Leoda Labrador

Introduction: A sound business idea may be defined as the economic opportunity which is within the
reach of the entrepreneur that will provide him with desirable value. Entrepreneurs spend time and
money exploiting business idea before committing himself financially in order to save time and money in
pursuing his goals.

Lesson 3. Business Idea and Why do you prefer the method you selected in searching
Opportunity business Idea?
Sound business idea is a ___________________________________________________
business concept that results ___________________________________________________
in profits if it is turned into a ___________________________________________________
tangible product or service. ___________________________________________________
Opportunity defined as the ___________________________________________________
potential to create something ___________________________________________________
new that involves change in ___________________________________________________
___________________________________________________
knowledge, technology,
___________________________________________________
economy, politics, social, and ___________________________________________________
demographic conditions. ___________________________________________________
___________________________________________________
Sources of business ideas and opportunities ___________________________________________________
can be obtained through primary and secondary sources.
a) primary sources refer to first-hand data or information gathered directly through :
observations -data is gathered by observing and recording the respondent’s actions
in activity.
experiments -or product sampling is another option
interviews -field research covers interviews with customers, suppliers,
competitors, and industry experts.
interviews conducted in two ways : (personal interview, telephone interview)
surveys -refers to the development of a short questionnaire with respect to the
targeted product. Questions should be very specific.
b) Secondary source involved gathering data that have already been compiled and are available.
It is initially conducted for one purpose using existing data which is :-
reliable- can be used by entrepreneur is existing data which is reliable. - example :
information obtained from annual report of companies.
available references- an entrepreneur can use reference such as publish
information from the library, internet and so on.
mass media and electronic media- advertisement and information in the
newspaper, magazines and internet. Information on raw materials can be a business
opportunity for an entrepreneur.
Although secondary source relatively inexpensive, they often become outdated and
outmoded, given that they are used for a purpose other than for which was intended.
Methods of Searching for Ideas
1. unanticipated means- a method of finding business idea without serious effort such as:
person’s work, hobbies, acquaintances and a chance event encountered.
2. deliberate search – a type of idea generation that takes the form of using search question
and idea prompting.