As a graduate new business venture had to be started for this a pitch had to be developed for financial investors by source of inspiration and market research in order to implement the business idea.
- Determine various sources of business ideas and innovation
- Explain the choice of entrepreneurial idea for investigation and analysing the market gap.
- Determine market potential by using primary and secondary data
- Determine entrepreneurial idea in relation to market and competitors and ake an assessment of the potential viability
An entrepreneurship is the capacity and willingness to organize and manage the business enterprise. Entrepreneur is a person who start and survive their business along with their own risk. All profitability and loss of the business bears by the enterprenuer. The major objective of starting any business is to earn effective income and revenue from business. The current report provides the detail knowledge and understanding about the entrepreneur idea and innovation.
P1 Determination and evaluation about various sources of entrepreneurial idea and innovation
While any entrepreneur starts a new business, then he/she requires some new idea, creativity, thoughts etc. regarding the business. It is very important for the entrepreneur to select some unique and different idea and thoughts which differentiate with other ventures in the market. The idea of the business should be effective and innovative so that it can easily attract large numbers of customers (Zhang, Song and Zhong, 2016). With the help of good and creative idea, company can serve the special product and services to its clients in market. Sources of entrepreneurship idea and innovation play a very significant role within the company. The development of business idea largely depends upon its sources. There are several sources and material through which entrepreneur can generate idea and creativity for innovative product and services. These ideas are discussed below-
Industrial survey- This is very impressive source of entrepreneur idea and innovation. With the help of this source, customer needs, wants, thoughts, perception and requirement regarding particular product and services can be easily acknowledged by business venture. The main point for a new business idea should be the customers.
Brainstorming- This is a creative problem solving technique that generate the idea and creativity for the new venture or new product. It is generally started with problem statement and any questions which arise in the mind of entrepreneur (Schlaegel and Koenig, 2014).
Mass Media- The mass media plays a very crucial role for generation of entrepreneur idea and innovation. With the help of TV station, cable network, radio, newspaper, internet, magazines etc. entrepreneur can easily gather good idea and creativity for development of new product and service.
Changes in Perception, Meaning and Mood- These are identified with change in discernment, taste and inclination of individuals. Business should consider around them so as to make due in the market. It will be gainful in recognising needs of individuals. Change in observation and inclination of individuals will influence business process. In business can likewise take case of religion.
New knowledge– Change in innovation has been a central point in achievement of business. It can assist business with changing in process and discover open doors for development. This alludes to working together in better courses by enhancing process.
Demographic- It is identified with populace, salary level, age and individual. Along these lines, business ought to incorporate every one of them with economic situation. It will give information on both demographic and division of clients. (Mudalige, Ismail and Malek, 2016.) By this, business can focus on change in these. It will enable business to change its item as needs be.
Types of innovation
Process development- It alludes to improving procedure through which business has been run. In this, progressions are made in conveying or generation of items with the goal that its cost can be decreased. Also, by actualizing new systems., programming these progressions are finished. It helps in expanding capacity of business.
Item advancement- It implies creating items by distinguishing individuals needs and requests. Around here spotlight on how new items can be propelled in the market with the goal that client get pulled in towards it (Hmieleski, Carr and Baron, 2015). Business needs to consistently roll out improvements in items so it can hold its clients This will assist them with surviving for long run. In this item part, highlights, and so on are adjusted.
Incremental advancement- This incorporates a progression of little changes that is made into business. Its principle intention is to expand business proficiency. The progressions are done in process or strategies for creating items. This causes in giving proficiency to profitability and increasing upper hand in the market.
P2 Explanation about the rationale and the market gap for a specific entrepreneurship idea regarding relevant techniques
While any entrepreneur starts the new business, then it is very important to identify the requirement of specific customer's requirement. With the help of proper identification of the requirement of people, firm can effectively deliver the right commodity and services to customers. In order to implement idea and creativity along with product and service and in business, it is very important to identify and acknowledge features of the target market. While entrepreneur identify the features and characteristics of target market, then it becomes easy to create a clear image of the customers for whom product will be developed. Following are some methods for identifying specific entrepreneur idea-
Behavioural- In this, customer's behaviour can be identified by the entrepreneur. By help of this method, it becomes easy to identify need and requirement of customer regarding product and services (Fayolle and Liñán, 2014). In addition to this, company can also acknowledge the condition of the customers’ needs and perception regarding the existing services and product. Moreover, it is easy for business to generate idea by identifying the behaviour of customer in the particular target market.
Demographical- This method includes the population, income level, gender, age etc. of the people in the country. It will give information on both demographic and division of clients. This gives information and data of individuals that can be dissected before executing thought. It demonstrates requirements of various individuals regarding their demographics. This is valuable for business to portion them on premise of their age, sexual orientation, populace and so forth. It turns out to be simple for business to create items.
