Chapter 5:

Search For Business Oppurtunity,

Ideation, Innovation, and Creativity
Members:
Malinao , Jem
Jumao as, Joshua
Latumbo , John
Introduction:
There are many business opportunities for an individual
with a creative mind. All business starts with an idea and it
said that creativity, through innovativeness and the capacity
of bringing something new in the market ,spells the difference
between a traditional businessman an entrepreneur.
The factors to Consider in Evaluating the
Business Potential of an Idea.
1.Markets - This refers to the number of prospective
buyers,competitors, the price, and the quality of goods and
services that have to be analyzed.Business opportunities
exist in areas where consumer satisfaction is weak or
incomplete.
2.Individual Interest -Business interest of individuals should
match business opportunities . For instance, if one is a good
cook, he could venture in the food business.
3. Capital -This serves as the fuel that keeps the business operating. The
availability of funds should fit in the type of business to organize.

4.Skills -The entrepreneur should have the proper

5. Suppliers of inputs - It is important that there are steady suppliers of raw

material and other inputs to the business.

6. Manpower - The success of any business also depends on the efficiency of its
employees.

7. Technology - Entrepreneurs should be aware of the presence of technology to

improve their products or service, or introduce new innovations in the market.
Other Opportunity-Seeking That Can Guide A
Prospective Entrepreneur As To What Kind Of Business
To EStablish As Follows:

1.Looking up at other entrepreneurs as a role model that could be an inspiration,

by doing what they have done or do it even better.

2.Respond to a problem area- The to a problem might be transformed into a

business at home.

3.Home- Based Business Option- These must not be taken for granted, for there
are some big businesses that started as a small business at home.
3.Home- Based Business Option- These must not be taken
for granted, for there are some big businesses that started as
a small business at home.
4. Linkage of Resources - The entrepreneur can produce
his own input instead of buying them.
The best way to evaluate business opportunity is through Market Research which
is defined as study all problems in marketing a product.
Steps in Market Research are:

1. Defining the problem.

2. Making a preliminary investigation.
3. Planning the research.
4. Gathering the data.
5. Analyzing the data.
6. Reaching a conclusion.
7. Implementation and Evaluating decision.
Market Research is important to entrepreneur because it will be serve as guide in
identifying the profitable markets ,saleable products, the strength and weakness o
competitor ,available resources, business risk trends in consumer tastes and
preferences.

Location of business is a key factor in business success. In selecting a

location, the population , income, competitor, government , policies, peace and
order, and order and others are being considered . This requires a market survey.
 To be able to translate business opportunities into profits, the SWOT (Strength,
Weakness, Opportunity, and Threat) Analysis is applied. These are tools for
evaluating the strenghts , weaknesses, opportunities, and threats associated with
a particular product or service.

According to fajardo ,products have theur own lfe cycle. It is composed of four
stages: Introduction , Growth, Maturity and Decline.
Here are The Discriptions of various stages of product
life cycle particularly as sales volume and profit.

1. Introduction - If consumer awareness and acceptance of product are low

launch through the use of marketing activities, which make the profit low due to
cost of development and and marketing services.

2.Growth - To meet the growing demand ,product dustribution is expanded.Sales

rise rapidly as product becomes popular.
3.Maturity - Sales are still rising, but rate of increase has declined. At later part,
a sale reaches its peak , while profit begins to fall.

4. Decline - There is a sharp fall in sales volume, while profit curve becomes
almost flat or horizontal. There is also declined in the number of competitors. The
only survivors are those who specialized in marketing the product. Once the
product is no longer profitable , it is eliminated .
In the Selection Process,it Has To Begin With Choosing on
Particular Business by Category or Sector.

1. The service -based business - Common examples of service based

business

consultancy ,barber shops, repair shops, beauty parlors, care giving ,designing
works, rendering professional such as engineers, dentistry, medical doctor, and
others where there is no need to manufacture something.

2.Trading or product- based business - This is buy and sell transaction that can
happen in your storehouse, showroom,or any other structureless environment.
3.Manufacturing business - This is manufacturing or production based business
by creating a product. Manufacturing can be as simple as creating hand painted
T- shirts as ceramic vases and now , the most popular is candle making , which
can be done in your home.

4.Licenced business opportunities - If you find some difficulties in launching a

product or service , it is a good idea to look for licenced business opportunities.

