Sudan International University

 Faculty of Management Sciences

high diploma in Business Administration

Entrepreneurship Development

Starting a New Venture and

the Business Idea
Offered by :Dr. Ashraf Elsiddig Babikier
 Learning Objectives
1- To identify various sources of ideas for new venture
2-To know the methods available for generating new venture
ideas
3- To discuss creativity and the techniques for creative problem
solving
4-To discuss the aspects of the product planning and
development process
5- To discuss aspects of e-commerce and starting an e-
commerce business
INTRODUCTION
Entrepreneurs need ideas to start and grow their
entrepreneurial ventures.
Sometimes, the most difficult aspect of starting a business
is coming up with a business idea.
Even if you have a general business idea in mind, it usually
needs to go through fine-tuning processes.
The best ideas for a new business are likely to come from
activities and people that you already know well.
 Finding a good idea is the first step in the
process of converting an entrepreneurs creativity
into an opportunity.
 Business Idea
Any good business ideas could be an invention,
a new product or service, or an idea or solution
to an everyday problems.
A good business idea does not necessarily have
to be a unique products or services.
Majority of the entrepreneurs recognized their
accomplishment to the exceptional execution of
ordinary ideas.
The chances of success therefore will be far
greater if you can market a product that is
similar to existing offerings, while providing
greater value to customers.
Ways to build upon the already existing material
and would still provide a profit-driven concept:

(a) Develop ideas as an extension of an existing

product (i.e. adding camera and song features to a
mobile phone).
(b) Create an improved service (fast delivery
services).
(c) Market a product at a lower price (via e-
commerce e.g. amazon.com).
(d) Add value to an existing product or service
(i.e. reputable brand name or delivery service).
(e) Altering their quality or quantity.
(f) Introducing automation, simplification,
convenience .
(g) Personal interests or hobbies - many people
find ways to turn their hobbies into successful
businesses.
(h) Work experiences, skills, abilities -a business,
related to the work you do.
(i) A familiar or unfamiliar) Antiques ,pets) product
or service.
(j) Spot the latest trends. Trends that will provide
opportunities include: green trend, clean-energy
trend, organic-orientation trend, economic trend,
social trend, health trend, and Web trend. See CHAPTER 4
CREATIVITY AND THE BUSINESS IDEA 87
(k) Changing the delivery method, packaging,
unit size or shape.
(l) Increasing mobility, access, portability or
disposability.
(m) Simplifying repair, maintenance,
replacement or cleaning.
(n) Changing their colour, material or shape.
 A survey of entrepreneurs found that most
new start-up companies are involved
in industries where they had significant work
experience.
The personal contacts and domain(expertise )
developed on the job have proven to be
valuable to many individuals who planned
launching a business of their own.
 Anybody who intends to start a business in
a new industry are therefore encouraged to
firstly become a "learner" for a suitable
period of time.
By doing that, you could avoid costly
mistakes and at the same time be able to
assess whether you enjoy the work before
making a serious financial commitment.
 SOURCES OF NEW IDEAS

Some of the more frequently used sources

of ideas for new entrepreneur include
consumers, existing companies,
distribution channels, the government and
research and development
METHODS OF GENERATING NEW IDEAS

Even with the wide variety of sources

available, coming up with an idea to
serve as the basis for the new venture
can still be a difficult problem.
The entrepreneur can use several
methods to help generate and test new
ideas.
TECHNIQUES FOR GENERATING IDEAS
Brainstorming

