Idea to Business Model (BOE-060)

Unit I: Search for a Business Idea

By
Shailendra Singh Ojha
Assistant Professor
Department of Electronics and Communication Engineering
Ajay Kumar Garg Engineering College, Ghaziabad
Syllabus
Business
 Business is the act of providing goods or services to customers in
exchange for money.
 The main aim of business is to earn a profit by satisfying the
needs and wants of customers.
 It can be a small enterprise, such as a local shop or a large
organization like a multinational corporation.
 To run a successful business, it requires careful planning,
management, and investment in order to achieve its goals.
Business Idea
 A business idea is a creative or innovative concept that can be turned
into a profitable business venture.
 It's something that identifies a problem or gap in the market and has
the potential to meet the needs of a specific target audience.
 A successful business idea can lead to the creation of a new product,
service, or business model that can generate revenue and profit.
Search for Business Idea
• Here are some steps you can follow to search for a business idea:
• Identify problems or gaps in the market: Look for areas where there is a
need for a solution. This could be in industries that you have experience or
interest in, or areas where you see a lack of options.
• Research current market trends: Keep up to date with what’s happening
in the market by reading industry publications, attending trade shows or
conference, and conducting online research. This will help you identify
emerging trends and opportunities.
• Assess your skills, passion, and interests: Consider what you are good at
and what you enjoy doing. This will help you identify potential areas
where you can start a business.
• Look for inspiration from your own experiences: Consider your
personal experiences and challenges you've faced. Is there a product or
service that you wish existed to make your life easier? This could be an
opportunity to create a business that addresses a need that you and others
have.
• Identify emerging technologies: Stay on top of emerging technologies and
consider how they can be applied to create new products or services. For example,
the rise of artificial intelligence and machine learning has led to the development of
chatbots and virtual assistants, which can be used to improve customer service and
sales.
• Evaluate your resources: Consider your available resources such as time, money,
and skills when evaluating potential ideas. Choose an idea that you can realistically
pursue with the resources you have.
• Evaluate potential ideas: Analyze each idea by considering the market size, target
audience, competition, and potential profitability. Narrow down your list to the
ideas that have the greatest potential.
• Test your ideas: Before committing to an idea, test it with potential customers.
This could involve conducting market research or creating a prototype to get
feedback.
• Remember, the key to a successful business idea is identifying a need in the market
and creating a unique solution that meets that need. With thorough research and
analysis, you can find a business idea that has the potential to be profitable and
sustainable.
How to Choose an Idea
• Choosing the best business idea from a list of potential ideas can be challenging.
Here are some tips to help you select the best idea:
• Assess potential profitability: Consider the market size, competition, and
potential revenue of each idea. Choose an idea that has the greatest potential for
profitability.
• Consider your skills and interests: Choose an idea that aligns with your skills and
interests. This will make it easier for you to stay motivated and committed to the
business.
• Evaluate business-lifestyle fit: If you want to have time for both work and family,
choose a business that won't require you to work long hours. If you don't like being
in an office, choose a business that can be run from anywhere. Picking a business
that fits your lifestyle can help you avoid getting too tired.
• Evaluate the market need: Consider if there is a real need for the product or
service that you are considering. Look for gaps in the market that you can fill.
• Evaluate the competition: Consider the level of competition for each idea. Look
for ideas where you can differentiate from competitors and offer a unique value
proposition.
• Test your ideas: Before committing to an idea, test it with
potential customers. This could involve conducting market
research or creating a prototype to get feedback.
• Be willing to pivot: Even if you choose what seems to be the best
idea, it's important to be willing to pivot if needed. Be open to
feedback and willing to adjust your idea to better meet the needs
of the market.
• Remember, choosing the best business idea requires careful
evaluation and analysis. By considering the factors above, you can
select an idea with the greatest potential for success.
Introduction to business idea
• Every business needs a good business idea. It is the idea which can help them
to move in the right direction.
• The success and failure of a business depends on its business ideas. If the idea
of a business is good, the business will survive otherwise it will fail in the
market of competition. Good business ideas, if introduced at the right time, can
make a business very successful.
• The ability to come up with a good business idea can be transformed into a
viable business.
