Overview

Finalizing a business idea is a crucial step in the entrepreneurial journey. It involves

refining and validating the idea to ensure it has the potential for success. Considering
factors like available resources & connections, market and unique selling proposition,
when finalizing a business idea is crucial for reducing risk, increasing the likelihood of
success, and ensuring that the business is well-prepared to meet the needs of the
target market. It's a foundational step in building a sustainable and profitable
venture.

Learning Outcomes

● Participants will be able to articulate the criteria based on which a business

idea is finalised
● Participants will finalize the idea for starting up their own business

Session 1

Participants will be able to explain the different types of businesses

Methodology: Facilitated Discussion

Content:

There are four main types of businesses:

Manufacturing: Manufacturers are businesses that use raw materials, such as leather,
waste material, wood, cloth or metal and make new or different products out of
those materials. Some examples of manufacturing businesses are shoemakers,
dressmakers, furniture makers, paper producers and farm equipment
manufacturers. If you know how to produce a good and to make something that is in
demand and valuable to customers, you may want to go into manufacturing.

Service Provision: Service providers are people whose businesses sell a particular
service, such as transportation, tours, hairdressing, banking, deliveries, construction,
repairs, cleaning, painting, nursing, etc. If you enjoy working with people and
satisfying their specific needs, providing services may be your forte.
Wholesaling: Wholesalers are businesses that buy large quantities of certain goods
from manufacturers and resell those goods to retail outlets, who then resell them to
individual consumers. If you are familiar with companies that make and sell their
goods in bulk and you are good at establishing relationships with retailers, you may
want to be a wholesaler.

Retailing: Retailers purchase ready-made goods from wholesalers or suppliers for

resale at a profit. Some examples of retail businesses are grocery stores, appliance
stores, clothing stores, stationery shops, computer and mobile phone shops, etc. If
you like meeting different people and you have access to a good location to open a
shop, retailing may be a good option for you.

What is a business idea?

Every business is born from an idea. Business ideas should come from observation, to
find a potential opportunity, or try to forecast what people or other businesses might
want. Business ideas are sometimes developed from someone’s education and past
experience. It should be known that by considering your natural talent you might
find the seed for a good business idea. It is an idea about what products you are
going to offer, what services you are going to provide or what goods you are going to
sell; where and how you are going to sell them and who are you going to sell them
to.

A business idea is therefore a short and precise description of the basic operations of
an intended business. A good business starts with a good business idea. Before you
can start a good business you need to have a clear idea of the sort of business you
want to run.

A successful business meets the needs of its customers. It gives people what they
need or want.

Your business idea will tell you:

1. Which need your business will fulfill for its customers. What product or service
your business will sell.
2. Who your business will sell to.
3. How your business is going to sell its products or services.

Business ideas are identified through positive, creative thinking. They can come from
different sources such as ideas built on local resources, local needs, local activities,
interests and hobbies.
WHICH
Which need does your product or service satisfy for your customer? Your business
idea should always have the customer and the customer’s needs in mind. It is
important to find out what your future customers want when you work out your
business idea.

WHAT
What type of product or service will your business sell? Your business idea should be
based on products you know about or services you are good at. They must be
products or services that people are willing to pay for. Analysing various business
ideas will help you to focus on the type of business you will be good at.

A product is an object that people pay for. It may be something you make yourself or
it may be something you buy to re-sell. Tools, baked goods, clothes and retail goods
are all products.

A service is something you do for people, which they pay for, for example, shining
shoes, delivering messages, keeping money safe in a bank and repairing items.

WHO
Who will buy your products or services? Customers are an essential part of every
business. It is important to be clear about the customers you intend to sell to. Will
you sell to a specific type of customer or to everyone in an area? There must be
enough people who are able and willing to pay for your products and services or the
business will not make a profit.

HOW
How are you going to sell your products and services? If you plan to open a shop this
is clear, but a manufacturer or service operator can sell in many different ways. A
manufacturer can, for example, either sell directly to customers or to retailers.

Starting a business is not an easy job - it takes lots of work and a lot of planning. The
effort and money it takes to start a business may all be lost if you don’t start the right
business. The right business begins with a good business idea.

Running a business is like juggling. You have to balance knowing what the customer
wants, your skills and experience, knowing what it costs to provide it, and knowing
how much the customer is willing and able to pay. You have to keep your eye on all of
these factors because they are always changing. If you can juggle what customers
want, what you can provide, with the right costs and prices – you make profit. If you
fail to pay attention to any one of these, your business will not be successful.
Application Task: Choose any three businesses and talk to the owners of the
business. For each of the businesses, answer the following:

1. Which need does the business fulfill for its customers? What product or
service does the business sell?
2. Who does the business sell to?
3. How does the business sell its products or services?

Session 2

Participants will be able to explain the criteria based on which they should finalize
the business idea

Content

Choosing a Business
If you choose a business based on your work experience, technical skills, knowledge
of business practices, hobbies, social ties and family background, etc., there is a
greater chance that you will succeed.

