Business Ideas and Startup

Business Ideas and Startup

Unit 5

Review:◦ Enterprise is about taking risks, being creative

and innovative and using your initiative.◦ An Entrepreneur is someone who organises

factors of production to produce goods and services.

Starting up a business – What is enterprise?

There are three major hurdles to overcome before any idea can come to fruition.

1. Identify a problem2. Idea generation3. Idea selection

Idea Generation

Business ideas and opportunities come from a wide variety of sources. These include:◦ Internal sources

By examining their own strengths and weaknesses.◦ External sources

By looking at the opportunities and threats in the market place.

Sources of new product or service ideas

The research and development department◦ The R&D dept in a business is typically staffed

with technical experts such as scientists and engineers seeking to devise new products.

Internal sources

Employees◦ Idea generation and development techniques

can be encouraged by rewarding employees who come up with ideas.

◦ E.g. Google X Group

Internal sources

Existing products of business◦ Employees may improve or develop new products

or services based on existing products of the business.

Internal Sources

Community needs◦ Recognising the needs of the community and

filling that gap. E.g. Takeaway, Laundrette Hobbies or occupations

◦ What you’re good at and what you like can be a massive inspiration. E.g. Richard Bransons Virgin Group

Internal Sources

Changes in society◦ E.g. legislation banning mobile phones while

driving led to the development of hands free products.

Customers◦ Customers can often suggest ideas for

improvements and other innovative ideas.

External Sources

Competitors◦ Ideas can be found by monitoring competitors to

see what products they are developing. E.g. Tablet computers.

External Sources

Market research◦ A business may carry out market research or

surveys to find out what product or service is not provided.

Products in other countries◦ If a product is not yet available in Ireland it could

be adapted to the Irish market.

External Sources

What products, business’s or services have come onto the market in the last 18 months that you now use regularly.

Identify what variations make them different from existing similar products or services.

Class Task

New Product and Service Development process

Idea generation◦ A systematic approach to generating ideas. E.g.

brainstorming. Can come from internal or external sources

New Product and Service Development process

Product screening◦ Spotting good ideas, dropping poor ideas

New Product and Service Development process

Concept development◦ Turning the idea into a product

New Product and Service Development process

Feasibility study◦ Researching the market to test consumer reaction

to the proposed new product

“The aim of the Feasibility Study Grant is to assist a company to investigate the viability of manufacturing a new product or process or to develop a new internationally traded service.  The purpose of the study is to provide the necessary information to enable the company (and Enterprise Ireland) to come to firm conclusions regarding project viability.” - Enterprise Ireland

New Product and Service Development process

Prototype development◦ Producing a physical product

New Product and Service Development process

Test marketing◦ Determines the reaction of potential customers

New Product and Service Development process

Launch the product◦ Full-Scale launch on the market

New Product and Service Development process