Source of Business Ideas

GROUP 2: CARLO,JASON,CAS,HANNIE,MICH
What is Source of Business Ideas?
Business ideas are thoughts that when
implanted can lead to income generalize
Entrepreneurs first come up with ideas from
different sources that should lead them starting
a well planned business.
 1.Survey
Business ideas can be generated from surveys.
Though this type of data generation method,
entrepreneurs will have awareness of what
customers are looking for and therefore an
opportunity of a business to innovate based on
the responder
 2.Training
This is probably the most home based
business. For example, there are seminar that
conducts how to cook, bake, handcraft, and
even repair things.
 3.Experience
Probably the best and effective source of
business idea is from experience. This can be
from work of from school
 4.Hobbies
This can be a good business idea because it is
something that an entrepreneur is fond of doing
and can enjoy while doing the business.
 5.Talent
A talent is something that can be innate in a
person, or that has been honed for years.
Someone’s talent can be a good idea for
business because like a hobby, it is something
that can be enjoyed and entrepreneur will not
have the feeling of working while doing it.
 6.Market Gaps
Also known as “Niche”, spotting a gap in the
market can also form a great business idea. A
market gap can mean an important area in the
market that is not occupied and therefore is can
be filled with product to satisfy the market.
 7.Events
A business can also be created though
attending events in which new ideas are
exchanged. It is also a venue where people with
similar interests gather and where the birth of
new business can happen.
 8.Media
An idea can also come from the media.
Reading magazines, newspaper and such
published materials that contain business
related issues can help one bring about an idea.
 9.Shows and Exhibition
Shows and event organized by companies can
also be a source of idea.
 10.Merging Business
This is where existing business come together
to merge their existing business and/or brands,
develop new products that represents both
companies towards achieving organizational
goals and getting more customer.
 Market Analysis
A market analysis is a quantitative evaluation
of a market. The goal is to look into the size of
the market both in volume and in value, the
various customer segments ad buying patterns,
the competition, and the economics
environment in terms of barrier to entry and
regulation.
 How to do a Market Analysis?
The objective of the market analysis are to
make sure that everything about he market is
clear and that business if feasible and it is large
enough to build a sustainable.
These are the recommended items for
the market analysis.
Demographics
Target Market
Market need
Competition
 Demographic segmentation
Dividing the total people in the market based
on the customer demographics. Demographic
segmentation portions the market on
parameters like age of the customer, gender,
income, family life cycle, education
qualification, socio-economic status.
 Target Market
A target market is a group of customers that a
business has decided to aim its marketing efforts
towards. As an entrepreneur, one should have
well defined target market to be a four able to
create a strong marketing strategy.
 Recognizing the Target Market
To build a solid foundation for a business, the
entrepreneur must identify first the business
target market. On the other hand, targeting a
specific market does not mean excluding those
who do not fit the criteria
Steps in Defining Target Market
 1.Analyze the or service
Write a list of the product or serving features
and benefits to the customer. This will allow a
prospective customer to understand how the
product help them
For example: A videographer offers corporate
video production to a company
 2.Choose Specific Target Demographics
Determine not only who has need for your product or service,
but also who is most likely to buy it.
Age
Location
Income Level
Education level
Marital or family status
Occupation
Ethnic background
3.Consider the psychographics of your
target.
Psychographics are the more personal characteristics
of a person, Including:
Personality
Attitudes
Values
Interest/Hobbies
Lifestyles
Behaviour
 Market Need
Customers are the ones buying from a business.
Getting to know what they like, how they much
spend, what they enjoy and what they need will
give an entrepreneur a better understanding of
what these customers will want from the
business.
 Research your competition
Competitors are like each companies enemies
who always want bigger portion of the market
share. By knowing the competitors, an
entrepreneur will be able to compare
themselves to see what things that are effective
and works for the other companies in the
industry.
 Research your competition
This can be done by researching on several
internet platforms like Google and yahoo as well
as social media site like Facebook, Twitter, and
YouTube.
 Product Planning and development
Process
Once ideas emerge from idea sources or
creative problem solving. They need further
development and refinement. This refining
process is divided in to five major strategies
idea stage, concept stage, product
development stage, test marketing stage, and
commercialization.
 Idea Stage
Ideas for production or services In this stage are filtered in
oder for the company to maximize its recourses for the
ideas that are most viable.

It is very important at this stage to test if there is a value in

the new idea that will benefit both the market and the
company.
 Concept Stage
After a new product/service idea has passed
evaluation in the idea stage. It should be further
developed though interaction with customers.
In the concept stage, the refined idea is tested
to determine consumer acceptance.
 Product Development Stage
In The product development stage, consumer
reaction to the physical product or service is
determined. A tool frequently used in this stage is the
consumer pane;, in which a group of potential
consumer is given a product samples. Participants
document their use of the product and give feedback
virtues and deviancies.
 Testing Marketing Stage
This the last step in evaluation process, this
provides actual sales results, which indicates the
level of acceptance of consumers. Market
testing is done to increase the certainty of
successful commercialization.