Entrepreneurship and Small Business Management. Chapter 5 Creating Business from Opportunity. Ch. 5 Performance Objectives. Define your business. Articulate your core beliefs, mission, and vision. Analyze your competitive advantage. Perform viability testing using the economics of one unit.
Creating Business from Opportunity
Example: My restaurant believes in supporting local organic farmers.
Unique Selling Proposition (USP): What features/benefits set your business apart from its competition?
Economics of One Unit of Sale (EOU): What is the amount of gross profit earned on each unit of the product or service your business sells?
Gross profit per unit = selling price per unit minus COGS or COSS per unit
Result: The entrepreneur creates jobs and wealth.