Generating and Protecting business ideas

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Generating and Protecting Business
Sources of Business Ideas
Research suggests that there are four major sources of ideas for entrepreneurs
Spotting trends and anticipating their impact
- This was the approach adopted by Innocent Drinks
- The company, which was launch in 1999, tapped into the growing desire for healthier lifestyles
Identifying a market niche
- This involves noticing something that is missing from the market or that can be improved on
Copying ideas from other countries
- Many entrepreneurs have found and copied successful ideas from abroad
- E.g. Starbucks
Taking a scientific approach
- Entrepreneurs sometimes work in a lab or a university to invent original new products
- E.g. Dyson
Franchising ­ When a business gives another business the right to supply its product or service
People wishing to set up in business can purchase a franchise
A franchise allows an individual to use a proven business idea, to trade under a well-known
brand name, and to gain help and support
They involve the least amount of risk
They usually have established brand names ­ investing in a business will be easier
Financing the business may be easier because banks are often more willing to lend money to a
The franchisee is likely to incur lower advertising and promotional costs
The franchisee usually has exclusive rights in his or her are
Relationships with suppliers are likely to have been established
The franchisor offers support and training
The is always a possibility that the franchisor has not researched the business carefully
Costs may be higher than expected
Other franchisee could give the brand a bad reputation
The franchise agreement usually includes restrictions on how the business should be run
Franchisees are required to sign non-competition clauses

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Franchisees must be approved by the franchisor
If the franchisor goes out of business or changes the way it does things, this will have a direct
impact in the franchisee
Protecting a Business Idea
Business ideas can be protected by using copyright, patents and trade marks
Legal protection against copying for authors, composers and artists
The material cannot then be copied without permission from the owner of the copyright
The law allows the owners of the copyright to decide whether it can be copied…read more


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