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CHOOSING BUSINESS IDEAEngineering EntrepreneurshipSecond Semester of A.Y. 2014/2015International ProgramCivil Engineering DepartmentFaculty of EngineeringUniversitas Atma Jaya YogyakartaMURPHY(Consultant of Small-Medium Enterprises in the US) Golden key of success:

Do the right business in the right time(SWAT: one shot one killed)BUSINEES WEEK MagazineIn a discussion conducted by A.T. Kearney, Inc.:

If a company takes out all its maximum ability in investment, then new product launched into new market will influence only 1 out of 20 people. This is due to people in the new market still use old (similar) product they are used to. If old product is launched into new market, it will influence 1 out of 4 people. If a new product is launched into old market, it will influence 1 out of 2 people. Finally if an old product is launched into old market, it will influence 1 out of 1 people.IMPLICATIONTo be successful:

An entrepreneur needs not only creative idea in product creation but also accurate strategy and right execution cannot work alone, needs supporting thoughts from idea to commercialization

EXAMPLEFar before KFC and McDonalds gain succeed in Indonesia, Pizza Hut had come earlier but it did not last long since Indonesian market was not ready to consume such that food. After the succeed of KFC and McDonalds, Pizza Hut reentered when Indonesia customers have got used to fast food with Western taste. Customers started to chase for variation.Succeed is determined by many things but the most important thing is knowing your own characters and being in the area you like and intimate with.It is not impossible that succeed is just a matter of time to people who really love their work.Product how simple it is has to be embraced, talked to, given command and your personal touch; know yourself before finding the real business ideaKNOWING SOUL CALLSuitable to us opportunity is personal and close to you, it needs skill, personality, and to be likedAccess related to network, supporting environmentPotential commercialization has to be able to give feasible growth rate and investment return rateANALYSIS to Find Potential & Suitable Business IdeaWhat do you like most?What is your hobby?What product & process you know best?What do you want to do when you are idle?What is your most important goal in running own business? (Getting profit or freedom or something else)What idea emerges as response to the first four questions above to fulfill question no. 5?Answer to those questions is different from one person to another everyone has uniqueness & different personality necessary to know uniqueness & personality of a person (in addition to hobby) prior to decision of a businessIntrovertExtrovertDedicationDominationID (Dominant) IIP (Popular)IIICa (Calm)IVCo (Conventional)INTROVERT vs. EXTROVERTIt is about intensity of desire to interactEXTROVERT: tends to build relations and bonds with other peopleINTROVERT: tends to minimalize contacts with othersDOMINATIVE vs. DEDICATIVEIt is about urge to dominate others, whether tendency to command/control other or to succumbDOMINATIVE: tends to control othersDEDICATIVE: tends to succumbQuadrant I: DOMINANT PersonStrong motivation to gain achievementBehavior is oriented to final result of a work or responsibilityLike challengesReady to work hard even in any waysLess care to socialization environment, speak a little, move fast & practically, straight to the targetLike freedom, do not like to be ruled, free to create, free to develop own ideas to conquer challengesQuadrant I: DOMINANT PersonWant power since without authority the desire will be obstructed by more powerful personWhen a problem solved, no interest to re-face it again since no challenge anymore like variation in activities, the more variation the more enthusiasticConsider quality work is the one of high level of difficulty being challenged & satisfied when successfulIn company: want clear status & carrier ladder since it is considered as appreciation upon achievement as result of hard work & drudgeQuadrant II: POPULAR PersonMotivated to get recognition from people, feel as important person in neighborhoodLess aware on final result of work and deadline of accomplishmentFight to get influence here & thereWant prestige, talk a lot, long for warm relations, make friends with many partiesWant freedom, far from tight rules & detail controlQuadrant II: POPULAR PersonLove interaction and good in itDo not hesitate to help others, motivate everyone who needs encouragement to achieve progress in business or lifeTalking between individual or in front of public while throwing ideas make them enthusiasticQuadrant III: CALM PersonPushed by motivation of friendship & respect each otherExtrovert, like & good in socializationCannot have big ambition in reaching any achievement, everything is done ordinarilyNaturally cool, calm, friendly rarely considered as arrogantConsidered as easy for consultation or discussion, especially some of them are considered as big brainQuadrant III: CALM PersonDo not like responsibility & variation of challengeTend to specialization to limit scope of responsibility in certain areaLike to join group of people, participating as memberIn work: like to be in settled system, everything is standardized, guidance is clearDo not like challenge less courage to take big risks tend to choose safe environmentQuadrant III: CALM PersonIf being located in new strange environment take time to adjustAlways try to stay in environment which is already known wellTo achieve something: need detail explanation about target & their role in itQuadrant IV: CONVENTIONAL PersonWork with reference of accuracy, correct & perfect result in accordance to standardized principlesIntrovert, less care to social environment, tend to limit from relationship with othersPrecise in work, perfectionist, always refer to perfection of final resultLess aware of deadline, expect guidance step by step & overall supportQuadrant IV: CONVENTIONAL PersonExpect safe environmentCan work in group with base of thought that faced risk can be minimized & hold togetherExpect to get tasks that can occupy themSuitable to work requires high accuracy or in researchesProduction or accountingDistribution or promotionServiceDirectingAnalystCreativeServiceConsultativeBUSINESS AREA of CREATIVENot suitable for the ones require lobbyingSuitable for production but keep ensuring saleable or marketableExample:Food & beverage-Screen printingCraft-PublishingMetal-Children toysAgriculture & agribusiness-Greeting cardsLivestock & ponds-Intellectual workKnit work, embroidery, lace(computer software,movie/drama script,songs, art work, etc)

