As a graduate you are working to set up own business for this various ideas are viable. A pitch is to be made for financial investors to provide source of inspiration for supporting new idea.
- Develop different sources for innovative business idea.
- Provide explanation of entrepreneurial idea for investigation and identification of the market gap.
- Use primary and secondary data to identify market potential.
- Examine the entrepreneurial idea in relation to market and competitors and provide assessment of potential viability.
Entrepreneurial opportunities are required to be identified so that business may be able to start new venture in effectual manner. Present report deals with starting up new venture by analysing sources for innovative idea. In relation to this, Exotic restaurant is taken as business idea and market research is conducted on it. Moreover, gap analysis is carried out along with primary and secondary data are collected. Furthermore, competitive analysis and SWOT analysis is conducted as well in effective way.
P1. Presenting different sources of entrepreneurial ideas and innovations.
Entrepreneurship plays a vital role in the field of business. The concept behind start up business is to involving new product, services, process with latest technology. Entrepreneurship is a study of how new businesses are created and the actual process of starting a new business and an entrepreneur is a person who has many ideas and who works to create a product or services that people will buy to support a sales (Seethamraju, 2015).
There are many different sources of entrepreneurial ideas and innovation which help business man to set up new business, these are mention below:
Consumers: the consumers should be the final focal point of ideas for an entrepreneur. In order to utilize the power of customers, innovation leaders place different methods for gathering consumers ideas. Internet is the best place to begin, there are many online sources to provide product review on product. Even, companies also want to invest in an online portal attached to their website which allows customers to add, reviews, complaints and ideas. Proper evaluating and implementing ideas and taking customer's feedback is one of the best method of staying ahead in competition.
Competitors: Attending conferences, exhibitions, and trade shows are a good ways to keep aware what competition is developing and researching. Business can also adapt this idea or modify them to create new products. For higher level, business leaders are stay connected and networked with each others in the industry for gathering more ideas.
Existing Companies: with the help of existing formal methods potential entrepreneurs and intrapreneurs can evaluate competitive products and services which leads to a result in new or more product and services. Companies should not disregard old ideas and proposals for new product, they must follow those for improvement. Existing patents may also be considered on the internet and it is low cost method of gathering ideas (Spence, 2016).
Distribution Channels: members of this chain are quite familiar with the need of market and hence they prove to be best source of new ideas. As these peoples help to know new ideas related to product and advice what is wrong and fruitful for the company.
Government: it is also a source of new product and ideas in two different ways firstly, response come from government to change the rules and regulation can become a source of new ideas and secondly, patent office files contain various types of product possibilities that help a entrepreneur to obtain product information.
Research and Development: Entrepreneur's own research and development is the largest source of new ideas. A formal and well equipped department help to develop successful new product ideas.
Internal Department: internal employees are the largest source for ideas. With experience and exposure related to its products, they become most well informed idea source and can provide detailed, structured proposals for new product and services. Encourage employee ideas by providing them infrastructure to submit new proposals. This create relationship between customers and internal departments.
P2. Explaining the rationale and the market gap
Being an entrepreneur is one of the best vocation in the world because it encourages the view of thinking and creating new ideas such as starting a new business of restaurant in rural area. The market gap can have more than one attributes but to identify the gap is the biggest task without getting out there and meting people (Stewart and Gapp, 2014). Challenging doing new things, exploring and being curious and meeting new people must be a habit of an entrepreneur.
There are some strategies which help to leverage gaps in the market, it may takes a bit of time and efforts to explore, learn and research with discoveries. Trends and new technologies are moving so quickly, in an restaurant the trend effect directly such as people wants new and different taste, and to complete the need owners take different initiates like hire new chefs in order to make new recipes and attract customers. Recently people are so foodie and they search many places for hang out and when starting a new restaurant, make sure have both place in different zone- sitting area and dinner area. It helps customers to feel comfortable by combination of these two zones. Make some new innovations and creative ideas to attract people and find solutions that can make life easier or streamline business. Restaurant plan is not new but to present it with new idea and innovations is recent trend. To add more opportunities in the existing product will also help in making the business new, using hidden ideas and exploring them into business can lead to the best future. To expand the business meet new people and take help and examining the market is the best way to reduce the gap (Sahut and Peris-Ortiz, 2014).
There are many tools and techniques which help to reduce the market gap like while establishes the business of restaurant, collect secondary data and analysis the strength and weak point related to market and also check the environment which may cause harm to business or not . Sometimes asking people is also useful tool. If the geographical area is strong it will help to run the business but on the other case, its demographic zone is not good then it will be harmful and cause financially loss. To analyses the market trend can use 7P's of McKinsey that will help to examine the structure, strategy, system, shared values, skills, style and staff. Using Nadler-Tushman model will also help to know how the whole company may work and it is also used in start the business of restaurant as it analyses the gap that affect efficiency of entire system, also looks at how inappropriate inputs can leads to gap. Computer spreadsheets are also suited for reducing the gap in financial result. It help to know the effects of changes in value that are control and see the result. It also uses for calculation the profit, and can determine the price of those products which are offer in restaurant (Schaper, Volery, Weber and Gibson, 2014).
Porter's five forces model is useful one which can be highlighted to have enough of the idea about the company's position in the market that may be affected because threats of market forces up to a high extent. It is used to assess competition in the market in effective way. This model is helpful in determining whether level of competitive forces will affect new business too much extent or not. In relation to this, hospitality industry is one of the highest profitable industry and new entrepreneurial idea is to start small restaurant to garner profits in the long run. The new start-up will be named as Exotic restaurant and as such, Porter's five forces model can be applied as new entrant in the market to analyse competitiveness