Business Ideas - Business Revision Notes
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- There are two sources of business ideas:
Internal: ideas generated from your own strengths and weaknesses as a business.
External: ideas from opportunities and threats in the outside market.
- Skills and Hobbies: may have special talents that could be turned into a profitable business. May have been born with these talents or else could have developed them over time. Example: someone who is good at art could set up a business decorating shop windows.
- Experiences: an individual may have experienced something which gave them a business idea. If they had a negative experience they might want to offer a better product/ service to others. Example: Richard Branson set up Virgin Atlantic Experience after a bad experience on a plane.
- Research and Development (R&D): this can be set up within a business. It consists of creative and innovative employees whose job is to invent new products. Example: Apple’s R&D department invented new editions of the IPhone with different features to try and keep sales high.
- Customer Feedback: customer complaints can be a source of new ideas. Sales people meeting with customers develop new ideas based on their dealings with customers. Example: McDonalds starting selling salads when it realised women thought their food was fattening.
- Intrapreneurship: a business could set up a formal employee suggestion scheme offering rewards for good ideas. Managers must be approachable and open to new ideas from employees. Example: A Microsoft employee came up with the idea of launching a games console after seeing the success of PlayStation. Led to them launching Xbox.
- Family and Friends: an idea may be generated after hearing family and friends complaining about a lack of service or product. This could highli...