• BLUE STAGE: Look. Generate as many ideas as possible. Quantity not quality. Suspend judgement at this stage.

• RED STAGE: Stop. Consider the ideas you’ve generated as potential business ideas. Investigate those with most potential.

• GREEN STAGE: Go. If you identify an idea with market potential, which matches well with your skills you may have found a winner. You need to know the following:

If you find an idea which looks promising you should ask yourself:

If you do decide to proceed make sure you’re properly prepared. Your chances of success will be

greatly improved if:

- You prepare a good business plan.

- You are tuned in to your customers’ needs.

- You have clear objectives and targets.

- You undergo some training in basic management skills.

- You have adequate access to resources and funds.

- You are committed to quality and continuous improvement.

Finally RECORD your ideas. Keep an IDEAS NOTEBOOK and keep a record of any interesting ideas which occur to you. You never know when an idea may prove useful.

1.1 Why do you need innovative ideas?

Idea is central to any business.

If your business isn’t different how will it compete?

Innovation arouses curiosity. Curiosity is the first step in selling.

1.2 What is innovation?

Many of the best innovations in business come from the simplest ideas. Use the

following prompt words to look at how you might improve an existing business:

• What? Offer a new or different product / service.
• Who? Adapting product service to meet needs of new target group.
• Where? Markets in new locations. What is common at home may be new abroad.
• When? Consider peoples needs in terms of time. e.g. Late night laundry.
• How? How product is made / service provided. Materials, process, sales methods.

1.3 How to be innovative.

• Develop your ability to think and look creatively.
• Develop your awareness and sensitivity to the market.
• Learn to look for buying motives.
• Learn to identify your own unique combination of skills.
• Acquire new and unusual interests.
• Get to know interesting people.
• Every unsatisfied complaint is an opportunity.
• Learn to critically evaluate your ideas. (is it - interesting - innovative - commercial - practical - what I want to do?)

Recent research indicates that only 5% of adults over the age of 20 years consider themselves to be‘creative’. Between the ages of 5 and 10 years 95% of children exhibit a strong tendency towards creativity. So what happens between the ages of 10 and 20 to stifle this aspect of our mental processes? Do any of the following sound familiar:

- "Don’t ask foolish questions".

- "Stop daydreaming".

- "You’re too old to be playing games".

- "If you have nothing sensible to say, don’t say anything".

- "If it’s not broken it doesn’t need fixing".

- "Don’t re-invent the wheel".

- "That’s not how it’s done"-

- "Jack of all trades, master of none".

From the ages of 10 to 18 education tends to concentrate on the absorption of information and on the development of memory skills. Imagination is often stifled in order to improve concentration skills. In effect we learn to ‘blinker’ ourselves. If the above statements seem familiar, think again about each of them for a moment. How valid are these statements?

Isn’t it time to remove those blinkers?

2.1 How Creative are you?

Are you a curious person?

Do you challenge things?

Are you an opportunist?

Can you spot trends?

Are you a risk taker?

Are you intuitive?

Are you an adaptor?

Do you see or predict things before others?

Are you resourceful?

Do you have confidence in your ideas?

Negative attitude.

Fear of failure.

The logic trap.

Following the rules.

Assumptions and stereotypes.

Fear of appearing stupid.

Having a closed mind or attitude.

Believing "I’m not creative".

THE BRAIN

Left Side Right Side

Logic Intuition

Sequential Visual

Verbal Spatial

Linear Creative

Analytical Artistic

Rational Humorous

Being innovative is about being different.

Challenging established way

Taking a new approach

Taking a different perspective

Making different connections.

HELP and HINDER list.

HINDERS

Looking for the right answer.

Approach problem solving as a serious business .

Avoid mistakes as far as possible.

If you’re stuck try harder.

Ask advice from "experts".

Dismiss your silly ideas.

Discuss ideas only with people who will are likely to agree with you.

Keep quiet when you don’t understand something.

Follow the motto "if it isn’t broken it doesn’t need mending".

Have no recording system for ideas that come to you.

HELPS

Looking for possible right answers

Enjoy problem solving play with idea

Accept mistakes as a normal part of the creative process.

If you’re stuck take a break.

Seek information from a variety of sources.

Use your sense of humour .

Get someone to act as Devils Advocate.

Risk asking stupid questions.

Continually look for new ways to improve existing products/ services/ systems.

Keep an Ideas Notebook.

Use Lateral thinking. - Try to connect seemingly disconnected ideas.

Quantity rather than Quality.

