◄INTRODUCTIONUNIT 2: DRAFTING A VALID BUSINESS CONTRACT►

UNIT 1 : BUSINESS IDEAS AND OPPORTUNITIES

  • UNIT 1 : BUSINESS IDEAS AND OPPORTUNITIES

    Key Unit Competence: To be able to generate viable business ideas.
    Introductory activity

    Analyze the photo below and answer the following questions


    Observe the picture above and identify different sources of business 
    ideas.
     1. Generate different business ideas from the above environment.
     2. Notall business ideas are business opportunities. Is this statement true or 
    false? Give reasons to justify your response.
     
    1.1 Business, business idea and a business opportunity
     1.1.1. Meaning of a business idea
    Business refers to any economic activity that involves the production, selling 
    of goods and services, covering risks with the aim of getting profits.

    An idea is called an opportunity if there is evidence that the entrepreneur’s 
    idea can be turned into reality.

    A business idea simply refers to any thought that the entrepreneur may 
    come up with as a result of scanning the environment with the possibility 
    of developing it into a business opportunity. It requires the entrepreneur to 
    exercise creativity and innovativeness in order to come up with the successful 
    business ideas for the environment. 

    Examples of business     ideas in Rwanda include; Real estate, clothing and 
    textiles, food processing, E-Commerce, technology products.
     
    1.1.2. Meaning of a business opportunity
     A business opportunity can be defined as an identified situation or chance 
    that can be turned into a real and profitable business.

    An opportunity is a favorable set of circumstances that creates a need for a new 
    product, service, or business. Such opportunities are determined by customer 
    requirements and lead to the provision of a product or service which creates or 
    adds value for its buyers or end-users.

    A business opportunity     is any situation that can be turned into a possible and 
    profitable business activity. 

    An opportunity is a situation in which it is possible for you to do something 
    that you want to do. A business opportunity is said to be viable, when it has the 
    ability to grow and expand.

     Examples of business opportunity and their   business idea
     -Lack of sufficient safe water in your community is a business opportunity. 
    Provision of JIBU, NIL, AKANDI or INYANGE water can be a business ideas.
     
    -High demand for charcoal as a source of energy in your community is 
    business opportunity.  For that opportunity, many business ideas can be 
    generated like provision cooking gas, making charcoal in wastes, planting 
    trees, buying big vehicle to transport charcoal from far forest…

    A business idea may not necessarily be a profitable business opportunity; one 
    needs to filter and sift through these ideas to realize whether they are real 

    opportunities.

     Application Activity 1.1

     Case study: A reality T.V. Show

    Rwiyemeza is a prominent entrepreneur dealing in growing and 
    processing of Mushrooms in Kicukiro district. One day she was invited 
    to give an interview on Rwanda Broadcasting Agency (RBA) about her 
    business to the whole nation by Mr. Makuru. 

    Read through the excerpts from the interview 
    Makuru: How did you decide to get into mushroom growing and 
    processing? How did you start?

    Rwiyemeza    : It was during my school time when I joined a school 
    business club. I got the idea when our club mentor told us that we can 

    start a backhome.

    business, we used to call it a ‘BHB’. I introduced the idea to my parents 
    and I was lucky that they supported me. It was not a very easy task with 
    everyone telling me different things about growing mushrooms. Actually 
    many people that I talked to focused on the challenges but about three 
    people told me that I can overcome the challenges if I plan in advance. 
    I therefore decided to take on the business of Mushroom growing and 
    processing.

    Makuru:     What was the biggest challenge while starting your Mushroom 
    business? How did you overcome it?

    Rwiyemeza    : There were so many challenges such as unsure market, 
    competition, pests, but deciding on turning my business idea into a 
    profitable business was most challenging. I had to make a lot of research 
    from existing entrepreneurs,  sector offices, and financial institutions. 
    I also had to do personal evaluation. I found that I could market my 
    product very widely to beat the market problem, and ensure much 
    cleanliness and timely watering to avoid pests. 

