Developing ideas and concepts
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This document discusses developing business ideas into viable concepts. It defines a business idea as any opportunity one can turn into a business, while a business concept is a well-developed written idea that answers what, why, where, when and how. Ideas can come from internal sources like experiences or brainstorming, or external sources like customer feedback or research. To develop an idea into a concept, one should research the general concept, business potential, costs, expenses, profits and viability. Turning ideas into viable concepts requires thorough planning and research.
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Developing ideas and concepts
- 1. TOPIC I Developing ideas and concepts into viable enterprises
- 3. OBJECTIVES By the end of the topic, the learner shall be able to identify an appropriate business idea and describe the business concept. Turn the identified ideas into viable business concepts
- 4. Business Ideas A business Idea is any opportunity that person can turn into a business All businesses were once ideas Ideas, on their own, just remain ideas. They must be turned into concepts and then action is taken to implement them
- 5. BUSINESS CONCEPT A business concept is an idea that is well developed in writing. It should fundamentally answer the following questions: What Why Where When How
- 6. Sources of Business Ideas 1. Internal Sources Your own experiences Other peoples experiences Brainstorming meetings Research on upcoming issues Wishful thinking – “how I wish something could happen…”
- 7. 2. External Sources Feedback received from customers Meetings, exhibitions, government websites and publications Sector-wise Youthet research (e.g. Latest business in bottled water I-pad retail, etc)
- 8. PRACTICES IN GENERATING BUSINESS IDEAS Always be alert to business opportunities In any discussion, issue or matter, especially complaints: Ask What is being said? What is the problem? Where did it start from?
- 9. What are the immediate or short term solutions? What is the long term solution? Where can the solution be sourced?
- 10. How can it be done? How much will it cost? How many people have the same problem?
- 11. How much will you sell it for? Are the people with the problem prepared to pay for its price? Is it a profitable business? How long will the problem last?
- 12. CONCEPTUALIZING YOUR BUSINESS IDEA If it is a good business idea, take time to develop it into a concept Conduct research on; 1. General concept research What exactly is the business opportunity? Who else is in this line of business? How are they doing their business?
- 13. What is the process for turning inputs into outputs? Is it an accessible process or technology? How much does it cost? What are its potential profit margins?
- 14. BUSINESS POTENTIAL RESEARCH Who are the potential buyers of the product? Why would they be interested in buying? What is the minimum quantity they will buy before their needs are satisfied? How many are they?
- 15. Where are they usually found? How much will it cost you to get the product to the market? What will it cost you to make the customers aware of your presence? How much will it cost you to deliver the product to the customer?
- 16. How much will you pay for recurring costs E.G. rent for premises, wages and salaries, power and lighting, transport, etc
- 17. What are your total expenses and how much will be left after you have paid for all the expenses? Are your net profits enough to cover your living expenses, loan repayments and other incidentals?
- 18. CONCLUSION