Generating and Protecting Business Ideas
Sources of Business Ideas
· Brainstorming. A group of people make as many suggestions as possible without assessing them, which can stifle creativity. The ideas are evaluated later.
· Inventions. Some but not all inventions can be turned into commercial products. Trevor Baylis’s wind-up radio has become a very successful product in Africa.
· Spotting a gap in the market. Sometimes a market niche exists that no business is supplying. A market niche is a small part of a larger market.
· Market research. Entrepreneurs may be conducting market research for one product and inadvertently discover that demand exists for another product.
Identification of a product or market niche
Once a business has used these methods, it needs to identify both the product itself and the market niche that it will target. Looking at each of the sources above, the business must then plan its actions carefully.
· Spotting trends: the business must decide on the exact style of product that meets this market’s needs.
· Noticing something that is missing: what product or service best fits this gap?
· Copying ideas from other countries: will the same customers be targeted in the UK?
· Taking a scientific approach: the product is decided, but who will buy it?
· Brainstorming again, an idea of the potential market is needed.
· Personal/business experience: how relevant is the experience? Does the idea need to be adapted to the market?
A franchise is when a business (the franchisor) gives the right to supply its product or service to another business (the franchisee). A franchise is a quick way to acquire a tested business. The franchisor can offer support and training, on-going advice on operational issues and possibly national advertising for the chain of businesses. Buying a franchise reduces (but does not eliminate) the risk of starting a new business.
Types of Franchise
· Business format franchise. This is when the owner of the business (the franchisor) grants a license to another person or business (the franchisee) to use their business idea – often in a specific geographical area. The franchisee sells the franchisor’s products or services, trades under…