    Makuru    : What are the benefits of your business to the community?

    Rwiyemeza:      Apart from earning a living for me and my family,  my 
    business employs three ladies and 2 gentlemen who earn a monthly 
    salary. Important to note also, is that I have inspired a lot of other young 
    entrepreneurs especially women to start their own businesses.

    Makuru    : What advice would you give to the young people who may 
    want to start businesses? 

    Rwiyemeza    : My advice would be that all around us are opportunities 
    of business ideas but one has to be careful because NOT all business 
    ideas can be turned into profitable businesses. Before I finally decided 
    to start mushroom growing and processing, I had tried a number of 
    business ideas which failed because they were not viable. So, I again 
    advise the young people to take time and research  about the business 
    ideas before investing money since “Not all business ideas are business 

    opportunities”.

     Questions:
     Referring to the case study (A reality T.V. Show) above, answer the 
    following questions:

    a) What do you understand by a business and what is Rwiyemeza’s 
    business?
     
    b) Explain what you understand by a business idea. Mention any 
    sources of business ideas for Rwiyemeza’s business activity.

    c) Rwiyemeza says it was not easy for her to start up the business 
    activity. Explain what you understand by a business opportunity 
    and identify some challenges Rwiyemeza faced.
     
    d) Why do you think it is very important to do a research and personal 
    evaluation before deciding to start a business activity?
     
    e) Looking at the situation at school and in your home community, 
    what two best business ideas can you possibly take on? Why do 

    you think those two are the most viable ones?

     1.2. Reasons for generating business ideas
     Activity 1.2
     1) Why do you think that it is important to generate business ideas?
     2) In your own words, explain why the following Entreprises Urwibutso, 

    Inyange, Mara phone, Volkswagen  have been generated. 

    The simplest purpose of business is to solve a customer’s problem or meet 
    the customers’ needs    . By providing the goods and services that meet the 
    customer’s needs, the business owner may realize profits. Businesses exist to 
    impact on people’s lives. This happens by businesses providing people with 
    goods and services they desire to meet their needs. While the people buying the 
    business’ products (goods and services) are meeting their needs, the business 
    owners expect to realize profits. Businesses serve as conductors of economic 

    activity and development.

    Business may be done by private individuals, government, companies, co

    operatives or non-governmental organizations (popularly known as NGOs).

     Hereafter are many reasons why entrepreneurs would need to generate 

    business ideas:

    To start a sustainable business: a good idea is essential for a successful 
    business venture – both when starting a new business or expanding it.

    To respond to market needs    : markets are made up essentially of 
    customers who have needs and wants waiting to be satisfied.
     To meet changing fashions and requirements: provide opportunities 
    for entrepreneurs to respond to demand with new ideas, products and 
    services.

    To stay ahead of the competition    : Remember, if you do not come up 
    with new ideas, products and services, a competitor will. So the challenge 
    is to be different or better than others.

    To exploit technology – do things better    : Technology has become a major 
    competitive tool in today’s markets and for one to be better with changing 
    technology, generation of business ideas is crucial.

    Because of product life cycle    : All products have a finite life. The firm’s 
    prosperity and growth depends on its ability to introduce new products 
    and to manage their growth.

    To diversify risks and overcome failure    : It is necessary for firms to try 
    to diversify their risks and overcome failures that may occur from time to 

    time by constantly generating new ideas.

     Application Activity 1.2
     Identify a number of different needs and wants in your community 
    that are not yet being met by the existing businesses and suggest the 
    business you would come up with.


     1.3 Sources of Business Ideas.
     Activity 1.3
     Referring to your community and beyond, explain at least 5 business 
    ideas that you can generate from the different sources.
    The following are some of the sources of business ideas:
     
    -Looking within you and examining skills, talent and passion: The very 
    first place to start looking for business ideas and opportunities is to look 
    within yourself. Self-examination is an important thing that can help in 
    reaching to different decisions. It is important to examine your own skills, 
    talent or passion that can fit into the business. Therefore, such businesses, 
    which corresponds according to your skills is the most appropriate and 

    are expected to be successful in the future. 

