Lesson 2

Sources of Entrepreneurial Ideas

At the end of the lesson, you are expected to:

1. Describe the process involved in the creation of a new entrepreneurial
venture
2. Identify the possible sources of entrepreneurial ideas.

I.Introduction

The creation of an entrepreneurial idea leads to the identification of

entrepreneurial opportunities, which in turn results in the opening of an
entrepreneurial venture.
As a future entrepreneur, always remember that a business must be
firmly established on existing business opportunities, and that there can be
no business opportunities in the absence of an entrepreneurial ideas.

II.Instruction

1. Read and understand each all about the importance of entrepreneur in the
economic growth.
2. You are given enough time to study about the said topic until I told you
to the next online class.
3. At the end of lesson module 3 lesson 2 you will be given an activity for
you to measure how far you have understand the topic.

III.Development of the Lesson

A. Presentation

What are the various sources of business ideas that can help you start
a prosperous business? Well, business ideas are crucial as they determine
the potential energy of the company at start-up levels to the time when it
begins to flourish while achieving set objectives. Here are the sources of
business ideas and opportunities for entrepreneurship that can lead you to a
successful business.

The entrepreneurial idea is a feasible, financially sound, technically

possible and socially acceptable idea of a project or product that may have
utility lo perspective customers.

B. Discussion

1. 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. In fact, most people
have founded great successful businesses while pursuing their interests or
hobbies. 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.
Interests, hobbies, and preferences of people are a rich source of
entrepreneurial ideas.
Internet cafes, amusement parks, night spots and nature farms could
be a response to the need of people for fun and relaxation.
As an entrepreneur your business venture should be adaptive to the
interests and hobbies of the people to protect and sustain your business.
2. Customer surveys
The starting point of any new business should be the clients because
their needs and wants justify the service or product that you can offer to
them. The wants and needs of the customers are, therefore, the sources of
business ideas generation and you can ascertain them by carrying out a
thorough survey. You can conduct such a survey, whether formally or
informally, through questionnaires, interviews or observation as you list the
sources of business ideas that work best for you.
While carrying out the surveys, you can talk with your friends and
family to discover what the potential customers need, yet it is not readily
available to them. They may not be contented with the existing service or
product and need improvement. In this case, you can step in and talk with
the people in the distribution chain including wholesalers, retailers,
manufacturers, agents, and distributors. It is essential to prepare the
questions in advance that you can use in interviews or put on the
questionnaires.
The relationship you build with your potential customers during the
survey leads you to new sources of business ideas as they freely share their
challenges with you. Thus, ensure that you talk to several existing and
potential customers to familiarize with them and understand their needs. Be
a good listener and observer as you show them that you care by sharing
with them the possible solutions. The more information they are willing to
give you, the higher your chances of founding a successful business.

Prospective customers know best what they want and the habits/tastes
which are going to be popular shortly. New product or service ideas may
come from customers’ reactions to the present product and the expected
product idea. Contacts with prospective consumers can also reveal the
features that should be built into a product or service.

The attention to the customers can take the form of informally

monitoring potential ideas and needs or formally arranging surveys among
prospective customers. Care needs to be taken to ensure that the idea or
need represents a large enough market to support a new venture.

3. . Brainstorming and dreams

Brainstorming is a method of problem-solving and qualifies as one of
the seven sources of business ideas since every company focuses on
offering solutions to the problems facing the customers. The secret behind
brainstorming is to come up with as many ideas and options as possible.
This process usually starts with a problem statement or question. For
instance, you may ask the question “what are the services or products
necessary in the home that are hard to get?” In this way, each design will
result in one or more ideas and lead to several opportunities for becoming
an entrepreneur.
Dreams are also part of the sources of developing business ideas
though most people tend to ignore them. However, it pays to consider and
follow them up as they can lead to a booming business even if they may
seem unintelligible and strange. Do not hesitate to wake up in the middle of
the night and jot down the ideas before they disappear at the crack of
dawn. While you can get ideas during the deep sleep in the form of dreams,
you can also discover the germ of a wonderful business idea as you
meditate during the night when you lose sleep.
The rules of brainstorming
Here are the rules that will help you when brainstorming for different
sources of business ideas:
1. Never judge or criticize the ideas and suggestions of others.
2. Encourage freewheeling and invite crazy or wild ideas.
3. Quantity is paramount where the more the number of ideas, the
better.
4. Combine and develop the ideas that friends and colleagues give you
5.
5. Never procrastinate.
4. . Franchises
A franchise is a situation where a sole trademark distributor or
manufacturer of a product gives exclusive rights to independent
retailers for local distribution. This is done in return for the consistency
of the retailers to the set operating procedures and payment of
royalties. As one of the sources of business ideas for entrepreneurs,
franchising can take different forms but the most common and
preferred one is where you are offered the image, operating
 procedures and the name of an established business. Besides buying a
franchise, you can also build on and sell its concept at a profit.
5. Mass media
The mass media; including television, newspapers, Internet,
radio, and magazines are a great source of ideas, information, and
opportunities. One way to become a successful entrepreneur is taking
a careful look at the advertisements and commercials in these media.
By reading a magazine or newspaper, you can easily come across a
business for sale that interests you. These media can also report on
the trending fashion, and pressing customer needs that you can jump
on and start a business. If, for example, you find out that there is a
high demand for physical fitness and healthy eating practices, you can
start a fitness and healthy eating center. While traditional media
including television, radio, and newspapers have been great sources of
ideas to run new business, the Internet has emerged as the latest
information technology with instant millions of ideas. With just a click
of a button on your computer or phone, you can get the best idea that
will work perfectly according to your interests and locality. Starting a
successful business has never been this easy!
6. Personal experience and talents
Most of the ideas and opportunities for successful businesses are
a result of the experiences in the place of work. For example, an
experienced manager working for a leading restaurant can eventually
decide to start a business related to hospitality even before he retires.
As a potential entrepreneur, therefore, you can make the most use of
your skills and experiences as crucial sources of business ideas
generation. They also determine the type of venture that you start as
you capitalize on them. If you are gifted or have experience in a
specific field, then it is time to analyze just talent or skills.
7. Trade fairs and exhibitions
Trade fairs and exhibitions are among the top sources of
developing business ideas. They are usually advertised on the
Internet, radio, and newspapers, and by attending such events
regularly, you will discover new services and products. You will also
meet with manufacturers, sales representatives, distributors,
wholesalers, and franchisers who will answer all your questions and
inspire you to start a business that will thrive. In fact, some of them
may be in need of someone like you to partner with, and this will be
an exceptional opportunity to partner with renowned entrepreneurs
and franchisers.
Sound business ideas from reliable sources of new ideas for
business become good investments when implemented. Hence,
business visionaries and potential entrepreneurs must brainstorm on
the ideas that can lead them to a well-organized and successful
business that meets the needs of the clients and promote the economy
of the society. Business idea generation, therefore, helps you identify
the opportunities, the people or companies to partner with and your
competitors.