Starting A Business
Starting a Business
Dr Nazatul Shima Abdul Rani (PhD)
Learning Outcome
After studying this chapter, student should be able to:
1. Distinguish among the different types and sources of startup ideas, and identify the most common sources of startup ideas.
2. Use innovative thinking to generate ideas for highpotential startups.
3. Describe external and internal analysis that might shape the selection of venture opportunities.
4. Explain broad-based strategy options and focus strategies.
5. Assess the feasibility of a startup idea before writing a business plan.
Introduction
• Startups
– new business ventures created “from scratch”
• Opportunity Recognition
– Identification of potential new products or services that may lead to promising businesses
• Entrepreneurial alertness
– Readiness to act on existing, but unnoticed, business opportunities
Types of ideas that develop into startups
Type A ideas
•
•
•
Type B ideas
Type C ideas
New Market
New Technology
New Benefit
Example: Targeting the “New Age” beverage market by selling soft drinks with nutritional value
Example: Using hightech computers to develop a simulated helicopter ride.
Example: Developing a personal misting device to keep workers cool.
Type “A” Ideas: startup ideas centered around providing customers with an existing product or service not available in their market.
Type “B” Ideas: Startup ideas involving new or relatively new technology, centered around providing customers with a new product.
Type “C” Ideas: Startup ideas centered around providing customers with new or improved products or services.
Common Sources of Startup Ideas
Prior work experience
45%
Personal interest/hobby
16%
Chance Happening 11%
Suggestion 7%;
Education/courses;
family business 6%;
Friends/relatives
5%; Other 4%
Change Based Sources of Entrepreneurial
Opportunities
Change Factor
Definition
Illustration
The unexpected
Unanticipated events lead to either enterprise success or enterprise failure
Pet
Dr Nazatul Shima Abdul Rani (PhD)
Learning Outcome
After studying this chapter, student should be able to:
1. Distinguish among the different types and sources of startup ideas, and identify the most common sources of startup ideas.
2. Use innovative thinking to generate ideas for highpotential startups.
3. Describe external and internal analysis that might shape the selection of venture opportunities.
4. Explain broad-based strategy options and focus strategies.
5. Assess the feasibility of a startup idea before writing a business plan.
Introduction
• Startups
– new business ventures created “from scratch”
• Opportunity Recognition
– Identification of potential new products or services that may lead to promising businesses
• Entrepreneurial alertness
– Readiness to act on existing, but unnoticed, business opportunities
Types of ideas that develop into startups
Type A ideas
•
•
•
Type B ideas
Type C ideas
New Market
New Technology
New Benefit
Example: Targeting the “New Age” beverage market by selling soft drinks with nutritional value
Example: Using hightech computers to develop a simulated helicopter ride.
Example: Developing a personal misting device to keep workers cool.
Type “A” Ideas: startup ideas centered around providing customers with an existing product or service not available in their market.
Type “B” Ideas: Startup ideas involving new or relatively new technology, centered around providing customers with a new product.
Type “C” Ideas: Startup ideas centered around providing customers with new or improved products or services.
Common Sources of Startup Ideas
Prior work experience
45%
Personal interest/hobby
16%
Chance Happening 11%
Suggestion 7%;
Education/courses;
family business 6%;
Friends/relatives
5%; Other 4%
Change Based Sources of Entrepreneurial
Opportunities
Change Factor
Definition
Illustration
The unexpected
Unanticipated events lead to either enterprise success or enterprise failure
Pet
References: • • Petty, J.W., Palich, L.E., Hoy, F., and Longenecker, J.G. (2012), Managing Small Business: An Entrepreneurial Emphasis, 16 th edition, South-Western, Cengage Learning. Scarborough, N.M. (2014) Essentials of Entrepreneurship and Small Business Management, 7th edition, Pearson.