Final Draft

Generate
Your
Business
Idea
(GYB)
WORKBOOK
This Generate Your Business Idea
(GYB) Workbook was developed by the
International Labor Office (ILO) to be used
in the Entrepreneurship component of Joint
Project on Youth Employment and Migration
(JP-YEM) Project in the Philippines. The
component is designed to enable people,
including young men and women, to draw
up a business plan for a business they wish
to start. However, in order to produce a
business plan people need to have a clear
idea of the business they propose to start.
This workbook enables potential micro and
small entrepreneurs to generate and
analyze business ideas and select the
best one which can be used as a basis for
a business plan and subsequently be
developed into a successful business.

This workbook is given to participants in a

Training of Entrepreneurs (ToE) on
GYB conducted by an ILO-certified SYB
Trainer. It is accompanied by a Personal
Assessment Exercise to be distributed by
the trainer at the beginning of the training.
All activities in this material should be
guided by the SYB Trainer. It takes around
two (2) days to accomplish this workbook.

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TABLE OF CONTENTS

ARE YOU READY TO START A BUSINESS? 3

ACTIVITY 1 – PERSONAL ASSESSMENT EXERCISE 3

ACTIVITY 2 – STRENGTHENING MYSELF 5

WHAT IS A BUSINESS IDEA? 6

GENERATE YOUR BUSINESS IDEAS 7

ACTIVITY 3 – START WITH YOURSELF 9

ACTIVITY 4 – DIFFERENT TYPES OF BUSINESS 11
ACTIVITY 5 – BRAINSTORMING 11
ACTIVITY 6 – INVESTIGATING YOUR ENVIRONMENT 12
ACTIVITY 7 – USING EXPERIENCES OF CUSTOMERS 13
ACTIVITY 8 – VISIT THE LOCAL BUSINESS AREA 14
ACTIVITY 9 – IDEAS LIST 17

ANALYZE YOUR BUSINESS IDEAS 18

SAMPLE SWOT ANALYSIS 19

ACTIVITY 10 – SWOT ANALYSIS 20

YOUR OWN BUSINESS IDEA 24

Activity 11 – Write Your Business Idea 25

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Are You Ready to Start a Business?
Activity 1 – Personal Assessment Exercise

Your trainer will give you a document called the Personal Assessment Exercise.
Follow the instructions and accomplish it.

Scoring Guide:

For each item, give yourself the score based on your answers indicated under A or B.
For example, if you selected statement A in the first item of Topic 1, you get 2
points. If you chose B, you get 0.

TOPIC TOPIC TOPIC TOPIC TOPIC

1 A B 2 A B 3 A B 4 A B 5 A B
1 2 0 1 0 2 1 2 0 1 0 2 1 0 2
2 0 2 2 2 0 2 0 2 2 2 0 2 2 0
3 0 2 3 0 2 3 2 0 3 0 2 3 0 2
4 2 0 4 2 0 4 0 2 4 2 0 4 2 0
5 0 2 5 0 2 5 2 0 5 0 2 5 2 0

TOPIC TOPIC TOPIC TOPIC TOPIC

6 A B 7 A B 8 A B 9 A B 10 A B
1 2 0 1 2 0 1 0 2 1 0 2 1 0 2
2 0 2 2 2 0 2 2 0 2 2 0 2 2 0
3 2 0 3 0 2 3 2 0 3 0 2 3 0 2
4 0 2 4 2 0 4 2 0 4 2 0 4 0 2
5 2 0 5 0 2 5 2 0 5 2 0 5 2 0

Before going into business you need to find out if you are ready in the first place.
Not everyone is. Ask yourself: “Do I have the capacities, abilities and the experience
needed to start and run my own business?” If not, you should find out your
weaknesses and strengthen yourself.

