Identifying Potential Business Ideas

TOPIC 7: IDENTIFYING POTENTIAL BUSINESS IDEAS

In order to identify opportunities for business start‐ups in your community you must consider what the market needs. You can start your market analysis by completing an environmental scan of your community.

You need to consider a number of factors. These include:

o What businesses already exist in my region?

o What type of goods and services do they provide?

o Who are the clients (market) buying these goods and services?

o Are all of the market needs being met by the existing businesses?

o Are there goods and services that the market members may purchase if they were available?

o Do I have any of the skills or abilities to offer goods and services that could potentially be wanted by members of the market?

o What competition already exists in the marketplace for the goods and services that I could potentially offer?

TOPIC 8: SOURCES BUSINESS IDEAS

1. Look within yourself and examine your skills, talent, and passion - one of the first places to start when looking for business ideas or opportunities is to look within you. To discover what you are good at or what business to start, you can begin by asking yourself the following questions:

o What skills or talents do you possess?

o What are your hobbies? What are you passionate about?

o Do you possess a skill that people are willing to pay for?

2. Brainstorming – is less of a formal way to discuss your ideas and sharing your ideas with your friends’ and/or relatives’ and hearing their ideas. Brainstorm can be said to be a creative problem-solving technique, and also a source for generating ideas. For instance, you may ask “What are the products and services required in the home today which are unavailable?” Each idea can lead to one or more additional ideas, resulting in a good number.

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3. Listen to customers complaints - Complaints and frustrations on the part of customers have led to many new products or services. Whenever consumers complain badly or bitterly concerning a product or service, or when you hear someone saying ‘I wish there was … “or “If only there were a product/service that could … “, then, you have the potential for a business idea.

4. Exhibitions, Expos and Trade shows - Another means to discover business ideas and opportunities is to attend exhibitions and trade fairs. These are usually advertised on the radio or in newspapers. By visiting such events regularly, you will not only find out new products and services, but you will as well meet sales representatives, wholesalers, distributors, manufacturers and franchisers. These are always excellent sources of ideas in business.

5. Industrial Surveys - The main point for a new business idea should be the customer. The needs and wants of the customer, which will provide the rational for a product or service, can be analyzed or ascertained through a survey. Such a survey may be conducted formally or informally by speaking to people; usually through interviews or using a questionnaire or through observation.

6. Mass media - The mass media is a wonderful source of information, ideas and often opportunities. Magazines, TV stations, Cable networks, radio, newspapers and internet resource sites are all instances of mass media. Just take a careful look at the commercial advertisements in newspaper or magazine and you will discover businesses that are for sale.

7. Franchising - A franchise is just an arrangement whereby the manufacturer or the sole distributor of a trademark, product or service grants exclusive rights for local distribution to independent retailers in return for their payment of conformity and royalties in order to standardize operating procedures. Franchising may take several forms, but the most interesting one is the type that offers a name, method of running business, image and operating principles.

8. Add value to an already existing product - The uniqueness between raw wood and finished timber is a nice instance of putting a product through an additional process which maximizes its value, but additional processes are not the only way that value can be added. You may as well add services or combine the product with other related products.

For example, bottled water has been in existence in Zambia but it was on the high side with respect to price. However, somebody sat down and thought up the “sachet water” which comes at an affordable rate.

Now how do you develop these business ideas? The answer is simple? Look beyond the lines. Ask yourself the following questions: What are those products you use that could be improved upon? Which industry are things poorly done? If you can answers such questions, you can create a profitable business.

9. Invent a new product or service - Do you possess a creative mind? Then you can invent products or services that have never existed in the past? To develop a creative mind, you need a mindset or perceptions that see beyond problems. You have to look around and ask yourself:

· What is the best solution for this situation or people’s problem?

· Then you can proceed to ask people about additional services that they would like to see.

· To develop winning ideas, you need to concentrate on a specific target market and analyze and brainstorm business ideas for services that the group would be interested on.

10. Keep up with current events and be ready to take advantage of business opportunities - Yes! Happenings in society, events and trends are also sources of business ideas. If you are expose to reading and watching news regularly and having the conscious intent of discovering business ideas, you will be amazed at how many business opportunities that your brain will generate.

11. Interests and hobbies - A hobby is an activity that you enjoy doing during your leisure-time and is one of the primary sources of business ideas. For instance, if you enjoy traveling, playing with computers, music, sports, performing or cooking, you can seamlessly develop it into a business. You can join the tourism, entertainment or hospitality industry by venturing deeper into your favorite activity. These are just a few suggestions since there are lots of leisure activities that can lead you to the world of successful entrepreneurship. Just consider what you are good at, and you are ready to go.