Importance Of Idea Generation

Innovative ideas are the core factor of entrepreneurship. Every entrepreneur derives these ideas from various sources. Idea generation for an entrepreneur means discovering a business idea or developing an idea into a feasible business concept. Such an idea can be a plan, proposal, suggestion, opinion or belief. A well informed entrepreneur gets better chances of identifying the upcoming opportunities.

Idea Generation is ; The process of creating, developing, and communicating ideas which are abstract, concrete, or visual. The process includes the process of constructing through the idea, innovating the concept, developing the process, and bringing the concept to reality.

Source: http://www.businessdictionary.com/definition/idea-generation.html#ixzz3REb6Uvtq

Methods of idea generation : Even with a wide variety of sources of new ideas, an entrepreneur can choose the following methods of idea generation;

• Focus groups : it is a group of individuals who possess a thorough information of the concept of the idea. They present this information in a structured format. The product idea is creatively conceptualized as per the market need. It also helps in screening the idea.

• Brainstorming : a method of obtaining new ideas and potential solutions. It is a group method whereby like mind people participate in the discussion and give their inputs. There may be constructive criticism at times but no domination and inhibitions. This method has a good success rate when the efforts are focused on specific product or market area.

• Problem inventory analysis : this method is comparable in certain respects with that of the focus group. The aim is to generate new ideas. Consumer opinion is seeked by providing them a list of problems generally experienced and asked to identify and discuss products in this category that have the particular problem. Thus it helps to arrive at a new product

Identifying and gaining new customers is a challenge faced. Many businesses fail during this stage. Usually resources are limited and funding is done from personal finances. The budget should be realistic and the processes and systems should be intact.

Stage II : Survival : This is a stage where a business turns into a workable entity. The key concern thus shifts from survival to sustainance. Fund management is managed to seek break even. Though the number of employees may be limited but reporting system is well defined.

Stage III : Success : At this stage the company attains financial, market and product stability. It earns average and above profits. The business owner needs to take decision whether to go for expansion or to maintain status quo and provide a base for alternative owner activities. The company can remain in this stage for a long period except for any environmental changes.

Stage IV : Take off : The company faces a challenge of rapid growth and financing that growth. The business acquires a form of a formal organization The operational and strategic planning is done by specific