KCE-055
IDEA TO BUSINESS MODEL
UNIT -1
Introduction
Topic: Search for a business idea-
How to choose an idea
(CO1)
This course can motivate students to
have an overall idea how to start and
sustain a business enterprise.
SIXTH SEMESTER
SESSION 2023-24
UNIT-1
INTRODUCTION
• Search for a business idea
• How to choose an idea
• Product idea
• Selection of product
• The adoption process
• Product innovation
• Production, planning and development strategy
• New product idea DR. REETIKA SEHGAL
IDEA TO BUSINESS MODEL (KOE-060)
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What is Business?
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IDEA TO BUSINESS MODEL (KOE-060)
Business
• A business is an organization or entity that sells goods or
services for a profit.
• Means a business is something that operates in order to
make a profit.
• Not all businesses actually are successful enough make a
profit, but their main purpose is to generate profits.
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IDEA TO BUSINESS MODEL (KOE-060)
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IDEA TO BUSINESS MODEL (KOE-060)
What is an Idea?
• A thought or suggestion as to a possible course of
action.
OR
• Any conception existing in the mind as a result of
mental understanding, awareness, or activity. a thought,
conception, or notion.
• It is a good approach to do some research before you go
for any idea.
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IDEA TO BUSINESS MODEL (KOE-060)
What is Business Idea?
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IDEA TO BUSINESS MODEL (KOE-060)
Business Idea
• Every new business, new product or service and new
marketing approach has started with an idea.
• Generating new ideas can be a very burdensome task.
Putting them into practice can be much harder.
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IDEA TO BUSINESS MODEL (KOE-060)
Business Idea
• Generating new ideas can be a very burdensome task.
Putting them into practice can be much harder.
• A good idea is nothing more than a tool in the hands
of an entrepreneur.
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IDEA TO BUSINESS MODEL (KOE-060)
Finding a good idea is the first step in the
task of converting an entrepreneur’s
creativity into an opportunity.
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IDEA TO BUSINESS MODEL (KOE-060)
An idea is the first milestone in the process
of building a successful business.
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IDEA TO BUSINESS MODEL (KOE-060)
Business Idea – Contd…
• There are three major hurdles to overcome before any
idea can come to fruition:
1) Identify a problem
2) Idea generation
3) Idea selection
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IDEA TO BUSINESS MODEL (KOE-060)
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation
The systematic search for new-product ideas
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation OR
Search for a new business Idea
• Idea generation stage is the first step in any
entrepreneurial activity.
• As many as new product ideas are developed in idea
stage. Impractical ideas are dropped.
• Ideas which employ the maximum of available resources
be taken up for further evaluation
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation OR
Search for a new business Idea – Contd…
• The ideas should take care of customer requirements:-
Type of need
Timing of need
Competitive way to satisfy the need
Perceived benefits and risks
Price versus performance
Market size and potential
Payment capacities of customer
How you meet the competition from existing or
substitute products?
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation OR
Search for a new business Idea – Contd…
• The following steps are involved in searching and
selecting business idea:
1) Creating business ideas.
2) Study and process the ideas.
3) Select the best idea.
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation OR
Search for a new business Idea – Contd…
• One of the best ways to generate a consistent flow of
new ideas is to approach it from as many different angles
it can be thought of.
• Searching a business idea starts from mastering the
process of idea generation itself.
• There are several ways which can be helpful in
discovering the business idea.
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Generation OR
Search for a new business Idea – Contd…
• 1) Examine Your Own Skill Set for Business Ideas
• 2) Identify Underserved Needs
• 3) Invent a New Product or Service
• 4) Add Value to an Existing Product
• 5) Look at your past jobs and analyze what you liked/did
not like in your role.
• 6) Investigate Other Markets
• 7) Ask your friends, family and co-workers
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection
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IDEA TO BUSINESS MODEL (KOE-060)
Idea Selection
• Choosing the right business idea to start is challenging for
beginners.
• When working on your business idea, you must weigh
various factors during the decision-making process.
• This decision can have a significant impact on the future
performance of your organization, and the best option
depends on several components such as budget, time,
profitability and scalability.
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection – Contd…
• 1. Brainstorm various ideas
• 2. Make a business plan
• 3. Look out for funds
• 4. Analyze market demand
• 5. Test your business idea
• 6. Prioritize scalability
• 7. Consider profitability
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection – Contd…
• Whatever business idea you choose to pursue, it’s
important to prepare a business plan outlining your
objectives and how you wish to achieve them.
• A business plan compels you to evaluate the validity of
your business idea, increasing your chances of success.
• The nature of your business idea is, in fact, the most
critical aspect of entrepreneurship.
• You must take the time necessary to ensure that your
chosen business idea is the best.
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection – Contd…
• Product is a bundle of satisfaction.
• Product is anything that can be offered to a market for
attention, acquisition, use or consumption that might
satisfy a need or want.
• Service is a activity, benefit or satisfaction offered for sale
that is essentially intangible.
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection – Contd…
• The terms included in product selection:-
• 1) Material
• 2) Shape
• 3) Color
• 4) Price
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IDEA TO BUSINESS MODEL (KOE-060)
Idea or Product Selection – Contd…
• Criteria for product selection:-
• 1) Demand & Supply
• 2) Consumption of Product
• 3) Nature of use
• 4) Product Characteristics
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IDEA TO BUSINESS MODEL (KOE-060)
