1. The document discusses the process of starting a new business, including searching for ideas, processing the ideas, selecting the best idea, assembling necessary inputs and resources, and establishing the enterprise. 2. Ideas can come from various sources like customer demand, trade shows, government reports, and meetings. The ideas must be analyzed for technical feasibility, commercial viability, and profitability. 3. Once an idea is selected, the entrepreneur must gather required inputs like financing, raw materials, employees, technology, and establish business operations. Setting up management systems is important for tracking inputs, costs, and sales.

1. Revathy Rajasekaran
Coordinator, EDC Cell
V.V.Vanniaperumal College for Women
Virudhunagar
V.V.Vanniaperumal College for Women

2. 1. Search for business ideas
2. Process the Idea
3. Select the best idea
4. Assemble the necessary inputs
resource
5. Establish the enterprise
V.V.Vanniaperumal College for Women

3. Idea can be from different source- idea
from friend, demand of certain products,
producing a substitute for an imported
article, visit trade fair & exhibitions,
project reports, industrial potential
surveys, meeting with govt. agencies.
Idea can be starting new business or
takeover
It should be sound & workable- good
return on investment
V.V.Vanniaperumal College for Women

4. Sources of Ideas ???
V.V.Vanniaperumal College for Women

5. Market survey reveals demand &
supply.
Anticipate changes in fashions,
income levels, technology
Ascertain if demand is elastic or
inelastic
Experts advice in product analysis &
market survey.
Ex: Mobile shop- Univercel,Poorvika
V.V.Vanniaperumal College for Women

6.  Customer needs & preferences must be collected.
 Consumer knows the best of what he wants and
habits & taste which are going to be popular in
future.
 Conduct survey among consumer before choosing
product for manufacturing.
 Market test of the product before its launch.
 Ex: Test drive of Cars by consumers
 Ex: Lifebuoy introduced hand wash & kitchen wash
cream
V.V.Vanniaperumal College for Women

7.  People in developed countries follow the
fashion trends of developed countries.
 Develop good idea by keeping in touch
with developments in advance countries.
 Entrepreneur visit foreign countries in
search for ideas & foreign collaborations.
 Ex: smart phone are first introduced in
foreign country.
V.V.Vanniaperumal College for Women

8. Govt and private agency publish
periodic profiles of various projects
and industries.
The project describes in detail the
technical, financial, and market
requirements.
Promising projects can be selected
from this report
Ex:Secondshaadi.com
V.V.Vanniaperumal College for Women

9.  Government organization assist entrepreneurs in
discovering business idea.
 Banks, technical consultancy, investment
centres, export council provides advice on
business.
 Govt identifies priority sector in 5 year plan
 Publication on trade & industry help identify
ideas.
 Ex:Service sectors like IT & Telecom has been a
good growth in recent times
V.V.Vanniaperumal College for Women

10.  At fairs producers & dealers in the
concerned industry put the products for
display or sale.
 Provides information about new products
& information.
 Assessing market trends, meeting buyers,
Assessing the attitude of competitors,
establishing personal contacts, comparing
price & quality of similar products
V.V.Vanniaperumal College for Women

11.  New inventions awaiting commercial
exploitaions
 Unsatisfied demand
 Inferior goods
 Ex: House wifes need product to show the
level of cooking gas in cylinder.
V.V.Vanniaperumal College for Women

12. Delphi
Benefit analysis
Use analysis
Relative brand profile
Achilles heel
Free association
Stereotype activity
V.V.Vanniaperumal College for Women

13. IDEA PROCESSING & SELECTION
V.V.Vanniaperumal College for Women

14.  Technical feasibility- possibility of
production of a product, availability of
necessary technology, machine, labour, raw
materials.
 Advice of technical expert is necessary
 Commercial Viability- cost benefit analysis
to ascertain the profitability of product
 study market condition & feasibility
 Calculate demand, sales, selling price, cost of
production, BEP
 Select a Feasible profitable business
idea
V.V.Vanniaperumal College for Women

15.  The promising idea is subjected to a
thorough analysis from all angles
 Full investigation in terms of technical
feasibility & economic viability, financial
& managerial feasibility is tested.
 Help from experts is required
 At this stage the idea is finally rejected or
selected. The findings are presented in
the form of feasibility report.
V.V.Vanniaperumal College for Women

16.  The feasibility report is analysed to choose the
promising idea.
 The consideration in idea selection are
 Products whose import are banned
 Products which can be exported easily
 Products whose demand increase the supply
 Products where entrepreneur has experience in
production & marketing
 Parent ancillary relationship
 High profit products
 Products favoured by licensing product.
 Products where incentives & subsidies are available
V.V.Vanniaperumal College for Women

17. INPUT
REQUIREMENTS
V.V.Vanniaperumal College for Women

18.  Once the idea is selected need to assemble
the necessary resource to launch the
enterprise.
 Collect various inputs
 Recruiting labour & accumulate inventories
 Assembles it & organize
 Developing operations & production
 Advertising the product & sales promotion
V.V.Vanniaperumal College for Women

19. A Management Information System(MIS) is required to
collect & process the information.
 Size & nature of demand of product
 Volume & source of supply
 Price cost volume relationship
 Sources of raw materials
 Number & type of employees required
 Supplier of machine & Technology
 Amount & source of fund
 Nature of competition
 Govt policy & regulation
 Export import conditions for the product
V.V.Vanniaperumal College for Women

20.  Finance is the life blood of an organization
 Finance required for fixed & current asset
 Methods to estimate finance required
 Cost theory- finance is the sum of fixed asset,
current asset & intangible asset.
 Simple to calculate but fail to reflect the
earning power
 Problem of over capitalization or under
capitalization occurs
V.V.Vanniaperumal College for Women

21.  Earnings Method- Capitalization is equal to
capitalizes value of its estimated earnings
 Eg: If Earnings is 50 L which is 25% of ROI then
the investment required is 200L
 Correct estimation of earning is difficult to
determine.
 Identification of source of fund – equity & debts
 The capital structure is determined
 The systems are established for management &
control of working capital & earnings
V.V.Vanniaperumal College for Women

22.  People are the most valuable asset of the company
 Number of personnel required
 Qualifications & Experience of employees
 Sources of recruitments
 Procedure for selecting best candidate
 Methods of orientation & training
 Policy for transfer & promotion
 Policy for remuneration
 Facilities of safety, health & welfare for staff
 Participation of personnel into management
V.V.Vanniaperumal College for Women

23. Considerable wealth
Prestige & status in the society
Economic independence and power
Sense of achievement and pride
Satisfaction of providing
employment to others
Career for children
V.V.Vanniaperumal College for Women

24.  Dissemination of information concerning
new improved products
 Booking for order for supply of products
 Idea for developing new/better products
 Foreign collaboration of technical know
how
 Assessing the trends in the competition
 Dealership import/export contract.
V.V.Vanniaperumal College for Women