Small Business ch. 4

Pitfalls

-Identifying wrong problem -Judging ideas too quickly -Stopping with the first good idea -Failing to get support -Obeying rules that don't exist

Source of Business ideas

-Work experience: using own personal and work experiences to improve upon standard processes -A similar business: finding ways to expand upon existing businesses -Hobby or personal interest: using prior passions and adapting them to running a business -Chance happening or Serendipity: right place at the right time/being observant -Family and Friends -Education and Expertise: utilizing own skills or calling a consultant -Idea websites -Technology Transferring and Licensing

creativity

A process producing an idea or opportunity that is novel and useful, frequently derived from making connections among distinct ideas or opportunities

feasibility

Extent to which an idea is viable and realistic and the extent to which you are aware of internal and external forces that could affect your business

Licensee

Person or firm which is obtaining rights to use a particular piece of intellectual property

entrepreneurial alertness

Special set of observational and thinking skills that help entrepreneurs identify good opportunities; ability to intuitively notice things that have been overlooked

?s for Screening Ideas

What is product/idea and how is it better? What is the target market? How does it create value? Can the idea be protected? What resources are behind it and what are needed? Can the idea generate profit?

imitative strategy

doing more or less what others are already doing

conversion rate

measure of how many visitors to your web site actually make a purchase

royalty

payment to a licensor based on the number or value of licensed items sold

licensor

person or organization which is offering the rights to use a particular piece of intellectual property

pilot test

preliminary run of a business, sales effort, program, or web site with the goal of assessing how well the overall approach works

radical innovation strategy

rejecting existing ideas, and presenting a way to do things differently (adapting)

opportunity recognition

searching and capturing new ideas that lead to business opportunities. often involves creative thinking that leads to discovery of new and useful ideas

incremental

taking an idea and offering a way to do something slightly better