Steps to Generate A Business Idea

Steps to Generate a Business Idea:

business idea

Importance of Business Idea to found an enterprise:

There is always a reason to set up any business enterprise or launch a new product or unique services. It can either be a major problem of a human being or be an innovative idea. But it is very difficult to transfer an idea into reality.
To implement an idea into real market one has to do proper research on the scenario of market-related to the product or services to be launched. And a true entrepreneur knows what is to do and how to do it. A business Idea only can give the blueprint of the business but it totally depends on a businessman that how he is going to convert it into reality.
There are three steps to convert an idea into a business.
  • Identify a problem
  • Idea Generation
  • Idea selection

Method to generate a Business Idea:

In management, there are a few methods which are used to discover a business idea or to get the solution to a problem in the organisation.
  1. Focus Groups
  2. Brainstorming method
  3. Check-list to obtain a Business Idea
  4. Problem inventory analysis
  5. Using the mix of the above methods
method of idea generation

Focus Groups:

The basic criteria of obtaining an idea by this method are the discussion on the present and future market demand or market needs.  In this method, a group of 10-15 people is formed who are given an assignment for preparing and analyzing a new product or new business idea. One among them is made a leader of the formed group and discussion held in an open manner i.e. there is no restriction on hypothetical or orthodox thoughts of the group member.

This method is generally helpful in deciding strategies of marketing, packaging and advertising of the product.

Brainstorming Method:

This is also a group method for creating new business concepts or solution of major issues in the organization. Brainstorming group generally consists of the most experienced people from the different department of the organization. The ideas come out by the discussions, sharing of mutual experiences and creativity in this method.

The rules of conducting brainstorming method are given below.

  • The group should be consists of people having experience and knowledge of different field.
  • Because a new business idea is generated by the suggestion of each people from a different department like sales and marketing, research and development, production, taxation etc.
  • The group should contain different level of staff i.e. top to bottom level of employee.
  • The brainstorm sessions are organised in a free environment where nobody can dominate other members. It is assumed that nobody is senior or junior and no bossism culture is being entertained in this method.
  • Every thought whether it is hypothetical or unpractical or beyond imagination or logical will be encouraged.

List of Questions that may give a Business Idea:

Any new business idea emerges either from a question or from a problem. Set of such questions are given below.
  • Who is the ultimate user of the product? We must have clear, targeted and focused monitoring on the consumers before launching any products.
  • Why will the consumer use our product? Ask this question by yourself, the answer will give an idea about new marketing strategies.
  • What may be the problem while the customer is using our product? This will give an idea about the improvement of the product or reason for low sales or precautions before planning any product.
  • Can we resolve these issues for better value to the customers? By resolving these issues we can make a unique and superior product.
  • Why the customer is buying the competitor product? There must always a reason behind every buying of the product. One should identify or discover that reason first before planning any product.
  • Can a clone product be launched with some improvement? Sometimes in some territory, there is a shortage of running products because of the weak distribution network, in those territory clone product with some improvement can be planned.
  • What are the challenges in the availability of the product? Availability of products is a major issue when we start a new business or launch a new product. We must plan the distribution network and potential area in advance to minimize this problem
  • What can be the next improved product in the same category?  Even we are not thinking of new value-added product but competitors can do, so be prepared and plan for the improved product.
  • We can also generate a business idea by analyzing the product or services which are being used in different countries.

Use Problem Inventory Analysis to resolve problems:

This method is generally used for resolving the issues in the organisation. In this method, discussions are more specific to problems that are regularly faced by its associates and its customers. This method does not give any new business idea but it helps to improve product performance in the market.

The process of conducting this method is very simple. The group may contain the people who are facing these problems by his own for example dealer, stockiest, C&F,  retailers and managers and executives. Each member will discuss his problem in the group and the right solution is obtained from the suggestion of every member.

Using Gorden Method:

It is the opposite method, unlike others. In this method, the main problem is kept hidden from the group members. They are told different theories related to the problem and ask to discuss their opinion. Then the real problem is disclosed and after further discussion, the idea is obtained for the particular problem. This method is called as Gorden Method.

Using the mix of above methods:

An entrepreneur can also use the mix of the above methods to discover a business idea. A true entrepreneur knows how and where to use these methods because his thought process is generally different from others.
So this is how a business idea is being generated? I think this article will help you to solve different type of problems in the enterprise or in your territory if you are a leader or manager.

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