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Business principles and Marketing in Life-Style Entrepreneurship

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Business principles in Life-Style Entrepreneurship

Theme: Business principles and Marketing in Life-Style Entrepreneurship
Exercise: Business principles in Life-Style Entrepreneurship
Developed by: Social Innovation Fund, LT

Aim: To deepen your understanding of the principles of running and managing a business (including Life-Style entrepreneurship), such as setting a business mission, completing thorough market research and making financial planning.

Learning outcomes:

Ability to describe the principles of running and managing a business.
Discussing the important issues in starting Life-Style Entrepreneurship.

Expected duration: 20 minutes

Description:
Every entrepreneur, including Life-Style entrepreneurs should be aware of main business principles in order to be successful in his/her business. This exercise will help you to learn what the main business principles are and what main aspects you should know when you decide to start your own business.

Task: For each question, please select possible answer that you think is correct.

(1/5) What is the purpose of mission statement of newly created business including Life-Style entrepreneurship?

Your answer is correct!

The Mission Statement will determine how others see the business, including customers and competitors; the reason why the business exists, what standards or ethics the business has; what the business is about (its key features). Ex. Ebay mission is “To provide a global trading platform where practically anyone can trade practically anything”.

This is not the expected answer!

(2/5) Why SWOT analysis is important in Life-Style Entrepreneurship?

This is not the expected answer!

SWOT analysis is a list of your personal and business:

Strengths
Weaknesses
Opportunities
Threats

It takes into consideration factors such as: the current economic climate; social trends; personal experience. SWOT analysis helps you to list your strengths and opportunities which could be used for developing strong business strategy. Also it helps to address those areas you have identified as weaknesses or threats for your business. You should understand that by using strengths business could diminish possible threats; that by using strengths business could take advantage of opportunities; and that by using opportunities business could diminish weaknesses.
So the SWOT Analysis could also be used as a tool for development of LSE business idea.

This is not the expected answer!

SWOT analysis is a list of your personal and business:

Strengths
Weaknesses
Opportunities
Threats

Your answer is correct!

SWOT analysis is a list of your personal and business:

Strengths
Weaknesses
Opportunities
Threats

(3/5) On which main areas should market research be concentrated?

This is not the expected answer!

Market research is the foundation of every business plan. It provides the essential information required to establish if there is a market for a product/service. The market research should concentrate on the areas such as: industry, customers, competitors and suppliers, because it is important to know industry background, who are your customer (age, gender, income, culture, lifestyle); and who are your competitors and possible suppliers.

Your answer is correct!

(4/5) Is the desk research appropriate for market research?

Your answer is correct!

Desk research means finding relevant data which already exists and could provide you with useful information, much of it free. Using desk research method for market research you could collect useful data which could help you to make informed business decisions. Desk research includes Internet, newspapers, journals, magazines, etc. The other research method which could also be used for market research is Field research: visits, interview, focus groups, and questionnaires.

This is not the expected answer!

(5/5) For what purpose the initial business finances are needed for LSE?

Your answer is correct!

Initial money is needed to cover your business start-up costs. Amount will depend on your circumstances, nature of your business, location of your business, etc. These costs may include:

Equipment
Supplies
Insurance
Rent
Stock
Marketing materials

This is not the expected answer!

Initial money is needed to cover your business start-up costs. Amount will depend on your circumstances, nature of your business, location of your business, etc. These costs may include:

Equipment
Supplies
Insurance
Rent
Stock
Marketing materials

Thank you for completing the exercise!

You answered correctly of 5 questions.

If you are satisfied with your results, please continue to the exercises list.

If you are not totally satisfied with your results, you are kindly advised to repeat the exercise as it will help you to deepen your knowledge on the topic.

Repeat the exercise

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