Module 2 SEARCHES FOR BUSINESS OPPORTUNITY & IDEATION
There are many business opportunities for an individual with a creative
mind. All business starts with an idea, and it is said that creativity, through
innovativeness and the capacity of bringing something new in the market,
spells the difference between a traditional businessman and an
entrepreneur.
A smart entrepreneur may decide to have small or large business, but
it is important to follow the process of identifying and evaluating the various
options in generating ideas that can be transformed into a profitable
business endeavour.
The Search for Business Opportunity
In selecting a business, option should not be based on luck and
immature thinking, but on a thorough evaluation and systematic process.
Start by long and short list of business opportunity and to be evaluated if
there are not fully or efficiently utilized.
In discovering business opportunities, the following factors on
resources have to be evaluated; Macro environmental sources, industry and
market sources, customer preference and description, new knowledge, and
skills.
Among the productive resources, people are the most important
because they are the ones who organize and manage the other productive
resources such as money, materials, machine, and methods.
Other opportunity seeking-processes that can guide a prospective
entrepreneur as to what kind of business to establish are as follows;
a. Look at other successful businesses/ entrepreneurs.
Looking up at other entrepreneurs as a role model that could be an
inspiration, by doing what that have done or do it even better.
b. Respond to a problem area
The solution to a problem might be transformed into a business
venture.
c. Home-based business option
These must not be taken for granted for there are some big businesses
that started as a small business at home.
d. Linkage of resources
The entrepreneur can produce his own input instead of buying them.
The best way to evaluate business opportunity is through Market
Research, which is defined as the study of all problems in marketing a
product
The steps of Market Research are;
Defining a problem
Making a preliminary investigation
Planning the research
Gathering the data
Analysing the data
Reaching a conclusion
Implementation and evaluating decision
Through Market Research, the entrepreneur can be guided in
identifying the profitable markets, saleable products, the strengths
and weaknesses of competitors, available resources, business risks,
trends in consumer tastes and preferences, better marketing
strategies, new market opportunities, and realistic objectives.
Location of the business is the key factor in business success. In
selecting a location, the population, income, competitor, government
policies, peace and order, and others are being considered. This requires a
market survey.
Excellent knowledge about the life cycle of the products provides the
entrepreneur business opportunities to continuously start in business. The
following are the description of the various stage of a product life cycle. It is
composed of four stages; Introduction, Growth, Maturity, Decline
When a product or service is introduced, it may be treated as a
curiosity item. It is important to have a reasonable forecast of initial
demand so an adequate supply of product or an adequate service capacity is
in place.
Over time, design improvements and increasing demand yield higher
reliability and lower costs, leading the growth in demand. In the growth
phase, it is important to obtain accurate projections of the demand
growth rate and how long that will persist, and then to ensure that
capacity increases coincide with increasing demand.
In the next phase, the product or service reaches maturity, and
demand levels off. Few, if any, design changes are needed. In the
decline phase, decisions must be made on whether to discontinue a
product or service and replace it with new ones or abandon the market,
or to attempt to find new uses or new users for the existing product or
service. Some products do not exhibit life cycles: wooden pencils; paper
clips; nails; knives, forks, and spoons; drinking glasses; and similar items.
However, most new products do.
Some service life cycles are related to the life cycles of products. For
example, as older products are phased out, services such as installation and
repair of the older products also phase out.
Ideation
The beginning of business endeavour is ideation. This could be the first
investment of anyone who seeks to be an entrepreneur; and to be called an
entrepreneurial business opportunity, such ideas has to be new, or if not,
should be innovative The best source of ideas are the customers or the
market in general, since they are the ones who are in need for a certain
product or service. For a creative person, ideas are in him in his mind, but
those who are deprived with creative thinking, they can ideas through
reading books and talking to someone with creative thinking.
Ideas that are worth a business should be the one that has a market
now and in the future. This could be a product, a service system, and the
like, which can fall in any of the following categories;
a. Need/ want drives
b. Time-saving drives
c. Money savings
d. Unique or incorporating strong competitive advantages
e. Link to personal interest, preferably passion
The more idea the person produces, the more original and the better
quality ideas one will find among them. When you come across an idea you
should out it in writing.
The most common ways of developing ideas is as follows;
Recognizing the need. Develop an idea or a product that can satisfy a
need, and respond to the need by establishing a business concern.
Improving an existing product. The result of consumer dissatisfaction to
the existing product could open the door to introduce innovations or
improvement.
Recognize trends. Entrepreneurs should be able to recognize the
opportunity to develop a product and set trends that can make them leading
entrepreneurs.
Be aware of everything. There is no other way to know about what is
happening around you, but to research and read.
Questions and assumptions. Anybody can question the relevance or
quality of any product and services, provided that there is an effort to
improve the product.
Naming it first, then, develop it. If you have the idea, study it to
something that is worth a business.
Earlier, it is said that ideation is the beginning of the business. A wrong
choice of idea could be the cause of business failure, so ideas need to be
evaluated if it can be profit potential. The following are tips of evaluating
ideas;
Do not tell your idea follow money, let money follow your ideas. If
the idea is clear and viable, there should be the clear options for business
out of the idea.
See yourself as a problem solver. Ideas should be a solution to an
existing problem of the customer or the market in general.
Use research as a weapon against failure. This is an important fact in
decision making process; most businesses failed because of lack of
information.
Make sure your idea has longevity. An idea that is worth pursuing into a
business is one which has a long term purpose and not only a fad.
Take a risk on your ideas. Venture into a business by using your own
ideas.
Test your idea against the past, present and future. The market needs
and demands will not be far from what is happening in the past, so it is
better to get information about the past, present and the future.
Know the idiosyncrasies of your market. Know the needs of your market
and all the factors that affect the buying process.
Once you generate an idea, it has to be protected because it can make
you a potential millionaire, like in the case of Bill Gates. There are many
ways of protecting your idea for being stolen or claimed by others, and losing
the opportunity to be known as the creator and the originator of the idea.
Aside from this, no company will pay you a royalty if the idea presented is
not legally protected. The following are the ways of protecting your ideas.
A. Confidentiality Agreements
It specifically provides that a signer will not share the idea to anyone.
This is a typical agreement or contract where one should ask advice to a
patents attorney of those with experience and expertise in the intellectual
property right.
B. Patents
These gives the inventor exclusive legal rights to exclude anyone else
from manufacturing, selling, and importing, or using an invention during the
life of life patent. The three general classifications are; design, utility, and
plants patents.
C. Trademarks
This is a word, name, symbol, or devised used by manufacturers on
merchants to identify their goods and distinguish them from others sold in
the market. This should be used in conjunction with a business or a product,
otherwise, this will not be granted.
D. Copyrights
A copyright protects the creative works of composers, authors/writers,
artists, and others. This is the easiest form of protection for intellectual
property.
