CHAPTER 2: Starting a

Small Business.
GET THE BALL ROLLING
 Weshould emphasized that identifying imaginative new
products or services that may lead to promising
business ventures is so central to the entrepreneurial
process that has its own name- OPPURTUNITY
RECOGNITION.
GET THE BALL ROLLING
Economist ISRAEL KIRZNER proposed that
entrepreneurs have a unique capabilities, which he
called ENTREPRENEURIAL ALERTNESS.
“Alert to the opportunities that already exist
already and waiting to be noticed.
 Do
you already have a business idea in mind that you
would like to pursue?

 With good planning and right strategies you may soon be

on your way to success as an entrepreneur. You must have
the passion and desire to start your business.
DEVELOPING STARTUP IDEAS
STARTUPS, new business ventures
created from SCRATCH.
2.1.TYPES OF STARTUP IDEAS
A. NEW MARKET IDEAS
B. NEW TECHNOLOGY IDEAS
C. NEW BENEFIT IDEAS
A. NEW MARKET IDEAS
Startup ideas centred around providing
costumers with an existing product or
service not available in their market.
B. NEW TECHNOLOGY IDEAS
Startupideas involving new or relatively
new technology, centred around providing
costumers with new products.
C. NEW BENEFIT IDEAS
Startup ideas centred around providing
costumers with new or improved
products or services.
PIVOT – to refocus or recreate a startup if the
initial concept turns out to be flawed.
 EXAMPLE
NEW MARKET • Selling soft drinks with nutritional value
IDEAS

NEW • Using high-technology computers to

TECHNOLOGY
develop a simulated helicopters
IDEAS

NEW BENEFIT • Develop a new misting device to keep

IDEAS worker cool.
 COMMON SOURCES OF STARTUP
IDEAS by NATIONAL FEDERATION of
INDEPENDENT BUSINESS
 PRIOR WORKING EXPERIENCE
(45%)
Suggestions
Education/Courses
Personal
Chance
Friends/relatives
Others
interest/hobby
happening
Family
(4%)(5%)
Business
(11%)
(16%) (6%)
(7%)
2.2.USING INNOVATIVE THINKING TO
GENERATE BUSINESS IDEAS
 A. When it comes to ideas, borrow heavily from existing products
and services or other industries.
 B. Combine two business to create a market opening.
 C. Begin with a problem in mind or think of a pain that you can
relieve.
 D. Recognized a hot trend and ride the wave.
 E. Study an existing product or service and explore ways to
improve its function
2.2.USING INNOVATIVE THINKING TO
GENERATE BUSINESS IDEAS
 F. Consider ways to adapt a product or service to meet costumers
needs.
 G. Imagine how the market for a product or service could be
creative ly.
 H. Study a product or service to see if you can make it green.
 I. Keep an eye on new technologies