BUSI3018 – Business Practices and Entrepreneurship

Semester 2 2019 – 20 (PT)

Homework Assignment
Phase 1 Business Concept
This assignment is due on: February 13, 2020 @ 11:59 pm
The objective of this assignment is to form a 3-member team and select a
business idea which will be the basis of all future work for developing a
business concept plan.
Phase 1: Business Concept – The task of your team is to select and propose a business idea.
The individual business ideas of the team members can be the basis for developing the
phase 1 business concept.

The Phase 1 lecture presentation provides guidance and assistance with the assignment.
The selected business concept should be documented on one page as described in the
presentation.

Some basic questions to answer in identifying opportunities are:

1. Exactly who is the customer, and what is the specific problem, issue or need being
addressed?
2. How many of these customers are there?
3. What is the value or benefit provided to the customer?
4. Who else is doing or could do this?
5. How can we make money from this?
6. How can we address this opportunity, and what are we going to do about this?

The marks of a superior business opportunity are:

 The ability to create or add significant value to a customer or end user

 Solving a significant problem, or meeting a significant want or need, for which
someone is willing to pay a premium
 A good fit with the skills and talents of the persons running the business
 Having a robust market, margin, and moneymaking characteristics, namely
o A large market, high growth (20% +), high margins (40% +)
o Strong and early free cash flows (recurring revenue, low assets and low
working capital)
o High profit potential (10 – 15% + after tax)
o Attractive realizable returns for investors (25 – 30% + IRR)