REASONS FOR GENERATING BUSINESS IDEAS

 A business idea is the response of a person or an organization to meeting perceived needs or to solving an identified problem in the environment.

REASONS FOR GENERATING BUSINESS IDEAS

1. Need for an idea.

A good idea is essential for a successful business venture, both when starting a business and to stay competitive afterwards.

2. To respond to market needs

A business can be successful if it provides new products or services or manages to reach a new group of clients or finds a new channel to reach the customers better.

3. To respond to natural threats and scarcities.

New innovative business ideas in water harvesting, irrigation, weather forecasts, improved farming practices, insurance and finance help a business (farmer) adapt to changes in the natural environment.

4. To change fashions and requirements

This helps the entrepreneur to respond to demand with new ideas, products and services.

5. To stay ahead of competition.

An entrepreneur needs to cope up with new ideas, products and services so as to outcompete his or her rivals/competitors.

6. To exploit technology to do things better.

Technology is a major competitive tool in today’s markets. Therefore for a firm to be innovative, generation of business ideas is crucial.

7. To respond to the product life cycle.

As the product life cycle chart indicates, even new products eventually become obsolete (out modeled). Therefore there is need to plan for new products and their growth with necessitate generation of business ideas.

8. To spread risk and allow for failure.

Some new products may fail. Therefore it is necessary for firms to try to spread their risk and allow for failures that may occur from time to time by constantly generating new ideas.

9. To give help to specific groups of people.

Help can be given to the elderly, disadvantages and those with disabilities. New fields in tourism are emerging, accessible tourism for older and disabled travelers, eco-tourism for those who want to protect the environment, e.t.c.

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