Suspend judgement.

Write down your ideas.

A useful method of stimulating creativity and recording ideas.

1. Write down the central idea in the middle of a large piece of paper.

2. From this central point begin exploring thoughts. (Write down everything you think of).

3. If you get stuck take one of those thoughts and try to explore it further.

4. Try to link up connected ideas.

5. give yourself about seven minutes to write down everything you can think of.

6. Include seemingly foolish ideas.

7. At the end highlight the actions you need to take or ideas you want to mind map further.

Use Prompt words to find new uses for existing products.

SCAMPER PROMPT LIST.

Prompt Word

Pick an existing Product or service concept (e.g. Cleaning)

WHO? Who might use it?

WHAT? What might it be used on or with? (e.g. Cars, high ceilings, light fittings.)

WHY? Why would people use the product service?

WHERE? Where might it be of use?

WHEN? When might it be used? (e.g. After moving house, spring cleaning)

HOW? How might it be supplied? (e.g. use ecological cleaning products, safety).

Use the Six prompt questions to develop a mind map around an idea.

Imagine how someone else might tackle a given situation or problem.

If you were .............. What do you think you would do?

Taking a different perspective can lead to ideas.

Put together two concepts which have nothing in common. Try to force a connection

between the two.

This method is much used by advertisers and product development companies.

Used when adapting or developing an existing product. Consider the product under the

following headings. Consider possible alternatives.

Exercise 7. Brainstorming

There are great benefits in working with others in helping you to generate ideas.

Brainstorming developed by Alex Osborne.

Basic Steps:

1. Define a problem / concern / need / resource.

2. Form a group of 4 or so. Nominate one person to write down ideas.

3. All ideas must be accepted with no evaluation or comment.

4. The crazier the idea the better.

5. Listen to others and build on their ideas.

6. Have fun, but stay focused on the main problem.

No more than five minutes at a time!!

2.4 Keeping your eyes open.

PEOPLE

Watch People. What do they do? Why do they do it?

Talk to people? Involve them in your search for ideas.

Ask them if:

• they can think of any service / product they need or want.
• there is anything that currently irritates or dissatisfies them.
• they have ideas you could use.
• there are products they would like but can’t get.
• there are products / services they have seen abroad but can’t get here.
• there are products / services available here but not abroad.
• If you have family or friends living abroad ask them to send you local newspapers/magazines.

Look out for people with special needs, interests, hobbies.

PLACES

If you travel abroad or away from your locality look out for:

• What people eat and drink.
• What people wear.
• What products are stocked in supermarkets.
• Any different or exciting shops, restaurants, leisure or entertainment
• facilities.
• Any difference in peoples lifestyles.
• Any new service ideas.
• Magazines, newspapers, directories. Anything different.
• Look up local trade directories for unusual products / services.
• Look for products services which are NOT available.

PUBLICATIONS

Read or browse everything you can get hold of: Newspapers, magazines, books

directories, catalogues, small ads etc.

Look for :

• Articles featuring peoples complaints about products / services.
• Advertisements.
• Advance notice of events, construction projects, changes in the law.
• Browse foreign magazines and publications.
• Successful franchises.

TRENDS

Look out for things changing. If you notice a new business which seems to be creating a lot of interest do a MIND MAP around this business idea. See if you can spot related businessewhich follow a similar trend.

If you hear of a new business developing in an unusual market, ask yourself what their service and product needs are.

EVENTS

Major national or international events such as the World Cup, Olympics, Trade Exhibitions, Rock Concerts can create opportunities in your locality. (e.g. Roddy Doyle "THE VAN").

BREAK OUT OF OLD ROUTINES.

Breaking from your normal routine can help you too see familiar things in a fresh light.

• Break your travel routines. (Learn to take note of the things you see on theway).
• Break your reading routine. (Business and Trade Magazines in particular).
• Break your watching routine. (Programmes you wouldn’t normally watch,foreign stations etc.)
• Break your listening routine. (as above.)
• Break your "Living" routines. (Where you shop, eat, entertainment, exercise etc.)

Being creative is one thing; applying your ideas to a business can be quite another.

Combining Creativity with an awareness of the market.

For an idea to be successful it must:

• Meet or create a need.
• be something for which people will pay.
• Be capable of producing enough income to cover all costs and to give you sufficient profit for the effort involved.

The trick in business is to provide something that enough people want.

Marketing definition: Identifying or creating a consumer need and satisfying that need in a better manner than your competitors.

LOOK AROUND YOU!.................What NEEDS do you see?

