Professional Documents
Culture Documents
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2.3 Business Idea Generation and
Selection
A. Business Idea Generation
- How do we get an idea to start a business
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A. Business Idea Generation
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Tools for Idea Generation
• Brain teasers – opening up and stimulating
creative thinking
• Brainstorming
• Environmental scanning
• Trigger
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Brain teasers
Opening up and stimulating creative thinking
• Challenging the mind to think creatively and
differently
Exercises
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Brainstorming
Ground Rules
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BRAIN STORMING EXCERISE
WHAT CAN WE DO WITH SOW DUST
1. Black board
2. Fire wood
3. Decoration for furniture
4. Ceiling
5. Partition
6. Chair,
7. Sofa,
8. Packing
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BRAIN STORMING EXCERISE
9. Shoes
10. Animal feed
11. Salad
12. Wet drying
13. Floor comfort
14. Coal
15. Bullet proof cover
16. Table
17. Bed
18. Mattress
•
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BRAIN STORMING EXCERISE
19. Pillow
20. Hair fashion
21. Washing material
22. Medicine
23. Tray
24. Fork
25. Cleaning
26. Shining material
27. Soap filler
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BRAIN STORMING EXCERISE
28. Cloth
29. Wall
30. Toes
31. model making
32. Painting
33. Water protection
34. Wet protection
35. Frame
36. Sole
37. Insulator
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BRAIN STORMING EXCERISE
38. Diaper
39. Shapes , craft
40. Jewelry
41. Cooking
42. Plastering
43. Recording room sound protection
44. floor cleaning
45. Caution
46. Chicken breeding case
47. Hair rollers
48. Table
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BRAIN STORMING EXCERISE
49. Ruler
50. Paper
51. Block
52. Message input
53. Make up
54. Mask
55. Wall decoration
56. Photo frame
57. Photo back board
58. Glue powder
59. Part of car body
60. Dancing floor filler
61. Water purification
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Clarify and Conclude Session
• Discuss ideas
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Brainstorming
Exercise
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Environmental scanning
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Environmental scanning exercise
(Competition)
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Trigger
• Triggering reflex to cite any product or
service related to a given word
• Prepare lists of trigger words or use
already prepared ones
• Resources common in an area can be
ideal trigger words
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B . Business idea selection
b. Micro screening
c. SWOT Analysis
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a. Macro screening
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Micro screening parameters
• Solvent demand
• Availability of qualified personnel
• Availability of technology equipment
• Availability of raw material
• Competitors
• Critical success factor
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Micro screening table
Project Sol. Qlfd. Tchnlgy Raw Total Comp Corre- Critical
DD. Prsnl. mater- - titors cted Success
ial Total factor
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c. SWOT Analysis
• The last exercise of refining a business idea
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SWOT Analysis Framework
Strengths weaknesses
Opportunities Threats
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WHY DO WE NEED
BUSINESS PLAN?
TO :
• AVOID OR MINIMIZE RISK
• FIRIST SEE LOSSES / PROFITS ON PAPER
• GET FINANE
• GET JOINT VENTURE FOR WHAT WE
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2.4 Business Plan Development
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Executive Summary
(Introduction to the business plan)
• Brief summery of what's being
proposed
Description of the
business &
products/services
• Type of business
• Principal products
• Unique features
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Market
Marketing
Customers
Competitors
Pricing
Suppliers/Materials
Advertising/
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Ownership and Management
• Owner/s
• Share rate
• Manager/s
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PRODUCTION
• Flow chart of work process
• List of process steps
• Sequencing and efficiencies
• Time frames
• Measurement methods
• Quality standards
• Capacity
• Cost
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SALES
• Sales strategy
• Area, coverage ,
• - volume
• - Pricing
• - quality
• - delivery time
• - packaging
• - labels ,etc
• UNIQUE SALING POINT, etc.,
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Capital Requirement
• Setup Capital Requirement
– Equipments
– Rent and improvement
– Advertisement
– Stock
– Supplies/ consumables
– Cash
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Financial Data
Breakeven Analysis
• A Point at Which Revenue is Equal
to Expenses (No Loss or Gain)
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Sales Forecast
• Estimated Monthly Sales (1st Year)
• Estimated Yearly sales for (2nd & 3 rd years)
• Considering
– Capacity
– High and Low Seasons
– Existing Market Trend
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Forecast Profit and Loss Statement
• Sales (Cash + Credit)
• Cost of Goods Sold (-)
• Income/Loss from Operations(=)
• Expenses (-)
• Net Income/Loss(=)
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Forecast Cash Flow
Statement
• Payment
– Cash Purchase
– Loan Repayment
– Lending
– Pre payments
– Dividend/Withdrawals
– Taxes
• Receipt
– Cash Sales
– Investment
– Collection of Receivables
– Receipts in Advance
– loan
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Examples- SHARINGS
• IMPLEMENTATION PROBLEM
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QUOTES