Generating Business Ideas and Sources of Business Ideas

Generating Business Ideas and Sources of Business Ideas

Generating Business Ideas

For an entrepreneur, the first step in starting a business begins with an idea (business idea)
Business ideas are all about thoughts on possible businesses an entrepreneur can start or improve. It indicates among other things;

1. The products to produce/sell
2. Who the business will sell to (market)
3. Where the business will be located
4. How the business will be run (management)
5. Why the business is needed (objectives)

Sources of Business Ideas

1. ​Newspapers- 
   ​Local newspapers like the Daily Nation, East African etc. especially in the business and advertising sections have a lot of information about commercial opportunities as well as personal services.
2. Shows and exhibition-
   Visiting shows and exhibitions organized by manufactures and distributors and asking questions from the sales persons. Entrepreneurs can also get business ideas from products displayed in such shows.
3. Magazines and journals-
   Reading magazines and journals with business information may equip an entrepreneur with new business ideas.
4. Hobbies –
   These are activities pursued for pleasure but they can also serve as a source of business ideas e.g. photography.
5. Vocational training and experience-
   A business idea may be developed from one’s own area of training or experience e.g. a teacher may use ideas from his/her training to start a private school.
6. Surveys and market research-
   This involves conducting an investigation to gather information from consumers on what products they require.
7. Recycling/using waste products-
   Some waste products could be converted into useful products e.g. scrap metal for making jikos, old tyres for making sandals etc.
8. Listening to what people say-
   By listening keenly to what people say, one can identify unsatisfied needs e.g. complaints about goods and services in the market. These complaints may form a basis of a business idea for an entrepreneur.
9. Identifying a market gap (niche) - 
   An entrepreneur may try to identify/spot the needs of consumers which are not being met by the existing goods and services.
10. Brain storming-
    An entrepreneur can engage other people in a discussion on how best to develop businesses.
11. Listing attributes of a product-
    By listing the attributes of a product that is already existing in the market, one can find new use for the product.
12. Copying/improving an existing business-
    ​This involves identifying the weaknesses of a business and trying to come up with solutions.

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