Question 1: Explain why it is important to identify a target market when planning a new business.

Answer: Identifying a target market helps the business focus its marketing efforts, meet customer needs more effectively, and increase the chances of success by understanding who the potential customers are.

Question 2: List three key elements that should be included in a simple business plan.

Answer: A description of the product or service, target market information, and financial forecasts or funding requirements.

Question 3: Describe two methods a new business can use to carry out market research.

Answer: Conducting surveys or questionnaires with potential customers and observing competitors in the market are two effective methods.

Question 4: Sketch a simple layout for a promotional poster advertising a new product or service. Use large, clear labels for the main sections.

Answer: A correct sketch would include a catchy headline at the top, an image or drawing representing the product, a brief description or slogan, and contact details or a call to action.

Question 5: Identify and explain two factors that might influence the location choice for a new retail shop.

Answer: Proximity to target customers ensures easier access and higher footfall, while low rental costs can reduce expenses and increase profitability.

Question 6: Draw a basic flowchart showing the steps involved in launching a new business idea, from idea generation to opening day.

Answer: A correct flowchart would include stages such as: Brainstorming ideas, conducting market research, creating a business plan, securing funding, marketing, and the grand opening.

Question 7: What are some reasons why a business owner should prepare a budget before launching their enterprise?

Answer: Preparing a budget helps control costs, ensures sufficient funding is available, and allows the owner to plan for expected expenses and potential profits.

Question 8: Describe the purpose of SWOT analysis in the planning phase of a business.

Answer: SWOT analysis helps identify the business’s strengths, weaknesses, opportunities, and threats, enabling better decision-making and strategic planning.

Question 9: List three resources a new business might need to start operating effectively.

Answer: Initial stock or inventory, equipment or machinery, and staff or trained personnel.

Question 10: Explain why customer feedback is important after launching a new product or service.

Answer: Customer feedback provides insights into what customers like or dislike, helping the business improve its offerings and increase customer satisfaction.