Presentation 3 On Ideas and Opportunities
Presentation 3 On Ideas and Opportunities
Presentation 3 On Ideas and Opportunities
ENTREPRENEURSHIP
Prepared By Mwase, D
General Studies Department
Office No. G01-IRRIGATION BUILDING
3&4. Business ideas,
business opportunities &
its viability and feasibility
At the end of this topic you should be
able to:
Define business ideas and business
opportunities
Learning Contents:
Explain characteristics of good
• Basic concepts of business idea and business
entrepreneurship opportunities.
• Self-employment and wage/paid Point out sources of business ideas
employment and business opportunities
• Business ideas and business Assess viability and feasibility of the
opportunities business opportunities
• Viable and feasible business
opportunities
• Forms of business ownership
• Components of a business plan
• Stock taking and stock control
Introduction
• Having your own business does not occur automatically or as a
result of good luck. It all starts with an idea
• Generation of feasible and promising business idea is the first
and foremost task of an entrepreneur
• The idea can be obtained from different sources.
• Coming up with viable idea is a process (involve several steps)
• When idea is generated and becomes a business, the idea is
said to be viable
• Not all ideas can be transformed into a business.
• Not all good ideas are good opportunities
• A good business opportunity is the one which is technically,
economically, commercially viable and feasible, and
environmental sustainable proposition.
• Viability of the idea, project, product or service, is determined
when there are customers who can afford it and are willing to
use/purchase it in sufficient quantities to make the whole project
worthwhile
Meaning of business idea
• Is a concept that can be used to make money.
• Usually it centers on a product or service that can be offered for
money.
• An idea is the first milestone in the process of starting a business
• Every successful business started as someone’s idea.
• Is a concept that can be used for commercial purposes.
• Is the response of a person(s) or organization to solve an
identified problem or to meet perceived need in the environment.
• It is typically centers on a commodity or service that can be sold
for money according to a business model.
• Business idea is based on what consumers wants
NOTE
Although business idea is prerequisite, it is only a tool
An idea itself is not sufficient for success i.e an idea is a tool that
need to be developed and transformed into viable business
opportunity
Characteristics of good
business idea
A good business idea must have the following
characteristics:
a) Relevant (must fulfill customers’ needs or
solve their problems)
b) Innovative and Unique
c) Clear focus
d) Profitable in the long run
Sources of business ideas
• Business ideas are all around us. They are all within us and
within our environment.
• We can get them by doing a survey, observing what is in the
market and how the customers are responding.
• For instance, if you hear people complaining about the
product/service that is a sign of dissatisfaction, such situation
give room for new business initiatives.
• Normally ideas can be obtained from;
Everyday’s problems/ needs/complaints (listening & analysis)
Personal skills and experience
Mass media ( e.g newspaper, magazine, television, on-line
database)
Factors of change (on legal, economic, socio-cultural,
technological, ecological etc.)
Franchises
Exhibitions and trade fairs etc
Sources of business
ideas…
• Project ideas can also originate from;
Success story of a friend/relatives
Experience of others in manufacture/sale of product
Examining the inputs and outputs of industries
Suggestions of financial institutions and developmental agencies
While studying he was told that, and he agrees, he is not so good at macro economics. Frankly speaking, he
doesn’t like that at all! He was best at the more business type of economics; he was good at business
administration and commercial management. He has a lot of fun in managing the football club, whereby he is
praised for his skills to manage people. He can really motivate the youngsters and he is also good in talking to
business owners and government officials in making funds available for the club. In fact, some people refer to
him as a fast talker, but then in a positive way.
When Josef talks to these business owners, a lot of them complain about the changes in the system. The
former big shop owners, especially the rural based traders, complain that things are changing and that they
can't understand it anymore: their business is going down. On the other hand, Josef sees a lot of new
companies from abroad who seem to have a lot of money to spend and that are setting up enterprises in this
town. They have a problem in finding qualified personnel, especially bookkeepers and managers. Some of
them bring their staff from Dar es Salaam or even from abroad.
One day he sits down on the veranda to reconsider his position. He decided to prepare SWOT analysis for his
situation.