Geographical- This is related to the location and region where product and service requires delivering. It is basic to fragment land zone so further division should be possible in less demanding way (Fayolle and Gailly, 2015). In addition, it helps in dissecting outside components that can influence business thought. Additionally, by this it is anything but difficult to decide how much effect business will have on that zone.
Tangible and intangible characteristics of product
Tangible product refers to the commodity which can touched and seen by other people. On the other hand intangible product refers to the items which can not touched and seen rather than it can only be felt. Tangible product is like vehicle, computer, mobile etc. On the other hand intangible product is like any kind of services such as banking, saloon etc.
The business condition accept a critical part in advance or disillusionment of business. It chooses how far business can create and make. The area of new business much of the time impacts condition. It is in light of the fact that if there are more obstacles of new members then it will be difficult to enter in that industry. What's more, what existing business are there and their bit of the pie give thought on level of contention. In this way, new competitors must be powerful if industry is having versatile condition.
Porter five force model- It is an aggressive power that aides in breaking down industry condition. It helps in discovering effect of industry condition on business .
Competitive rivalry- It demonstrates the current level of rivalry in the business. In the event that there are more business there will be exceptional rivalry. Then again, low level of rivalry will pull in new contestants to enter in it. It will permit
Risk of substitute-It alludes to discovering distinctive method for fulfilling need. Individuals dependably have a choice of substitute in the event that they feel to change item. Industry ought to have
Bargaining power of buyers- It alludes to number of purchasers that can impact business to let down its cost. Likewise, it indicates how clients can without much of a stretch change starting with one item then onto the next. In addition, more number of purchasers will exceedingly impact item costs (Drucker, 2014.).
Supplier power- It alludes to number of providers that can impact business to build its cost. Additionally, it demonstrates how providers can impact client conduct. Besides, more number of providers contain more power. New participants must know what number of providers exists. This will assist them with controlling provider and cost of item.
Risk of new entry- It is most normal method for entering in new market. It alludes to how new contestants can affect the business. It is simple for them to enter and impact rivalry among business. Another participant will dependably endeavor to draw in clients. They can break down how industry is influencing (Charness, 2014)
Industry life cycle-It is an instrument that portrays advancement of industry in each stage. This aides in discovering how industry can keep up its development. It comprises of four stages that is characterized as:-
Start up-It is a phase which includes advancement and showcasing or items or administrations. Industry makes open doors for business to develop and create. In this item data is come to just set number of individuals. A considerable measure of costs are brought about on promoting and advertising of items. Incomes and deals are low and now and again it can likewise be negative.
Growth– In this stage client becomes more acquainted with about item or administration of industry. They ended up mindful about highlights and advantages of it. This prompts increment popular of item and producing deals (Cherny And et.al., 2016). It begins giving contending in the market and picking up piece of the overall industry. An industry tries to procure however much as could be expected in this stage. For this procedure are enhanced that aides in expanding industry proficiency. Development is done everywhere level.
Maturity- In this stage industry development backs off. It begins influencing industry maintainability, Due to this industry can't survive. The development achieved its most extreme level. The concentration shifts from winning benefits to keeping up income and piece of the pie. The value rivalry progresses toward becoming premise of contrast between various enterprises.
Decline- In this stage product comes on the decline condition. The business profits and sales gradually starts falling at this point. In this stage, prices of the product and services can cut down from the previous.
P3 Gap analysis in the evaluation of specific entrepreneurial idea
While any entrepreneur enter in the market for start the new business then it is very important to collect the information about market. Data collection and interpretation is very important for the entrepreneur so as effective idea and creativity can generate regarding product and services (Dooley and Kenny, 2014,). With assistance of the collection and analysis of the information, entrepreneur can able to find up the gaps that exist between the business idea and market condition. Data collection and analysis assist to the entrepreneur in collecting information about customer taste, preferences, market condition, available competitor and other several components of business environment. Furthermore, it helps in minimize the risk of business failure and find out new opportunities for new business expansion. The information regarding the business can collect by primary and secondary research which are discussed below-
Primary research- This is very effective method of data collection by which researcher can easily collect information from primary sources such as interview, questionnaire, survey, observation etc. This method helps to researcher in collecting information about current market condition (Castello, Barbera and Vaara, 2016,). With help of primary research, entrepreneur can collect fresh information about the subject. With help of this method, entrepreneur can collect customer taste, preferences, requirement and perception about existing product and services.
Secondary research- In this method information can collect from the secondary sources such as books, journal, online blogs, articles etc. With help of secondary research, entrepreneur can collect published data about the subject.
1 Which kind of changes have occurred in the market in the recent time ?
- Alteration in the customer behavior
- Alteration in the price
- Alteration in the features of commodity
2 At how much level the condition of market has been changed ?
- Very high
3 Which kind of business you are doing recently ?
4 From how long you are doing business ?
- 1-2 year
- 2-5 year
- More than 5 year
P4 Interpretation of information for deliver evidence of market potential
From information gathered it is discovered that 25 individuals out of 30 are working together in retail division. They have been occupied with this for 3-5 years. Likewise, they believe that the significant change that has happened in advertise is identified with change in purchasing conduct of individuals. It has constrained them to roll out improvements in item. So showcase is having capability of new contestants that can give compelling administration at low cost.
