Procedure in Determining the Best Business Idea Preparation of the List of Business Ideas Screening of the Listed anal Selection Methods of Searching for 1 . Unanticipated Means -? The entrepreneur finds business ideas w/o serious effort a. The Person’s Work b. The Person’s Hobbies c. The Person’s Acquaintances d. A chance event encountered by the person 2. Deliberate Search a. Using Search Questions b. Idea Prompting b. 1 . Someone else’s idea b. 2. Customer request b. 3. Some other event Screening Generated Ideas 1 . Market Feasibility 2. Technical Feasibility 3.
Financing Feasibility 4. Financial Feasibility a. Stable and Sufficient Demand A business idea will not last if there is insufficient demand for whatever product or service that is contemplated. Demand that remains constant or shows signs of growth throughout long periods indicates the probability of market feasibility. Demand must also be large enough to justify the investments that will be needed by the venture. B. Competitive Strength The business idea must be such that the venture can effectively compete with current or potential competitors.
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The competitive strength of the competitors must be determined in terms of product offerings, price, distribution methods, promotion methods, and others. NOTE: The proposed business idea must be strong enough to withstand competition. The Way to Sound Business Search for Business Screening Adoption of the Selected Business Idea Preparation of Formal Plans Sources of Market Information It is the information required to determine the market fit Of the business idea may be derived from the following: 1. ROR studies of the market/related markets by other companies, government agencies, and entrepreneurs. 2. Actual polls of population samples representing typical customers. The means used include the following: 2. A. Mail Questionnaires Advertisements incorporating feedback mechanisms such as mail responses . C. Phone interview 2. D. Personal Interview 3. Negotiations with prospective customers to solicit orders and determine whether or not they will actually buy.
Technical Feasibility ; Business ideas of ten times appear easy to execute, but it is not really so when converting them into real products or services with the required quality or quantity. Financing Feasibility ; One of he factors necessary in determining whether a business idea should be considered or not is financing. Sources of Financing 1 . The Proposed Owners Savings 2. Relatives and Friends 3. Financing Institutions like banks Financial Feasibility The purpose of entrepreneurship is to provide a source of income to the entrepreneur.