You must find out if out if you already have the capacities required to successfully
run your own business. You must find out whether you
 are committed to start and run your own business
 are ready to take calculated risks
 willing to pursue an activity even against obstacles
 can deal with crisis situations
 are ready to take things into your own hands
 can make difficult decisions on your own
 are able to work under pressure
 can quickly adapt to changing needs of your business
 can separate your family duties from your business obligations
 enjoy the full support from the family to start your own business

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If you lack some of the capacities required to be a successful businessperson, you
can develop them by
 listing down the advantages and disadvantages of any situation or idea
 increasing your motivation by making a plan for your future
 studying successful business people and learn that your success
depends mostly on your own efforts
 studying the causes of a problem and take risks if you can
 thinking about and learning how to deal with crisis situations
 becoming more open to new ideas and other people’s views
 when things go wrong, analyzing what happened and improving your ability
to learn from mistakes
 increasing your commitment to work and realizing that only hard work
brings success

To deal with family, friends, and relatives:

 Educate them to see the business as important but separate from them
and from you.
 Talk to them about the difficulties of running your own business and
persuade them to support you
 Keep records of donations and to whom these are given. Record any
credit that you allow. Record money or goods that you or your family take
from the business.
 Make a budget for expenses for the family, friends, and community. Never
spend more than this budget.

If you find that you lack the abilities and experience required to run your own
business, aim to improve them by:
 talking to people in business so you can learn from them
 getting some training, do a course or study
 getting work as an assistant / apprentice to a successful business person
 reading books that will help you to develop your business skills
 reading articles about businesses in newspapers and magazines
 watching television shows or listening to radio programs about business
 finding a partner who complements your strengths and weaknesses, instead
of going into business entirely on your own.

It is also good to remember: Not all people are suited to become a business person.
Maybe you have other capacities, skills, and experiences that make you more suited
to become a doctor, a technician, a secretary, an artist or to seek any other kind of
employment.

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Activity 2 – Strengthening Myself

Fill in the action plan below on how you intend to overcome your weaknesses.
My Weaknesses What I will do to Strengthen Myself
(Skill/Characteristic)

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What is a Business Idea?
Starting a business is not an easy task. It takes a lot of work and a lot of planning.
The effort and money it takes to start a business may all be lost if you do not start
with the right business.

The right business begins with a good business idea.

A business idea is a short but precise description of the basic operations of an

intended business. It cannot be made up of just one word, say, “store”.

A good business idea should tell you:

 What product or service your business will sell.
 Who your business will sell to.
 How your business is going to sell its products or services.
 Which need of your customers your business will satisfy.
 Why customers will buy from you and not from others.

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Generate Your Business Ideas
Business ideas can come from you and the “Market”. You have your abilities,
skills, experience, interests, and hobbies. Your network of contacts will be
very helpful in business. The market, on the other hand will give you ideas on
customers’ needs and wants. Changes in technology and the environment affect
the market in ways that give rise to new needs as well as the products and services
that will satisfy these needs.

The activities in this part of the training will help you systematically generate
business ideas.

You should think about which main type of business you might be most suited to.
There are five main types of businesses – retailing, wholesaling,
manufacturing, agriculture/forestry/fishing and service. Each type of
business has different challenges for you as an entrepreneur. For example, your
choice of the type of business will determine whether you work
 with your hands or mostly talk to people
 mostly behind a desk or be outdoors often
 mostly on your own or in a team with other people.

When generating business ideas, think of as many ideas as possible and make a list
of all the business opportunities you can think of.

Business ideas can be generated through:

 Brainstorming
 Investigating your environment
 Visits to your local business area
 Analyzing your own experiences and the experiences of others as
customers.

Brainstorming is a way of opening your mind and helping you to think of many
different ideas. You start with a word or topic and just write down everything that
comes into your mind. You continue for as long as you can, putting down everything
even if it seems irrelevant or odd. Good ideas can grow from very strange
beginnings.

You can also use your creativity to find more business ideas in your community
and environment. Consider all the resources and institutions in your area and
see if they can become a business opportunity for you. For example, think about
 Resources from nature that are available and can be made into useful
products
 People’s abilities and skills that could be useful for a business
 Local institutions like offices, factories, hospitals or schools that can be a
market for your products and services
 The possibility of making new products from recyclable waste materials.
 Assess whether products imported from abroad, or from outside your
community, can be substituted by locally made products

Another way of discovering good business ideas is to look around your local area.
Find out what type of businesses are already operating in your area and see if you

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can identify any gaps in the market. This is an activity that will be much easier to do
with a partner or friend. If you live in a village or small town, cover the whole town.
If you live in a city, visit the commercial, industrial, market and shopping
areas.

