Exploring New Business Ideas

Slinky? A naval engineer, Richard James, was trying to develop a special spring to launch missiles for submarines His child knocked one down the stairs and it “walked” His wife developed a marketing plan. Her first attempt failed…she tried again. The rest is history

Searching for Ideas

Ideas Vs Real Opportunities Does the idea solve some fundamental consumer or business want or need? Is there a demand? Are there enough people who will buy the product to support a business and how much competition exists for that demand?

Can the idea be turned into a business that will be profitable? Do you have the skills needed to take advantage of the opportunity? Why hasn’t anyone else tried this concept? If anyone has, what happened to them?

Sources of Ideas for a New Business Personal Observation Often ideas for a new product or service result from chance observation of daily living situations. This commonly occurs when people travel and observe product or service concepts being provided that are not yet available in the US or Canada.

Sources of Ideas for a New Business Your Job Prior work experience is the most common source of new business ideas. Your Hobbies Some people are deeply involved with their hobbies, often devoting more time to them than to their regular job. CFA.CA Canadian Franchise Association

Where Entrepreneurs Get the Ideas for their New Ventures Hobby/personal interest Inventor and Trade shows Saw something in a magazine/newspaper Radio/television Creative Thinking Prior business experience Business associates Saw a similar business elsewhere Suggestion by friends or relatives

Evaluating Ideas What do others think of the idea? Has the idea been tried before? If not, why? If so, what success did it have? Can you improve on that?

Evaluating Ideas What information was used to generate the idea? Was it accurate, dependable and reliable? Was it sufficient? How confident do you feel about the idea? What are the risks associated with the idea? Are they controllable?

Evaluating Ideas Is the idea directly related to an opportunity? Specifically define the opportunity. Is there a “user market” for the idea? Define it. How large is it? Will there be much resistance to the idea? From where? Why? Can such resistance be overcome?

Evaluating Ideas Is much money necessary for the idea? Where will the money come from? Why? Have you made any questionable assumptions in formulating your idea? Is there a better idea?