Generating Business Ideas Today you will know sources of potential business ideas. You will understand the factors that contribute to their success.
Generating Business Ideas… Potential sources of business ideas may include: • Brainstorming – Individually or in groups/teams • Own personal experiences – What jobs have been done in the past? Have you started businesses before? What was learnt from success and failures? • Innovation and invention – A flash of individual inspiration • Spotting flaws and errors in existing products – Can something being done already be done better? • Copying ideas from other countries - e.g. Howard Schulz Starbucks founder, copied the idea of a coffee bar from Italy • Spotting trends and anticipating their impacts on people’s lives e.g. Healthier lifestyles • Taking a scientific approach, working in a laboratory (e.g. James Dyson) • Noticing a gap in the market for something that is not currently being produced • Purchasing a franchise
Did you know??? • James Dyson came up with his idea for the Dyson ball by looking at the flaws and limited movement of existing vacuum cleaners running on four wheels. Generating Business Ideas… • Small business with limited resources (finances, assets, land, people etc) do not have the funds for large teams of people to invent new product/business ideas. • Therefore new small business ideas often have interesting stories based on individuals own innovation and inventiveness.
Case Studies… Case Studies:Super Jam, Cobra Beer & Innocent Drinks Read the case studies based on business start ups and the source of the entrepreneur’s business ideas.
Case Studies: • What is an entrepreneur? (4 marks) • What characteristics did each of these entrepreneurs have that made them successful? (4 marks) • To what extent could you argue that the skills of the individual owners were the main factors leading to the success of a) Super Jam (4 marks) b) Cobra Beers and (4 marks) c) Innocent Drinks. (4 marks) • How important is market research in ensuring new business ideas are successful? (6 marks) • Explain what external factors provided Fraser Doherty (Super Jam) and Richard Reed (Innocent Drinks) with the opportunity to develop their successful product idea? (4 marks) • “Without the entrepreneurial skills demonstrated by those in the case studies, these businesses would not have succeeded.” To what extent do you agree with this statement? (10 marks) • Cobra Beers spotted a gap/niche in the beer market for less gassy beers. Evaluate the importance of spotting a gap for the success of a small business. (10 marks)