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 Products have a finite life, they become obsolete or outdated.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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One thought on “Ways of Generating Business Ideas”
great and reasonable notes