Before you can start your business, you must define it. Describe the questions the business definition answers and its three elements.
What will be an ideal response?
The business definition answers three questions: Who, What, and How?
a) Who will the business serve? In other words, who is in the market for your product or service?
b) What will the business offer the customers? What are the products (or services) the business will sell?
c) How will the business provide the products or services it offers? What are the primary actions and activities required to conduct this business? For example:
The definition of the business has three elements:
1) The Offer - What will you sell to your customers? That is called your offer. This includes exactly which products and services you will bring to the market, and how you will price them.
2) Target Market - Which segment of the consumer market are you aiming to serve? This is called your target market. Defining your target market in a way that helps you to identify potential customers is an important factor in achieving success.
3) Production and Delivery Capability - How will you provide your offer to your targeted customers? This includes how you will perform all key activities required to produce the product or service, deliver it to your customers, and ensure that they are satisfied.
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