Business ideaNew ventures are said to be firms, which newly built, or those, which have been in existence for less than ten years. To start a new venture one needs a unique idea and the concept that can help to meet the needs of the society in a certain way. One is required to establish the sources of the new idea (Allen, 2011). The new idea can be derived from sources such as the consumers, existing firms, the government, distribution channels, research and development and current trends and demands in the market (Hanusch and Pyka, 2007).
The analysis and study of each of these sources in detail can enable an entrepreneur come up with a unique idea for building a new venture. Various techniques can be utilized in generation of new entrepreneurial ideas (Hill and Jones, 2009). Some of the techniques that can be employed include focus groups, brainstorming, checklist method, and problem inventory analysis. Various analyses such as big dream approach needs to be undertaken prior to deciding to set up a new venture. Once a final decision has been made about the unique idea to be pursued, product planning and development process is undertaken (Longenecker, 2008).
This enables the entrepreneur to understand the product lifecycle and to define product evaluation criteria. This is then followed by the launch and implementation of the product in the market. If the launching and implementation process is successful, the entrepreneur needs to carry out market test (Allen, 2011). This entails internal tests and analysis prior to product commercialization (Hill and Jones, 2009). This ensures that the product is able to meet the needs or wants of a customer; the new business is able to attract customers to the proposed product and that the business can retain customers who buy from it.
Depending on the results of the market tests, the entrepreneur needs to undertake product-marketing activities including product promotion to capture the target audience (Hanusch and Pyka, 2007). This stage marks the beginning of a long process of growth and development in which the firm/product will go through different stages of life cycle. The entrepreneurAn entrepreneur is a person who is willing to undertake all risks and efforts involved in creating and starting new venture (Longenecker, 2008).
An entrepreneur is an individual who works within a firm in an entrepreneurial capacity and he/she is involved in the creation of innovative new products and processes for the firm (Hanusch and Pyka, 2007). An entrepreneur is usually in possession of a new idea or venture and is accountable for any risks that are inherent and outcomes. They usually take risks and capitalize on opportunity (Hill and Jones, 2009). Entrepreneurs are usually involved in identification of opportunity, assembling the required resources, implementing a practical action plan and harvesting the rewards in a timely and flexible way.
Entrepreneurs are active seekers as they are active in grasping opportunities. They take initiatives of making things happen (Allen, 2011). They are also involved in creatively solving problems. In addition, entrepreneurs are known to manage autonomously and take responsibility and ownership (Leach and Melicher, 2011). Furthermore, entrepreneurs see things through and effectively network to help them manage interdependence. They also put things together creatively and use judgment to take calculated risks.