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Formulating A Business Idea

The document discusses developing a unique product or business idea. It states that a business idea should address community needs and correspond to one's skills. It provides steps for developing an idea, which include identifying community needs, listing possible ideas, conducting research, and performing a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The document also discusses factors that make a product unique such as design, packaging, innovation, and customer service. Developing customer value and a unique selling proposition are also recommended.

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Justin Magnanao
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126 views4 pages

Formulating A Business Idea

The document discusses developing a unique product or business idea. It states that a business idea should address community needs and correspond to one's skills. It provides steps for developing an idea, which include identifying community needs, listing possible ideas, conducting research, and performing a SWOT analysis to assess strengths, weaknesses, opportunities, and threats. The document also discusses factors that make a product unique such as design, packaging, innovation, and customer service. Developing customer value and a unique selling proposition are also recommended.

Uploaded by

Justin Magnanao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Formulating a business idea

Concept Digest (Discussion)

The need and wants in the community that are not addressed may be
considered business opportunities. All business ventures start
with a business idea. The best business idea is one which
addresses the needs of the market and corresponds to your skills
and interests.

Identify the needs and wants of the community


1.

List down possible business ideas


2.

Make a self- assessment


3.

4.
Conduct a research

Perform SWOT analysis


5.

Assess and finalize business idea


6.

1. Identify the needs and wants of the community. Find out the
things that are wanted and deemed necessary in the
community. Find out also the things that irritate the people
or the chores that they hate to do.
2. List down possible business idea. Think how you can improve
the needs and wants in the community. You may also think of
the services that would relieve the people in the community
from the chores they dislike.

3. Make a self-assessment. List down your skills and interest.


Limit down the list of business ideas to those that only
interest you and that you have the capability of doing.

4. Conduct a research. Find out the value of your business idea


to the consumers. Will it satisfy the needs and wants of
target customers? Why would they buy your product or
service? You also need to study the current trends and
issues as regards to your business idea. The data that can
be gathered from this research could be used in performing
SWOT analysis.

5. Perform a SWOT analysis. A SWOT analysis is a strategic


planning tool used to evaluate the Strength, Weaknesses,
Opportunities, and Threats involved in a project or in a
business venture requiring a decision in pursuit of an
objective. Strengths are the positive attributes of your
business idea. These may include a new or innovative product
or service and relevant skills, competencies, knowledge and
work experience. Weaknesses are the negative attributes of
your business idea. These could be undifferentiated products
or services and lack of wrok experience. Opportunities are
uncontrolled external events that you can potentially
influence. An opportunity could be a developing market such
as internet and booming economy. Threats are controllable
external factors that may work against your business and
require you to take protective action. These may include
emergence of a competitor and changing market requirements.

6. Assess and finalize your business idea. If your business


idea answers the needs of the community, corresponds to your
skills and interest and has more strengths than weaknesses
and more opportunities than threats, you may have a thought
of a sound idea.

Name: ____________________________________ Date: __________

Week 3

Unit 1: Core concept in Dressmaking


Topic: Product development

Learning Outcomes:
1. Identify the factors in product development;
2. Explain the importance of creating and developing a unique
and competitive product in the market.

Concept Digest (Discussion)

Product development involves creating and formulating a concept


or idea that may be useful in either developing a new product to
be offered or improving an existing one. To ensure the future
profitability of a product, it is necessary to consistently and
continuously develop the product, while considering the changes
in ht preferences of the customers or the changes in the needs
in your target markets.

What makes a product unique and competitive?

Developing a product that is unique and competitive is not as


simple as it sounds. You have to consider the factors that will
make your product stand out among your competitors and gain
competitive advantage against them. Here are some of the factors
that make a product unique and competitive.

1. Product Design. A customer would usually choose a product


with better design when the options are of similar price and
quality.
2. Packaging. Packaging not only protects your product from
being damaged, it also differentiates your product from that
of your competitors.
3. Innovation. Innovative products and ideas make your products
stand out from the rest and become noticed.
4. Customer service. Providing customers with high level of
customer satisfaction creates a significant competitive
advantage.

Customer Value

Customer value may mean getting what they want or what they are
expecting from the products or services they paid. Delivering
value to customers is very important because consumers would
usually buy or avail products that give them the highest
satisfaction among the other options available. In developing
customer value, some factors must be considered.

1. Quality. Quality of products or services is usually


associated with customer satisfaction which has direct impact
on the value of your product for the customer. Customers are
usually satisfied when the quality or perceived performance
they received is greater than or matches their expectations.
2. Cost. Offering your product at a reasonable price can be very
helpful in increasing its value to the customers. Try to
minimize the cost of your product in order for you to offer
it on the best price possible.
3. Customer service. Providing the customers with high level of
service can make them come back again and ignore your
competitors.

Developing a Unique Selling Proposition (USP)


A unique selling proposition is one of the elements in creating
product or services that a customer loves. Employing a unique
selling proposition is the key to effective selling especially
when your product or service is similar to those around you. And
that is true in garment business. To target your sales efforts
successfully, you need to pinpoint what makes your business
different from your competitors.
1. Understand what your customer’s wants and needs. Putting
yourself in the place of your customer can help you
understand what they really need and want. Though price may
be a reason why people buy, it is the quality, convenience
reliability, and the customer service that you give that
makes them comeback again and choose you over yopur
competitors.
2. Understand the buying behavior and decisions of your
customers. Consider that people buy clothes or garments not
just because they need them. You need to know what drives
and motivates your customers in buying clothes. Factors such
as peer, fashion trends, and fad influence their buying
behavior and decisions.
3. Get feedback from your customers. Feedbacks could include
helpful criticism that could inform you on how to improve
your product. Get feedbacks from your customers and use them
to your advantage. These could be done by asking your
customers why they like your product over your competitors
and asking them for suggestions for improvement. But if your
business is just starting, you may try to ask people in your
community on what they like and dislike about your
competitors’ product

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