• What are the needs of any particular "groups" you belong to? e.g. Swimmers, walkers,drivers, teachers, young mothers, cinema goers.
• What other groups do you know about? e.g. Tall people, drinkers, footballers, Apartment owners, Cat owners.

TRY THE FOLLOWING EXERCISE:

Pick one particular group e.g. CYCLISTS. Write down all the things you think cyclists may want.

List them under the following headings:

Want but doesn’t exist.

Seen but can’t find it?

Out of date or style.

Not easy to use.

Quality not good enough.

Too expensive.

• A Car, a Bike, a Camera, local Scenic Spots, a Garden, a Greenhouse.......your own resources and those of others around you can help spark off innovative ideas for business.

• List your own resources e.g. Garden, Computer, Spare room, particular knowledge about something.
• What resources might other people have that you could make use of? e.g. Waste materials, out of date stock, Church Hall, unused land, extra skills or experience.
• What about the resources in your locality? e.g. Local places of interest, Fishing facilities, local people with particular skills.

TRY THIS EXERCISE:

Lets take unwanted clothes as a resource for business.

How could you use these unwanted clothes as a resource for business?

• Combine with other things. Life size dolls, scarecrows, tents.
• Use as a substitute for. Kites, dust covers, cushion padding.
• Alter size, colour, shape. Dye and remodel. Trousers into shorts.
• Use to provide a service. Swop shop, fancy dress, rent a man.
• Use bits or parts. Dusters, buttons, zips, belts, laces.
• Use for other people. Children’s play kits, theatre costumes.
• Recycle or re-use. Rugs, patchwork quilts, cushion covers.
• Package differently. Sell big T-shirts as dresses, Shirts as night-dresses.

NOW TRY THIS EXERCISE WITH A RESOURCE OF YOUR OWN!

Learn to look at people and things around you as potential resources.

Everyone has skills and things they are good at, including yourself.

Many people use their skills, knowledge and talents to earn their living in a business of their own. e.g. Bakers, hairdressers, writers, mothers, gardeners, engineers, athletes, actors.

• List the things you are good at and enjoy. Include skills acquired from hobbies and interests as well as from work and education.
• List things you are interested in and feel you would enjoy learning.
• List unusual skills of people you know well.
• Could you combine your skills and talents with those of other people to set up an innovative business.

TRY THIS EXERCISE.

Lets take a skill which many people have....... the ability to speak more than one language,

Write down all the unusual or innovative things you could do with this skill.

NOTE: Use this as a brainstorming exercise.

1. PROVIDING A SERVICE:

• For Business: Language school, translation, Travel agency, Govt. Departments, Guide service, bi-lingual secretarial.
• For People: Courses for emigrants/ immigrants, translation, C.V.’s, Bookshop,
• Teaching.

1. MAKING THINGS:

• For Business: Adverts, Phrase books, handbooks on doing business abroad.
• For People: Language course books, Guide to living abroad, Children’s language, books, Phrase books.

NOW TRY TO GENERATE SOME IDEAS AROUND YOUR OWN SKILLS AND ABILITIES.

Many a good idea has come from spotting a solution to a problem.

What irritates, frustrates or causes you problems?

What irritates, frustrates or causes other people problems?

TRY THIS EXERCISE.

Take TRAFFIC JAMS as something that irritates or frustrates many people.

How would you solve this problem?

How would you take advantage of this problem?

• Shift the focus of attention. Entertain, Educate.
• Make it better. Stress reduction.
• Random word association.
• Outrageous suggestions.
• Make it unnecessary. Work from home.
• Reduce the problem. Smaller cars, park and ride.
• Substitute. Bike, Bus.
• Look at it from another point of view. Advertisers take advantage of traffic jams.

Summary

You now have a number of techniques to help you look for new business opportunities.

Remember:

• Successful business give people what they want.
• Resources can be used to develop innovative ideas for business.
• Your skills, knowledge and experience can mean business.
• Many problems are business opportunities in disguise.

An interesting idea does not always mean a good business idea. How can you assess whether your ideas mean business?

Before you begin looking for a business ASSESS YOURSELF. It is important that you are enthusiastic about your business. Assess your skills, your knowledge, and what you ENJOY doing.

But remember ! You are not running your business as a hobby. You are there to MAKE MONEY!

Do I WANT to do this?

• Is this idea something I would enjoy and want to work at?
• Do I like dealing with the sort of people who will be my customers.
• Is this idea more important to me than other ideas I have been working on?
• Am I prepared to work long hours doing this and give up other things which are
• important to me in order to succeed?
• Do I have the support of my family and friends?