Furthermore, you should read newspapers, magazines, journals, catalogues

and books to find ideas. Also, you should visit trade fairs and exhibitions to
collect new business ideas.

Finally, you can also analyze your own and other people’s experiences as customers.
Are there any business ideas that you can derive from both very positive and very
negative experiences? For example, were there products and services you wanted
but couldn’t find? Can you supply these yourself?

Listen carefully to what other people say about their experiences as customers. Talk
to as many people as possible, from different places, men and women and of
different ages, ethnic groups and social classes. Ask these people about their
problems in finding the products or services they want. Write down all the ideas that
you have generated on an ideas list, and comment on each idea so you can
remember all details. You need the ideas list to screen your business ideas later and
to choose the one idea most appropriate to you.

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Activity 3 – Start with Yourself

Write down as many things as you can in the spaces below and on the next page, even if
they seem odd or impractical at first. Good business ideas can come from strange places!
My Skills – I am good at doing the following:
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
6. ...........................................................................................................................
7. ...........................................................................................................................
8. ...........................................................................................................................
9. ...........................................................................................................................
10. .........................................................................................................................
My Interests – I enjoy doing the following (include your hobbies):
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
6. ...........................................................................................................................
7. ...........................................................................................................................
8. ...........................................................................................................................
9. ...........................................................................................................................
10. ..........................................................................................................................
My Experiences – I have training. education, or work experience in the following (list
jobs, training and other sources of work experience):
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
6. ...........................................................................................................................
7. ...........................................................................................................................
8. ...........................................................................................................................
9. ...........................................................................................................................
10. ..........................................................................................................................

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My Business Network – I know the following people, friends and relatives who are in
business and who could provide information, advice or assistance (state their position):
1 ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
6. ...........................................................................................................................
7. ...........................................................................................................................
8. ...........................................................................................................................
9. ...........................................................................................................................
10. ..........................................................................................................................

You may have many skills, experiences and contacts that could help you plan and begin your
business. Come back and add to this list whenever you think of some other possible
interest or ability.

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Activity 4 – Different Types of Business

 In which business do you think you are most skilled and

experienced?
 Do you think you would like to work with a lot of people or do
you prefer to work on your own?
 Are you good with your hands or do you prefer talking to people?
 Are you an active outdoor person or are you happy working
behind a desk?
 Do you know how to connect suppliers and buyers of certain
goods or services?

Think of all these things and then choose the type of business you would prefer and tick
the appropriate box below:
□ Retail trading
□ Wholesale trading
□ Manufacturing
□ Service
□ Agriculture, forestry or fishing

Now write down your reasons for choosing that type of business:
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……………………………………………………………………………………………………………………………..
……………………………………………………………………………………………………………………………..

Remember that you can come back and rethink this choice at any time and make a
different decision.

Activity 5 – Brainstorming

Follow the instructions of the trainer and do some brainstorming.

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Activity 6 – Investigating Your Environment

Take time to look carefully around your own community and environment and make
notes for each of the following:
1. Resources from nature Business Ideas
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.
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.
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.
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.
2. People’s abilities and skills
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.
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3. Institutions
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.
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4. Industries
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5. Import substitution
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6. Publications
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............................................................................
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7. Trade fairs and exhibitions
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8. Waste Products
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.
After you have spent some time analyzing your community try visiting another place,
or just walk through a different part of town. A change of scenery and new
experiences can give new ideas.

Look for different natural resources and institutions. Look through the business ideas
that have come up with this activity and transfer any suitable new business ideas
later to your Ideas List on Page 17.

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Activity 7 – Using Experiences of Customers

Make notes in the space below of your own and other people’s positive
and negative experiences as customers. Write down the related business
idea that would provide customers with the products or services they need
and want.
Experience Business Idea
…………………………………………………….
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Add any new business ideas or possible business opportunities to your Ideas List on
Page 17. If there are only a few ideas on your list, use all the techniques you have
learned and generate more business ideas.

