UNIT 3
ENTREPRENEURSHIP JOURNEY
Business ideas
A business idea is the first milestone in the process of building a successful
business unit. Generation of ideas is the key to success of an enterprise.
Ways to Generate Ideas
1. Environment Scanning: Environment scanning means monitoring the environment
of each organisation and identifying the constraints and opportunities before them. The
information for scanning can be collected from popular news papers, magazines,
government and consumer publications, friends, employees etc.
2. Creativity and Creative Problem Solving: Creativity is the act of turning new and
imaginative ideas into reality. It is the ability to bring something new into existence.
Creative problem solving is a way of using your creativity to develop new ideas and
solutions to problems.
3. Brainstorming: It is a way to generate ideas within a group sitting. A group of
persons sit together and generate a number of business ideas by innovating alternative
ways of meeting the needs and solving problems. It is usually an unstructured discussion
in which one idea leads to another.
4. Focus Groups: These groups of individuals provide information about proposed
products or services in a structured setting. In a typical focus group a moderator focuses
the group discussion or whatever issues are being examined.
5. Market Research: This is a method of collecting information about existing products
in the market. A systematic and in-depth study is undertaken to obtain useful data to
determine demand and supply position for a particular product or service. Such a
research will help in getting new business ideas.
Sources of business ideas
1. Analyse the profitability of selected industries - A study of the profitability ,
capacity utilization and break even level of selected industries indicates promising
investment opportunities. This enables us to find out profitable and relatively risk free
opportunities.
Krishnanunni.T, GVHSS Karakurissi, Palakkad
, 2. Analyse the inputs and outputs of various industries - The analysis of the
inputs required for the existing industries may throw up project ideas. Opportunities
exist when the materials required by these industries are provided at a lower cost.
3. Analyse the Imports and Exports statistics - The analysis of import and export
statistics is helpful in understating the trends of imports and exports of various goods.
4. Analyse the availability of materials and other resources locally - An
investigation into local resources and skills is helpful identifying good projects ideas.
Example: Ayurveda medicines
5. Study the economic and social trends - An analysis of economic and social trends
indicates the potential demand for various goods and services.
Example: Modular kitchen
6. Analyse the technological changes - The changes of technological environment
may be examined to develop new products.
7. Study the projects or sources used abroad : The Entrepreneurs are ready to take
higher risks may identify projects for the manufacture of products or supply of
services. Example: Amusement parks.
8. Draw clues from Trade fair and Exhibition: National and International Trade fair
and exhibition provide new product ideas.
Feasibility study
Feasibility study is an assessment of the practicality of a proposed project. it is
used to determine the viability of an idea, such as ensuring a project is legally and
technically feasible as well as economically justifiable.
Types of feasibility study
1. Market Feasibility: This includes assessment of ;
(a) Prevailing market (b) Competitors
(c) Potential Customers (d) Projection of sales.
2. Technical Feasibility: It involves evaluation of;
(a)Technology (both software and hardware) (b) Manpower
(c) Transportation (d) Location, etc
Krishnanunni.T, GVHSS Karakurissi, Palakkad
ENTREPRENEURSHIP JOURNEY
Business ideas
A business idea is the first milestone in the process of building a successful
business unit. Generation of ideas is the key to success of an enterprise.
Ways to Generate Ideas
1. Environment Scanning: Environment scanning means monitoring the environment
of each organisation and identifying the constraints and opportunities before them. The
information for scanning can be collected from popular news papers, magazines,
government and consumer publications, friends, employees etc.
2. Creativity and Creative Problem Solving: Creativity is the act of turning new and
imaginative ideas into reality. It is the ability to bring something new into existence.
Creative problem solving is a way of using your creativity to develop new ideas and
solutions to problems.
3. Brainstorming: It is a way to generate ideas within a group sitting. A group of
persons sit together and generate a number of business ideas by innovating alternative
ways of meeting the needs and solving problems. It is usually an unstructured discussion
in which one idea leads to another.
4. Focus Groups: These groups of individuals provide information about proposed
products or services in a structured setting. In a typical focus group a moderator focuses
the group discussion or whatever issues are being examined.
5. Market Research: This is a method of collecting information about existing products
in the market. A systematic and in-depth study is undertaken to obtain useful data to
determine demand and supply position for a particular product or service. Such a
research will help in getting new business ideas.
Sources of business ideas
1. Analyse the profitability of selected industries - A study of the profitability ,
capacity utilization and break even level of selected industries indicates promising
investment opportunities. This enables us to find out profitable and relatively risk free
opportunities.
Krishnanunni.T, GVHSS Karakurissi, Palakkad
, 2. Analyse the inputs and outputs of various industries - The analysis of the
inputs required for the existing industries may throw up project ideas. Opportunities
exist when the materials required by these industries are provided at a lower cost.
3. Analyse the Imports and Exports statistics - The analysis of import and export
statistics is helpful in understating the trends of imports and exports of various goods.
4. Analyse the availability of materials and other resources locally - An
investigation into local resources and skills is helpful identifying good projects ideas.
Example: Ayurveda medicines
5. Study the economic and social trends - An analysis of economic and social trends
indicates the potential demand for various goods and services.
Example: Modular kitchen
6. Analyse the technological changes - The changes of technological environment
may be examined to develop new products.
7. Study the projects or sources used abroad : The Entrepreneurs are ready to take
higher risks may identify projects for the manufacture of products or supply of
services. Example: Amusement parks.
8. Draw clues from Trade fair and Exhibition: National and International Trade fair
and exhibition provide new product ideas.
Feasibility study
Feasibility study is an assessment of the practicality of a proposed project. it is
used to determine the viability of an idea, such as ensuring a project is legally and
technically feasible as well as economically justifiable.
Types of feasibility study
1. Market Feasibility: This includes assessment of ;
(a) Prevailing market (b) Competitors
(c) Potential Customers (d) Projection of sales.
2. Technical Feasibility: It involves evaluation of;
(a)Technology (both software and hardware) (b) Manpower
(c) Transportation (d) Location, etc
Krishnanunni.T, GVHSS Karakurissi, Palakkad
