Business Idea and Opportunity Analysis

Question 1

What is business idea?

Answer 1

Business idea is a concept providing entrepreneurs with material for envisioning and starting their own business.

Question 2

What is business idea, practical definitions?

Answer 2

1) Business experience - Better understanding of customer needs, knowledge of competitors(pricing and suppliers), Less needs for market research, More realistic assumptions in the business plan - revenues and costs, Already established industry contracts, Reduced risk even fresh perspective can come from other source.

2) Personal experience - Everyday problems we face, Complaints, product returns, frustrating or bad experience, Something that we can do better, quicker and cheaper, Hobbies and interests, but only if they have a business potential.

3) Observation - “Borrowing” someone’s ideas, New market-existing product, Franchises and similar already developed models, Modification of an existing product or service, Media, brainstorming, focus groups.

Question 3

What are the Theoretical sources of business ideas?

Answer 3

The most common sources of new ideas entrepreneurs use are:
1. Clients
2. Existing product and services
3. Distribution channel
4. State administration
5. Research and development

Question 4

What are the idea generating methods?

Answer 4

Although there is a myriad of different idea sources, finding the idea to be a foundation of new venture might be an issue. Entrepreneur may use several methods to generate and test new ideas, such as:

1. Brainstorming - group method to obtain new ideas and solutions
2. Focus groups - groups of individuals providing information in structured form
3. Problem analysis - method to obtain new ideas and solutions by focusing on problems

Question 5

What is the difference between creativity and innovation?

Answer 5

Creativity is creating new ideas, independent of their eventual applicability.

Innovation is transformation of new ideas into useful product or services.

Creativity is, therefore, the foundation for innovation, and innovations are the result of
applied creativity.

Question 6

What are the types of innovations?

Answer 6

There are different innovation levels, depending on uniqueness of idea. In reverse innovation degree, three basic types of innovations are:

1. Advanced (revolutionary) innovations
2. Technological innovations
3. Ordinary innovations

Question 7

What are the benefits and risks of Electronics entrepreneurship?

Answer 7

During the process of new idea evaluation, as well as in marketing strategy development, e-commerce role needs to be continuously evaluated. Factors contributing to high growth of e-commerce are:

1. Widespread use of personal computers
2. Introduction of internet in companies
3. Accepting the internet as platform for business communications
4. Faster and more secure systems

Entrepreneurs increasingly use internet, and presently over 95 percent of small enterprises have active web pages. Entrepreneur should structure web page and
organize information in the manner that effectively involves goal market.

Basic characteristics of successful web pages are:
1) Speed
2) Ease of use
3) Adjusted to specific groups on goal market
4) Compatibility with various browsers