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Activity 8 – Visit the Local Business Area

Follow the steps below to collect information about existing businesses or potential
new businesses in your local area or the place where you want to start your own
business.

1. Walk around your area and use the form below to write down the different types
of businesses and how many there are of each different type. For example, count
the kiosks, sellers, grocery stores, gas stations, banks, real estate agents, tailors,
restaurants, and home-based businesses. Be specific. For example, write down
what type of goods a retailer sells – fruits, vegetables, stationery, clothes, snacks,
etc. Use other sheets, if needed.
Existing Businesses in my Area
Type of business Number Notes

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2. Transfer your list in item no. 1 into the table below. Include the number of each type
of business. Use a larger sheet if needed.
Retailers Manufacturers Wholesalers Agriculture/ Services
Forestry/Fisheries

3. Study the list and try to find answers to the following questions:
 Which businesses are many? Which are few? Why? What are missing?
 What does your list tell you about your local market and the way people spend
money in your area? Write down at least three (3) observations about your local
market.
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4. Is there room for more businesses? Do you think there is a business opportunity for
you? Write down in the box below some possible businesses that do not exist in your
area.
Possible Businesses in My Area
Retailers Manufacturers Wholesalers Agriculture/ Services
Forestry/Fisheries

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5. Put your list away until the next day and look at it again. Do a brainstorm session to
think of other possible businesses that are not on the list.
 What other kinds of businesses do people in your area need? Write any possible
business ideas on your Ideas List on Page 17.

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Activity 9 – Ideas List

IDEAS LIST FOR MY OWN BUSINESS

Idea Comments

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Analyze Your Business Ideas
You can start selecting the most suitable business ideas by thinking carefully about
what you wrote on the Ideas List. A business is suited to you if you have definite
and positive answers to the ff:
 Your Customers – Your “Market”
o Who are they? Will you have enough customers?
 Product Knowledge and Information
o Can you easily make the product or deliver the service?
 Money and Materials
o Where will you get the money, materials, supplies and equipment you
need to start the business?
 Management
o Can you manage the business? If you need help, who do you turn to?

If you are not yet sure about your answers to these questions, write down how you
in tend to get the answers. You may have to do more research or interview some
people.

When you have completed screening each idea on your ideas list, your can select the
what you think are the three best business ideas for you.

The method often used to decide which is the most suitable business idea is a
SWOT Analysis. It helps you to focus on possible problem areas and potential
advantages of each idea.

The term SWOT stands for Strengths, Weaknesses, Opportunities and

Threats.

To analyze the strengths and weaknesses of a business idea you look inside the
proposed business. What are you and the business good at? What are your and the
business’ weaknesses?

To analyze the opportunities and threats of your proposed business you look
outside the business, i.e. the external environment. What trends and events in
the external environment will benefit the business and what will harm the
business?

Finally, compare the strengths with the weaknesses and the opportunities with the
threats in each business idea. Choose the one idea that has many strengths and
opportunities and few weaknesses and threats.

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Sample SWOT Analysis

SWOT Analysis
Business Idea: Second-Hand Clothes Shop

Inside the Business

Strengths Weaknesses

1. I have good marketing skills 1. Monthly rent for the shop is high.
2. I once worked in a clothes shop
3. I have a good fashion sense
4. The proposed business location is
close to both suppliers and
customers
Outside the Business
Opportunities Threats

1. The price of new clothes is too 1. There are plans to start a new
high for the potential customers. market where second hand
2. Prices are going up so people are clothes can be sold.
looking for ways to save money

 Are there more strengths than weaknesses? Yes  No

 Are there more opportunities than threats? Yes  No

 How I will deal with the weaknesses and threats:

o I will spend more time to find a shop with lower rent
o I can also get a stall at the new market and use it to sell my products
and advertise my main shop.

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Activity 10 – SWOT Analysis

Do a SWOT analysis for the three best business ideas in your Ideas List.

