TOPIC IDeveloping ideas and concepts into viable enterprises

OBJECTIVESBy the end of the topic, the learner shall be

able to identify an appropriate business idea and

describe the business concept.

Turn the identified ideas into viable business concepts

Business IdeasA business Idea is any opportunity that person can turn into a business All businesses were once ideasIdeas, on their own, just remain ideas. They must be turned into concepts and then action is taken to implement them

BUSINESS CONCEPTA business concept is an idea that is well

developed in writing. It should fundamentally answer the

following questions:WhatWhyWhereWhenHow

Sources of Business Ideas1. Internal Sources

Your own experiencesOther peoples experiencesBrainstorming meetingsResearch on upcoming issues Wishful thinking – “how I wish something could happen…”

2. External Sources

Feedback received from customersMeetings, exhibitions, government

websites and publicationsSector-wise Youthet research (e.g.

Latest business in bottled water I-pad retail, etc)

PRACTICES IN GENERATING BUSINESS IDEAS

Always be alert to business opportunities

In any discussion, issue or matter, especially complaints: AskWhat is being said? What is the problem? Where did it start from?

What are the immediate or short term solutions?

What is the long term solution?

Where can the solution be sourced?

How can it be done? How much will it cost? How many people have the same problem?

How much will you sell it for? Are the people with the problem prepared to pay for its price?

Is it a profitable business?How long will the problem last?

CONCEPTUALIZING YOUR BUSINESS IDEA

If it is a good business idea, take time to develop it into a concept

Conduct research on;1. General concept research

What exactly is the business opportunity?

Who else is in this line of business?How are they doing their business?

What is the process for turning inputs into outputs?

Is it an accessible process or technology?

How much does it cost?What are its potential profit margins?

BUSINESS POTENTIAL RESEARCH

Who are the potential buyers of the product?

Why would they be interested in buying?

What is the minimum quantity they will buy before their needs are satisfied?

How many are they?

Where are they usually found?

How much will it cost you to get the product to the market?

What will it cost you to make the customers aware of your presence?

How much will it cost you to deliver the product to the customer?

How much will you pay for recurring costs

E.G. rent for premises, wages and salaries, power and lighting, transport, etc

What are your total expenses and how much will be left after you have paid for all the expenses?

Are your net profits enough to cover your living expenses, loan repayments and other incidentals?

CONCLUSION