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Chapter 14: Business Ideas - Coggle Diagram
Chapter 14: Business Ideas
sources of business ideas
Internal sources
Getting ideas from your own strengths and weaknesses
External sources
Getting ideas from opportunities and threats in the outside market
Internal sources of business ideas
1. Skills and Hobbies
a would-be entrepreneur could have special talents that he/she has that can be turned into a business. The person could develop the talent overtime.
2. Experiences
A person that is wishing to set up a business from what they seen or learned. From the learning outcome the person could create a profitable business
3. Research and Development
A Research and Development (R&D) is a department that the function is to carry out investigative activities to make a discovery that can make either a development of a new product or improving exiting products.
4. Employee suggestion
A business can get good ideas for making new products or services from the employees that work there, The encouragement can lead to
intrapreneurship
and can set up a formal employee suggestion scheme.
5. Brainstorming
Brainstorming is a technique that involves the business creating a group of creative people from different part of the business. A leader of a group starts the discussion between the members and gets many ideas as they can. The group leader takes down all of the ideas and the aim is to encourage creativity and imagination.
External sources of business ideas
1. Family and Friends
A new entrepreneur may get inspiration for a idea to create a business. An entrepreneur might get ideas from either from family or friends.
2. Customer Feedback
A business can create a survey to let customers to give their opinions about the business or a product. The business can tell the business what new products to create next or to improve to an existing product.
3. Media
A person that is wishing to set up their own business may get ideas from reading or seeing something in newspaper, TV or social media.
4. Import Substitution
Import substitution involves different entrepreneurs making an Irish version of a product that are currently imported into Ireland.
5. State Agencies
Irish government agencies can provide ideas for creating new products and new markets. For example Enterprise Ireland provides a "Market Research Centre" that can provide market research reports.
6. Competitors
Any business/businesses can get an idea by copying/adapting successful ideas by their rivals.
Development process of a new product
1. Idea Generation
The first steps to bring a new product or service is to come up with lots of ideas. The business can find a few good ideas from internal sources.The dynamic nature of the group members floating ideas can often spark another idea.
2. Product Screening
Screening can involve critically evaluating each one of the ideas that were generated in step 1. This is done by conducting a SWOT (
Strength, Weakness, Opportunity and Threat
) on each idea to see how it faces in the marketplace.
3. Concept Development
Concept development turns the initial business's ideas to turn into a real and concrete objective to achieve. it involves creating a detailed version of the product idea in consumer terms by drawing up a written document.
4. Feasibility Study
A feasibility study is an investigation into the new product idea that seeks to establish two thing: (i). is it possible to make the product. (ii). is the idea commercially viable.
The business might use a cash flow forecast to predict the receipts and payments expected from the venture to see whether the idea is viable.
5. Prototype Development
A prototype is the first working model of the product that the business makes.
A working prototype gives the business the opportunity to see how the product works in practice.
This will help to make the final product more attractive to consumers.
The attempt to build a prototype helps the business to identify whether is has the necessary machinery and equipment needed to make the product.
6. Test Marketing
Test marketing involves launching the product to a certain amount of people in the test market to test the product.
Consumers in the test market get to experience the product as well other elements such as advertising and pricing.
The reaction from the consumers will be used to refine the product, its price, the way that is advertised and distributed.
7. Product Launch
The full-scale production of the product now begins and its is made available for sale in the entire market.
The business must undertake a marking campaign to make consumers aware of the production and motivated to buy it.