Chapter 4: Search for Business 3.

Home-Based Business Option – These

Opportunity, Ideation, Innovation, and must not be taken for granted, for there
Creativity are some big businesses that started as
a small business at home.
Some factors on resources that needs to be 4. Linkage of Resources – The
evaluated: entrepreneur can produce his own input
1. Markets – this refers to the number instead of buying them.
of prospective buyers, competitors,
the price, and the quality of goods Steps in Market Research
and services that have to be 1. Defining the problem
analyzed. 2. Making a preliminary investigation
2. Individual Interests – Business 3. Planning the research.
interest of individuals should match 4. Gathering the data
business opportunities. 5. Analyzing the data
3. Capital – this serves as the fuel that 6. Reaching a conclusion
keeps the business operating. 7. Implementation and evaluating
4. Skills – The entrepreneur should decision
have the proper skills in the
business he is going to undertake. SWOT (Strength, Weakness,
5. Suppliers of inputs – It is Opportunity, and Threat) – are tools for
important that there are steady evaluating the strengths, weaknesses,
suppliers of raw materials and other opportunities, and threats associated with a
inputs to the business. particular product or service.
6. Manpower – The success of any
business also depends on the Product Life Cycle
efficiency of its employees.  Introduction – If consumer
7. Technology – Entrepreneurs should awareness and acceptance of
be aware of the presence of product are low, launch through the
technology improve their products use of marketing activities, which
or services, or introduce new make the profit low due to cost of
innovations in the market. development and marketing
activities.
Some guidelines a prospective entrepreneur  Growth – To meet the growing
may do to establish what kind of business he demand, product distribution is
likes: expanded. Sales rise rapidly as
1. Look at other successful product becomes popular.
businesses/entrepreneurs. Looking up
 Maturity – Sales are still rising, but
at other entrepreneurs as a role model
rate of increase has declined. At the
that could be an inspiration, by doing
latter part, a sale reaches its peak,
what they have done or do it even
while profit begins to fall.
better.
 Decline – There is a sharp fall in
2. Respond to a problem – The solution
sales volume, while profit curve
to a problem might be transformed into
becomes almost flat or horizontal.
a business venture.
There is also decline in the number
 of competitors. The only survivors 7. Wholesalers – These sell the
are those who specialize in product of manufacturers or
marketing the product. Once producers to retailers and other
product is no longer profitable, it is distributors who have direct
eliminated from the market. dealings with the end users or
customers.
Category or Sector of Business
8. Subcontracting – This is a familiar
1. Service-based business
form of business format in the
e.g barber shops, repair
garments sector, as well as the shoe
shops, beauty parlors, etc.
industry. This involves signing up
2. Trading or product-based business an arrangement with a major
- a buy and sell transaction(e.g producer to complete a set of
grocery store, bakery products, or product components on a pre-agreed
general construction materials) price.
3. Manufacturing business 9. Vending machines routes – These
- a manufacturing or are placed in various places or
production-based locations.
business by creating a
product.
Ideation – the beginning of a business
4. Licensed Business Opportunities -
endeavor. The first investment of anyone
If you find some difficulties in
who seeks to be an entrepreneur.
launching a product or service, it is
 Consumers or the market – the best
a good idea to look for licensed
source of ideas; they are the ones
business opportunities. (e.g
who are in need for certain product
Franchising)
or service.
Ideas that are worth a business should
5. Distributorship - An independent
be the one that has a market now and in
entrepreneur, company, or
the future. This could be a product, a
individual enters into an agreement
service system, and the like, which
or contract to offer, sell, or
could fall in any of the following
distribute a particular product, but is
categories:
not entitled to use the
a. Need/want drives
manufacturer’s trade name as part
b. Time-saving drives
of its own trade name.
c. Money savings
6. Rack Jobber - involves an agent or d. Unique or incorporating strong
buyer entering an agreement with a competitive advantages
parent company to market its goods e. Link to personal interest, preferably
to various stores by means of passion
strategically located store racks. (e.g
food courts inside the malls) The most common way of developing
ideas is as follows:
 Recognizing the need – develop an
idea or a product that can satisfy a Ways of protecting your ideas
need, and respond to the need by a. Confidentiality Agreements – It
establishing a business concern. provides that a signer will not share
 Improving an existing product – the idea to anyone. A typical
the result of consumer agreement or contract where one
dissatisfaction to the existing should ask advise to patents
product could open the door to attorney or those with experience
introduce innovations or and expertise in the intellectual
improvements. property rights.
 Recognize trends – Entrepreneurs b. Patents – these gives the inventor
should be able to recognize the exclusive legal rights to exclude
opportunity to develop a product anyone else from manufacturing,
and set trends that can make them selling, importing, or using an
leading entrepreneurs. invention during the life of the
 Be aware of everything – There is patent.
no other way to know about what is Three General Classifications:
happening around you, but to 1. Design
research and read. 2. Utility
 Questions and assumptions – 3. Plants Patents
Anybody can question the relevance c. Trademarks – a word, symbol, or
or quality of any product or device used by manufacturers on
services, provided that there is an merchants to identify their goods
effort to improve the product. and distinguish them from others
 Naming it first, then, develop it. – sold in the market.
If you have the idea, study it and d. Copyrights – a copyright protects
develop it to something that is the creative works of composers,
worth a business. authors/writers, artists, and others.
This is the easiest form of
Tips in Evaluating Ideas: protection for Intellectual Property.
a. Do not let your idea follow
money; let money follow your Creativity – is an essential part of
ideas. innovativeness, the starting point of a
b. See yourself as a problem process, which is skillfully managed,
solver. and brings an idea into innovation.
c. Use research as a weapon
against failure. Environmental Stimulants to
d. Make sure your idea has Creativity
longevity. a. Freedom – a sense of control over
e. Take a risk on your ideas. one’s work ideas
f. Test your idea against the past, b. Good Project Management – a
present, and future. manager serves as a good role
g. Know the idiosyncrasies of your model
market.
c. Sufficient Resources – access to procedure, or technology for
necessary resources continued use.
d. Encouragement – management
enthusiasm for new ideas. The elements of Innovation
e. Various Organizational a. Value placed on creativity and
Characteristics – a mechanism for innovation in general
considering new ideas b. An orientation towards risks
f. Recognition – a general sense that c. A sense of pride in the organization
creative work will receive and its members, and the
appropriate feedback, recognition, enthusiasm about what they are
and reward. capable of doing
g. Sufficient time – time to think d. An offensive strategy of taking the
creatively about problem lead towards the future.
h. Challenge – a sense of challenge
arising from intriguing nature of the
problem itself.
i. Pressure – a sense of urgency that
is internally generated from
competition as a personal sense of
challenge
j. Outside Organization – from
general desire to accomplish
something important.

Innovation – is doing something

different. It could be introducing either
something new or different.
Innovativeness – is a characteristic of
an individual, team, or organization.
The capacity to create ideas and develop
them to usable products or services.

Impacts of Innovation
1. Effecting a new policy – creating
change or orientation or direction.
2. Finding new opportunities –
developing an entirely new product
or opening a new market.
3. Designing a new structure –
changing the formal structure,
reorganizing or introducing a new
structure.
4. Devising a fresh method –
introducing a new process,