Innovation takes into account the importance of finding new ways to use old ideas.
It also explores the various ways in which to make products more efficient , affordable and beneficial for customers.
Humans are creative creatures, and we are constantly thinking of ideas and new ways of doing things, innovation is at the core of what we are.
In business this creativity needs to be in play and on the lookout for ideas which will eventually succeed.
Larger organisations tend to have departments and teams which focus on research and development of ideas. Such thoughts can stem from members of staff, or brainstorming sessions- internal methods. Getting ideas from customer feedback -external methods. Another method is purchasing a franchise.
Launching a Product and Market Gaps
Launching a product from the time when a business idea is conceived to the time when the product hits the market, a considerable level of planning and long term investment is required.
After spotting a gap in the market through market research, this idea can then be developed.
This is where it becomes a design in process with its brief that outlines all its functions, properties and characteristics.
After passing various tests, you have to decide on the amount of units to be produced where the raw materials can be acquired and produced, who's going to produce the item, how much it'll cost to produce and how much it'll sell for.
After that, production commences.
Simple way to spot market gaps is by the size of producing goods, location of the store, the time to have flexible business hours and adaptation to different cultures.
Complex ways to spot market gaps is to use the internet, adapt and modify ideas from other sources, have a unique selling point, meet clients needs, reinvent past ideas and invent new ideas.
Market Niche, Revenue and Turnover
Market Niche is a section of a larger market for which a product or service has to be specifically created or designed. A small segment within a market.
To accomplish this, entrepreneurs need to research the market.
It's important to know that there's hidden demand of consumers needs required new products and services to be supplied that would meet this untapped demand.
The sales revenue may be lower because the market is small.
Revenue is the collective items or the amount of income.
The turnover is the total amount of sales revenue which a business generates during the period of a year.
Franchise occurs when a franchisor sells the right to use or sell his or her products to a franchise.
The owner of a franchise is generally referred to as a franchisor and the buyer of a franchise is the franchisee, franchises usually tend to operate the franchise in a different area of region, using the concept and brand name of the franchisor. Franchisors sells the right to a product in return for an initial fee and a percentage of the turnover.
The franchisor usually gives the franchisee a product which the franchisee sells to consumers, a discounted rate, a potential list of customers available in the location, support services, insurance, advisory services, human resources loans, training, a leading brand name, advertisement benefits, essential equipment, shop fitting, right to the name.
The benefits of a national advertising campaign which benefits the franchisee is excellent, by doing so there's a continuous growth in the business.British Franchise Association regulates the practices of franchise relationship.
Advantages- more bargaining power than you would on your own, better deals with suppliers or when buying advertising space, support of franchisor to help with decisions, reduce risk, joint power, past data to analyse, own business, incentive, grow fast, sucess.Disadvatage- costs you money, reduces profit, linked to other franchisees, may damage overall sales and hit your own sales, become dependent on others.
Copyright, Patent and Trademark
Copyright is the right of the inventor to retain exclusivity of the original work that they have established to last for at least the entire lifetime of the creator of the work.The holder of the copyright may choose to grant another individual the right to make copies of the original work, not applicable to the protection of ideas which can be adapted.
Copyright is the legal protection for artistic or creative works. (books, plays, films, music)
Patents are used to protect the technical or functional part of a product idea or process. The patent covers every aspect of the functionality from it's design stages to completion. Possible to sell the rights to another business.
Patent is the legal protection for a new invention.
Trademark is used to protect business processes and brand image. It can be registered or unregistered and provide protection for products and services. Obtaining a trademark has the benefit of deterring competitors from using such names for themselves or any of their business process.
Trademark legal protection for signs and symbols. (word, image, sound or smell)
More customers, no substitutes, charge more, earn money letting others use ideas.