A business idea is a short and precise

description of the basic operation of an

Define a business idea.
intended business, outlining the type of
business one wants to run.

Understanding customer needs is crucial as it

Describe the importance of understanding helps identify which needs the business will
customer needs in a business idea. fulfill, what goods or services to offer, and
who the target customers will be.

A good business idea should be compatible

How should a business idea align with with the sustainable use of natural resources
environmental considerations? and respect the social and natural
environment on which it depends.

A business can sell goods that are items

people pay for and use, which may be made
What types of goods can a business sell? by the business owner or purchased for
resale, such as tools, baked goods, clothes,
and retail items.

Goods are tangible items that people pay for

Explain the difference between goods and and use, while services are actions performed
services in a business context. for people that they pay for, such as delivery,
banking, or repairs.
 A business idea can be developed by
identifying local needs, such as starting a
How can a business idea be developed based
waste collection and recycling service that
on local needs?
serves both businesses and residents in the
area.

Factors to consider include personal skills,

What factors should be considered when
customer needs, willingness to pay, and the
deciding on a good or service to sell?
potential for profit.

When selecting goods or services, it is

Describe the role of profit in selecting goods important to ensure they are items that
or services for a business. people are willing to pay for at a price that
allows the business to make a profit.

Understanding who your customers are is

Describe the importance of knowing your essential for a business to succeed, as it
customers for a business. ensures there are enough people willing to
pay for your goods and services.

A manufacturer can sell its products directly

How can a manufacturer sell its products?
to customers, to retailers, or to wholesalers.
 Personal experience can provide insights into
Define the role of personal experience in potential business ideas by reflecting on one's
generating business ideas. own needs and challenges faced in the
marketplace.

to the experiences of others can reveal gaps

How can understanding others' experiences
in the market and unmet needs, helping to
contribute to business ideas?
identify potential business opportunities.

Consider your interests, past experiences,

What should you consider when looking for
and the challenges you faced as a customer
business ideas from your own experiences?
in finding goods and services.

Engage with family, friends, and community

Describe how to gather insights from your members to learn about their shopping
social network for business ideas. experiences and the goods or services they
wish were available.

Visiting community groups and colleges can

How can community engagement help in provide a broader perspective on market
understanding market needs? needs and customer preferences across
different demographics.
 A comment like 'I cannot find a lunch box that
Give an example of a comment that could keeps the food warm' highlights a specific
inspire a business idea. need that could lead to a business
opportunity.

Describe the limitations of cooking pot The choice of cooking pots in the shops is
availability in local shops. very limited.

There is no reliable way of sending gift

Identify a challenge faced when sending gifts
packages to my friends and relatives living in
to friends in villages.
the villages.

How does the lack of entertainment affect There is not enough entertainment in this
weekends in the town? town and the weekends are so boring.

I really need to buy some marketing

Define the issue with finding marketing
textbooks, but there are no good bookstores
textbooks in the town.
in this town.
What is a significant environmental concern There is so much garbage on the streets.
mentioned in the content? Somebody should do something about it.

I cannot find a decent house painter in this

Describe the problem with house painters in town. The ones I have hired do not prepare
the town. the surface properly before painting and they
paint over everything including the dirt.

There is only one garment shop in town, but

How is the customer service experience at
the sales lady is so rude and disinterested in
the local garment shop?
showing the clothes to the customers.

The local hospital does not have a drug store

What inconvenience is faced by patients at
close to it, requiring patients to take the bus
the local hospital regarding medication?
to the nearest store for prescribed medicines.

I do not like the way the local grocery

Explain the issue with the local grocery shopkeeper treats his employees, but there is
shopkeeper's treatment of employees. no other place near here where I can find the
things I need.
 There is no canteen or café near the factory,
What is the challenge faced by factory
making it hard to get a snack or a cup of tea
workers regarding food and drinks?
when needed.

How does machine maintenance affect Whenever a machine breaks down, it is

operations in the factory? difficult to get it serviced quickly.

