Business Idea PDF

BUSINESS IDEA ➤ A business idea is a short and precise 2. Service Provision. description of the basic operation of ➤Service providers are people whose an intended business. businesses sell a particular service,...

BUSINESS IDEA ➤ A business idea is a short and precise 2. Service Provision. description of the basic operation of ➤Service providers are people whose an intended business. businesses sell a particular service, such as transportation, tours, YOUR BUSINESS IDEA WILL TELL hairdressing, banking, deliveries, YOU: construction, repairs, cleaning, ➤Which need will your business fulfil painting, nursing, etc. for the customers and what kind of customers will you attract? 3. Wholesaling ➤What good or service will your ➤Wholesalers are businesses that buy business sell? large quantities of certain goods ➤ Who will your business sell to? from manufacturers and resell those ➤ How is your business going to sell goods to retail outlets, who then its goods or services? resell them to individual consumers. ➤ How much will your business 4. Retailing depend upon and impact the ➤Retailers purchase ready-made goods Environment? from wholesalers or suppliers for resale at a profit. Some examples of FIELD OF BUSINESS retail businesses are grocery stores, ➤ A field of business refers to an appliance stores, clothing stores, industrial category, such as farming, stationery shops, computer and fishing, food processing, garments, mobile phone shops, etc. construction, furniture, beauty salon, stationery, etc. Your talent, family HOW TO STRENGTHEN YOUR background, experience, hobbies or ENTREPRENEURIAL ABILITIES AND interests often inspire you to develop SKILLS? a certain field of business. ➤ Learn from people who run their own business, especially those in TYPE OF BUSINESS your chosen business field and type There are four main types of businesses: Attend training courses 1. Manufacturing Find work as an assistant or ➤Manufacturers are businesses that apprentice in a successful business in use raw materials, such as leather, the field and type that you are waste material, wood, cloth or metal interested in and make new or different products ➤ Read articles about businesses in out of those materials. Some your field and type in newspapers examples of manufacturing and trade journals, either on the businesses are shoemakers, internet or at libraries to help you dressmakers, furniture makers, paper think about the problems these producers and farm equipment businesses are facing and their Manufacturers. proposed solutions  ➤ Join a small business association in ➤How the entrepreneur intends to use your area and participate in forums his resources? Set aside small amounts of money on ➤How the entrepreneur expects to a daily or weekly basis to help relate to the ever-changing finance your new business environment? ➤Develop the skills and attitudes ➤The kind of values the entrepreneur described below by applying them in intends to offer to his customer. your daily activities: ​ Increase your motivation and ADOPTION OF COURSES OF ACTION commitment by making a ➤ A carefully designed plan for plan for your future achieving the firm's objectives; can ​ When things go wrong, attract persons with high potentials analyze what happened and to work with the company. improve your ability to learn from mistakes SWOT ANALYSIS - is an organized ​ Accept the problems, assess method of assessing firm's internal the solutions and take risks environment (strength and weaknesses) and ➤Become more open to new views and the opportunities and threats in the external other people views. environment that confront the firm. ➤STRENGTHS - refers to a skill, a STRATEGIC PLANNING competence, a valuable ➤ Refers to the process of determining organizational resource or competitive the primary objectives of the capability, or an entrepreneurship and then adopting achievement that gives the firm a courses of action and allocating market advantage. resources. It provides the ➤ WEAKNESSES - refers to entrepreneur with systematic something a company lacks or does approach to the achievement of the poorly (compared with others) or a firm's objectives. condition that put it at a THREE DISTINCT STEPS OF disadvantage. STRATEGIC PLANNING: ➤ OPPORTUNITIES - refers to the ​ Determination of objectives chance offered by the external ​ Adoption of course of action environment to improve the firm's ​ Allocation of resources situation significantly. DETERMINATION OF OBJECTIVES ➤THREATS - refers to a challenge ➤ The objectives are the important posed by an unfavorable or components of the firm's strategic development in the external planning. But before these the firm's environment, that would lead to, the mission statement must be erosion of the entrepreneurship developed: Position. MISSION STATEMENT - refers to the basic description of the fundamental nature, and direction of the firm. It concerns the following: FORECAST OF FUTURE SALES ➤What is the impact of the business on PERFORMANCE. the natural environment and the ► Forecasts are supplementary tools for community? swot analysis. It is an estimate or OTHER METHODS OF FINDING prediction of the future sales or BUSINESS IDEAS: income of the firm. 1. Learn from successful business owners. 