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14 . Business Ideas - Coggle Diagram
14 . Business Ideas
Product Development
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- Product/service Screening
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Internal Sources
Research and Development
Research and Development [R&D] is a department within the business whose function is innovate and carry out investigative activities with the intention of making a discovery that can either lead to the development of new products or to the improvement of existing products.
A company like Apple needs R&D because it competes by developing devices that are better and more appealing than ones created by competitors.
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External Sources
Family and Friends
A would-be entrepreneur may get an idea for a business after hearing their family and friends complain about not being able to get a product or service they need.
Jack Odell thought of the idea for Matchbox toys when his daughter told him that she was allowed to bring toys into school only if they were small enough to fit into a matchbox.
Media
A person wishing to set up her own business may get an idea by reading or hearing something in a newspaper, magazine, or on TV. These media give an indication of trends taking place that an entrepreneur can make money from
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- Media reports about the ever increasing amount of money spent by men on their appearance encouraged the opening of “The Grooming Rooms” – a male only “beauty” salon in South William St, Dublin 2.
Import substitution
Import substitution involves entrepreneurs making an Irish version of products that are currently imported into Ireland. It is replacing imports with domestically made goods.
Geoff Read thought of the idea for Ballygowan when he spotted that all the bottled waters on sale in Ireland were foreign.
Customer survey
A business can survey its customers for their opinions about the business and its products. The customers can tell the business what new products or improvements to existing products they would like. This can give the business ideas for new products
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McDonald’s got the idea for its “Salads Plus” menu when customers complained that the food on offer was too unhealthy
Unique selling point
A USP is some feature of a product that makes it different and sets it apart from the competition’s product. That difference is valued by customers and attracts them to the product.
For example, the USP of Volvo cars is its excellent safety standards.
Why prototype?
A working prototype gives the business the opportunity to see how well the product works in practice. It helps to identify any problems with the product and the improvements that will make it better. This will help to make the final product more attractive to consumers, thus increasing sales in the future.
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Building a prototype helps the business to identify what raw materials are needed to make it. This helps the business to see if it is possible to source a plentiful supply of these materials and of the quality required.
The attempt to build a prototype also helps the business to identify whether it has the necessary equipment needed to make the product. If not it can take steps to address these engineering and production issues, so that the product can be made successfully.