Sources of business ideas
There are many ways of thinking of business ideas, this could be based on their own experience, they could be familiar with it through a hobby or a previous job they had. One good way is by spotting a gap in the market or conducting a brain storming sessios.
The advantages of already knowing the product or service
Entrepreneur will have good knowledge of the product and it's features.
He or she is likely to have a passion or interest in the product so it will provide a motivation for them.
They should e able to have good contacts in an established market.
If the entrpreneur has a good reputation they can use it to their benefit.
The Disadvantages of knowing the product or service
Competition could force the product out of the market
The entrpreneur's passion may not be shared by anyone else.
He or she's passion for the market may end up letting their passion for the product or service get ahead of themselves so they may end up overestimating the size of their market.
Knowledge of the product is not enough, to be a successful entrpreneur a range of skills is required.
The advantages of spotting a gap in the market
There is a higher chance of success as the idea is to help customers with their lives and not just because it's a passion.
Because it is a gap in the market the product is the first one to be in the market so the entrepreneur is going to enjoy "first mover advantage"
Because it is a gap in the market and it is the first product of a new market there will be no or very little competition at first so the business is unlikely to fail.
It is easier to market a new idea than to persuade people to buy an established idea from one business rather than another
The disadvantages of spotting a gap in the market
The entrpreneur will have little or no experience in…