Ways of Generating Business Ideas

 What is a Business Idea

  • An opportunity in the environment which, can be translated into a business activity.
  • The existence of a situation in the environment which, can be advantageously turned into a business activity.
  • The existence of an opportunity which can be exploited for making money through the operation of business activities.
  • It is the response of a person (s) or organisation to solving an identified problem or to meeting perceived needs in the environment (markets, community)

Why search and evaluate business ideas?

  • You need a great idea to start a new business. A good business idea is essential for successful business venture both when starting a business and to stay competitive afterwards
  • Business ideas need to respond to market needs. Customers have needs/wants waiting to be satisfied. Firms that are able to satisfy these requirements are rewarded.
  • Business ideas need to respond to changing consumer wants and needs. i.e. provide opportunities for the  entrepreneur to respond to demand with new ideas , products/services
  • Business ideas help entrepreneurs stay ahead of competition. Challenge is to be different or better than others. If you don’t come up with new ideas products/services a competitor will.
  • Business ideas use technology to do things better. Technology has become the major competitive tool in today’s markets as a result of which many people have to come up with new ideas.
  • Business ideas are needed because the life cycles of products are limited. Products have a finite life, they become obsolete or outdated. Firms have to introduce new products
  • Business ideas help to ensure that businesses operate effectively and efficiently .
  • There are so many business opportunities available at any one time and the requirements for translating them into business activities differ between each of them.
  • The need to develop a competitive edge by providing something new that has little or no competition
  • The success and profitability differ between various business opportunities, hence need to pick one with profit and success potential.

Finding a good idea is the first step into transforming the entrepreneurs desire and creativity into a business opportunity.

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