If you are unsure that you can answer YES to the above questions. Think again!

There may be other businesses or Jobs to which you would be better suited.

• Who will buy your product / service?
• Why will they buy it?
• How much will they buy?
• What will they pay?
• Any competitors?
• How will they react?
• How will you attract customers?
• What will it cost to supply them?
• What other costs are involved in running the business?
• How many people will be needed to run the business?
• Will the business earn enough money to pay ALL running costs?
• Will it make a profit?
• Will I have enough CASH to pay my bills?
• What kind of Premises/ Plant/ Machinery will I need?
• How will I fund it initially?
• Are there any Special Requirements (e.g. Licenses, planning permission, health regulations etc.)

Use the checklist below:

1.Do I know my market? Who will my customers be?

Age, Sex, ethnic group, .....................................................

Profession, Occupation......................................................

Social Group, Class............................................................

Locality, region...................................................................

Specific requirements..........................................................

Purchasing regularity..........................................................

Other ( specify).....................................................................

2.How does my product/service compare with the competition?

Give three reasons why customers will buy your product rather than the

3.PRICE: Can I compete with the competition on price? Are my customers

prepared to pay my price? Am I charging enough?

4.What is the size of my market? Are there enough people out there willing to

buy my product/ service? How much are they willing to pay? Try to put a

figure on the number of customers you expect to have?

.......................................................................

5.Is the market likely to grow in the future? WHY?

................................................................

6.Could the product / service be adapted and sold to other customers /

markets?

................................................................

7.Can my idea be a viable business with a FUTURE?

................................................................

What factors influence your customers choice of product or service?

Do I Have the necessary SKILLS to:

• Produce the product or service.
• Sell the Product or service
• Manage the finances of the business.
• Manage my employees (if any).

Do I KNOW :

• Who my customers will be.
• What my customers want.
• Who my competitors will be.
• What my competitors are selling / planning to sell.
• My unique and defensible competitive advantage.
• Who my suppliers will be.
• The cost of supplying my customers.
• What Price I will need to charge.
• What sales I can expect to achieve.
• The Overhead costs of my business.
• The set-up costs of my business. (Premises, Equipment etc.)
• Is the cost of depreciation of equipment reflected in my prices?
• What staff I will require.
• What salaries I will need to pay.
• What responsibilities I will have as an Employer.
• What responsibilities I will have as a business owner.
• What funding I will need to set up the business.

Can I find the RESOURCES to:

• Cover pre-start up costs
• Purchase the necessary equipment/ premises/ raw materials
• Pay costs of promoting and advertising the product / service.
• Pay costs of storing and distributing / selling the product.
• Cover cash outflows caused by delays in receiving payments.

Can I REACH my customers?

• Do I know where my customers can buy a similar product at the moment?
• Do I know of any business with which my customer already deals?
• Have I met customers who have said they would buy from me?
• Do I know how to reach large numbers of my potential customers?
• Can I handle my own distribution?
• Will I need to contract to an outside firm?
• Can I use distribution networks of another firm?
• Do I know of any distributors or agents in my area?

There are a number of ways in which you can carry out research into the market yourself.

• Conduct your own Surveys (Phone, post or interview).
• Libraries.
• Work Contacts.
• Company Data.
• Statistics.
• Information on Market Trends,
• Trade Offices.
• Suppliers and distributors.
• Trade and Professional organisations.
• Potential customers.
• Specialist Journals and Directories.
• Product Data.
• Trade Fairs or Exhibitions.
• Try the product with a sample of Customers.
• Local Community.
• Look at your Potential competitors.

KNOW YOUR PRODUCT, KNOW YOUR COMPETITION.

You must have a clear understanding of your product in order to present it as

precisely as possible.

List the FEATURES of your Product and list the BENEFITS you believe these

represent to your customer. Do the same with your competitors product.

• You are not selling a lamp, but Light/ Decoration/ Atmosphere.
• You are not selling an Armchair, but Comfort/ Decor/ Orthopaedic etc.
• You are not selling cosmetics, but Beauty/ Hope.

Compare your product with your Competitors and define your UNIQUE COMPETITIVE ADVANTAGE.

You need detailed information on the SIZE, CHARACTERISTICS and COMPETITION in your intended market.

Who is your intended customer? ........... Men / Women / Rich / Poor / Old / Young /

Living where/ Particular interests / Income / Job etc.