    -Inventing a new product or service: Another great source of business 
    opportunity is inventing a new product or service. Different people are 
    creative with a mindset of thinking out of the box and solving problems 
    with the best appropriate solution. One needs to think like great 
    entrepreneurs such as   SINA Gerald of Urwibutso enterprise, Zulphat 
    Mukarubega proprietor of Rwanda Tourism University College, etc. 
    However, for winning ideas you need to be specific on your target market 

    and analyse the problem.

     -Adding value to an existing product(Innovation): Rather than inventing 
    a product, one can also add value to existing products. These kinds of 
    innovations can be proved as a great source of business opportunities. 
    Since most of the inventions have already taken place, so it is prevailing 

    as innovation.

    -Franchising: A continuing relationship in which a franchisor provides a 
    licensed privilege to the franchisee to do business and offers assistance 
    in organizing, training, merchandising, marketing and managing in 
    return for a monetary consideration. Franchising is a form of business 
    by which the owner (franchisor) of a product, service or method obtains  

    distribution through affiliated dealer (franchisees).

     By looking on the demographics and the need for a particular service or 
    product, one can also start a franchising business. It can be really profitable 
    since much of business modeling is not required because a person uses 

    the rights of another retailer.

    Mass Media: Mass media has become comprehensive from past few 
    years. Magazines, TV, Newspapers etc. are a great source of ideas and 
    opportunities. Different businesses are on sale and different commercial 
    advertisements are available to choose from.

    Attending Exhibitions:     Trade shows and Expos helps to develop a strong 

    business network.

    Industrial Survey: Another important source for a business ideas can 
    be industrial surveys. Since, the main point of a business is to fulfill the 
    needs of a customer. Therefore, surveying and analyzing the underlying 
    need of a customer can help in reaching a rational decision that addresses 

    the customer’s problem and result in a profitable business.

    Listening to customer complaints: Complaints are a part of customers’ 
    relationship that led into the development of new or improved products 
    and services. Whenever customers report badly, it means that the 
    customer satisfaction is not being achieved and there is some issues 
    with the product.  This can help in generating new business ideas for 

    addressing problems of customers.

     Application Activity 1.3
     Describe the qualities of a good business idea in your home community 

    that can be turned into a Back-Home Business.

     1.4. Steps of generating business ideas 
    Activity 1.4
     Referring to your community and beyond, explain at least 5 business 
    ideas that you can generate from the different sources.
    a. What would you have to do in order to take on the best business 
    opportunity?

    b. Would you advise a friend on how to assess business ideas and 

    opportunities? If yes, how? If not, what would you do?

     1. Start thinking/get your brain at work
     The first thing to do when you get a business idea is determine whether it’s 
    a good idea. Not every idea that seems good at first is practical. And some 
    business ideas have no market.

    You will need to do some research to evaluate your business idea. Here is a 
    checklist of questions to use as a guide:
     -Is there a need for this product or service? Some of the most popular 
    products and services meet a need that people currently have. The 
    product or service may improve upon or complement an existing product 
    or service, or your idea may be a completely new approach to meeting a 
    need.

    -Is there a desire for this product or service? A    dmittedly, some of the 
    most popular products are desire-based rather than need-based. That 
    means that someone is purchasing the product because they want to. A 
    few needs-based reasons for a purchase include to increase status or to 
    follow a trend.

    -Who is currently meeting the need for this product     or 
    service?     Answering this question gives you a start on evaluating your 
    competition. You need to know not only who your competitors are, but 
    also how many are they? Don’t forget to consider indirect competition.
     
