Page 96 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 7: Building the Business Plan

Notes
Figure 7.1: Business Planning Process
Preliminary Investigation

Idea Generation

Environmental Scanning

Feasibility Analysis

Project Report Preparation

Evaluation Control and Review

Source: Lall Madhurima (2009), Entrepreneurship and Business Plan, Excel Books Pvt. Ltd.

7.3.2 Idea Generation

Entrepreneurship is not just limited to innovation (generation of an entirely new concept,
product or service, but it also encompasses incremental value addition to the concept/product/
services offered to the consumer, shareholder and employee).

!
Caution Value addition is the key word that an entrepreneur needs to keep in mind while
generating new ideas even at the inception stage.
Idea generation is the first stage of business planning process. This step differentiates between
an entrepreneur and a businessman. An entrepreneur is a highly creative person who gets an
innovative idea about a product or service that could be brought into the market. Let us make it
very clear again at this stage, that it is not necessary to have an idea which is entirely new; even
value added to the new products in the market is included in the innovative products/services.
Idea generation is the first stage of business planning process. It involves generation of new
concepts, ideas, products or services to satisfy the existing demands, latent demands and future
demands of the market. The various sources of new ideas are:

1. Consumers/Customers
2. Existing Companies
3. Research and Development
4. Employees

5. Dealers, retailers
The various methods of generating new ideas are:
1. Brainstorming, Reverse Brainstorming and Brain Writing
2. Group discussion

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