Generating and Protecting Business Ideas Flashcards
Sources of business ideas
- Thought showers
- Personal interest
- Expertise
- Business or Personal experience
- Observation
- Innovations
Define Business
An activity that requires the organisation of resources, taking a risk in return for reward
What are Thought showers
- random way of coming up with business ideas.
- any ideas are put down on a piece of paper and then the best ideas are chosen by the group.
- SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) is often a good way of finalising a business idea.
What are Personal Interests
- If you have a particular interest in a certain subject, this can often become the basis of an effective business.
- However, just because you enjoy something, it does not automatically mean it will make a good business.
Expertise
If you have particular expertise in a certain area then you should be able to translate these skills into a successful business.
Business Experience
- If you have worked in a particular industry for along period of time, you tend to pick up a feel for how things work.
- You can sometimes translate this experience into your own business.
- The business does not necessarily have to be the same, but the skills need to be transferable.
Observations
- This is where you see similar business ideas in other locations, or countries, and recognise the potential for use in your own area.
- Need to be aware of legal infringements (e.g. existing patents)
Innovation
Innovation can come through science (e.g. new technology in the mobile market) or the clever reworking of an existing product (e.g. the Dyson Vacuum)
•Niche Marketing
involves aiming a specialist product at a relatively small target market.
market niche
a small segment of a much larger market.
•Niche products
do not appeal to the mass markets. They focus on a restricted group of people.
•Although the total sales is unlikely to be huge, the retail price of such products is often high to help compensate.
Benefits of knowing the product or service
. Good knowledge of product features
. Motivated by interest in product
. Contacts in established market
Disadvantages of knowing the product or service
. Interest may not be shared by others
. Interest may overestimate the market size
. The wider skills than interest/passion
Benefits of spotting a gap in the market
. First move advantage
. idea based on customer needs
. little or no competition
Disadvantages of spotting a gap in the market
. Is it real gap? Do people want product?
. No expertise in market
. competition may enter market quickly
Patents
An exclusive right to use a process or produce a product for a fixed period of time.
Copyright
The protection given to books, plays, films and music.
Trademark
A word, image, sound or smell that enables a business to differentiate itself from competitors
Disadvantage of using a trademark
A registered trademark must be renewed every ten years to keep it in force.
How to gain a patent
–Be a new invention
–Have an inventive step that is not obvious to someone with knowledge and experience in the subject
–Be capable of being made or used in some kind of industry
Advantages of using a copyright
You automatically have a copyright when you create something
Eg –Literature e.g. novels, song lyrics, computer programs, website content and newspaper articles
–Music composition and recordings
–Art e.g. paintings, engravings, photographs
Franchise
•A company that owns a well known product or service.
•Allows an individual to buy the right to sell their good or service.
•Trade under their name.
Eg macdonalds
(The business)
Franchiser
the company, which allows the person to use their product and name
Franchisee
the person who pays the franchiser to use their products and name