    -Who will buy this product or service?     Find out who your typical 
    customer is likely to be. This may involve conducting surveys, testing the 
    waters, finding a focus group, and more. The better your understanding 
    your potential customer, the more likely you are to create a successful 
    business.

    -How big is that market?     You may have a great business idea. It may even 
    be brilliant. But, if the market for your idea is very small, your business 
    might not be viable–that is unless people are willing to pay a premium for 
    your product or service. This  brings us to the next question.

    -How much are people willing to pay for your product or service?     Your 
    intake from your product or service needs to cover your costs and should 
    include a healthy profit. Remember, that even a small niche market can 
    be profitable if potential customers are willing to pay you enough money.

    -How hard will it be to implement the idea?     Let’s face it, some ideas 
    are easier to implement than others. When answering this question, take 
    into consideration the amount of time it will take you to launch your 
    business as well as whether or not you will need to hire someone to help. 
    After doing your research, you should be able to tell whether you want to 

    continue on ,and develop your business idea.

     2. Buy a notebook (Think on paper)
     Now that you know how to stimulate your brain and get started with the creative 
    thinking process, you need to keep count on your ideas and make sure that you 
    can document them to study and examine them further. Every business you 
    can think of started with a small idea somewhere, from a small observations, 
    a frustrating situation, or while taking a shower. You never know when the 
    inspiration comes, so keep a notebook close to you at all times to write these 

    ideas down whenever they come.

     3. Follow your passion
     Once you start your business, you will spend most of your day for several 
    years doing that business. So make sure you choose a business that you feel 
    passionate and excited about. If you don’t like the business you are doing , you 
    might not succeed in that business, probably not because you don’t have what 
    it takes, but mostly because you might lose interest too easily in the face of the 

    challenges that will come your way.

     4. Keep your eyes open
     New business opportunities get born from new situations every day. Keep an 
    eye on what is happening around you, make it a habit to read the newspaper 
    and identify new opportunities. You may read that people are complaining from 
    poor health services in your area, or the lack of schools in your neighborhood. 
    Talk to your neighbors and the people you know, what is frustrating them? 
    What would they want to change in your neighborhood? Is your neighbor 
    complaining that he/she needs to drive long distances to get to the nearest dry 
    cleaner? Or is your other neighbor complaining about the lack of groceries in 
    close proximity to where you live? Are your coworkers frustrated that there are 

    no restaurants close to your work building?

     5. Capitalize on your strengths
     Most people are good at something. Look at your experiences and career, what 
    is it that you can do well? Have you been working in project management for 15 
    years and know the ins and outs of the business, this is often the best place to 
    start. Instead of focusing on the things you cannot do well, focus on the things 
    you are good at. What can you do better than others? How are the others doing 

    it? And how can you do it differently? 

    6. Explore new things
     As mentioned earlier, change is one of the biggest stimulators to the brain. Even 
    if you don’t want to open your own coffee shop, next time you are in one, look 
    at how things are done and think of new ways to improve it. Often this thinking 
    might lead you to new ways to improve on your business ideas in your chosen 

    field.

     7. Check your bank account
     Starting and running your business requires money. Depending on your 
    situation, you need to think of businesses that suit your budget. Everyone’s 
    finances are limited, so make sure whatever business idea you come up with is 
    doable. If you have a small amount of money, then look into business ideas that 

    are not cash hungry, maybe start small and then grow with the business.

     8. Know what you want in life
     Aside from your business goals, think about the reasons why you want to start 
    a business in the first place. What is it that you are looking for? What are your 
    goals in life? Are you starting a business to be able to spend more time with 
    your family? To make more money? To be respected among your peers?

    Whatever your goals are, make sure that your business idea complements these 
    goals and help you to achieve them. If your goal is to find more time to spend 
    with your family and do other things, then starting a business that requires you 

    to work 16 hours a day or travel constantly might not be the best idea.

