IDEA GENERATION

AND OPPORTUNITY
EVALUATION
UNIT II
Idea
A splash of inspiration

Business Idea
Arises in responses to the opportunities in the market
The need and want for products or services
A concept which can be used for commercial purposes
Typically centres around a commodity or service that can be sold
for money

Sources of new ideas

a. Consumers c. Existing products or services
b. Distribution channels d. Research and development
Internal Opportunity Recognition

Ideas and information sources

 Handbooks
 Textbooks
 Trade magazine
 Research Journals
 Databases
 Colleagues
 Consultants
 Non-profit laboratories
 Professional organisations
Methods Of Generating New Ideas

1. Focus groups
2. Brain storming
3. Problem Inventory analysis

Creative problem solving

1. Reverse Brainstorming 5. Free Association

2. Brain writing 6. Forced relationships

3. Gordon Method 7. Attribute listing method

4. Checklist method 8. Big Dream approach

1. Reverse Brainstorming
 Similar to brain storming except that criticism is allowed
 Based on finding fault by asking questions on how idea can
fail

2. Brain writing
 Form of written brainstorming
 Participants write their ideas on special forms or cards that
circulate within the group which usually consists of 6
members
3. Gordon Method
 Begins with group members not knowing the exact
nature of the problem
 Entrepreneur mentions a general concept
associated with problem
 The group responds by expressing a number of
ideas

4. Checklist method
 New idea is developed through a list of related
issues or suggestions
 Acts as a guide for the direction of developing
entirely new ideas
5. Free Association
 Helpful in developing an entirely new slant to the problem
 A word, or phrase related to the problem is written down, then
another new word attempting to add new to the ongoing
process

6. Forced relationships
 It is a relationship between two product combinations
 A technique that asks questions about objects or ideas in an
effort to develop a new idea
7. Attribute listing method
 An idea blending technique that requires the entrepreneurs to
list the attributes of an item or problem and then look at each
from a variety of view points

8. Big Dream approach

 Coming up with a new idea that lead to the entrepreneur
dreaming about the problem and its solution
 Meaning of Business Opportunity
 Business idea arises in response to the opportunities in the
market that is the need and want for products and services.
 But sometimes, a problem can be an opportunity to
entrepreneurs to come up with solutions will become a
business opportunity

What defines a Good Opportunity

 Customers willing and able to purchase product
 Customer existence
 Ability to differentiate from one’s competitors
 Team interests ,ability and network
Types Of Business Opportunities

1. Self- discovery as source

 Create a product
 Improve an existing product
 Use an existing product for untapped
market
2. Joint effort as source
 Buying franchise
 Be an angel
 Become a Partner
Analysing and assessing Business Idea

1. Target Customer
2. Size of market
3. Business model
4. Protecting business
5. How to get out of it
6. Screening process
Business Opportunities in various sectors
1. Green business
2. Biotechnology
3. Event Management
4. IT enabled services
5. Transportation
6. Courier services
7. Insurance
8. Communication
9. Herbal sector
10. Vermi- culture
Idea vs opportunity
 Ideas are solutions to problems and are important
providing creative spark for your business

 Opportunities, on the other hand, are something (ideas,

circumstances, situation) that can lead to a desirable
and viable business. They may or may not originate
from an idea