Currency Consultation Business Idea: Entrepreneurship Report Analysis
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AI Summary
This report presents a comprehensive business idea for a currency consultation firm, addressing the needs of importers and exporters in Australia. It begins with an introduction to entrepreneurship and highlights the importance of the business idea. The report then delves into the need analysis, emphasizing the impact of currency fluctuations on businesses. It identifies the target market as firms involved in import and export, particularly those dealing with commodities. The business model is outlined, including annual consultation fees and profit-sharing options. The services offered include currency consultation, live screens for real-time tracking, and customized hedging strategies to mitigate risks. The report concludes with a list of references supporting the analysis.

Running Head: Entrepreneurship
Entrepreneurship
Business Idea and its components
Entrepreneurship
Business Idea and its components
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Entrepreneurship 1
Contents
Introduction:....................................................................................................................................1
Need Analysis:.................................................................................................................................1
Target Market:.................................................................................................................................1
Business Model:...............................................................................................................................1
Services offered:..............................................................................................................................1
Currency Consultation.................................................................................................................1
Live Screen..................................................................................................................................2
Customized Strategies..................................................................................................................2
References:......................................................................................................................................3
Contents
Introduction:....................................................................................................................................1
Need Analysis:.................................................................................................................................1
Target Market:.................................................................................................................................1
Business Model:...............................................................................................................................1
Services offered:..............................................................................................................................1
Currency Consultation.................................................................................................................1
Live Screen..................................................................................................................................2
Customized Strategies..................................................................................................................2
References:......................................................................................................................................3