1. Use the SWOT analysis form on the next page. Make two other forms, one for
each idea.

2. Write the first of your three selected business ideas on the first SWOT analysis
form. Think carefully about the most important strengths and weaknesses within the
business. These may be your personal skills and experience, financial issues,
marketing issues to do with the product, the place of the business, the price or the
promotion and selling aspects. Write them down.

3. Think of the external environment for this business. What are the most important
opportunities and threats to this business in your business environment? Do some
research. Interview people who are already in business. Read articles in newspapers
and magazines about what experts are saying.

4. Now count the number of strengths, weaknesses, opportunities and threats.

Answer the questions on the SWOT analysis form.

5. Ask yourself.
 Can I overcome the weaknesses and avoid the threats for this business?
 Can I build on the strengths and opportunities for this business?

6. Think about how you will overcome the weaknesses in this proposed business and
write down your decisions on the SWOT analysis form.

7. Now repeat 2-6 above for the second and third best business ideas using the
additional SWOT analysis forms.

8. When you have completed the three SWOT analyses for the three business ideas,
compare them carefully and select the business which has more strengths and
opportunities and which you think will be most suitable and successful for you.

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 SWOT Analysis
Business Idea: …………………………………………………

Inside the Business

Strengths Weaknesses

Outside the Business

Opportunities Threats

 Are there more strengths than weaknesses? Yes  No 

 Are there more opportunities than threats? Yes  No 

 How I will deal with the weaknesses and threats:

................................................................................................................................
.
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.
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.
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.
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.
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.
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.

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 SWOT Analysis
Business Idea: …………………………………………………

Inside the Business

Strengths Weaknesses

Outside the Business

Opportunities Threats

 Are there more strengths than weaknesses? Yes  No 

 Are there more opportunities than threats? Yes  No 

 How I will deal with the weaknesses and threats:

................................................................................................................................
.
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.
................................................................................................................................
.
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.
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.
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.
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.

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 SWOT Analysis
Business Idea: …………………………………………………

Inside the Business

Strengths Weaknesses

Outside the Business

Opportunities Threats

 Are there more strengths than weaknesses? Yes  No 

 Are there more opportunities than threats? Yes  No 

 How I will deal with the weaknesses and threats:

................................................................................................................................
.
................................................................................................................................
.
................................................................................................................................
.
................................................................................................................................
.
................................................................................................................................
.
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.
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.

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Your Own Business Idea
Congratulations!

You have completed the first step in preparing to start your business. Now you can
complete a summary of your business idea in the box on the next page.

When you have completed the summary of your business idea you can go on to the
next step in starting your own business by preparing a business plan. The ILO’s
Start Your Business (SYB) training programme can assist you with this.

If you are still undecided

If you find that you are not yet sure which business idea is most suitable for you,
you need to do some more work.

Assess what makes you unsure

 Are you unsure about choosing between the three best business
ideas?
o If this is what you are unsure of perhaps you need to talk to some
experts or “key informants” who are well-informed about these
businesses. Get more advice and information before making your
choice.
 Are you unsure if you are really ready to start such a business?
o If this is making you worry go back to the Personal Assessment
Exercise. Think about the statements and your answers again.
Perhaps you are more suited to be employed than to run your own
business. Many successful and satisfied people are employed. Choose
what is better for you.
 Are you unhappy with the three business ideas selected?
o If you believe you really do want to start your own business but have
not yet found the right business idea, take a break and then, in a
week or more, start looking for other business ideas using the
methods you learned from this training.

It takes time, work and information before you find the most suitable business
idea. As you work towards this goal you will be increasing knowledge, experience
and skills. All of these will increase your ability to become a successful entrepreneur.

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Activity 11 – Write Your Business Idea

MY BUSINESS IDEA: ______________________________________________

Type of business: □ Retailing

□ Wholesaling
□ Agriculture, forestry or fishing
□ Manufacturing
□ Service providing
□ Combination of ________________________________
My products or services will be:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
My customers will be: (Specific details.)
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
The needs of the customers that will be satisfied are:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

They will buy from me and not from others because:

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Skills and experience and knowledge I have of this type of business:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
I have chosen this business idea because:
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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