5. Distributorship - This is where an independent entrepreneur company ,or

individuals enters into an agreement or contract to offer sell, or distribute a
particular product, but is not entitled to use the manufacturers trade name as part
of its own trade name.
6. Rack Jobber - This involves an agent or buyer entering an agreement with a
parent company to market its goods to various stores by means or strategically
located store racks.

7.Wholesalers - These sell the product of manufacturers or producers to retailers

and other distributors who have direct dealings with the end users or customers.

8.Subcontracting - This is a familiar form of busines format in the garments

sector, as well as the shoe industry. This involves signing up an arrangement with
a major producer to complete a set of product components on pre- agreed price.
9. Vending machines routes - These are placed in various places or locations.
The entrepreneur needs to have substantial capital outlay as he had to pay for the
vending machine ,including the stocks to be vended.

IDEATION

The beginning of a business endeavor is ideation. This should be the first

investment of of anyone who seeks to be an entrepreneur , and to be called an
entrepreneurial business opportunity , such idea has to be new, or if not should be
innovative.
 The most common way of developing ideas is as follows.
● Recognizing the need . Develop an idea or a product that can satisfy the
need,and respond to the need by establishing business concern.
● Improving an existing product could open the door to introduce innovations
or improvements .
● Recognize trends. Entrepreneurs should be able to recognize the
oppurtunity to develop a product and set trends that can make them lead
entrepreneurs .
● Be aware of everything . There is no other way to know about what is
happening around you , but to research and read.
● Question and assumptions. Anybody can question the relevance or quality of
any product or services, provided, that there is an effort to improve the product.
● Naming is first, then, develop it if you have the idea, study it and develop it to
something that is worth of business.

The following are some tips in evaluating ideas;

a. Do not let your idea follow money, let money follow your ideas.
b. See yourself as a problem solver.
c. Use research as a weapon against failure.
d. Make sure your idea has longevity.
e. Take a risk on your ideas
f. Test your ideas agains the past, present and future.
g. Know the idiosyncrasies of your market.
The ways of protecting your ideas are the following:

a. Confidentiality Agreements. It specifically provides that a signer will not share

the idea to anyone.
b. Patients. These gives the inventor exclusive legal rights to exclude anyone
else from manufacturing, selling, importing or using an invention during the
life of the patent.
c. Trademarks. This is a word, name, symbol, or device used by manufacturers
on merchants to identify the goods and distinguish them from others sold in
the market.
d. Copyrights. A copyright protect the creative works of composers, authors /
writers, and others. This is the easiest form of protection for intellectual
property.
Entrepreneurial Creativity

Creativity. Inovation, and entreprenurs are inspirable. Creativity is an essential part

of inovativeness, the starting point of process, which is skilfully manage, and
brings idea into inovation.
Environmental Stimulants to Creativity
a. Freedom - a sense of control over once work ideas.
b. Good Project management- a manager serves as a good rule model.
c. Sufficient Resources-.access to necessary resources
d. Encouragement - management enthusiasm for new ideas
e. Various Organizational Characteristics - a mechanism for cosidering new ideas .
f. Recognition - a general sense that creative work will recieve appropriate
feedback, recognition an reward.
g. Sufficient time - time to think creatively about a problem.
h. Challenge - a sense of challenge a rising from intriguing nature of the problem
itself.
I. Pressure - a sense of urgency that is internally generated from competitions as
a personal sense of challenge .

J. Outside Organization - from a general desire to accomplish something

important .
The Concept of Innovation

Innovation is doing something different .It could be introducing either something

new or different .Innovativeness is a characteristics of an individual, team, or
organization.This is also the capacity to create ideas and development them
usable products or services.
Impacts of Innovation

The innovative accomplishment exist if the following happens:

1. Effecting a new policy -creating change or orientation or direction.

2. Finding new opportunities - developing an entirely new product or opening
a new market.
3. Designing a new structure -changing the formal structure, reorganizing or
introducing a new structure.
4. Devising a fresh method - introducing a new process, procedure, or
technology for continued use.
The elements of innovation orientation are as follows:

a. Value placed on creatively an innovation in general ;

b. An orientation towards risk;
c. A sense of pride in the organization and its members, and the enthusiasm
about what their are capable of doing;
d. An offensive strategy of taking the lead towards the future.