Entrepreneurship 2
Introduction:
Entrepreneurship is the process of starting one’s own business, however it is a very broad
concept. At the core, it is a mindset, a way of thinking, solving problems and creating values
(Business News Daily, 2017). Entrepreneurship is very essential for any economy. It brings
about a drive of innovative growth. This is why government provides for various subsidies to
individuals who have their own startups.
My idea today, involves the formation of a ‘currency consultation’ firm. Today we see there is a
lot of fluctuation in the Australian Dollar against the US dollar. Over the last five years, we have
seen the currency touch a lot of 0.6863 and a high of 1.0509 (XE, 2017). Now as an individual,
these fluctuations will not directly impact the citizens of Australia. However, there are various
exporters and importers whose businesses get impacted by these currency movements and this
currency consultation firm will aim to help them track, monitor, control, reduce the effect and
take advantage of these movements.
Need Analysis:
Foremost aspect of any business is to identify a need in the society and aim to fulfill that need
with its offerings. The exports in Australia are consistently on a rise and the outlook for the same
is upbeat (Reuters, 2017). So much so that Australia exported AUD 31.07bn and imported AUD
30.61bn worth of goods and services in the month of July this year (Trading Economic, 2017).
Most of the country’s trade transactions are done in US dollars and hence it strongly and
sometimes adversely impacts various exporters and importers who are unable to forecast these
currency changes. Our firm aims to bridge that gap by providing consultation services where
finance experts will be tracking the market and guiding the clients on when to book orders, how
to hedge their currency from risk and also provide advisory on their banking charges.
Target Market:
Target market will be firms importing to Australia specially Iron ores, petroleum, coal, gold and
wheat and firms exporting from Australian especially Wool, natural gas, minerals and
agricultural products. Geographically, we wish to start from an office in Sydney as the city
inhabits exporters and importers in abundance, however we will be serving clients in other parts
of the country as well.
Business Model:
We are offering a niche service and hence will be targeting clients with an annual turnover of at
least AUD 10mn. We will be offering two different business models to our clients to choose
from. Firstly, they can pay us an annual consultation fee which will be different for different
clients based on their turnover. This fee will be paid in two parts. One advance and one after 6
months of service. Secondly, clients can choose to share their profits monthly based on our
advice. We would have systems in place to track when and how much have they benefitted from
our service.
Introduction:
Entrepreneurship is the process of starting one’s own business, however it is a very broad
concept. At the core, it is a mindset, a way of thinking, solving problems and creating values
(Business News Daily, 2017). Entrepreneurship is very essential for any economy. It brings
about a drive of innovative growth. This is why government provides for various subsidies to
individuals who have their own startups.
My idea today, involves the formation of a ‘currency consultation’ firm. Today we see there is a
lot of fluctuation in the Australian Dollar against the US dollar. Over the last five years, we have
seen the currency touch a lot of 0.6863 and a high of 1.0509 (XE, 2017). Now as an individual,
these fluctuations will not directly impact the citizens of Australia. However, there are various
exporters and importers whose businesses get impacted by these currency movements and this
currency consultation firm will aim to help them track, monitor, control, reduce the effect and
take advantage of these movements.
Need Analysis:
Foremost aspect of any business is to identify a need in the society and aim to fulfill that need
with its offerings. The exports in Australia are consistently on a rise and the outlook for the same
is upbeat (Reuters, 2017). So much so that Australia exported AUD 31.07bn and imported AUD
30.61bn worth of goods and services in the month of July this year (Trading Economic, 2017).
Most of the country’s trade transactions are done in US dollars and hence it strongly and
sometimes adversely impacts various exporters and importers who are unable to forecast these
currency changes. Our firm aims to bridge that gap by providing consultation services where
finance experts will be tracking the market and guiding the clients on when to book orders, how
to hedge their currency from risk and also provide advisory on their banking charges.
Target Market:
Target market will be firms importing to Australia specially Iron ores, petroleum, coal, gold and
wheat and firms exporting from Australian especially Wool, natural gas, minerals and
agricultural products. Geographically, we wish to start from an office in Sydney as the city
inhabits exporters and importers in abundance, however we will be serving clients in other parts
of the country as well.
Business Model:
We are offering a niche service and hence will be targeting clients with an annual turnover of at
least AUD 10mn. We will be offering two different business models to our clients to choose
from. Firstly, they can pay us an annual consultation fee which will be different for different
clients based on their turnover. This fee will be paid in two parts. One advance and one after 6
months of service. Secondly, clients can choose to share their profits monthly based on our
advice. We would have systems in place to track when and how much have they benefitted from
our service.
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Entrepreneurship 3
Services offered:
Currency Consultation
Primary service offered by the firm would be currency consultation. Where a team of experts
will forecast the movements in AUD with respect to other currencies on the basis of fundamental
and technical analysis. This forecast would be shared with our clients and they would be advised
personally on every FX transaction they incur.
Live Screen
A Secondary service offered by the firm would be a live screen where clients can track the
movement of AUD as and when it happens. Most of the websites and news channels show a
lagged rate which the bank do not agree to. Only Reuters and Bloomberg terminals provide exact
rates and these are really expensive terminals.
Customized Strategies
Once the client is on board, our experts would be making customized hedging strategies for our
clients guiding them on how they can be protect from currency fluctuations. Currency can be
hedged using various tools, our team has extensive knowledge of these tools and at any point of
time they will help the client with the most effective tool. Due to the rising Australian dollar,
currency hedging is again gaining ground with investors (The Australian, 2017).
Services offered:
Currency Consultation
Primary service offered by the firm would be currency consultation. Where a team of experts
will forecast the movements in AUD with respect to other currencies on the basis of fundamental
and technical analysis. This forecast would be shared with our clients and they would be advised
personally on every FX transaction they incur.
Live Screen
A Secondary service offered by the firm would be a live screen where clients can track the
movement of AUD as and when it happens. Most of the websites and news channels show a
lagged rate which the bank do not agree to. Only Reuters and Bloomberg terminals provide exact
rates and these are really expensive terminals.
Customized Strategies
Once the client is on board, our experts would be making customized hedging strategies for our
clients guiding them on how they can be protect from currency fluctuations. Currency can be
hedged using various tools, our team has extensive knowledge of these tools and at any point of
time they will help the client with the most effective tool. Due to the rising Australian dollar,
currency hedging is again gaining ground with investors (The Australian, 2017).
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Entrepreneurship 4
References:
Business News Daily, 2017, ‘What is entrepreneurship’,
http://www.businessnewsdaily.com/2642-entrepreneurship.html, viewed on 10 September, 2017.
Reuters, 2017, ‘Australia’s central bank holds fire as economy on the rebound’,
http://www.reuters.com/article/us-australia-economy-currentaccount/australias-central-bank-
holds-fire-as-economy-on-the-rebound-idUSKCN1BG07D?il=0, viewed on 10 September, 2017.
The Australian, 2017, ‘Rising Aussie dollar puts hedging back on investors’ agendas’,
http://www.theaustralian.com.au/business/wealth/rising-aussie-dollar-puts-hedging-back-on-
investors-agendas/news-story/431f95c162d6811d80b005330d8cd5f6, viewed on 10 September,
2017.
Trading Economics, 2017, ‘Australian Exports’, https://tradingeconomics.com/australia/exports,
viewed on 10 September, 2017.
Trading Economics, 2017, ‘Australian Imports’, https://tradingeconomics.com/australia/imports,
viewed on 10 September, 2017.
XE, 2017, ‘AUD to USD Chart’, http://www.xe.com/currencycharts/?
from=AUD&to=USD&view=5Y, viewed on 10 September, 2017.
References:
Business News Daily, 2017, ‘What is entrepreneurship’,
http://www.businessnewsdaily.com/2642-entrepreneurship.html, viewed on 10 September, 2017.
Reuters, 2017, ‘Australia’s central bank holds fire as economy on the rebound’,
http://www.reuters.com/article/us-australia-economy-currentaccount/australias-central-bank-
holds-fire-as-economy-on-the-rebound-idUSKCN1BG07D?il=0, viewed on 10 September, 2017.
The Australian, 2017, ‘Rising Aussie dollar puts hedging back on investors’ agendas’,
http://www.theaustralian.com.au/business/wealth/rising-aussie-dollar-puts-hedging-back-on-
investors-agendas/news-story/431f95c162d6811d80b005330d8cd5f6, viewed on 10 September,
2017.
Trading Economics, 2017, ‘Australian Exports’, https://tradingeconomics.com/australia/exports,
viewed on 10 September, 2017.
Trading Economics, 2017, ‘Australian Imports’, https://tradingeconomics.com/australia/imports,
viewed on 10 September, 2017.
XE, 2017, ‘AUD to USD Chart’, http://www.xe.com/currencycharts/?
from=AUD&to=USD&view=5Y, viewed on 10 September, 2017.

Entrepreneurship 5
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