BUSINESS AREA of CONSULTATIVEPossibility to be controllerExample:Consultation service, e.g. IT, tax, finance, marketing, law, fengshui, psychology, fashion, fitness, nutrient, construction, computerCourses, e.g. foreign language, skills (screen printing, typing, computer, sewing, cooking), managementFitness center & sport trainingTrading, e.g. distributor, sub-distributor, dealer, agent, reseller, retailer

BUSINESS AREA of SERVICEExample:Service bureau, e.g. documents, driving courseTechnical bureau, e.g. electronic appliances maintenance, electrical installationTyping servicePhotocopy & bindingScreen printing by orderWorkshop, e.g. vehicles (car, motorbike), electronic appliances repairBuilding contractor & repair serviceBoarding houseBeauty salonMiddleman/broker: connecting seller & buyer

BUSINESS AREA of ANALYSTNot so much socializationProblem solverExample:Translator serviceRepair service of electronic appliances & information technologyIntellectual workFashion designerLaundrySewing/tailor service

BUSINESS IDEA by IMITATINGRefer to old business of 2-3 generations: keeping old customers & get new ones while taste & demand of society changes from time to timeOn the other hand: fail entrepreneurs in similar field of successful business due to fail of adaptation new ideas are always required to adapt current business

SCHNAARS (1994)Many ways to develop ideas from products available earlierMany later entrepreneurs outperform pioneers who failed in evolutionNew comers = creative adaptors (creative idea copiers)Creative adaptors do not break law since counterfeits & product pirates are forbiddenCreative adaptors observe current business behavior, find its weaknesses and repair them BUT always use OWN BRANDBusiness ideas emerge due to information indicates needs. It requires data and considerations.Needs might currently be unsatisfied due to available products are still very expensive or due to there are other things still unmet the following should be done:Study the current industryAssess the industrys input & outputAnalyze the trend of population & demographic dataAssess the economic trendAnalyze the social changeAssess the impact of new regulation

1. STUDY THE CURRENT INDUSTRYMany institutions provide information & complete assessment of companiesEasy to obtain names, addresses, date of establishment, products, number labors, etcAnalysis to obtain:Needs that have not fulfilled by local industry due to various reasons, e.g. requirement of high technology, imported raw materialsIncomplete fulfillment of market needs due to high variety of needsSupport to current needs, e.g. supply supporting components or tools of old producer with competitive price & service2. ASSESS THE INDUSTRYS INPUT & OUTPUTSame data as reference to assess input & output of current industriesOpportunity is available if:Current procurement of materials & components is from far distant long lead time & expensive transportation costSpecific components are normally used together and self-produced can be supplied with much cheaper price & single producer for economic scale considerationIt is business opportunity related with further process sewage recycling3. ANALYZE THE TREND OF POPULATION & DEMOGRAPHIC DATATrend of age group of populationExample:1980s: children market toys, school equipment1990s: young families tools & equipment of home furnishing4. ASSESS THE ECONOMIC TRENDChange in economic situation causes new needs then provides wider business opportunityExample: in last 2 decades, people are much more aware of the importance of time increase demand on practical & saving time products such as rice cooker, microwave, oven

5. ANALYZE THE SOCIAL CHANGEExample: change of someones perception and awareness on something new awareness in use of preservative & pesticide leads to emergence of product without preservative or with natural preservative or organicsimilarly to food with high cholesterol & sodiumtend to use spare time & holidays travelling equipment, camping tools, etcincrease criminals (of quantity & quality) self-protection product: security service, safe parking, alarm, safety lock, CCTV, metal safe deposit box, authentic money detector6. ASSESS THE IMPACT OF NEW REGULATIONNew opportunities to fulfill new regulations, e.g.:environmental impact controlconsumer protectionlabors health, safety, & right

Potential business idea

Feasibility selection (rank)

Best idea economically by scoring 4 componentsmarketmarket growth potentialcostrisk

prospectimpactPRACTICAL TIPS Two effective ways to stimulate business idea:Attend trading & investment exhibitionImplement method of Dr. Herb True, i.e. [next slide]

METHODCOVERAGEModifycolor, shape, voice, smell, moveRe-arrangeorder, components, schedule, patternDuplicateimitate, transfer, copyReversefront to back, top down, oppositeAddunit, action, price, higher, longer, thickerReduceminiature, delete, shorten, breakReplacecontent, strength, processAdaptrenew, adjustIdentify market needspersonnel, exceed current one, sense, anticipationCombinealloy, unit, mix, assembly, combine ideasALEXANDER GRAHAM BELLWhen a door is close, then another door is open. However, we often are stunned and regret the closing door so that we cannot see the other opened door.INSPIRATIONHow I Made My Millions - 10 Ideas that Make $100M

mymillions.cnbc.com

http://www.cnbc.com/id/43768333