DEVELOPING ENTREPRENEURIAL IDEAS

Developing Entrepreneurial Ideas



Entrepreneurial Ideas

Introduction

Your research plan should spell out the objectives of the research and give you the information you need to go ahead with your idea, fine-tune it or take it back to the drawing board. Create a list of questions you need to answer in your research, and create a plan for answering them. "Utilize experts in planning and conducting research sessions. They can recommend what type of research is most appropriate, help you develop statistically valid samples and write questionnaires, and provide you with an objective and neutral source of information (Babakus, 1992, 253).

Communicating your idea - 'Get Creative

Question No. 1

The proposed products

SMEs vary in their interest and approach to innovation because of differences in their sources of capital. Senior managers of privately held firms (i.e., most SMEs) have much greater discretion in strategic pursuits than do those in publicly held firms (Nooteboom, 1994). Public stockholders focus mainly on return on invested capital, which narrows senior management's range of acceptable strategies (including innovation). Private capital providers (personal, family, friends, and local banks) do not have a similarly limited focus, which allows more individual variation in behavior, i.e., preference for independence, informality, life-style (Gray, 2002). Personality and emotions are allowed to play a larger role in decisions made in privately held SMEs. Research suggests that the age and tenure of an SME CEO are negatively related to his or her interest in innovation (Khan and Mattapichetwattana, 1989).

Target Market

When working with firms on brand development, Keller first looks at a business idea from four perspectives: company, customer, competitor and collaborator. This approach allows Keller to scrutinize a business idea before even approaching the topic of brand development. Here's what he looks at for each of the four issues: (Babakus, 1992, 253).

1. Company. Think of your idea in terms of its product/service features, the benefits to customers, the personality of your company, what key messages you'll be relaying and the core promises you'll be making to customers (Babakus, 1992, 253).

2. Customer. There are three different customers you'll need to think about in relation to your idea: purchasers (those who make the decision or write the check), influencers (the individual, organization or group of people who influence the purchasing decision), and the end users (the person or group of people who will directly interact with your product or service).

3. Competitor. Again, there are three different groups you'll need to keep in mind: primary, secondary and tertiary. Their placement within each level is based on how often your business would compete with them and how you would tailor your messages when competing with each of these groups.

4. Collaborators. Think of organizations and people who may have an interest in your success but aren't directly paid or rewarded for any success your business might realize, such as associations, the media and other organizations that sell to your customers.

Another approach is to research is SWOT analysis, meaning analysis of the strengths of your industry, your product or service; the ...