2. Draw from your own experience. IMPLEMENTING STRATEGIC PLANS 3. Survey your local business area Strategies are useless unless implemented. 4. Scanning your business environment To put strategies in action, the following - learn about the industry or service activities are required: providers on which the local 1. Identifying the specific methods to economy relies. be used; and 5. Brainstorming 2. Deploying the resources needed to BRAINSTORMING implement the intended plans. ➤means opening up your mind and TACTICS thinking about many different ideas. ➤Are used to implement strategies and You start with a word or a topic and are more detailed and used to then write down everything that determine how the specific tasks can comes to mind relating to that be accomplished on time with subject that comes to mind relating available resources. to that subject. STRATEGIES THAT ARE PROTOTYPE APPLICABLE TO SMALL BUSINESS: ➤ A prototype is a model of the 1. Segment markets invention that puts into practice all 2. Efficient use of research and the things that were written in the development inventor's journal. This will be 3. Think small. presented to the potential lenders and licensees. BUSINESS IDEAS ANALYSIS FORM Name of business: GENERAL RULES OF THUMB WHEN ➤ Goods or services sold: PROTOTYPING INVENTION: Main customers: 1. Begin with a drawing, sketch out all ➤ When and why did the owner decide of the ideas; to start this business? 2. Create a concept mock up out of any ➤Why did the owner think it was a material that will allow one to create; good idea to start that kind of and business? 3. Create a full working model of the ➤How did the owner learn what his idea using a computer animated potential customers wanted? virtual prototype. ➤ What problems did the owner face in setting up the business? ➤Has the business good or service changed over time? ADVANTAGES OF PROTOTYPE: 5. MANUFACTURING PLAN - 1. It tests and refines the functionality Your product concept should include of the design; details about how the product can be 2. It makes possible to test the manufactured at scale and turn a performance of various needs; and profit. This section of your product 3. It will help you describe your concept statement might include product more effectively. information about supply chains, TYPES OF PRODUCT CONCEPTS equipment, shipping, and labor 1. Original product concept needs. ➤An original product concept used to 6. PRICING STRATEGY - Propose a describe a product will be notably price for the product based on factors different from anything else on the like expected production costs and market. The first smartphones or customer price expectations. first electric cars were based on 7. MARKETING STRATEGY - original product concepts. They had What marketing channels does your unique features not found in any target audience turn to most product prior to their existence. frequently? Social media? Search 2. Augmented product concept engines? Email? newsletters? These ➤ An augmented product concept are the channels where you can describes a product built off an showcase your product and connect existing product but offers new with potential customers. features or design improvements. If the first smartphones and electric CONCEPTUALIZATION cars were original product concepts, ➤is the process of planning an idea the next year's models were mentally. During the process of augmented product concepts. conceptualization as a business, the thinker will be inventing an idea in KEY ELEMENTS OF A STRONG their minds to eventually create as a PRODUCT CONCEPT Product. 1. INTRODUCTION - It should THE PROCESS OF PRODUCT indicate the importance of the project CONCEPTUALIZATION and the proponent's background and 1. Generating the idea - It is where their desire to establish the business. you put all of your ideas down on 2. TECHNICAL ASPECTS - a list of paper expected product measurements 2. Research the idea - Before planning 3. TARGET MARKET - describe the and making the first product, you target customers who you think will will need to do some research to get the most value out of your new identify the best way to produce the product. product. 4. UNIQUE VALUE 3. Plan how to make the idea come to PROPOSITION - A unique value - Once you have a clear proposition (UVP) articulates why understanding of your idea, you can the product will stand out among start to think about how to make it a similar competitors. reality. 4. Making a mockup - The first physical time you will see the product and see how it looks, feels, and work is during the mockup. A prototype is key before going into mass production. 5. Costs and sourcing - When you have the perfect product, you will need to identify costs and source the Materials. 6. Launch the product - The successful launch of a product is essential for achieving market share and profitability goals. The launch process begins long before the product is available to consumers.