This document discusses the process of generating and screening project ideas. It begins by outlining how to stimulate idea flow, such as through SWOT analysis and fostering a conducive climate. It then describes how to monitor the economic, governmental, technological, socio-demographic, competition, and supplier environments. Steps for appraising a company's marketing, production, R&D, resources, and finances are provided. The document also discusses screening ideas based on compatibility, consistency, inputs, market, costs, and risks. Qualities of successful entrepreneurs like well-defined goals and the right strategy and execution are highlighted.
2. GENRATION OF IDEAS
Stimulating the Flow of Ideas
SWOT Analysis
Clear Articulation of Objectives
Fostering a Conducive Climate
3. MONITORING THE
ENVIRONMENT
Economic Sector
State of the Economy
Overall Rate of Growth
Growth Rate of Primary, Secondary and
Tertiary Sectors
Cyclical Fluctuations
Linkage with the World Economy
Trade Surplus / Deficit
Balance of Payment Situation
4. MONITORING THE
ENVIRONMENT
Governmental Sector
Industrial Policy
Government Programmes & Projects
Tax Framework
Subsidies, Incentives and Concessions
Import & Export Policies
Financing Norms
Lending Conditions of Financial Institutions
and Commercial Banks
5. MONITORING THE
ENVIRONMENT
Technological Sector
Emergence of New Technologies
Access to Technical Know-How, Foreign as
well as Indigenous
Receptiveness on the Part of Industry
6. MONITORING THE
ENVIRONMENT
Socio-Demographic Sector
Population Trends
Age Shifts in Population
Income Distribution
Educational Profile
Employment of Women
Attitudes Towards Consumption and
Investment
7. MONITORING THE
ENVIRONMENT
Competition Sector
Number of Firms in the Industry and the
Market Share of the Top Few
Degree of Homogeneity and Differentiation
Among Products
Entry Barriers
Comparison with Substitutes in Terms of
Quality, Price, Appeal and Functional
Performance
Marketing Policies and Practices
8. MONITORING THE
ENVIRONMENT
Supplier Sector
Availability and Cost of Raw Materials and
Sub-Assemblies
Availability and Cost of Energy
Availability and Cost of Money
9. CORPORATE
APPRAISAL
Marketing and Distribution
Market Image
Product Line
Market Share
Distribution Network
Customer Loyalty
Marketing and Distribution Cost
10. CORPORATE
APPRAISAL
Production and Operations
Condition and Capacity of Plant and
Machinery
Availability of Raw Materials, Sub-
Assemblies and Power
Degree of Vertical Integration
Locational Advantage
Cost Structure
11. CORPORATE
APPRAISAL
Research and Development
Research Capabilities of Firm
Track Record of New Development
Laboratories and Testing Facilities
Co-ordination Between Research and
Operations
12. CORPORATE
APPRAISAL
Corporate Resources and Personnel
Corporate Image
Clout with Governmental and Regulatory
Agencies
Dynamism of Top Management
Competence and Commitment of
Employees
State of Industrial Relations
13. CORPORATE
APPRAISAL
Financial and Accounting
Financial Leverage and Borrowing Capacity
Cost of Capital
Tax Situation
Relations with Shareholders and Creditors
Accounting and Control System
Cash Flows and Liquidity
14. PROFIT POTENTIAL OF
INDUSTIRES – PORTER
MODEL
Potential
Entrants
Threat of New
Entrants
Bargaining Power Bargaining Power
THE INDUSTRY
of Suppliers of Buyers
Suppliers Rivalry Among Buyers
Existing Firms
Threat of
Substitute
Products
Substitutes
15. SCOUTING FOR
PROJECT IDEAS
Analyze the Performance of Existing
Industries
Examine the Inputs and Outputs of
Various Industries
Review Imports and Exports
Study Plan Outlays and Governmental
Guidelines
16. SCOUTING FOR
PROJECT IDEAS
Look at the Suggestions of Financial
Institutions and Development Agencies
Investigate Local Materials and
Resources
Analyze Economic and Social Trends
Study New Technological Developments
Draw Clues for Consumption Abroad
17. SCOUTING FOR
PROJECT IDEAS
Explore the Possibilities of Reviving Sick
Units
Identify Unfulfilled Psychological Needs
Attend Trade Fairs
Stimulate Creativity for Generating New
Product Ideas
18. PRELIMINARY
SCREENING
Compatibility with the Promoter
It Fits the Personality of the Entrepreneur
It is Accessible to Him
It offers him the Prospect of Rapid Growth
and High Return on the Invested Capital
19. PRELIMINARY
SCREENING
Consistency with the Government
Priorities
Is the Project Consistent with the National
Goals and Priorities?
Are there any Environmental Effects
Contrary to Governmental Regulations?
Can Foreign Exchange Requirements of the
Project be Easily Accommodated?
Will there be Any Difficulty in Obtaining the
License of the Project?
20. PRELIMINARY
SCREENING
Availability of Inputs
Are the Capital Requirements of the Project within
Manageable Limits?
Can Technical Know-How Required for the Project
be Obtained?
Are the Raw Material Required for the Project
Available Domestically at a Reasonable Cost? If the
Raw Materials Have to Be Imported, Will there be
Problems?
Is the Power Supply for the Project Reasonably
Obtainable from External Sources and Captive
Power Resources
21. PRELIMINARY
SCREENING
Adequacy of Market
Total Present Domestic Market
Competitors and Their Market Share
Export Markets
Sales and Distribution System
Projected Increase in Consumption
Barriers to the Entry of New Units
Economic, Social and Demographic Trends
Patent Protection
22. PRELIMINARY
SCREENING
Reasonableness of Cost
Cost of Material Inputs
Labour Costs
Factory Overheads
General Administrative Expenses
Selling and Distribution Cost
Service Cost
Economies of Scale
23. PRELIMINARY
SCREENING
Acceptability of Risk Level
Vulnerability of Business Cycles
Technological Changes
Competition from Substitutes
Competition from Imports
Governmental Control Over Price and
Distribution
25. SOURCES OF POSITIVE
NET PRESENT VALUE
Economies of Scale
Product Differentiation
Effective Advertising and Superior Marketing
Exceptional Service
Innovative Product Features
High Quality and Dependability
26. SOURCES OF POSITIVE
NET PRESENT VALUE
Cost Advantage
Accumulated Experience and Comparative
Edge on the Learning Curve
Monopolistic Access to Low Cost Materials
A Favourable Location
More Effective Cost Control and Cost
Reduction
27. SOURCES OF POSITIVE
NET PRESENT VALUE
Marketing Reach
Technological Edge
Government Policy
Restrictive Licensing
Import Restrictions
High Tariff Walls
Environmental Controls
Special Tax Reliefs
28. ON BEING AN
ENTREPRENEUR
1. Are my goals Well Defined?
Personal Aspirations
Business Sustainability and Size
Tolerance for Risk
1. Do I have the Right Strategy
Clear Definitions
Profitability and Potential for Growth
Durability
Rate of Growth
29. ON BEING AN
ENTREPRENEUR
3. Can I Execute the Strategy?
Resources
Organizational Infrastructure
The Founder’s Role
30. QUALITIES AND TRAITS OF
A SUCCESSFUL
ENTREPRENEUR
Willingness to Make Sacrifices
Leadership
Decisiveness
Confidence in the Project
Marketing Orientation
Strong Ego