     9. Choose a business that suits your personality.
     Are you a morning person or a night creature? Each person has his/her own 
    peak hours of the day. You will find very few successful bakers or newspaper 
    owners that don’t like to wake up in the morning. If you are not a morning 
    person, avoid businesses that will need you to work in the early hours of 
    the morning. If you are a night person, then maybe running a nightclub or a 
    restaurant that stays open till late hours is more suitable for you. Conversely, if 
    you sleep early, running a business that requires you to stay late might not be 
    suitable for you.

    Are you an indoor or outdoor person? Do you like working in an office for long 
    hours or can’t stand the office and feel that you need on the move all the time? 
    If you like the office quiet environment, then pick a business that can be done 
    from an office. If you like to be on the move, pick a business that requires you to 
    go to different places and meet new people.

    Are you brainy or handy person? People do things differently, some people like 
    to do things that involve thinking and working their brains, other people like to 
    do things that involve craftsmanship and handy work.
     
    Are you shy or outgoing person? If you are a shy person, then becoming a public 
    speaker might not be the best idea for you. If you are an outgoing person and 
    like to meet new people all the time, having an internet based business might 
    deprive you from that joy.
     
    I think you get the idea, think of your personal traits and attributes and pick a 

    business idea that suits your personality.

     10. Read about other people that started their own business
     A large part of becoming successful involves looking at other successful people 
    and learning how they achieved their success. Reading autobiographies about 
    prominent and successful business figures and learning how they started their 
    journey will give you great insight on how they did things and what exactly they 
    did to become successful.

    You find that most of them started from nothing. Many of them failed in 
    several businesses and had to listen to people that told them they will never be 
    successful. But they stood up and tried again and again until they succeeded. It 
    is not whether you fail that makes you the man you are, it is how you stand up 
    after the fall.

    Study their characters, what do successful entrepreneurs have in common? 
    How did they achieve their vision? What challenges did they have to overcome? 
    Look for similarities between their stories and your situation right now. You 
    will find that it is a great source of inspiration and motivation. If others just like 

    you did it, then you can do it too.

     1.5 Business opportunities
     Activity 1.5
     1) What do you understand by a viable business opportunity? 
    2) What business opportunities can you think of? Among those, which 

    ones are viable for you and why?

     1.5.1. Meaning of business opportunities
     A business opportunity can be defined as an identified situation or chance 
    that can be turned into a real and profitable business.
     An opportunity is a favorable set of circumstances that creates a need for a new 
    product, service, or business. Such opportunities are determined by customer 
    requirements and lead to the provision of a product or service which creates or 
    adds value for its buyers or end-users.
     A business opportunity is any situation that can be turned into a possible and 

    profitable business activity. 

    1.5. 2. Characteristics of a good business opportunity

     1. Demand
     Demand is the first thing that one ought to take into account before planning 
    to start a business is to ask themselves where there is a significant demand for 
    the particular product or services they intend to launch i.e. is there a gap in the 
    market? If the answer is NO then that idea isn’t a viable business opportunity. It 
    would also be profitable to target a specific niche as this increases the chances 

    of you becoming a dominant player for that specific niche.

     2. Return On Investment (ROI)
     If the business opportunity you have in mind has the potential of bearing fruits 
    within a set period of time and which can cover the capital that was used in 
    addition to bearing profits there is a high chance that you have got a winner 
    but if it only requires more and more capital to be injected in with minimal 
    or no possibility of having any returns any time soon then you ought to tread 

    carefully.

     3. Availability of resources
     You should have all the resources needed to take advantage of that particular 
    business opportunity as well as a time frame for implementing it, lest someone 

    else beats you to it.

     4. Skill
     You need to have the experience required to tap into that particular business 
    opportunity e.g. if you want to start a bakery but don’t know a thing about 
    baking ,then that is not a viable business opportunity. It is therefore important 
    that you have the required skill i.e. experience and expertise, for the business 

    you would like to start.

