless of their age, race, experience and others.

Time Limit: 35 minutes

What to Do:
1. Place students in 3 or 4 member per group and ask each group to come up with a business idea that will work. For this activity, each group has to come up with a business idea that will limit funding of only RM50, 000. Groups should consider the following questions: (30 minutes)

What is my product or service?
Who are my customers?
Where are my customers located?
Is my business idea easily copied? Do I face huge competitions? From who? If there are substitutes for my product or service, how can I make my product/service stand out from competitors’ offerings? A simple breakdown of the costs involved.

2. Reassemble the class and ask each group to share their ideas. (15 minutes)

Tips to tutor: There are three ways to generate a business idea. 1) By looking into a problem and coming out with ways that can solve them and at the same time make money. 2) By taking advantage of current trends. 3) By innovating existing products.

Don’t Forget:
Encourage students to be as innovative as possible in completing this activity; some of the seemingly silliest ideas have become multimillion-dollar ventures. If you want them to develop their ideas even more, you may want to assign Step 1 as group homework and then discuss their progress as a class the next time you meet.

MCQ

1.A small business is all of the following except
a.
independently owned.
b.
operated for profit.
c.
dominant in its field.
d.
difficult to manage.
e.
demanding of the owner's time and attention.
ANSWER: C

2.Which of the following organizations would be considered a small business? a.
Producer of semiconductors with 2,000 employees
b.
Wholesaler with 50 employees
c.
Retail clothing store chain with annual sales of $26 million d.
Construction company with average annual receipts of $32 million e.
Farmer with annual receipts of $10 million
ANSWER: B

3.A company generally needs more than ____ employees in order to be considered large. a.
50
b.
100
c.
300
d.
500
e.
1,000
ANSWER: D

4.What is the primary reason that so many new businesses fail? a.
Owner does not work hard enough
b.
Mismanagement resulting from lack of business know-how
c.
Low employee quality for new businesses
d.
Lack of brand-name recognition
e.
Inability to compete with well-established brand names
ANSWER: B

5.Which of the following is not considered a category in the distribution (INTERMEDIARIES) industries? a.
Manufacturing
b.
Wholesaling
c.
Retailing
d.
Transportation
e.
Communications
ANSWER: A

6.Statistically, approximately what percentage of all new businesses can be expected to fail within their first seven years? a.
10
b.
24
c.
50
d.
31
e.
69
ANSWER: E

7.Ben has been thinking about going into business. However, he has discounted entering automobile manufacturing because it a.
requires little skill and knowledge.
b.
is not a part of the production industry.
c.
requires huge investments in machinery and equipment.
d.
is unprofitable.
e.
requires by law a corporate form of business.
ANSWER: C

8 Businesses are generally placed into three broad categories: service industries, production industries, and ____ industries. a.
Financial
b.
manufacturing
c.
distribution
d.
transportation
e.
Retailing
ANSWER: C

9.The industry concerned with the movement of goods from producer to consumer is a.
service.
b.
distribution.
c.
production.
d.
agriculture.
e.
wholesaling.
ANSWER: B

10.Joe decides to start his own business designing websites for other businesses. Joe's business would be classified as...
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