TOPIC 2.

3 – COMING UP WITH A BUSINESS IDEA FOR START‐UP

TOPIC INTRODUCTION
Every business starts with an idea. That idea is further developed using a typical five step
process illustrated in the diagram below. In this topic we will explore how to come up with
a solid business idea using this five step process.

TOPIC OBJECTIVES
Upon completion of this topic you should be able to:
1. Identify business ideas.
2. Explore reasons for starting a business.
3. Identify business ideas that could be implemented in your community to meet
existing needs.
4. Describe factors that influence the starting of a business and relate them to
your situation.
YOUR BUSINESS IDEA
Most likely, you have decided to take this course for two reasons:
1. You have a great idea for a small business and you want to learn how to go
about its implementation in order to create a successful small business,
2. You are already running your own small business and you want to learn about
how you could make your business more successful.

Before reviewing this topic consider the activity below:

Activity – Community Business Idea

In the space provided and in your personal journal briefly describe your idea for a small
business in your community. If you already have a name for it, write it down as well! If you
already own your own small business, write down its name and describe it below. Don’t
forget to include ways in which you would like to grow your existing business.

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As you begin to develop your business idea or opportunity consider the following:
1. Is this a new idea or has it been tried before?
2. Is my idea feasible? If it was tried before why did it fail? What can I learn from past
failures?
3. Who am I targeting?
4. Who are my competitors?
5. Would I be able to compete in the market?
6. Is the market saturated?
7. How will I offer a better product/service than my competitors?
If you don’t have any ideas for a business yet, but you are certain that you want to be
a small entrepreneur in your community, and then engage in the following discussion:

Get together with some of your peers, some family members, some community
leaders, etc., and discuss ideas for new businesses in your community. If you come
up with a business idea, give your business a name! You can adjust/change this
name later.

If you don’t have any ideas for now, don't worry! Continue to work through this unit. You
will come up with something soon!
REASONS FOR STARTING A BUSINESS
Starting a business isn't easy, but it can be rewarding. Being an entrepreneur means taking
a lot of risks but it also has lots of potential benefits when things work out. So if you are on
the fence still thinking about quitting your day job and starting out on your own here are six
reasons to persuade you to make that move.

Earning Potential
When you own your own business you have the ability to potentially earn much more
money than you are likely to ever earn in your day‐to‐day job. You'll be able to earn money
(or lose money!) based on your drive, luck, commitment and ideas.

Be Your Own Boss

Rather than doing what you're told, wouldn't it be better to be your own boss? When you
own your own business it is likely that you will have to work even harder. But you will do
so under your own rules. You will choose when to go on holiday, when to go home, and
when something is likely to be effective for your business. You should remember, however,
that entrepreneurialism is as much about self‐discipline as it is about personal freedom.

Hire Like‐Minded People

You'll be able to choose who you work with. You'll be able to choose your team. However,
this can be much harder than it seems. You will need to find individuals who can