Once you have defined the characteristics of your intended customer you will need to seek

out some Quantitative information, in order to estimate the Size of your market. The

question you need to answer is:

WILL I HAVE ENOUGH CUSTOMERS?

TEST YOUR IDEA.

Its important to test your idea on a sample of people from your potential customer group

in order to get concrete information on:

Whether they use a product / service such as yours

What they think of it.

The benefits they expect / would like.

The Price they would be prepared to pay for the benefits YOU would offer.

QUESTIONNAIRES and SURVEYS.

Think of the answers you will need and formulate appropriate questions.

Keep questions simple, unambiguous, and to the point.

Avoid Leading Questions e.g. Wouldn’t you like...........

LISTEN and do not try to impose your opinion on the subject.

Avoid asking people who would be likely to try and please you.

Have your questionnaire reviewed by a couple of people to ensure it is

appropriate and complete.

REMEMBER you are not looking for AGREEMENT you are looking for

ACCURATE INFORMATION.

SAMPLE QUESTIONNAIRE.

1.Does this Product / Service meet a real need you have? If YES, what Need?

.......................................................................................................................

2.What do you see as the particular benefits of this Product / Service?

.......................................................................................................................

3.Does the Product / Service appeal to you more than other competitive ones?

If Yes, in what way.........................................................................................

If No, why not. Which alternatives do you prefer?.......................................

4.Do you believe the product / service has the benefits it claims to have..........

5.If the Price was right would you buy it?.........................................................

If Yes, why?....................................................................................................

If No, why not?...............................................................................................

6.Who in your family would use this product / service?.....................................

7.How frequently would you buy the Product / Service?....................................

8.What Price range would you be prepared to pay it?.......................................

9.Would you replace your current Product / Service with this one? If NO, why

not....................................................................................................................

10.What improvements to the features / benefits would you suggest?

..........................................................................................................................

SUMMARY

You now know how to assess whether:

The business idea is FOR YOU.

Your idea MEANS BUSINESS.

There is a MARKET for your business idea.

You can SATISFY the customer.

You can get your Product TO your customer.

Your targeted customer will actually BUY.

FORTY WAYS TO DEVELOP A BUSINESS IDEA.

• Buy an existing business.
• Buy a franchise.
• Franchise your own business.
• Identify other aspects of your own business.
• Identify opportunities arising from your current business
• Take advantage of the Market.
• Take advantage of a market switch.
• Capitalise on a Growing Trend.
• Identify new fashions or fads.
• Identify market gaps or shortages.
• Imitate a successful product or idea.
• Find a good product that has failed.
• Transfer a concept from one industry to another.
• Invent a new product or service.
• Create a market demand.
• Serve unique client groups.
• Take advantage of circumstances.
• Find people with under-used skills.

• Locate a Patent opportunity.
• Manufacture and market under license.
• Improve an existing product or service.
• Assemble a product.
• Become a supplier.
• Replace imports.
• Cater to discarded markets.
• Target a small part of a large market.
• Add value to existing markets.
• Substitute materials in existing products.
• Find uses for waste materials.
• Combine components.
• Package or unpackage existing products.
• Become an Agent or Distributor.
• Become an Agent.
• Become a Distributor.
• Become an import distributor or agent.
• Become an export distributor.
• Market someone else’s product.
• Expand Market Areas.

• Offer discount goods for resale.
• Plan and promote events.
• Provide a consultation or information service.

40 SOURCES OF INFORMATION

20 STEPS to EVALUATE your IDEA.

1. Create a profile of your potential customer.
2. List the Features / Benefits of your product or service.
3. Define the Geographic Area in which you intend to operate.
4. List the competitors currently selling to this geographic area.
5. How do you compare to these competitors in terms of product, service, price etc.?
6. Estimate what price you can charge and still remain competitive.
7. Why would customers buy from you instead of your competitors?
8. List and briefly describe trends in your market or industry.
9. Is the market growing, at its peak or declining?
10. How will you let customers know you exist?
11. Estimate sales by week, by month and by year for the first two years.
12. List any legal, health, safety or special requirements for your business.
13. Briefly describe your manufacturing or purchasing process.
14. Briefly describe your fulfilment process.
15. Estimate the capacity of your operation in the first year.
16. Make a list of your potential suppliers.
17. Make a list of resources you will require to start your business.
18. Determine what resources you will finance, lease or rent.
19. List your businesses strengths and weaknesses.
20. Prepare a monthly cash flow forecast for your first year of operation.