CHAPTER 3

CHOOSING IDEAS AND BUSINESS OPPORTUNITIES

After completed this chapter , you will able to

qIdentify sources of business ideas : Primary & Secondary Source

q q

qIdentify and generate business ideas qChoose business ideas : - evaluate the suitability of ideas - evaluate community response - evaluate the feasibility of the initial idea

SOURCES OF BUSINESS IDEAS PRIMARY Primary sources refer to information gathered directly through :

1) 2) 3) 4)

Observation, Experiments, Interviews and Surveys

SOURCES OF BUSINESS IDEAS SECONDARY Secondary sources refer to existing data which is reliable, available references and information obtained from the mass media and electronic media

GENERATE BUSINESS IDEA

CHOOSE BUSINESS IDEAS

A self-evaluation must be made before making a commitment. The self-evaluation should be based on the individuals experience, knowledge, skills, financial ability and interest.

CHOOSE BUSINESS IDEAS : EXPERIENCE

An entrepreneur runs a business that suits his experience in the profession

The intelligence to find an opportunity from past experience can be a way to gain success in business

For example, a primary school teacher with many years of experience resigns from current job to be involved in business by opening a kindergarden.

CHOOSE BUSINESS IDEAS : KNOWLEDGE

The entrepreneur has to be equipped with the knowledge on operating a business

Although he can hire someone to perform these jobs , it is better if the entrepreneur himself does the work For example, when a chef opens a restaurant, he must know how to prepare food, manage the business, prepare accounts and treat customers

CHOOSE BUSINESS IDEAS : SKILLS

Entrepreneur must have the necessary skills in carrying out his job Usually born from experience and knowledge

CHOOSE BUSINESS IDEAS : CAPITAL

An entrepreneurs financial ability determines the growth of the business The most basic aspects to think about before opening up a business

CHOOSE BUSINESS IDEAS : INTEREST

Interest or enthusiasm is an importance It give self-confidence and a sense of responsibility towards a business carried out by an entrepreneur With enthusiasm, the entrepreneur will be able to concentrate on his profession and automatically give more effort for the growth of his/her business

ASSESSING COMMUNITY RESPONSE The entrepreneur has to choose a business opportunity according to : 1)Legality 2)Competitors 3)Capital requirement 4)Risk

FEASIBILITY OF THE INITIAL IDEAS