Theme 2

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Creativity and Business Idea Legal issues for Entrepreneurs The Business Plan
◦ Michael Dell ◦ Starbucks ◦ Daniel Schrieber ◦ Belinda Guadarrama ◦ Fredrick Smith

The Marketing plan The organizational Plan The financial Plan
◦ Bill Porter –E Trade and ISE

Fredrick Smith .

to satisfy customer’s need . trucks.     Inherited $10 Million Acquired fleet of airplanes. before accepting first order Father found bus company Fred got the idea from his professor who support the idea of using unused space within passenger flight Fred has better idea to manage the transportation of computers and electronic items.

but massive increase in oil prices cause company to lose. got success in bucketing $5 Million in cash Follow on investments get him to $72 Million The largest VC start-up in the history of American Business Took to skies in 12-03-1972 Smith’s understanding of market was accurate.      Less than anticipated. $1Million/month His shareholders went beserk .

500 vehicles 650 aircrafts 3.   Smith never lost faith.3 million packages a day   At the heart of success story is the creativity and uniqueness of initial business concept: the most difficult to actualize Why????? . even after losing $27M in two years Got up with the of $3.6 M in 1976 and never looked back The Recent Profile ◦ ◦ ◦ ◦ More More More More than than than than 215. 000 employees 43.

Sources of New Ideas  Methods of Generating Ideas  Creative Problem Solving  Opportunity Recognition  Product Planning and Development Process  E-Commerce and Business Start-up  .

. b. either formal endeavor connected to employment or informal way (lab. ideas in reaction of regulation  Research & Development Own research efforts.g. garage) . Patent possibilities for marketable ideas. e. Consumers: Focusing potential customers needs  Products and services Monitoring the existing P&S and improving offers on better results  Distribution Channels To have better understanding of market and sales techniques  Government a.

results in emergence of good idea Brainstorming •No criticism is allowed •Freewheeling is encouraged –the wilder the idea. the better the idea •Combination of new ideas outgrows another new idea Problem Inventory Analysis • A method for obtaining new ideas and solutions by focusing on problems • Consumers are asked to discuss the product and identify problems • New product idea is generated (see fig as a sample) . the better •Quantity is desired –the greater the number. Coming up with the idea to serve as the basis for a new venture pose a problem. Several Methods • Groups of individual providing information in a structured format to generate new ideas • An excellent method for initially screening ideas and concepts Focus •A group of method for obtaining new ideas and solutions.

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 Brainstorming ◦ It can generate ideas about a problem within limited time frame through spontaneous contribution of participants ◦ A good brainstorming session starts with a problem statement that is neither too broad or too narrow ◦ All ideas (no matter how broad) are recorded  Reverse Brainstorming ◦ A group method for obtaining new ideas focusing on the negative ◦ Unlike. and overcome the ways to solve it . criticism is allowed ◦ It started with everything wrong with an idea. brainstorming.

 Brain-writing  Gordon Method ◦ It is silent. written generation of ideas by a group of people ◦ Participants write three ideas during five minute and circulate within the group to add more ideas into it ◦ Many ideas were gathered and best idea is chosen ◦ Method for developing new ideas when individuals are unaware of the problem ◦ The entrepreneur starts by mentioning a general concept associated with problem ◦ The group responds by expressing a number of ideas to develop a concept ◦ The actual problem is revealed enabling the group to make suggestion for implementation or refinement of final solution .

shape? Other changes? ◦ Magnify? What to add? More time? Greater frequency? Stronger? Larger? Thicker? Extra value? plus ingredient? Duplicate? Multiply? Exaggerate? . Checklist Method ◦ Developing a new idea through a list of related issues  E.g. form.: ◦ Put to other uses? New ways to use as is? Other uses if modified ◦ Adapt? What else is like this? What other ideas does this suggest? What could I copy? ◦ Modify? New twist? Change meaning color.

Find the relationships between these elements 3. Analyze the resulting relationships to find ideas or patterns 5. then another and another. a word or phrase related to the problem is written down. Develop new ideas from these patterns . First. Record the relationships in orderly form 4. with each new word attempting to add something new to the ongoing thought process ◦ Developing a new idea by looking at product combinations 1. Isolate the elements of the problem 2. Free association  Forced Relationships ◦ Developing a new idea through a chain of word associations.

 Collective Notebook Method ◦ Developing a new idea by group members regularly recording ideas  Attribute Listening ◦ Developing ideas by looking at negatives and positives  Big Dream Approach ◦ Developing new idea by thinking without constraints  Parameter Analysis ◦ Developing a new idea by focusing on parameter identification and creative synthesis .

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Commercialization This is known as Product Life Cycle the stages each product goes through from introduction to decline . Product development stage 4. Idea stage 2. it needs to be refined ◦ Refining process or product planning and development process is divided into five major stages 1.◦ Once ideas is developed. Concept stage 3. Test marketing stage 5.

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 Idea Stage ◦ New ideas should be identified and impractical ones are eliminated: based on values. After using it. they comment on its virtues and deficiencies . is the concept superior or deficient compared with products currently available in the market?  Product Development Stage ◦ In this stage.g. in which a group of potential consumers are given product samples. merits and benefits  Concept Stage ◦ After idea stage. consumer reaction to physical product is determined ◦ One tool is consumer panel.. it should be further developed and refined through interactions with consumers ◦ E.

    Test marketing stage It is done to increase the certainty of successful commercialization It provides actual sales results. Positive test results indicate the degree of probability of a successful product launch and company formation . which indicate the acceptance level of consumers.

g..   E-commerce offer entrepreneurs the opportunity to be very creative and innovative E. lower transaction costs.com led the e-commerce growth Numerous benefits such as access to broader customer base lower information dissemination costs. Amazon. and the interactive nature of the internet –will continue to expand the volume of ecommerce .

3.1. Do you think that internet can be a source of advantages for one firm over other firms or do you think that it is a necessary just to be able to compete? . “Customers too frequently use an airline and fly to a destinations only to find out that their luggage has not yet arrived” Choose a product and use the checklist method to develop new ideas. Take the following problem statement and brainstorm solution (more than one). 2.