P5 Explanation about SWOT framework to collect evidence to support an objective assessment idea
While any business person enters in the market and actualize business thoughts in the association then it is imperative to evaluate and recognize quality and shortcoming of that specific business thought (Carraher and Paridon, 2015). Through this, the assessment business thought should be possible. It is improved the situation specific region. It indicates how thought can be debilitated by a few elements. By examining industry and its condition it is anything but difficult to assess accomplishment of business thought. The assessment of components is given underneath :-
SWOT analysis It is a powerful that aides in understanding qualities and shortcoming of business. By utilizing this business can distinguish territories in which they are solid and frail. At that point, additionally measures are taken to enhance frail regions.
Strength- It portrays territory in which business is having exceptionally solid upper hand over its adversaries. It gives the reason what item includes makes business solid in particular region. In this quality is considered from both inner and outside point of view. It incorporates client, contenders, and so on (Carland, Carland and Stewart,2015). So for business thought of cleaning, it is been expressed that it will give powerful administrations to individuals at their place. It will assist individuals with getting access of administration just by a single tick. No different business around there is giving cleaning administration. In this manner, it is gainful to execute business thought.
Weakness- It indicates territory where business is deficient. This offers contenders to exploit this opportunity. Alongside this, it portrays how business can enhance that territory by taking viable measures. It is distinguished by taking input from clients (Bruni, Gherardi and Poggio, 2014.).
Opportunities-It decides zone of development for business. This is distinguished by rolling out improvements in process, techniques, items, and so on. It gives business an upper hand in the market. Likewise, it makes immense number of chances to get particular zone. This business can develop by expanding its scope of administrations. It can give it in different zones with the goal that it will naturally draw in individuals bringing about more deals.
Dangers – This characterize coming dangers that can prompt immense misfortune in business. It can be because of progress in innovation, taste and inclination of individuals, outside elements, and so forth (Bird, 2015). For this business must create techniques with the goal that it can be executed. In setting to above thought, it investigated that the real risk can be of new participants. It can profoundly influence thought and can prompt disappointment. Other than this, adjustment in innovation can likewise be a danger.
P6 Evaluation about the competitive and market environment in which the idea will be launch to asses potential viability
Any business thought before usage must be basically dissected. It must be with respect to the zone in which business will work. It is on the grounds that it will help in assessing market condition with the goal that progressions can be made as needs be. This will make it is simple for business person to actualize its thought. For the most part, aggressive and showcase condition is assessed. It examines as beneath :-
Contender investigation - In this watchman five power display in been utilized. It is an aggressive power that aides in examining industry condition. It helps in discovering effect of industry condition on business. There are not couple of rivals in who are giving cleaning administration. So it is important to assess their administration quality and procedure(Baker, Grinstein and Harmancioglu, 2015).
Competitive rivalry- It demonstrates the current level of rivalry in the business. On the off chance that there are more business there will be extreme rivalry. Then again, low level of rivalry will draw in new participants to enter in it. The level of rivalry is direct in giving cleaning administrations. So the passage of one more won't exceptionally influence rivalry. Be that as it may, this can pull in others to enter in it.
Risk of substitute-It alludes to discovering distinctive method for fulfilling need. Individuals dependably have an alternative of substitute on the off chance that they feel to change item. There are may substitutes accessible for individuals, for example, utilizing specialist, and so forth. But,cleaning administration in remarkable and powerful way. Additionally, the cost of administration is low that will draw in individuals to utilize it.
Bargaining power of buyer- It alludes to number of purchasers that can impact business to let down its cost. Likewise, it indicates how clients can without much of a stretch change starting with one item then onto the next. Besides, more number of purchasers will exceptionally impact item costs. The purchasers are not very many in this, so it won't have any impact on costs.
Supplier power- It alludes to number of providers that can impact business to build its cost. Additionally, it indicates how providers can impact client conduct. In addition, more number of providers contain more power. There is no provider in cleaning business, so it won't have any effect on costs.
Risk of new section- It is most basic method for entering in new market. It alludes to how new participants can affect the business. It is simple for them to enter and impact rivalry among business (Bae and et.al., 2014). The danger of new participants is high around here. It will draw in more business person to actualize, for example, business thought.
From this entire report it has been concluded that while any business entrepreneur start new venture then he/she requires some good and innovative idea and creativity through which they can attract new customer and develop impressive image in market. It has been also concluded that there are several sources of entrepreneur idea and creativity such s industry survey, customer requirement etc. Data collection and analysis is one of the essential method for developing entrepreneur idea within the business.