THE SEARCH FOR
The product or service may be
improved in terms of:
2. Maintenance cost
3. Acquisition cost
4. Salvage value
Economic opportunity which is within the reach of the
entrepreneur and which will provide him with a
• An entrepreneur who is well grounded in the concept
of sound business idea will be able to save time, effort
and money in pursuing his goals.
Figure 13. The importance of Sound Business Idea
Business Ideas differ in form. Examples of these
forms are the following:
1. An old type of business can be professionalized.
2. A standard product can be customized.
3. New technology can be adapted to manufacture an old
4. Imported products can be replaced by local products.
5. Business operations can be internationalized.
Steps in the
1.Preparation of the list of business ideas;
2.Screening of the listed ideas;
Searching for Ideas
searching for ideas
1.The person’s work
2.The person’s hobby
3.The person’s acquaintances
4.A chance event
The person’s Work
Employees who are in direct contact with
customers are sometimes confronted with
demand for products or services that are not
currently provided by the company.
The person’s Hobby
A hobby is a useful means of developing
some skill which could be useful later
when a hobbyist decides to operate a
• It takes another person to make him aware of
the wisdom of starting a new business
venture. This person could be a friend, a
neighbor, or just anybody he meets once in a
A Chance Event
• There are times when a person
encounters an event that will provide him
with a clue to a business ventures.
searching for ideas
1. Using search question
2. Idea prompting
Using Search Question
1. How can this product be made differently?
2. What will motivate the consumers to buy my
product instead of the competitor’s products?
• Encounters with someone else’s idea, or a
customer request, or some other event may
provide hints or cues leading to business idea.
Business ideas may be screened with
the use of the ff. criteria:
1. Stable and sufficient demand
2. Potential competitive strength of the firm
• Production difficulties could take the form of
unstable supply of materials, unreliable or
fluctuating power supply, and others. Nevertheless,
technical concerns such as those must first be
cleared before subjecting the business idea to
The proposed owners of the ventures must have sufficient
capital, or if insufficient, must be of good credit standing in the community. In general, the sources of financing
include the ff.:
1. The proposed owner’s savings;
2. Relatives and friends;
3. Financing institutions like banks.
• The purpose of entrepreneurship is to provide a
source of income to the...
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