     5. Scalability
     Can the business grow gradually within a given period of time and can it adapt 
    to the changing times i.e. is it flexible enough? If the answer is NO then that idea 

    isn’t a viable business opportunity.

     6. Healthy Profit Margin
     Does the business have a good profit margin that will ensure the business 
    remains profitable even as it meets the gap in the market? If the answer is NO 

    and you’re not in it for charity then that idea isn’t a viable business opportunity.

     7. Customer Retention
     It’s said that customers are the lifeblood of any business but if you can’t retain 
    your customers then your business won’t last very long. You therefore need to 
    put in place mechanisms that will ensure you prolong your customers stay with 

    you i.e. that they will keep buying from you for as long as possible.

     8. Low capital requirement
     A good business opportunity should be cheap to finance. Access to capital is a 
    major obstacle to entrepreneurship implying that entrepreneurs should focus 
    on ideas that are cheap to finance. Entrepreneurs exploit financing methods 
    such as loans, venture capitalists and contributions from friends and family 
    among others. Capital suppliers are reluctant to finance new businesses with 

    huge capital requirements.

     9. Aligns with your passion
     A good business opportunity is one that aligns with the individual’s passion. 
    The founder’s motivation is a key determinant of the success of a start-up. 
    A passionate founder has an internal motivation towards building a bright 

    future for the business. If you are like this leader, you will create a clear vision 
    and mission statements and use them to motivate stakeholders towards the 

    organizational goals.

     Application Activity 1.5
     Suggest a project you need to start in your students business club and 

    identify the requirements you need to start your project.

     1.6. Factors to consider when generating and evaluating 
    viable business ideas and opportunities  
    Activity 1.6
     1) What do you understand by a viable business opportunity? 
    2) What business opportunities can you think of? Among those, which 
    ones are viable for you and why?
     
    Discuss different ways in which you can use to learn about existing business 
    ideas and opportunities both in your community and elsewhere. 

    It is very important to examine and evaluate your business opportunity 
    and determine your potential for success before you spend time and money 
    developing a business plan.

    Entrepreneurs need to determine whether the business opportunity they 
    have identified is viable or not. When evaluating the viability of the business 

    opportunity, the following factors need to be taken into consideration:

     1. Market
     Business evaluation process goes through analyzing the market. If there isn’t a 
    big enough market for your product or service, you should rethink whether this 
    business opportunity makes sense.
     • Who will be your target consumer?
     • Is there a need for your business idea?

     • Can you meet that  market need?

    For instance, you might think of a great business idea to produce a carbonated 
    beverage flavored with roots, berries, and other natural flavors.

    However, in your evaluation you might find that this type of product is already 
    saturated in the market. The idea is good and a market exists, but if the market 

    is flooded with competitors it would not likely be profitable.

     2. Business plan
     The bottom line of any business is to make money. Without positive cash flow, 
    you won’t succeed. Business owners with the best of intentions often fail 
    because the financial potential isn’t big enough.
     • Will there be sufficient financial reward?
     • Do you see a potentially growing market for the product?
     • Do you have others who believe in your business ideas?
     • Are there other businesses that are similar (which is a validation that 
    this potential business opportunity could be worth pursuing)?
     You as an entrepreneur have a lot of thinking to do. Come up with great business 
    ideas. Be creative and get enthusiastic about your ideas. However, always take 
    the time to plan for a sound business because the better the business plan, the 

    higher chances for your idea to succeed.

     3.  Technology and other requirements
     The business should be evaluated in terms of whether there is an appropriate 
    technology that can be used in production. Factors to be looked into include;
     Appropriateness of the technology, the cost of the technology, the possibility 
    of the business suffering in case the technology becomes outdated/obsolete, 

    availability of raw materials and other resources.

    4. Infrastructure
     Easy access to infrastructure such as roads, water, electricity, telephone and 
    postal services among others enables business enterprises easily make orders 
    for goods and deliver them hence reducing operating expenses. With low 

    operating expenses, profits can be maximized.

