Business
Idea Generation
Process of generating
& finalizing business
idea
By
N R Srinivasa murthy
Former Director
National Academy of RUDSETI
WHO SHOULD SELECT &
FINALISE
THE BUSINESS ACTIVITY
Selection of a
Business activity
can Make or Break the
Entrepreneurial career
1. Personal assessment exercise
2. Decide about the Location
The Business Idea
Any enterprise has to start from an
Idea.
This basis for the business is called
the
Business Idea.
Business Idea essentially arises
from
Some kind of opportunity in
Generate all the possible
Business ideas in the
selected Location
Tools for generating
Business Ideas
TOOLS FOR GENERATING
BUSINESS IDEAS ARE:
Creativity
Market observation /
Research Techniques
Brainstorming
1.Creativity
BARRIERS TO CREATIVIY
•Inability to go beyond the “norm”
•Hanging on to conventions – conservative
•Fear of challenging conventional wisdom,
•Limiting attitudes
•Sensitivity to criticism
•Cynicism(Feeling of Distrust)
•Inability to Dream - VISION
2.Research Techniques –
Observation/Scanning:
Simple Observation
Look out for opportunities
Changing Environment-
Technology, economy
Changing lifestyle-Culture,
Fashion, hobbies
Changing Behaviour
Problems in adjusting with
the change.
Individual on their own
In Groups
Remember these
while brainstorming
1. Do not allow judgement of any
idea that
comes up
2. Encourage “wild” Ideas.
3. Go for quantity, not quality.
4. Combine Ideas and improve them.
Sample ways of Generating
Ideas
1. Solving people’s problems
2. Concretizing new ideas for doing things.
3. Replication of some body’s
successful ideas to other locations
4. Adding values to an old product
5. Doing market research
6. Converting a hobby into business
7. Improvising the skills into a Business
Sample ways of generating
Ideas contd..
8. Converting a waste material into a useful
product
9. Ideas generated out of personal
experiences.
10. Going through publications
11. Talking and listening to people
12. Change in size and shape of products.
13. Changes in life style
14. Generating ideas with renowned
business clusters in mind
Capturing Business Ideas
Record the ideas, otherwise we may
forget. Various options for you are:
Audio recording
Photograph / video
Recording on Note pad
SCREENING
BUSINESS IDEAS
Macro Screening
1. Personal
Preferences
2. Capacity to invest
3. Familiarity or
exposure to
the technology
required
Micro screening
Screening based on availability of:
* Backward linkages
* Forward linkages
1. Availability of Capital items & consumables(Inputs)
2.Availability of buyers or customers (Marketing)
3.Availability of needed technology
4.Availability of skilled manpower
5.Availability of government support
Rating Chart
Ideas Inputs Market Technolog Skilled Govt Total
y Manpower Policy
Waste Flower 4 3 4 3 4 18
Management
Cotton seed 4 4 3 4 2 17
Processing
Thompson 2 3 4 2 3 14
seedles grapes
Cultivation of 4 5 3 3 4 19
cauliflowers
Pineapple jam 4 4 4 3 5 22
preparation
Ideas Inputs Market Technology Skill Govt Total
Policies
Tissue 4 5 5 3 5 22
culture
Coconut 5 4 5 5 5 24
nursery
Rose 5 3 4 4 5 21
cultivation
Mango 4 4 3 5 3 19
orchard
Anthurium 5 4 4 4 3 20
cultivation
Tomato 4 5 4 5 5 23
cultivation
Come to Final Ideas (2 or 3)
SWOT ANALYS
IS
STRENGTHS WEAKNESS
Controllable Use Eliminate!
features them!
OPPORTUNITIES THREATS
Un-controllable Take advantage Hedge them
Features
What
business is Hort Hort Trade Hort Service Crop production
possible? Industry
Idea??? Basket of business ideas
Steps 2
Classification of
business ideas
Steps 3
Macro screening
Steps 1
IDEA GENERATION Short listing 2-3 ideas
BOG – PROCESS
Matching Enterprise - Steps 4 Matching
Entrepreneur Micro screening Market
Winner idea