Consider the following examples:

Rani has been working for a courier company for many years. He learned how to
manage the courier business and how to develop the required networks. He is
considering opening up his own courier service to operate in his state

Anjamma has grown up in a farmer’s family. Her parents grow seasonal vegetables
to sell to the local retailers.Anjamma has graduated from BSc Agriculture. She knows
various planting techniques and is enthusiastic about promoting the planting, sales
and consumption of organic foods in her community. Anjamma decides to grow
organic vegetables on her parents’ farm and to sell the products through their retail
network.

Sujata loves fashion. While she was a student in the capital city, Sujata went
shopping and discovered a source of inexpensive sarees. She has now returned to
her hometown. She decides to buy sarees from that source and resell them to shops
in her area.

Jaya worked for a construction materials company for several years. She is very
familiar with all the brands and knows the quality of various construction materials.
When repairing their house last year, she realized that there was no shop in the area
selling the supplies she needed. She decides to open a shop near his home, selling all
types of basic construction materials, such as cement, bricks, tiles, sand, paint, etc.
She enjoys meeting people and advising them about the different types of
construction materials

What makes a business idea good?

A good business idea is one that is based on:

● A product or service that customers want

● A product or service you can sell at a price customers can afford and which will
give you a profit
● The knowledge of skills you have or you can get
● The resources and money you are able to invest.

All good businesses begin with a good idea that has been well thought through.

Assessing your abilities and experience; your work experience, practical knowledge,
technical abilities, hobbies, contacts and family background can also be important
factors for business success. Many small jobs you do around your home can be ideas
for starting a business, for example growing vegetables, cooking, looking after
children, dancing, fixing watches or machines, washing clothes, sewing etc. Your
interests and hobbies can give you ideas of a new business.

How do people find good business ideas?

Ideas are everywhere, but they need to match what customers want and can pay for.
A good business idea is based on the needs of customers. If a business makes a good
product but nobody needs it, the business will be a failure.

The people who might want to buy a product or service are called the market for the
product. Every good business idea is based on knowledge of what the market wants.

The market differs from place to place depending on who lives in the area, how they
live and what they spend their money on. When you know about the people in your
area you can find many business ideas that you might have ignored.

Application Task

Now find out about some successful business ideas yourself

 1. Think of three businesses in your local area that you think are successful. Try to
select businesses that are at least three years old. Write down in the space
below the name of each business and the product or service they sell.
2. Go and talk to the three owners. See if they agree with you that business is a
successful one. Ask them how they decided to go into that business. Did they
see a need in the market that was not being met? Did they have some
experience, contacts or skill to build upon? Did they know someone else in the
business? Was this the first business they ever worked in?
3. After you finish talking to the owners, complete a Business Idea Information
Form (given below) for each business putting in as many details as possible.
4. Think about all the factors that have made the business idea a good one and
why it has become a successful business. Find answers to the following
questions and write them in the form under “notes”.
a. What lessons can you draw from the experience of the business owner?
b. What mistakes do you think the owner made?
c. How can you avoid the same mistakes?
d. What do you think has made the business a success?

BUSINESS IDEAS INFORMATION FORM

1. Name of the business. ...............................................................................................................................

2. Products or services sold. ...............................................................................................................................
3. Main customers ......................................................................................................
4. When and why did the owner decide to start this business? ..........................................
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5. Why did the owner think it was a good idea to start that particular kind of business?

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6. How did the owner find out what local people wanted? ...................................................
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7. What strengths or assets did the owner use to start this business? (E.g. previous
experience , training, family background, contacts, hobbies ) .......................................
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8. What problems did the owner face in setting up the business? .......................................
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9. Has the product or service changed over time?
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Session 3

Participants will be able to explain the criteria based on which they should finalise the
business idea

Content

GENERATE YOUR OWN BUSINESS IDEAS

Maybe you already have a business idea? This is a good sign. It shows that you are committed
to starting a business and you have already started the work of “thinking”. But you should be
careful not to hold on too tightly to your first idea. There are many opportunities and the first
idea can lead to an even better idea.

When generating a business idea, it is best to try and keep an open to mind. The first goal
should be to think of as many ideas as possible and make a list of all the business
opportunities you can think of. Business ideas can be generated through:

1. Using experiences
2. Visits to your local business area
3. Investigating your environment
4. Brainstorming

USING EXPERIENCES

Your own experiences

Look at the list of your experiences and contacts, which you have. Are there any possible
business ideas that you can derive from your own past experience?

Brainstorm for each type of experience.

Start with yourself. What has been your experience as a customer, in the market place?

Have you ever searched all day for some item and not been able to find it anywhere? Think
about the products or services you yourself have wanted at different times and had difficulty
in finding.
Other people’s experiences

Listen carefully to what other people say about their experiences – they are all potential
customers

Ask your family and friends about their experiences. Expand your social knowledge: talk to
people you don’t usually talk to - perhaps elderly people, or teenagers, or people from
different ethnic groups or social class.

Ask people about their problems in finding the product or service they want.

INVESTIGATING YOUR ENVIRONMENT

You can use your creativity to find more business ideas in your area. Look at the list of
businesses in your area. If your list covered a large enough section of your local market, you
are probably beginning to see what industries or services your local economy depends on.

