Business Idea and Competition

The business idea is the basis upon which the firm will make a profit. 

Through analysing the market, a business owner may see an opportunity or a gap in the market for a product or service. 

This is the basis for a business idea. If there is a problem that has not been solved, there is a business idea.

Must have a clear idea of the business model and how it will compete against competitors. SME owners must consider:

• The size of market (number of customers), and the number and size of their competitors.  

• How they will compete and differentiate themselves; on price, on quality, on service, on local community orientation