FINALS - THE SEARCH FOR A SOUND BUSINESS IDEA Flashcards
(17 cards)
may be defined as the economic
opportunity which is within the
reach of the entrepreneur and
which will provide him with a
desirable value.
A sound business idea
PROCEDURE IN
DETERMINING THE
BEST BUSINESS IDEA
Preparation of the list of business ideas
Screening of the listed ideas
Final selection
➢The person’s work
➢The person’s hobbies
➢ The person’s acquaintances
➢ A chance event encountered by the person
Unanticipated Means
➢Using search questions
➢Idea prompting
Deliberate Search
Employees who
are in direct contact with customers are
sometimes confronted with demand for
products or services that are not
currently provided by the company.
The persons work
There are times when a person’s hobby turns out
to be a business opportunity.
The person’s hobbies
Sometimes, it
takes another person to make
him aware of the wisdom of
starting a new business venture.
Acquaintances
There are times when a person encounters
an event that will provide him
with a clue to a business venture.
A chance event
Business ideas are expected to provide answers
to some needs.
Answers can be obtained if the right questions
are asked.
When questions are used to draw out specific
answers, they referred to as-
SEARCH
QUESTIONS
Encounter with someone else’s, or a customer request,
or some other event may provide hints or cues
leading to business ideas.
Customer request could also be analyzed to give way
to -
For instance, somebody made a casual remark on the
difficulty of preparing and meeting the various requirements
of a wedding. That idea, when properly viewed, may just
lead to the listing of a business idea.
IDEA PROMPTING
A business ideas must pass the test of
market feasibility. This means that there
must be some positive indication about
the following:
➢Stable and sufficient demand
➢ Potential competitive strength of the firm
MARKET FEASIBILITY
➢Difficulties may be encountered in the
procurement of materials and manpower.
➢Production difficulties could take in the
form of unstable supply of materials,
unreliable or fluctuating power supply,
and others.
TECHNICAL FEASIBILITY
- The propose owners of the venture
must have the sufficient capital or if
insufficient, must be of good credit
standing in the community. - Savings, relatives and friends and
financing institutions.
FINANCING FEASIBILITY
➢The purpose of entrepreneurship is
to provide a source of income to the
entrepreneur.
➢This will not be possible if the
venture will not be profitable.
FINANCIAL FEASIBILITY
means all business ideas listed passed the adapted
criteria.
STATUS QUO
means some of the ideas generated were eliminated.
A SHORTER LIST
means all business idea generated and listed were
eliminated.
ZERO LISTING
