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Generating and Evaluating Business Ideas

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Course
MNE3701 - Entrepreneurship And Small Business Management

Institution
University Of South Africa (Unisa)

The setting up of a business or the entrepreneurial process can be divided into three phases - the idea stage, the planning stage and the implementation stage. This unit is part of the idea stage. Many people would like to take the plunge and start a business of their own, but lack the idea of what...

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Uploaded on August 30, 2022
Number of pages 5
Written in 2022/2023
Type Class notes
Professor(s) Mr arthur
Contains All classes

evaluating business ideas
business ideas
business opportunity
generating and evaluating business ideas
business ideas and opportunity

Institution
University of South Africa (Unisa)
Course
MNE3701 - Entrepreneurship And Small Business Management

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Generating and Evaluating Business Ideas

3.1 Introduction
The setting up of a business or the entrepreneurial process can be divided into three phases
- the idea stage, the planning stage and the implementation stage. This unit is part of the
idea stage. Many people would like to take the plunge and start a business of their own, but
lack the idea of what to produce and sell. How can one know whether he/she has stumbled
on an idea that can give rise to a new business? In this section, we will try to answer this
question.
We will look at the methods that can help us to be creative so that the generation of
business ideas becomes easy. Distinguishing between business ideas and opportunity
follows before we focus on testing these business ideas. Evaluating or testing the business
ideas is important so that we do not spend a lot of time with ideas that do not work. We will
conclude the unit by focusing on how we can protect the valuable business ideas that we
have generated.

3.2 What are business ideas and opportunity?
Throughout history, we see that entrepreneurs’ ideas have changed the world. They have
invented new products and services, developed new technology, discovered new
knowledge, improved existing products or services, found different ways of providing more
goods and services with fewer resources.
Creativity is the ability to develop new ideas and to discover new ways of looking at
problems and opportunities. Ideas can be generated through everyday activities by
identifying needs from other sources and then applying creativity. Creativity is useful in
helping us think in a particular way so that we can generate business ideas.
Entrepreneurs are constantly listening and looking around for business ideas to satisfy
consumers by improving existing products and services or producing new inventions.
Business ideas are thoughts or intentions with a potential to be turned into a business.
Please note that all ideas cannot be successfully converted into a business.
All opportunities are based on an idea, but all ideas do not represent genuine opportunities.
Opportunities are ideas that work, ideas that can be transformed into a successful business.

, 3.3 Creativity Methods
To generate ideas requires creativity. Creativity is a way of thinking. It is an attitude of
always trying to improve existing products and services. By talking and listening to
consumers and business owners, an entrepreneur becomes aware of what customers need.
Creative thinking requires constantly asking the question, “Can I do it better?”
This eventually yields business ideas.
The art of creative thinking can be improved.

The following methods are useful in improving your creativity:
In brainstorming the following steps are useful:
Define the problem
Let several people try to solve the problem
Choose one person to write down the ideas generated
Suggest ideas (possible solutions to the problem) and record them
Discuss the ideas and eliminate those that have the least chance of succeeding
Remain with the most workable ideas
Manipulating existing products or services

In manipulating existing products or services, the following procedure will be useful:
Draw up a list of existing products or services
Suggest a number of ways in which these things can be modified
Apply the possible modifications to the list of products or services
Possible modifications can be change of colour, shape or design. Alternatively, the changes
could be to package differently, to make lighter, heavier, bigger or more durable depending
on the type of product or service
Breaking your routine, your normal way of thinking and doing things is a good way of
creating creativity. How do you wash dishes? Can you do it differently? Can you use lemon
juice for instance to wash dishes? Does it make any difference?
Attribute analysis
Draw a list of products or services
Generate a list of attributes for each item. For example, a ball-pen is cylindrical, made of
plastic, has a separate cap, plastic cartridge and contains ink

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