Define the problem with fertilizer availability Fertilizers from the market are way too
in the market. expensive and there is no organic alternative.

By looking around the local community to

How can one discover business ideas in their
identify what type of businesses are already
local community?
operating and any gaps in the market.

Identifying all the fields of business in the

What should one focus on when surveying
whole town or focusing on preferred business
their local business area?
fields and types.
How can collaborating with a partner help in It will make the activity of surveying the local
discovering business opportunities? business area much easier.

What areas should be visited to survey local Visit the closest industrial area, markets, and
businesses effectively? shopping centers in your area.

Muthoni matched each idea against the needs

Describe the process Muthoni used to narrow of her local community, ultimately reducing
down her business ideas. her list from 17 ideas to 6 by considering five
specific criteria.

The five criteria are: 1) Which need is to be

fulfilled? 2) What good or service will the
Define the five criteria Muthoni used to business sell? 3) Who will the business sell to?
screen her business ideas. 4) How will the business sell its good or
service? 5) How much will the business
depend upon and impact the environment?

A SWOT analysis helps identify potential

How does a SWOT analysis assist in problem areas and advantages of each
evaluating business ideas? business idea, allowing for a more informed
decision on which idea to pursue.
 Strengths are the specific positive aspects of
What are strengths in the context of a a business that provide an advantage over
business idea? competitors, such as better quality products
or a more accessible location.

Having a Fair Trade or Organic Product

Explain the significance of Fair Trade or certification can attract customers willing to
Organic Product certification for a business. pay higher prices for products that are
ethically sourced or environmentally friendly.

Weaknesses are aspects where the business

Identify potential weaknesses in a business
may not perform as well as competitors,
idea.
which could hinder its success.

Muthoni considered a fresh meal shop for

babies, a catering service for offices, a shop
What types of businesses did Muthoni for teenagers, a home décor gallery with a
consider for her local area? café, a store selling plastic and paper flowers,
a secondhand clothing store, and handmade
decorative items from recycled clothing.

Understanding local needs allows

How can understanding local needs influence entrepreneurs to tailor their business ideas to
business idea selection? meet specific demands, increasing the
likelihood of success.
 A good location can enhance accessibility for
What role does location play in the strengths customers, making it a significant strength
of a business idea? that can attract more business compared to
competitors.

Evaluating potential drawbacks helps identify

Discuss the importance of evaluating risks and challenges that may affect the
potential drawbacks in a business idea. business's viability, allowing for better
planning and strategy development.

A business located far from the source of

Describe the potential impact of location on
supplies may incur higher costs due to
business costs.
increased transportation expenses.

Opportunities are ongoing potential

developments that can positively impact a
Define opportunities in a business context.
business, such as increased demand due to
tourism or favorable government regulations.

New regulations promoting green jobs and

How can government regulations create social enterprises can lead to higher demand
opportunities for a business? for specific products that align with these
initiatives.
 Threats are events or circumstances that
Explain what constitutes a threat to a could negatively impact a business, such as
business. increased competition or restrictive
legislation.

If a business idea is too simple, it may attract

What might happen if a business idea is too
competitors who can reduce the original
simple?
business's market share.

Muthoni conducted a comparison of three

business ideas, assessing their advantages
Describe the process Muthoni used to select
and disadvantages, and chose the second-
her business idea.
hand clothing store based on her interest and
ability to manage its challenges.

Muthoni considered an agency for home-

What are the three business ideas Muthoni based care, a catering service delivering
considered? lunch boxes to offices, and a second-hand
clothing store.

Muthoni's love of fashion influenced her

How did Muthoni's personal interests
decision to choose the second-hand clothing
influence her business choice?
store, as it aligned with her interests.
 A SWOT analysis is a strategic planning tool
used to identify the Strengths, Weaknesses,
What is a SWOT analysis?
Opportunities, and Threats related to a
business idea.

Start by making copies of a SWOT analysis

How should one begin a SWOT analysis for a
form and writing down the first selected
business idea?
business idea on the first form.