1. Business opportunities can come from solving problems and meeting consumer needs. Sources of ideas include consumers, existing products/services, distribution channels, government policies, brainstorming, personal interests/experience, trade shows, and more. 2. Consumers are a key source as their wants and preferences are always changing, so understanding customer feedback is important. 3. Existing products and services can be analyzed to identify weaknesses and opportunities to offer improved alternatives. 4. Distribution channels like retailers are well-acquainted with customer wants and can provide ideas for new products or modifications.

1. Business opportunity identification & project
idea generation
• A new venture has to solve a problem and meet a genuine need.
• Business opportunity means a good or favorable change available to run a specific business in
given environment at a given point of time.
• The term ‘opportunity’ also covers a product or project.
• Product or opportunity identification & selection process starts with the generation of ideas.
• Sources of project ideas
• Consumers
• Existing products & services
• Distribution channels
• Government
• Research & development
• Interests and hobbies
• Personal experience and talents
• Trade fairs and exhibitions
• Brain storming

2. Consumers
• No business enterprise can be thought of without consumers.
Consumers demand for products and services to satisfy their wants.
Also, consumers’ wants in terms of preferences, tastes and liking keep
on changing. Hence, an entrepreneur needs to know what the
consumers actually want so that he/she can offer the product or
service accordingly. Consumers’ wants can be known through their
feedback about the products and services they have been using and
would want to use in future.

3. Existing Products and Services
• One way to have an enterprise idea may be to monitor the existing
products and services already available in the market and make a
competitive analysis of them to identify their shortcomings and then,
based on it, decide what and how a better product and service can be
offered to the consumers. Many enterprises are established mainly to
offer better products and services over the existing ones.
• Example: Apple
• Mac was the first computer to ship with a mouse & the first computer to introduce the
world to a graphical user interface(GUI)

4. Distribution Channels:
• Distribution channels called, market intermediaries, also serves as a very
effective source for new ideas for entrepreneurs. The reason is that they
ultimately deal with the ultimate consumers and, hence, better know the
consumers’ wants.
• As such, the channel members such as wholesalers and retailers can
provide ideas for new product development and modification in the
existing product.
• For example, an entrepreneur came to know from a salesman in a
departmental store that the reason his chair was not selling was its dark
shade while most of the young customers want chair with light shade. The
entrepreneur paid attention to this feedback and accordingly changed the
shade of his chair to light shade. Entrepreneur found his chair enjoying
increasing demand just within a month.

5. Government
• At times, the Government can also be a source of new product ideas
in various ways. For example, government from time to time issues
regulations on product production and consumption. Many a times,
these regulations become excellent sources for new ideas for
enterprise formation.
• For example, government’s regulations on ban on polythene
bags/plastic have given new idea to manufacture jute bags for
marketing convenience of the sellers and buyers.

6. Brainstorming
• Brainstorming means using the brain to storm the issue/problem.
Brainstorming ultimately boils down to generate a number of ideas to
be considered for the dealing with the issue/problem.
• However, brainstorming exercise to be effective needs to follow a
modus operandi involving four basic guidelines:
1. Generate as many ideas as possible.
2. Be creative, freewheeling, and imaginative.
3. Build upon piggyback, extend, or combine earlier ideas.
4. Withhold criticism of others’ ideas.

7. Interests and hobbies
• A hobby is an activity that you enjoy doing during your leisure-time
and is one of the primary sources of business ideas. In fact, most
people have founded great successful businesses while pursuing their
interests or hobbies.
• For instance, if you enjoy traveling, playing with computers, music,
sports, performing or cooking, you can seamlessly develop it into a
business. You can join the tourism, entertainment or hospitality
industry by venturing deeper into your favorite activity.

8. Personal experience and talents
• Most of the ideas and opportunities for successful businesses are a result
of the experiences in the place of work. For example, an experienced
manager working for a leading restaurant can eventually decide to start a
business related to hospitality even before he retires. As a potential
entrepreneur, therefore, you can make the most use of your skills and
experiences as crucial sources of business ideas generation. They also
determine the type of venture that you start as you capitalize on them. If
you are gifted or have experience in a specific field, then it is time to
analyze just talent or skills. You can start off with the following self-
examination questions:
• What am I passionate about?
• What talents or skills do I possess?
• Are people willing to pay me for my skills?
• What do I need to build on my skills

9. Trade fairs and exhibitions
• Trade fairs and exhibitions are among the top sources of developing
business ideas. They are usually advertised on the Internet, radio, and
newspapers, and by attending such events regularly, you will discover
new services and products. You will also meet with manufacturers,
sales representatives, distributors, wholesalers, and franchisers who
will answer all your questions and inspire you to start a business that
will thrive. In fact, some of them may be in need of someone like you
to partner with, and this will be an exceptional opportunity to partner
with renowned entrepreneurs and franchisers.