SOURCES OF BUSINESS IDEAS

• There are many sources of business ideas. The most important sources of
business idea have been discussed below:-
(A)PRIMARY SOURCES OF BUSINESS IDEAS
• 1. Hobbies: While having fun at what they enjoy doing, many people have
started businesses.
• Converting hobbies into money making opportunities has worked for many
entrepreneurs.
• For instance, if you love to travel, perform arts or into hospitality you can look
at starting a business venture in the tourism sector.
• Examples of hobbies that make money include sports, cooking, piano playing,
photography etc.
• 2. Self Experience: Many investors find it convenient to choose business
ideas in line with their background. This because of them understands the
terrain better.
• More than half of business ideas come from experiences at work place only.
• A survey of entrepreneurs found that most of the new start-up companies are
involved in industries where they had significant work experience.
• The personal contacts and domain expertise developed on the job have proven
to be valuable to many individuals who contemplated launching a business of
their own.
• Anybody who intends to start a business in a new industry are therefore,
encouraged to firstly becoming an "apprentice" for a suitable period of time.
• By doing this he could avoid costly mistakes and the same time be able to
assess whether he enjoy the work before making a serious financial
commitment.
• 3. Mass Media: The Mass Media is also a platform for the generation and
sources of business ideas in the following ways:
• (a) Study commercial advertisements on business needs and sales of entire
business.
• (b) Extract information from reports on changes in fashions or consumer
needs e.g healthy eating, weight loss, etc.
• (c) Sieve through advertisements for popular skills demanded e.g security,
catering, web design.
• 4. Exhibitions: If we take time to study most exhibitions, we would
be able to discover the nature of new products and re-branding ideas
of existing products.
• Through talking with sales representatives, manufacturers and end
users, we will be able to find a gap to fill to start our own business.
• 5. Surveys: Surveys can either be done online or offline. Talking to
neighbours, co-workers and family members about a particular
product or service is a form of informal survey.
• The essence of carrying out surveys is to gather complaints from
dissatisfied customers of new and existing products.
• We will be able to generate new ideas to fine-tune our own
investment so as to include improvements and changes most people
would like to see.
• 6. Complaints: Anytime we hear a customer complaint about a product
such as; I wish there was......, if they had....etc., there lies an idea for
investment.
• We can either set up competitor business with such firms offering a better
product or sell that idea/product for improvement to the company directly.
• Talk to people, read comment and reviews on blogs and browse popular
forums to gather complaints about that product.
• Complaint is one of the most practical primary sources of business ideas.
• 7. Brainstorming: Brainstorming involves using creative thinking to
generate business ideas to solve problems.
• The first step is to identify a problem or question and then Brainstorming is
a technique of creative problem-solving as well as for generating ideas.
• The overall idea is to come up with solutions as many as possible.
• When looking for sources of ideas for new business start ups, through
brainstorming you should avoid criticizing the ideas of others on our team,
allow even the wildest of ideas, allow large number of contributions and
don't hesitate to merge and improve upon other people’s suggestions.
• (B) SECONDARY SOURCES OF BUSINESS IDEAS
• 1. Consumers: Potential entrepreneurs should continually pay close
attention to potential customers.
• This attention can take the form of informally monitoring potential ideas
and needs or formally arranging for consumers to have an opportunity to
express their opinions.
• Care needs to be taken to ensure that the idea or need represents a large
enough market to support a new venture.
• 2. Existing Products and Services: Potential entrepreneurs and
intrapreneurs should also establish a formal method for monitoring and
evaluating competitive products and services on the market.
• Frequently, this analysis uncovers ways to improve on these offerings that
may result in a new product or service that has more market appeal.
• 3. Existing Distribution Channels: Members of the distribution channels are
also excellent sources for new ideas because of their familiarity with the
needs of the market.
• Not only do channel members frequently have suggestions for completely
new products, but they can also help in marketing the entrepreneur's newly
developed products.
• One entrepreneur found out from a sales clerk in a large departmental store
that the reason his hosiery was not selling was its colour.
• By heeding the suggestion and making the appropriate colour changes, his
company became one of the leading suppliers of non-brand hosiery in that
region of the United States.
• 4. Government and Industrial Policies: The Government and Industrial
policies can be a source of new product ideas.
