■ Reviewer – Module 3
Search for Business Opportunity, Ideation, Innovation, and
Creativity
■ Learning Objectives
• Explain how to search for business opportunities.
• Understand ideation, innovation, and creativity.
• Identify factors in evaluating the potential of a business idea.
■■ Search for Business Opportunity
• Markets – number of buyers, competitors, price, quality.
• Individual Interests – match skills/passion with opportunity.
• Capital – funds available to start and sustain.
• Skills – technical and managerial abilities.
• Suppliers – availability of reliable input/raw materials.
• Manpower – efficiency of employees.
• Technology – innovations to improve products/services.
■ Product Life Cycle
• Introduction – low awareness, high cost, low/negative profit.
• Growth – rapid sales rise, higher profit.
• Maturity – peak sales, profit starts to decline.
• Decline – falling sales, almost no profit, competitors leave.
■ Categories of Business
• Service-based – consultancy, salons, caregiving, repairs, professionals.
• Trading/Product-based – buy-and-sell (grocery, bakery).
• Manufacturing – produce goods (T-shirts, ceramics).
• Licensed/Franchising – use existing brand or system.
• Distributorship – sell/distribute products without using trade name.
• Rack Jobber – supply products on store racks.
• Wholesalers – sell to retailers.
• Subcontracting – supply parts for a bigger producer.
• Vending Machine Routes – capital-intensive machine sales.
■ Ideation (Generating Business Ideas)
• Recognizing a need.
• Improving existing products.
• Spotting trends.
• Researching and being aware.
• Asking questions/challenging assumptions.
• Naming → developing the idea.
Tips in Evaluating Ideas
• Don’t chase money → let money follow your ideas.
• Be a problem solver.
• Research thoroughly.
• Ensure longevity.
• Be willing to take risks.
• Test against past, present, future.
• Know your market behavior.
■ Protecting Ideas (IP Rights)
• Confidentiality Agreement – keeps idea secret.
• Patents – exclusive rights (Design, Utility, Plant).
• Trademarks – names, logos, symbols for products.
• Copyrights – creative works of authors/artists.
■ Entrepreneurial Creativity
Creativity + Innovation = Entrepreneurship. Influenced by environment and management support.
• Freedom & control
• Good project management
• Resources access
• Encouragement & recognition
• Time for creativity
• Challenges & competition
■ Innovation
• New policies → change in direction.
• New opportunities → products, markets.
• New structures → reorganization.
• New methods → processes, technologies.
■ Sample Review Question Prompts
• What are the factors in discovering a business opportunity?
• Differentiate service-based from manufacturing business.
• Explain the 4 stages of the product life cycle.
• How do you protect business ideas?
• Why is creativity essential in entrepreneurship?