Generating and Protecting the Business Idea
- Created by: Inshaal
- Created on: 17-09-14 17:30
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- Generating and Protecting the Business Idea
- Sources Of Business Ideas
- Personal Experience
- Invention - Formulation of new ideas for products or processes.
- Ideas from abroad
- Innovation- Practical application of a product onto a new idea.
- Problems of innovation : Patents, Copyright, Trademarks, expensive, long term profit, opportunity cost, time.
- Why innovate? 1)To make something better with your own idea. 2)To solve an underlying issue 3)To make more profit from the product than the original does. 4)Brand loyalty - guaranteed profit.
- Spot a gap in the market.
- Spotting a trend.
- Franchise(s) - Franchising basically means using another companies' business idea and product in exchange for a fee (royalty).
- Franchisor > Franchisee (The franchisor sells the franchisee the rights to the business).
- Disadvantages of franchising? Initial fee to be paid, royalty fee, run business according to franchisor's rules, difficult to sell franchise, bad reputation from other franchises of the same brand.
- Why buy a franchise? Money, image, reputation, less risk, support and decision making, marketing etc.
- Copyright- The legal protection against copying from authors, artists and composers.
- Issued as soon as work is created.
- Protection lasts for up to 70 years after the author's death.
- Owner can control how the work is exploited.
- Author can licence for a royalty fee.
- Trademark- Protected signs, logos, symbols or words displayed on a companies products /advertising (including sounds or smells) which distinguish them from the competition.
- Prevents others from using a confusingly similar sign/ design to their own companies.
- Once granted, protection lasts for 10 years.
- Patent - An official document granting the holder the rights to be the only user or producerof a newly invented product or process for a specified period of time (usually 20 years).
- Patent gives owner the right to take legal action against those who try to copy/ steal their original design and use it it for profit.
- Lasts for 20 years once granted.
- Owner can licence the design/ invention for a royalty fee.
- Niche Market- A smaller part of a larger market in which customers have more specific needs and wants.
- Sources Of Business Ideas
- Franchisor > Franchisee (The franchisor sells the franchisee the rights to the business).
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