• New product ideas can come in response to Government regulations and new
industrial policies.
• The files of the patent office contain numerous new product possibilities.
• Although the patents themselves may not be feasible, they can frequently
suggest other marketable product ideas.
• Several Government agencies and publications are helpful in monitoring
patent applications.
• 5. Research and Development: The largest source of new ideas is the
entrepreneur’s own "research and development", efforts, which may be a
formal endeavour connected with one's current employment or informal
lab in a basement or garage.
• The research and development wing of the enterprise will continue the
research to find the suitable products according to the need and
requirement of the customers.
IDEA AND INFORMATION SOURCES
• Periodicals and Technical Reports
• 1. Trade Magazines: There are a number of trade magazines that cover general
design issues or are targeted at a specialized technical field.
• These magazines are often a source of solutions for current problems.
• Besides the articles in these magazines, the advertisements can provide a fruitful
source of ideas.
• As it is difficult to pinpoint specific information in trade magazines, it is a good
practice to make a habit of regularly reading or at least scanning these
publications so that information can be located when required.
• 2. Research Journals: Research journals directly related to the specific area of
the problem which is to
be solved may provide modelling and analysis of specific problems as well as more
general information that
• can lead to a design solution.
• Examples of these journals are Journal of Engineering Design, ASME Journal of
Seat Transfer, and Artificial Intelligence in Engineering, Design and
Manufacturing etc.
• Databases: Databases provide a mechanism by which articles from
hundreds of technical journals spanning numerous years can be searched
for a specific subject.
• The usability of these databases has been greatly enhanced in recent years
by computerization.
• Examples of these databases include “The Engineering Index and The
National Technical Information Service” etc.
• These databases can be searched by general categories or specific key
words can be used for more targeted searches.
• Directories
• 1. Thomas Register: The Thomas Register of American Manufacturers is a set
of volumes that provide information about manufacturers of a multitude of
products and services. It can typically be found in the library but is now
conveniently available on the Internet at www.thomasregister.com.
• 2. Fraser's Canadian Trade Directory: Similar to the Thomas Register,
Fraser’s Canadian Trade Directory provides information about Canadian
providers of products and services.
• It is available in both hard copy and CD-ROM formats, and can also be accessed
through the Internet at www.frasers.com where searches can be conducted
within the categories of company, product/service or brand name.
• 3. Yellow Pages: The yellow pages are another source for suppliers and
manufacturers.
• If availability from local suppliers is insufficient, yellow pages for other cities
can often be found at the library or on the Internet.
• 4. Catalogues: There are hundreds of catalogues of parts, assemblies and
materials available through vendors.
• These catalogues are often available through workshops and resource centres,
or can be ordered by mailing away request cards often included in trade
publications.
• Other Literature Sources
• 1. World Wide Web: Searching the Internet can lead to websites belonging
to vendors, manufacturers,
• consultants, design companies, professional organizations and educational
centres etc.
• Almost every organization of one type or another has a website and the
information that is often provided on these websites is remarkable.
• Information found on the Internet is often more current than what is
published, and often provides an e-mail address to which questions and
requests for additional information can be sent.
• As anyone can create a website, caution should be used when utilizing
information that it has been obtained
• from a reputable source.
• 2. Brochures: Marketing publications available from competitors or for
related products can sometimes provide valuable information.
PEOPLE AS IDEA AND INFORMATION SOURCES

• An extremely valuable source of ideas that often gets overlooked is

people.
• It is truly amazing that the viable ideas can come from not only subject
experts, but also the most unlikely sources including the person sitting
next to you on the plane or a small child.
• Designers should never be afraid to ask others for ideas.
• Even if someone does not have any solutions to offer, they may know
where to locate information or a person who can provide information.
• This is called networking and can be one of the most powerful tools in
business today.
• We can find the new ideas from the people like Colleagues,
Consultants, Business Vendors, Existing Customers, Lead Users of our
products and Friends and our Family Members.
• 1. Colleagues: Colleagues are usually a very approachable source of
ideas.
• They may be people within the same company, contacts within other
organizations or former classmates etc.
• 2. Consultants: Consultants are generally people who are experts in a
certain area. Although mostly paid for their expertise, many willingly
answer the questions and provide information as long as it is not in
conflict with their commitments and doesn't require a great deal of time.
