Search for prospective business idea
Searching for prospective business ideas Promotional activities commence with the search for prospective business ideas or opportunities. The promoter is required to employ his imagination and foresight in preparing list of business ideas. Business idea may come to his mind at his own or he may depend on various sources like success stories of other entrepreneurs, excess demand for any product, producing import substitute product, study of project reports assistance from governmental agencies, visit to trade fairs etc.
The idea should be sound and
practicable and may relate to starting a new business or takeover of an existing enterprise. The idea must be viable
and should ensure adequate return on investment. The business idea may originate from the following sources.
(i) Market Observation- Relevant knowledge, about various products, can be obtained with the help of market surveys. Based on the information collected, an assessment
can be made about the Demand-Supply positions of different products. After knowing about anticipated future demand provision can be made about the possible changes in the prices, fashion, income levels, competition, technology etc. Expert advice of salesmen, dealers, advertising agencies and commercial consultants may be considered while anticipating demand of the products. From the information so collected a prospective promoter can find out the products which are more in demand and hence profitable.
(ii) Consumers Survey- The success or failure of any venture depends upon prospective consumers. Through consumers surveys detailed information regarding tastes,
fashions, liking, disliking, when they will buy, where they will buy, from, at what price they will buy etc is collected.
Thus a product can be devised in such a manner so that it fits exactly into the requirements of the prospective buyers.
Even test marketing can be conducted to know about the consumers response. It can help us in knowing about the product short-comings, which can be removed before launching the product in the market on a large scale. Initially a company should concentrate on a product or two and the range can be extended depending upon consumers response.
(iii) Keeping Track of the developments- A prospective entrepreneur must keep his eyes and ears open.
He should keep in touch with whatever is happening around especially concerning business ideas, new products, changes in technology etc. In order to be successful he must acquire whatever best that is available from anywhere. Sometimes useful business ideas can be discovered by keeping in touch with the developments taking place in developed countries.
Foreign collaborations can also help potential entrepreneurs in selecting the right type of product. Entrepreneurs can also visit various Trade fairs, exhibitions etc. for getting useful information. The Trade Fair Authority of India is the apex agency for organisation and control of trade fairs and exhibitions in India and abroad. It organises on a regular
basis, trade/industrial fairs wherein it provides opportunities for:
(i) Assessing the market trends in terms of demand potential and type of products required.
(ii)Providing a plate form for the meeting of large number of buyers from different states/countries.
(iii) Assessing the attitude of competitors in a particular product or marketing area.
(iv) Comparing the quality and price of competing products.
(v) Establishing personal contacts with dealers/ importers/customers.
(vi) Promoting new ideas for increasing sales in the country and abroad.
(iv) Scrutinising Project Profiles- Various agencies, both government and private provide profiles of various
projects and industries.
Through these profiles a prospective entrepreneur can make assessment of the technical, financial, managerial and market requirements of various projects. After an in depth scrutiny of the same he can pick up the project
which will be more suitable for him.
Assistance from various experts can be taken for arriving at the right decision.