This is a process in which a small group of people interact with

very little structure, with the goal of producing a large quantity
of novel and imaginative ideas.
The goal is to create an open, uninhibited atmosphere
that allows members of the group to „freewheel- sail- ideas.
Normally, the leader of the group asks the participants to share
their ideas.
As group members interact, each idea stimulate the thinking of
others, and the producing of ideas becomes contagious.
Focus Groups
These are group of individuals who provide
information using a structured format.
Normally, a moderator will lead a group of
people through an open, in depth discussion.
The group members will form comments in
open-end in-depth discussion for a new
product area that can result in market
penetration.
Observation
A method to describe peoples behaviour by probing:
(i) What do people/organisations buy?
(ii) What do they want and cannot buy?
(iii) What do they buy and don't like?
(iv) Where do they buy, when and how?
(v) Why do they buy?(vi) What they buying more of?
(vii) What else might they need but cannot get?
Surveys
This process involves the gathering of data based
on communication with a representative sample of
individuals.
This research technique requires asking people
who are called respondents for information either
verbally or by using written questions.
Questionnaires or interviews are utilized to collect
data on the telephone or face-to-face interview.
Emerging Trends is based on the population within
your area may be getting older and creating
demand for new products and services.
(f) Research and Development is a planned
activity aimed at discovering new knowledge, with
the hope of developing new or improved products
and services. Researching new methods, skills and
techniques enable entrepreneurs to enhance their
performance and ability to deliver better products
and services.
(g) Tradeshows and association meetings
This can be an excellent way to examine the
products of many potential
competitors, uncover product trends and identify
potential products.
h) Other Technique can be achieved by reading
relevant trade magazines and browsing
through trade directories. These may include local,
national and foreign publications.
Techniques for creative problem solving
While creativity is an important attribute of a
successful entrepreneur, unfortunately,
Creativity tends to decline with age, education,
lack of use, and bureaucracy.
Creativity can be unlocked. Creative ideas and
innovations generated by using any of the creative
problem-solving techniques as follows:
Brainstorming
The first technique, brainstorming, is probably the most
well known and widely used for both creative problem
solving and idea generation.
It is an unstructured process for generating all possible
ideas about a problem within a limited time frame through
the spontaneous contribution of participants.
All ideas, no matter how illogical, must be recorded, with
participants prohibited from criticizing or evaluating during
the brainstorming session.
Brainwriting
Brainwriting is a form of written
brainstorming. Brainwriting is a silent, written
generation of ideas by a group of people.
The participants write their ideas on
special forms or cards that circulate within the
group, which usually consists of six members.
Each group member generates and writes
down three ideas during a five-minute period.
 The form is passed on to the adjacent person
who writes down three new ideas, and so on,
until each form has passed all participants.
A leader monitors the time intervals and can
reduce or lengthen the time given to participants
according to the needs of the group. Participants
can also be spread geographically with the sheets
rotated electronically.
Reverse brainstorming
Similar to brainstorming, but criticism is allowed and encouraged as
a way to bring out possible problems
with the ideas.
Synectics
Synectics is a creative process that forces individuals to solve
problems through one of four analogy
mechanisms: personal, direct, symbolic and fantasy.
This forces participants to consciously apply preconscious
mechanisms through the use of analogies in order to solve problems.
.
Gordon method
Gordon method is a method of developing new ideas
when the individuals are unaware of the problem. In
this method the entrepreneur starts by mentioning a
general concept associated with the problem. The
group responds with expressing a number of ideas.
Checklist method
Developing a new idea through a list of related issues
is checklist method of problem solving.
Product Planning and Development Process

Criteria should be established at each

stage of the product planning and
development process.
Establishing Evaluation Criteria should be
all-inclusive and quantitative in nature.
Criteria should evaluate the idea of product in
terms of:
Market opportunity.
Competition.
Marketing system.
Financial factors.
Production factors.
The Product Planning and Development Process
Stages of Product Planning and Development Process :
Idea Stage
Promising ideas should be identified and impractical ones
eliminated.
Evaluation method – Systematic market evaluation checklist.
Determine the need for the new idea as well as its value to the
company.
Concept Stage
Refined idea is tested to determine consumer acceptance
which can be measured through the conversational interview
method.
Development Stage
Consumer reaction to the product/service is
determined.
A consumer panel is given a product sample
and preference is determined through methods
such as multiple brand comparisons, risk
analysis, etc.
Test Marketing Stage
Increases certainty of successful
commercialization.
Actual sales reflect acceptance of consumers.
Positive test results indicate the degree of
probability of a successful product launch and
company formation.
E-commerce and Business Start-up
E-commerce offers
commercial transactions conducted electronically on the internet

entrepreneurs an opportunity to creation and

innovation.
Factors that facilitate high-growth in electronic
commerce:
1-Widespread use of personal computers and
mobile phones .
2-Adoption of intranets in companies.
3-Acceptance of the Internet as a business
communications platform.
4-Faster and more secure systems.
Using E-Commerce Creatively
Entrepreneurs have to decide whether to:
-Run Internet operations within the company.
-Outsource these operations to Internet
specialists.
 -Use e-commerce packages
provided by software companies.
The integration of front-end and
back-end operations represents the
greatest challenge for doing Internet
business.
Web Sites
Ease of use.
Structure and organization of information.
Search capability.
E-mail response system.
Speed.
Compatibility with different browsers and platforms.
Tracking Customer Information
Electronic databases track the activity of
the industry, segment, and company.
It supports personal marketing targeted
at individual clients.
Care must be taken to follow the laws
protecting the privacy of individuals.
Doing E-Commerce as an Entrepreneurial Company

Products should be delivered economically and

conveniently.
Products need to interest a wide market;
company must be ready to ship the product
outside its own geographical location.
 Online operations should bring
significant cost reductions.
Company must be able to
economically draw customers to its Web site.