Example: Jyoti’s town is a farming centre and therefore depends on agriculture as the main
economic activity. It provides services to many surrounding villages. Maybe your town
depends on mining, fishing, industry or tourism. Perhaps there are a number of educational
or other public institutions that employ many people in your area.

It may be useful to brainstorm for good business ideas by considering all the resources and
institutions in your area. For example, think about: Resources from nature, people’s abilities
and skills, institutions, industries, import substitution, waste products, publication, trade fairs
and exhibitions.

BRAINSTORMING

Brainstorming is a way of opening up your mind and helping you to think many different
ideas. You start with a word or topic and just write down everything that comes into your
mind. You continue for as long as you can, putting down everything even if it seems irrelevant
or odd. Good ideas can grow from very strange beginnings.

Brainstorming works best when carried out with another person or a group of people, but
you can also try it on your own. Many large companies use this method to come up with new
product ideas.
For example, Puja asked her sister and two friends to brainstorm with her on a business idea.
She had worked as a tailor in a boutique for a long time so they started with the word
“tailoring”. At first, the ideas for businesses came slowly. But soon they had many possibilities.

Activity:

Think and fill in the below worksheet:

Business Idea Generation

The following assessment helps you to identify the
field and type of business that you should opt for.
Be honest in your assessment.

My interests – I enjoy doing the following

(include your hobbies) Possible business fields:

My experience – I have worked in or have

educational experience in the following
field(s) of business (list jobs, training and
other sources of work experience): Possible business fields:
My business network – I know the following
people, friends and relatives who are in
business and who could provide information,
advice or assistance (state their position): Possible business fields:

My preference is Possible business fields:

Application Task

Screen your ideas list

By now you probably have quite a few possible ideas for your own business - at least five or
perhaps over twenty. Your next task is to take this list and try to bring it down to between
three and six ideas- the ones that are most suitable for you.

You can select the most suitable ideas from your list by thinking carefully about each idea.
There is probably still a lot you don’t know about the business on the list but the questions
below will help you settle on one feasible idea.

Go through your list of business ideas and make notes about each by answering these
questions:

Which

1. Which customer needs do you want to satisfy?

 2. Which customer needs will your product or service satisfy?

What

1. What product or service do your customers want?

2. What quality of the product do your customers want?
3. What do you know about the product or service for this business?

Who

1. Who are your likely customers for this particular business?

2. Will they be enough in number to keep your business viable?
3. Who are your competitors?

How

1. How will you be able to supply goods and services the customers want?
2. How much do you know about the quality of goods and services the customers want?
3. How does running this sort of business suit your personal characteristics and abilities?
4. How do you know there is a need for this business in your area?
5. How do you imagine yourself running this business in ten years’ time?

OTHER IMPORTANT AREAS TO CONSIDER

1. Where can you get advice and information about this business?
2. Will this be the only business of this kind in your area?
3. If there are other similar businesses, how will you be able to compete successfully?
4. Why do you think this business will be viable?
5. Does this business need equipment, premises or qualified staff?
6. Do you think you will be able to get the finances to provide what is needed?
7. Where will you get the resources to start this business?

After considering all these factors, finalize 3 business ideas that you want to pursue further
and will present in class. Make a chart answering all these questions for each of the business
ideas.

Session 4

Participants will be able to explain their top two or three business ideas based on the
criteria

Participants will present their ideas and the facilitator will review based on the questions
listed above. Around 3 participants will be reviewed and the other participants will be asked
to revise their final ideas based on the feedback given.

Session 5

Participants will be able to describe their business idea in detail

Three other participants will be selected to present their ideas in detail, with answers to all
the questions listed above, in the application task.

Session 6

Participants will be able to do a SWOT analysis of their final business idea

Content

SWOT ANALYSIS
One method people often use to decide which the most suitable business idea is the SWOT
analysis. It helps you focus on possible problem areas and potential advantages of each idea.

S-trengths
W-eaknesses
O-pportunities
T-hreats

Inside the business

To analyse the strengths and weaknesses of a business an entrepreneur should look inside
the planned businesses. What will the business be good at and what are its weaknesses?

1. Strengths are the specific positive aspects, which will give your proposed business an
advantage over similar business ventures and competitors. It could be that you propose to
offer a better quality product or to have a location, which is located near your customer.

2. Weaknesses on the other hand are specific aspects that your business will not be good at.
Perhaps your costs will be high because your business is located far from suppliers and you
will have to pay more for transport.

Outside the business

To analyse the opportunities and threats of your proposed business an entrepreneur should
look outside the business i.e. the external environment. What aspects of the external
environment will benefit the business and what aspects will negatively affect the business?

3. Opportunities are on-going potential developments around you that will be good for your
business. It could be that the demand for the product you are proposing will increase
because of the influx of tourists.

4. Threats are probable events that may affect your business negatively. For example, the
business idea could be so simple that other people may start similar businesses in your area
and reduce your share of the market.

Activity: Ask the participants to do a SWOT analysis for their business idea.