• Consultants can generally be located through word-of-mouth,
professional directories, yellow pages, educational institutions or the
Internet.
• 3. Vendors: Although the business vendors typically are interested in
selling their product, many, value the development of relationships and
will therefore often be a willing source of ideas and even samples.
• Vendors are an excellent resource as they often are current in technology
and have the opportunity to visit a variety of companies where they can
view different ways of doing things.
• 4. Customers: Customers are an excellent source of ideas. Often they have
conducted their own research before committing to working with a team of
designers on a specific project.
• They may have seen similar products in use and have ideas on different
concepts that could be employed.
• 5. Lead Users: These people are those that had a need for a product long
before the general population.
• Lead users have often created adaptations or invented their own solutions to
satisfy their requirements until a new product comes along.
• 6. Friends/Family: Many designers find ideas for projects when casually
talking to friends and family.
• Sometimes people who have little knowledge of the technology or the specific
problem to be solved may look at things from a different perspective and
propose creative solutions.
ORGANIZATIONS AS IDEA AND INFORMATION SOURCES
• The Government and business organization including various departments,
laboratories, associations and other professional groups are also major
sources of ideas and information.
• 1. Government: There are numerous sources within all levels of
government.
• Many departments, including the Transportation and Safety Board, the
National Bureau of Standards and the Department of National Defence,
have standards and guidelines based on extensive research.
• Engineering organizations throughout the world make extensive use of the
Military Standards produced by the U.S. Department of Defence, many of
which can be accessed through libraries or downloaded from the Internet.
• The National Technical Information Service, a branch of the U.S.
Department of Commerce, is a source for worldwide scientific, technical,
engineering and business related information.
• Much of this information can be obtained through their Internet site
www.ntis.gov.
• 2. Non-Profit Laboratories and Associations: Organizations such as
the Canadian Standards Association, Underwriters Laboratories,
American Society for Testing and Materials, and American Standards
Association can provides standards and guidelines at a nominal fee.
• Often products must be tested against and comply with these standards
before they can be offered commercially
• 3. Professional Organizations: Groups such as Association of
Professional Engineers, /Geologists and Geophysicists of Alberta
(APEGGA) and Society of Manufacturing Engineers (SME) often have
publications and codes available.
• These organizations typically can identify and provide contact
information for experts on a given subject.
OTHER IDEA AND INFORMATION SOURCES
• Generally, the innovative business ideas and its related information are available
in the nature itself.
• The patents, analogies are other sources of ideas and information to start the
enterprise
• Nature: Many innovative technical solutions are based on principles found in
nature.
• Birds have provided concepts for winged flight as fish have for submarines.
• Honeycombs have provided examples of lightweight but strong structures and the
arch of the human foot demonstrates the effectiveness of a keystone bridge
structure for supporting heavy loads.
• Velcro an extensively used fastening device was based on the gripping
capabilities of a burr.
• 2. Patents: Patents are an excellent source of technical ideas.
• Although the use of protected products may be prohibited or require the payment
of a royalty, expired and foreign patents without global coverage can be used.
• Reviewing restricted patents may spawn innovative new ideas that do not fall
under the restriction of a patent. The Mechanical Design Process explains the
process for researching patents.
• Analogies: The creative technique of using analogies involves
examining the similarities between the current design problem and
another similar problem.
• Basically, the design team completes the phase "This situation is like..."
collects solution ideas for the analogous problem then transfers these
ideas to the original problem.
• The analogous problem can be another technical example or one from
nature.
 TECHNIQUES FOR GENERATING NEW IDEAS
• Generally, the entrepreneurs identify more ideas than opportunities
because many ideas are typically generated to find the best way to
capitalize on an opportunity.
• The following are different types of techniques which can be used to
stimulate and facilitate the generation of new ideas for products, services
and businesses.
• 1. Brainstorming
• 2. Focus Groups
• 3. Observations
• 4. Surveys
• 5. Emerging Trends
• 6. Research and Developments
• 7. Trade Shows and Association Meetings
• 8. Other Techniques
• 1. Brainstorming: This is a process in which a small group of people interact
with very little structure,
• with the goal of producing a large quantity of novel and imaginative ideas.
