FOUNDATIONS OF ENTREPRENEURSHIP. CLASS FOUR: Idea Generation and Opportunity Analysis Elikem Nutifafa Kuenyhia Management Consultant & Corporate Lawyer. AGENDA:. Recap of Class Three Idea Generation Exercise Nature of ideas Ideas v Opportunity Enterprise Concept Development
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FOUNDATIONS OF ENTREPRENEURSHIP CLASS FOUR: Idea Generation and Opportunity Analysis Elikem Nutifafa Kuenyhia Management Consultant & Corporate Lawyer
AGENDA: • Recap of Class Three • Idea Generation Exercise • Nature of ideas • Ideas v Opportunity • Enterprise Concept Development • Panel on Idea Generation & Opportunity Analysis: • Jemma Sangari, Farmer George • Ellis Atekpe, Ghana Home Loans • Nkwaye Ansah, Canoe Magazine • Allotey Pappoe, BusinessGhana • Keli Cross Kuagbenu, Commercial Investments Limited • Questions
IDEA GENERATION CLASS EXERCISE • List any three changes you have noticed in society recently that could form the basis of a good idea • Economic • Social (including demographic) • Technology • Cultural • Legal/Regulatory • Brainstorm possible business ideas based on the changes you have noticed • Narrow down the ideas to one • Which customer(s) will you target for the idea?
WHAT IS AN IDEA? A plan formed by mental effort • Need not be outstanding/complicated • Need not be original • To form the basis of a business, must provide a solution to a customer need (‘customer pain’)
From idea to profit? IDEA OPPORTUNITY CONCEPT INSIGHT GENERATION ENTERPRISE?
NATURE OF IDEAS • A plan formed by mental effort • Need not be outstanding/complicated • Need not be original • Search & Spin • Provides a solution to customer’s need • Customer Pain • An unmet need • Existing enterprises fall short
SOURCES OF IDEAS • Opportunity and Environment Scanning • Media • Reading • Travel • Government • Personal Experience and Frustration • Skill Set • Franchises • Conferences, Workshops, Exhibitions • Brainstorming
IDEAQUEST • Be very observant • Keep your eyes open for inspiration-use a notebook • Interest: what you like doing • Take a critical look at your major irritations • Skills(irrespective of whether you like doing them) • Personality /Work Styles • What product or service will make my life easier
WHICH COMES FIRST? IDEA OR THE DESIRE TO START A BUSINESS?
IDEAS VS OPPORTUNITY • A good idea is not enough • Idea must be underpinned by an opporutnity An idea may be underpinned by opportunity by • Patent Opportunity • Tacit Discovery
Patent OPPORTUNITY • Is one that the entrepreneur finds that his idea is readily and easily understood by potential customer who will be willing to pay for it.
TACIT DISCOVERY • This is often the case in novel idea situations where the idea may not be easily or readily understood by the target customers.
IDEAS VS OPPORTUNITY An idea to be considered as an opportunity should • Meet a customer need • Create value for the customers • Create value for stakeholders. Depends on: • Number of potential buyers • Purchasing power of potential buyers • Return on investment • Be be a fit • Reflect values, interests, aspirations • Match resources & skills • Realistic/sense check
concept development • What is the customer pain that the business will remove • How is the pain dealt with at present (competitor products/substitutes) • How it will remove the pain (customer value proposition) (how different is it from the competition) • Description of target market
concept development • Distribution-sales points etc (mode of delivery of product or service) • Production – how you will make the product • Idea of cost of set up/production and key resources required • Idea of pricing