Lesson 5: Business Ideation

• Factors to consider of a new entrepreneur

  1. know your product or service
  2. analyze the market potentials
  3. determine the marketing strategy
  4. know the competitors
  5. do not set on your laurels
• Sources of ideas for entrepreneurial ventures

  • product
  • process of production and distribution
  • person
  • relationships
• Methods for generating or testing new ideas

  1. logical thinking
  2. creative thinking
  3. business environment
• Logical thinking


  refers to a systematic and rational way of providing an answer to a question. it follows steps in responding to an inquiry. it is rational because it adheres to the rules of logic in connecting the relationships of variables and in making conclusions
• Methods of logical thinking

  • statistical analysis - analysis that generates from survey of individuals
  • market analysis - analysis of factors that may affect the demand of a particular product
  • delphi technique - generates ideas from a select group of individuals using various rounds of consultations or sessions
• Creative thinking


  creativity refers to thought process that do not follow systematic or analytical procedures. It connects ideas and reprocesses them to formulate new ideas. It puts emphasis on the role of imagination and inspiration
• methods of creative thinking

  • brainstorming - unstructured discussion of a group to elicit ideas. Entertaining all ideas.
  • Problem inventory analysis - discusses within a group but directed to identifying all possible problems encountered with a specific product or service.
  • Checklist method - listing all possibilities that ideas can be connected to, reprocesses, and associated with and all possible changes that can be made for a product or service.
• Business environment


  entrepreneurs can get business ideas from the bargaining powers of its competitors and suppliers, major shifts in government involvement in business, sociodemographic changes, as well as technologuical developments
• methods of business environment

  • Porter's Five Forces of competition - methods that analyzes competitive intensity and attractiveness of an industry in terms of its profitability.
  • SWOT analysis - strengths, weaknesses, opportunities, threats.
  • Environmental Scanning - gathering info and events and their relationships within an organizations internal and external environment