The goal is to create an open,
• uninhibited atmosphere that allows members of the group to "freewheel"
ideas. Normally, the leader of the
• group asks the participants to share their ideas. As group members interact,
each idea sparks the thinking of
• others, and the spawning of ideas becomes contagious.
• 2. Focus Groups: These are group of individuals who provide information
using a structured format.
• Normally, a moderator will lead a group of people through an open and in
depth discussion. The group
• members will form comments in open-end in-depth discussion for a new
product area that can result in
• market penetration. This technique is an excellent source for screening ideas
and concept.
• 3. Observation: A method that can be used to describe a person or
group of people’s behaviour by
• probing:
• (i) What do people/organizations buy?
• (ii) What do they want and cannot buy?
• (iii) What do they buy and don't like?
• (iv) Where do they buy, when and how?
• (v) Why do they buy?
• (vi) What are they buying more of?
• (vii) What else might they need but cannot get?
• 4. Surveys: This is a process which involves the gathering of data
based on communication with a representative sample of individuals.
• This research technique requires asking people who are called
respondents for information either verbally or by using written
questions. Questionnaires or interviews are utilised to collect data on
the telephone or face-to-face interview.
• 5. Emerging Trends: The example is based on the population within
your area may be getting older and
• creating demand for new products and services.
• 6. Research and Development: Research is a planned activity aimed
at discovering new knowledge,
• with the hope of developing new or improved products and services.
Researching new methods, skills and
• techniques enable entrepreneurs to enhance their performance and
ability to deliver better products and
• services.
• 7. Tradeshows and Association Meetings: This can be an excellent
way to examine the products of
• many potential competitors, uncover product trends and identify
potential products.
• 8. Other Techniques: This can be achieved by reading relevant trade
magazines and browsing through
• trade directories. These may include local, national and foreign
publications
Product
• A product is something that is made or created to be sold or used by
customers.
• It can be a physical item, such as a toy or a piece of clothing, or a digital
item, such as software or an app.
• Products can be designed for different purposes, such as entertainment,
education, or productivity.
• They are typically created to meet a specific need or solve a particular
problem for the customer.
Selection of Product
• Product selection is the process of identifying, evaluating, and choosing the
best product ideas to bring to market. It is a crucial step in the product
development process as it determines the success of a product in the market.
Here are some important notes on product selection:
• Simple and Affordable to Develop: When selecting a product, it is
important to consider its development cost. Choosing a product that is simple
and affordable to develop can save time and money in the long run. This
could mean selecting a product with a basic design, fewer components, or a
shorter development timeline.
• Evaluate the feasibility: Consider the technical, financial, and operational
feasibility of bringing your product to market.
• Consider your expertise and interests: Choose a product that aligns with
your expertise and interests. It will help you in creating a product that meets
the market need, and you will enjoy working on it.
• Analyze the competition: Analyze the existing competition to understand
their product offerings, pricing, and marketing strategies. This analysis will
help you create a product that is unique and better than your competitors.
• Determine your budget: Determine the budget you have for product
development, manufacturing, and marketing. This will help you choose a
product that fits within your budget.
• Consider the scalability: Choose a product that can be easily scaled up or
down according to the market demand. This will help you in managing the
production and distribution of the product effectively.
• Determine the cost and potential profit: Calculate the cost of producing
and marketing your product and determine the potential profit. Make sure
the profit is worth the investment.
• Consider the regulatory and legal requirements: Make sure your product
meets regulatory and legal requirements before bringing it to market.
• Recurring Revenue: Another important factor in product selection is its
potential for generating recurring revenue. This could involve selecting a
product that requires consumables or ongoing maintenance, or a product
that has a subscription- based revenue model. Recurring revenue can help
ensure a stable cash flow and sustained growth for the business.
• Test the product: before launching the product, test it with a sample
group of your target market to gather feedback and improve the product.
• Keep the future in mind: Select a product that has long-term potential
and can stay relevant in the market for years to come. This will help you
in generating consistent revenue and creating a sustainable business.
• Test the product: before launching
 The Adoption Process
• The adoption process is a marketing concept that describes the stages a
consumer goes through in accepting and purchasing a new product or
service. This process can be broken down into five stages:
1. Awareness: In this stage, the consumer becomes aware of the new
product or service. This can happen through advertising, word of mouth,
or other marketing efforts.
