Inspiration for Starting a Business
Creating New Ideas and Spotting Business Opportunities Week 2 – 29 January 2008
Review Session 1
• Recognise the relationship between business ideas and business opportunities • Identify ways to generate a new business idea • Develop a basic idea into a business concept • Carry out market research activities to determine the viability of your idea
Barriers to startup
Fear of debt 51% Securing finance 50% Fear of Failure 47%
Losing current income Complexity of regulations Losing security Economic climate 37% 33% 32% 29%
Lack of knowledge
Lacking business skills Loss of current prospects Lack of an idea
22%
21% 17% 12%
Hard work involved
Family commitments Lack of premises
12%
2% 1%
Motives to start-up
Freedom in approach to work 89% Make more money 74% Be own boss 73%
Better position in society Make an idea happen Make a lot of money 58% 52% 51%
Dissatisfied in previous job
Lead and motivate others Get more respect Develop a hobby Be at forefront of technology
44%
43% 40% 39% 29%
Follow example of mentor
Continue family tradition Been made redundant Been out of work
29%
20% 19% 19%
Self challenge 73%
Household Survey of Entrepreneurs 2001, Small Business Service
In groups of four consider one or more of your business ideas and conduct a SWOT analysis
Spotting opportunities Working in groups of 4 look at your business Idea and your SWOT opportunities – discuss these to assess if they are realistic and whether there are others.
What makes a business idea memorable? What makes a business memorable?
Product offering and USP?
Pierre Omidyar: Ebay
Anita Roddick: Body Shop
Larry Page & Sergey Brin: Google Peter Jones: Phones International Mohammed Al-Fayed: Harrods Howard Schultz: Starbucks
Mark Zuckerberger: Facebook
James Dyson: Dyson Vacuum
Richard Branson: Virgin Empire
Vera Wang: Fashion House
Donald Trump: Trump Empire Ben Cohen & Jerry Springfeld: Ben & Jerry
Richard Reed: Innocent
• Generating & refining ideas
• If someone’s passion is cycling then potential business ideas could be
• Cycle repair shop • Cycle design consultancy • Rent-a-cycle • Cycling road skills
• Rules of brainstorming
• Suspend making judgements • Record every idea no matter how wild • Keep up the pace • Don’t discuss ideas until all ideas have come out
• Other ways to generate business ideas
• Opportunities for innovation through social, political, environmental, economic, regulatory or technological change • Problem solving • Spotting a gap
• FEASIBILITY check
• Can the idea be done? • Can you do it? • What opportunity exists i.e. what can you do with the idea? Who will want it? Can you sell it?
• Market research
• Find out whether your business is an ideas led business or market led business idea • Assess needs and demands • Evaluate key factors
• Useful OPEN questions begin with
• • • • • •
Who What Where When Why How
SMART objectives are: • Specific • Measurable • Achievable • Realistic • Timed
I will carry out market research to see if my product/service has a market.
VERSUS
By the 24th November I will have put together a market research questionnaire and tested it with 10 potential customers in Preston Town Centre to make sure the questions work.
• • • • • • • • •
Summary of Business Plan Business Aims And Objectives Personal Details Market Research – Customers Market Research – Competitors Marketing Plan Product or Service Description Sales Finance – Survival Budget
• • • • • •
Finance – Start Up Costs Finance – Projected 1st year Sales Forecast Finance – Projected 1st year Cashflow Finance – Projected 1st year Profit and Loss Risk Analysis Legal Issues
Getting Your Business Off The Ground
• • • • Analyse findings from market research Consider forms of business ownership Identify legal issues relevant to your business Identify actions and associated costs to start up the business • Generate initial financial forecasts