Abstract
As an effort to research on the practice of Entrepreneurs has shown that Entrepreneurship, information gotten from discussion with Entrepreneurs has shown that entrepreneurship conceives goods and services which hare used to satisfy human wants. He organize the factor of production and markets the products. Entrepreneurs focus mainly on to find out suitable means to solve problems arising in the society. Today it encourages individuals in the society as well as general public to participate fully in business activities which might help to reduce the rate of unemployment in the society. Solving this problem of unemployment, one should think of establishing of small and medium scale enterprise (SME).
Today, existence of entrepreneurship has made it easier for one person or individuals to start and own a business of their own. Many professional and executive who have been retired are now encouraged to embark in business ventures which might help them to provide their individual n
INTRODUCTION AND DISCUSSION
TECHNIQUES FOR GENERATING BUSINESS IDEAS
Entrepreneurship uses a critical and objective assessment of your business idea to help you understand the attributes and benefits of your product or services. Knowing your product or services inside and out will also help you identify the resources, time, people and money required to make you new.
Entrepreneurship can be described as a creative and innovative response to the environment. Such response can take place in any field of social endeavour, for instance in business, industry, agriculture, education, social work and being done in a new way.
A common word used when assessing an idea is “feasibility”, which refers to the ease at which something can be done. Conducting a feasibility assessment is especially important when you are developing a new product, improving an existing product, changing marketing strategy or expanding your business. It is that word – successfully that give feasibility assessment its real value as a planning and risk management tool. The following are some of the key methods to help generate and test new ideas:
- Focus Group: These are the groups of individuals providing information in a structural format. A moderator leads a group of people through an open in-depth discussion rather than simple asking questions to solicit participate response.
- Brainstorming: It is a group method for obtaining new ideas and solutions. It is based on the fact that people can be stimulated to greater creativity by meeting with others and participating in organized group experiences. The characteristics of this method are keeping criticism away, free wheeling of idea, high quantity of ideas, combinations and improvements of ideas. Such type of session should be fun with no scope for domination and inhibition. Brainstorming has a greater probability of success when the effort focuses on specific product or market area.
- Problem Inventory Analysis: It is the method for obtaining new ideals and solutions by focusing on problems. This analysis uses individuals in a manner that is analogous to focus groups to generate new product areas. However, instead of generating new ideas, the consumer are provided with list of problems and then asked to have discussion over it and this ultimately results in an entirely new product idea. The entrepreneur is not limited by only the three methods presented in this article.
A BUSINESS IDEA FOR DEVELOPING AN ENTERPRISE
Once a business idea has been generated, a critical and objective assessment of business idea will help one understand the attributes and benefits of such an idea.
- Market Analysis: Any business idea generated must be analyzed in the market concept. This implies what is the business idea? What are the contents of the idea, where is the idea likely to excel more. This market analysis will also entail if converted into product and service, what is the market for the product (who are the potential buyer of this product?). What is likely to be the level of demand and are there competitors already in the business idea or can the business idea enjoy monopoly.
- Technical Analysis: This analysis will reveal to you whether the product or idea can be designed and produced in a particular location at a reasonable cost. It examines the availability of factors of production and the required raw material. The idea when converted into product, will have product description which is a brief description of the product which will include product chemical, mechanical characteristic.
- Manufacturing Process: It can be designed in a simple flow chart showing materials and equipment, energy and time required to start and complete each stage.
- Plant Location: Where are you going to locate your plant. Land and building for factory set up.
- Financial Analysis: Here, you assess your idea from monetary point of view. This analysis is based on the information gathered from market analysis and technical analysis. It adds up the various costs to be incurred against the expected cash in flows. This analysis estimates the total project cost and other relevant cost thereto.
-Determines the required capital investment cost involved, these are cost of land and its development, building and site facilities.
– Determines the working capital and these are fund needed to meet day-to-day activities.
Furthermore, you project the profit and loss account. This show you at a glance, a summary of income and expenditure of a business entity. The task shows whether the idea will be profitable or not.
Cash Flow Projection: This shows a business owner the various expect cash inflows or returns that are accruable if the idea is bought.
Finally, you establish the balance sheet this conveys the information total asset and liability of a firm as at a particular date.
Ani N.B. et al (1999) states that feasibility study is a must-do in any business idea. Any business outfit that fails to carry such study on any idea generated is bound to waste its hard earned resource in non-profitable idea.