2. Interest: Once the consumer becomes aware of the product or service,
they may start to show interest. This can happen if the product or service
meets a need or solves a problem for the consumer.
3. Evaluation: In this stage, the consumer starts to evaluate the product or
service. They may research it, read reviews, or compare it to other
products or services.
4. Trial: If the consumer is satisfied with the evaluation, they may try the
product or service. This can happen through a free trial, a demo, or a
small purchase.
5. Adoption: If the trial is successful, the consumer may adopt the product
or service and continue to use it. This can lead to repeat purchases and
positive word of mouth.
• It's important for marketers to understand the adoption process so
they can tailor their marketing efforts to each stage. For example, in
the awareness stage, the focus may be on increasing brand
awareness through advertising.
• In the evaluation stage, the focus may be on providing detailed
information and answering questions to help the consumer make an
informed decision.
Product Innovation
• Product innovation refers to the process of creating new products or
improving existing ones with the goal of meeting customer needs,
improving the quality and performance of existing products, and enhancing
the overall customer experience.
• It may involve the integration of new technologies, materials or processes
to enhance product performance, functionality, and usability. product
innovation may also involve the development of new features, designs,
packaging, or marketing strategies to differentiate products from those of
competitors and capture the attention of customers.
• Innovation in products is required for several reasons:
• Competitive Advantage: With constantly evolving markets and changing
consumer needs, businesses need to innovate their products to stay ahead of
their competition and gain a competitive advantage.
• Customer Satisfaction: Innovation can lead to the creation of products that
better meet the needs and preferences of customers, ultimately resulting in
higher customer satisfaction.
• Increased Revenue: Innovative products have the potential to attract new
customers, retain existing ones, and increase revenue through the
introduction of new and improved features.
• Brand Image: Innovation in products can help build a positive brand
image for a company, positioning it as a leader in its industry and
driving customer loyalty.
• Cost Reduction: Innovations in products can also lead to cost reductions
through increased efficiency, reduced waste, and improved supply chain
management.
Production, Planning and Development Strategy
• Production, planning, and development strategy refers to the process of
creating a plan for the manufacturing of products that meets the needs of the
market while also being cost-effective and efficient.
• Here are the 7 steps in production, planning, and development strategy:
• Idea generation: This is the first step in the process where the idea for a
new product is generated. This can be done through various methods such as
brainstorming, customer feedback, competitor analysis, and market research.
• Idea Screening: The second step is to screen the generated ideas and
choose the most feasible a n d viab l e o n e. T he id ea should align with
the company’s goals, objectives, and capabilities.
• Concept and testing: The third step is to develop the concept of the product
and test it with a sample group of target customers to evaluate its feasibility
and effectiveness.
• Business analysis: The fourth step is to conduct a thorough analysis of
the product's potential profitability, target market, production costs, and
pricing strategies. This analysis helps in determining the financial
feasibility of the product.
• Product development: The fifth step is to develop the actual product,
design its packaging, and create a prototype.
• Market testing: The sixth step is to test the product in the market with
a small group of target customers to gather feedback on the product's
performance, features, and packaging.
• Commercialization: The final step is to launch the product in the
market. This involves creating a marketing plan, setting up a
distribution network, and training sales staff to promote the product.
New Product Idea
• There are several ways to get new product ideas, including:
• Use social media: Use social media platforms to monitor conversations
about your industry and products. This can give you insights into what
people are looking for and what they're not happy with.
• Identify gaps in the market: Look for gaps in the market where there
are no existing products or where current products are not meeting
customer needs.
• Industry trends: Keep up-to-date with industry news and trends to
identify gaps in the market that your business could fill.
• Research and development: Invest in research and development to
come up with new ideas and products.
• Crowd-sourcing: Use online platforms to gather ideas from a large
group of people.
• Customer feedback: Conduct surveys, focus groups, or social media
listening to gather feedback from customers about what products they
would like to see in the market.
• Personal experience: Pay attention to your own experiences and
identify products that you wish existed or problems that you would like
to solve.
• Competitor analysis: Analyze your competitors products and identify
areas where you can improve or create a better product.
THANK YOU