Sources of Business Ideas
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Starting a business - sources of business ideas
Author: Jim Riley Last updated: Sunday 23 September, 2012
Starting a Business - Sources of business ideas
Where does an entrepreneur come up with the idea for his/her business? In practice there are many ways in which the business opportunity and idea is first spotted. As we shall see, sometimes luck plays a big part; at other times there is a role for approaches which encourage deliberate creativity.
Here are some of the main sources of business ideas for start-ups:
Business experience
Many ideas for successful businesses come from people who have experience of working in a particular market or industry. For the start-up, there are several advantages of applying this experience to a new business:
Better and more detailed understanding of what customers want
Knowledge of competitors, pricing, suppliers etc
Less need for start-up market research
Entrepreneur is able to make more realistic assumptions in the business plan about sales, costs etc
Industry contacts, who might then become the first customers of the start-up!
All of the above help the business planning process and you could argue that they reduce the risks of a start-up. On the other hand, you might argue that “familiarity breeds contempt”. In other words, detailed experience of an industry means that the budding entrepreneur doesn’t have a fresh perspective. Someone who is new to a market may be able to exploit approaches that have worked in other industries to make an impact with the start-up.
Personal experience
Many ideas come to entrepreneurs from their day-to-day dealings in life, or
Powered by Leeds Metropolitan University GCSE Business Studies
GCSE Revision Note Home | Business Studies Revision Quizzes | Business Studies Blog
Starting a business - sources of business ideas
Author: Jim Riley Last updated: Sunday 23 September, 2012
Starting a Business - Sources of business ideas
Where does an entrepreneur come up with the idea for his/her business? In practice there are many ways in which the business opportunity and idea is first spotted. As we shall see, sometimes luck plays a big part; at other times there is a role for approaches which encourage deliberate creativity.
Here are some of the main sources of business ideas for start-ups:
Business experience
Many ideas for successful businesses come from people who have experience of working in a particular market or industry. For the start-up, there are several advantages of applying this experience to a new business:
Better and more detailed understanding of what customers want
Knowledge of competitors, pricing, suppliers etc
Less need for start-up market research
Entrepreneur is able to make more realistic assumptions in the business plan about sales, costs etc
Industry contacts, who might then become the first customers of the start-up!
All of the above help the business planning process and you could argue that they reduce the risks of a start-up. On the other hand, you might argue that “familiarity breeds contempt”. In other words, detailed experience of an industry means that the budding entrepreneur doesn’t have a fresh perspective. Someone who is new to a market may be able to exploit approaches that have worked in other industries to make an impact with the start-up.
Personal experience
Many ideas come to entrepreneurs from their day-to-day dealings in life, or