     5. Government policy
     An entrepreneur should consider the requirements of the government before 
    starting a business e.g. the government may require certain businesses to be 

    located in certain areas only.

     6. Amount of capital required
     The capital required to run and maintain the business should be considered i.e 

    the source of capital.

     7. Security

     Availability of security should be considered.

     8. Impact of the business operations on the environment
     Some business operations on the environment lead to environmental 
    degradation and should be located in appropriate environment.
     Are the political, economic, geographical, legal, and regulatory contexts 
    favorable? Will the business do any damage to the physical environment?
     The above questions are typical of the type of issues that need to be addressed. 
    Responses to these questions will determine the attractiveness of any business 

    opportunity.

     9. Competition and competitive advantage
     Competition is regarded as a threat to business of similar kinds operating in a 
    similar location. Although competition is a threat, it is healthy in the sense that 
    it goes along the way in controlling the price of goods offered. It is crucial for 
    entrepreneurs to consider opportunities where competition is not high as this 

    will enable them to get reasonable market.

     10. Length of the window of opportunity
     For example, one may inform you of an upcoming workshop for educators in 
    your area, you realize that there is an opportunity for you to supply water, 
    food and airtime among others, but for you to determine whether you should 
    invest in this, you need to know how many people are coming, the length of the 
    workshop, such that you know how much stock is needed, you also base on that 

    to determine whether you will get back your money or not

    Application Activity 1.6

     Analyze the photo below and answer the questions that follow;

     1) What kind of activity is represented in the photo?
     2) What are the effects of such business ideas to the community?
     3) As an entrepreneur, suggest any two business ideas you may 
    generate in response to the effects of the activity above.
     4) Picking one idea, give the factors you will base on while choosing 
    that idea.
     5) What advice would you give to potential entrepreneurs while 

    generating business ideas in relation to the photo above?

     Skills lab
     Choose 2 businesses/ business ideas and conduct a viability test to 
    find out which one is better in terms of; 1. Potential for growth, 2. 
    Infrastructure, 3. Market for the goods/services (real demand), 
    4. Profitability, 5. Competition and competitive advantage, 6. 
    Financial viability. Make posters indicating how each of the above 
    factors favors or limits their business ideas with clear examples. 
    Recommend the most viable business ideas the Business club should 
    continue/ start running basing on the results of the viability tests and 

    suggest action steps for the implementation.

     End of unit 1 Assessment
         1. Read the following scenario:
     Mr. and Mrs. Kaberu visited their friend Kambanda who lives in Kigali. 
    They were surprised to see how Kambanda’s business of Coca-Cola 
    wholesaling was booming. They didn’t even ask him how and why he 
    chose to do that business. 
    When they went back home in Nyagatare, they sold all their cows and 
    opened  x because they were kept for long. The landlord chased them 
    out of the house because they couldn’t pay rent any more.
     Out of frustration, Mr. Kaberu had to sell all his stock at half price because 
    he had nowhere else to keep them. On hearing this, his wife Mrs. Kaberu 
    cried the whole day and night to the extent that she collapsed and was 
    taken to the hospital at the mercy of the neighbours because her and 

    her husband couldn’t afford the medical bills.

     Questions
     a) Explain whether the business idea was good or bad.
     b) Write a letter to Mr. and Mrs. Kaberu advising them on the importance 
    of assessing a business idea or opportunity in case they have another 

    one.

     2. There are many business opportunities that we can get from our 
    communities, why should we always assess a business opportunity 
    before investing our resources and time? To answer this, discuss in 
    your groups and raise at least 5 business opportunities that you can 
    think of. Assess each one of them and choose the best two viable 

    ones which you will present to the class.

    ◄INTRODUCTIONUNIT 2: DRAFTING A VALID BUSINESS CONTRACT►