CHAPTER 3
CHOOSING IDEAS AND BUSINESS OPPORTUNITIES
After completed this chapter , you will able to
qIdentify sources of business ideas : Primary & Secondary Source
q q
qIdentify and generate business ideas qChoose business ideas : - evaluate the suitability of ideas - evaluate community response - evaluate the feasibility of the initial idea
SOURCES OF BUSINESS IDEAS PRIMARY Primary sources refer to information gathered directly through :
1) 2) 3) 4)
Observation, Experiments, Interviews and Surveys
SOURCES OF BUSINESS IDEAS SECONDARY Secondary sources refer to existing data which is reliable, available references and information obtained from the mass media and electronic media
GENERATE BUSINESS IDEA
CHOOSE BUSINESS IDEAS
A self-evaluation must be made before making a commitment. The self-evaluation should be based on the individuals experience, knowledge, skills, financial ability and interest.
CHOOSE BUSINESS IDEAS : EXPERIENCE
An entrepreneur runs a business that suits his experience in the profession
The intelligence to find an opportunity from past experience can be a way to gain success in business
For example, a primary school teacher with many years of experience resigns from current job to be involved in business by opening a kindergarden.
CHOOSE BUSINESS IDEAS : KNOWLEDGE
The entrepreneur has to be equipped with the knowledge on operating a business
Although he can hire someone to perform these jobs , it is better if the entrepreneur himself does the work For example, when a chef opens a restaurant, he must know how to prepare food, manage the business, prepare accounts and treat customers
CHOOSE BUSINESS IDEAS : SKILLS
Entrepreneur must have the necessary skills in carrying out his job Usually born from experience and knowledge
CHOOSE BUSINESS IDEAS : CAPITAL
An entrepreneurs financial ability determines the growth of the business The most basic aspects to think about before opening up a business
CHOOSE BUSINESS IDEAS : INTEREST
Interest or enthusiasm is an importance It give self-confidence and a sense of responsibility towards a business carried out by an entrepreneur With enthusiasm, the entrepreneur will be able to concentrate on his profession and automatically give more effort for the growth of his/her business
ASSESSING COMMUNITY RESPONSE The entrepreneur has to choose a business opportunity according to : 1)Legality 2)Competitors 3)Capital requirement 4)Risk
FEASIBILITY OF THE INITIAL IDEAS