Creating your Business - Week 5

What makes a business idea “desirable”?

• Low cost to produce

• High-tech features

• It solves a real user problem and adds value

• Having no competitors

What is a unique value proposition?

• A. A slogan that attracts attention

• B. A strategy to cut costs

• C. A clear explanation of how your business benefits target users

• D. A summary of financial statements

What did the Apple Newton fail to do well?

• Provide internet access

• Recognise handwriting and justify its price

• Connect to Bluetooth

• Offer free cloud storage

Which of the following best describes feasibility?

• How exciting the idea is

• How profitable the idea will be

• Whether the idea can realistically be done with available resources

• How many people like the idea

Feasibility includes all of the following EXCEPT:

• Technical possibility

• Organisational readiness

• Personal passion

• Skills and tools access

"Can I do it?" relates to which type of evaluation?

• Viability

• Competitor analysis

• Feasibility

• Market segmentation

What does it mean for a business to be viable?

• It receives a lot of media attention

• It breaks even eventually and sustains itself financially

Which famous innovation failed due to a lack of financial viability?

• Apple iPhone

• Uber

• Concorde

• Tesla

Which of the following is NOT a condition for viability?

• High profit

• Steady revenue

• Controlling costs

• Attractive logo

What is the basic formula for profit?

• Cost + Revenue

• Revenue – Cost

• Assets – Liabilities

• Sales × Expenses