Requirement number Three. Do the following:
- a. Write down as many ideas as you can think of for a business. Get ideas from your family and friends. From your list, select three ideas that you believe are the best opportunities for you.
- b. Explain to your counselor why you chose these three ideas rather than the others on your list.
- c. For each of the three ideas that you chose, prepare a list of questions that you would ask potential customers.
- d. For each of your three ideas, informally interview potential customers, using the lists of questions from requirement 3c. Report what you learn.
- e. Using the information you have gathered, choose the one idea that you feel is your best business opportunity.
Here are some ideas and suggestions for you
1. Do the following:
a. Write down as many ideas as you can think of for a business. Get ideas from your family and friends. From your list, select three ideas that you believe are the best opportunities for you.
When choosing a business idea pick an idea that interest you. You may have special skills such as working on bicycles or motorbikes. Also consider something that nobody else is doing but there is a need for it. Some of the best business ideas started from an invention.
If you invent a product you could go into business in several different ways. You could manufacture a tangible good or (product) and sell it to stores. Tangibility means that you can see, taste, or feel a product. The clothes you are wearing are tangible goods. Doing business in tangible products requires more capital (money) to get started. One consideration of tangible products is that they may require more space for production and storage.
Another type of business opportunity is to add value to a product (where you take a product that is not complete and finish the product or make it valuable). An example is a machine shop that takes pieces of metal and makes them into washers that will be used in another product.
There are other options for business known as services. Services are intangible which means that they cannot be seen, touched, tasted, or smelled. A good example of a service is automotive insurance. Your parents pay money every month to the insurance company and get nothing for it. That is the way it looks like from the outside, but if your parents wreck the car the insurance company will pay to fix the car. You cannot inventory the insurance that is provided or see it, but as soon as the car was wrecked the service will be performed. Service businesses are less expensive to start in some cases because they only require office space to perform them. Or in the case of insurance a large amount of money incase the company has to pay a claim.
Some possible businesses:
Manufacturing -build product or add to some product. Required items- tools, machinery, space, raw materials (raw materials are the basic materials that become the finished product).
Landscaping service -mowing lawns, trimming bushes, taking care of yards. Required items-lawn mower, hedge clippers, edger, and other yard working equipment.
Bicycle repair-repair and maintain bicycles. Required items- various assortments of hand tools.
Baby-sitting service-take care of kids while parents go out. Required items-none.
Pet sitting service -take care of pets when owners go out of town. Required Items- none.
House sitting service-take care of house when owners go out of town. Get mail, newspaper, and water plants. Required items- none.
Swimming pool maintenance-take care of swimming pool for owners, set and maintain chemical level in pool, clean out leaves and other debris. Required items-use customers chemicals or supply your own.
b. Explain to your counselor why you chose these three ideas rather than the others on your list.
Reasons for choosing ideas include:
- Special skills that you have.
- You have the equipment required for the business.
- There is no other business providing the good or service.
- You really enjoy doing the idea that you chose.
c. For each of the three ideas that you chose, prepare a list of questions that you would ask potential customers.
List of questions that could be asked of potential customers:
- Do you need this product?
- How are you currently doing without this good or service?
- Are you using a substitute for this good or service?
- Where do you get the substitute product?
- How would you change the substitute product to better fit your needs?
- How much would you pay for the good or service?
- What needs to be improved with good or service?
- How long do you expect the product to last?
d. For each of your three ideas, informally interview potential customers, using the lists of questions from requirement 3c. Report what you learn.
Take notes when interviewing so you can report what you find out. You may decide to tape record the interview so you can get all the information.
e. Using the information you have gathered, choose the one idea that you feel is your best business opportunity.
For your choice of business you should chose the one that you feel could make money and not lose money. By building a good business plan you can determine if the idea will make money. Just because the idea is something you like or are good at does not mean you will make a profit. After developing a business plan you may decide to choose a different idea from your list.
