Product Identification

What is the first sign that specifies that a person possesses entrepreneurial talent?

The first sign that specifies that a person possesses entrepreneurial talent is the ability to spot or identify an entrepreneurial opportunity or idea.

Which qualities set an entrepreneur much ahead of others?

While most of the persons are good at just perceiving the ideas, the entrepreneur is good at perceiving the ideas backed by appropriate action to convert those ideas into potential business opportunities. This sets the entrepreneur way ahead of others.

Which personality traits drive an entrepreneur to convert spotted opportunities into commercially feasible opportunities?

The following personality traits drive an entrepreneur to convert spotted opportunities into profitable business ventures.

  1. Talent: He/She should have minimum levels of innovative and creative skills and should be able to perceive a long term futuristic vision which help him to gauge future prospects of the idea.
  2. Temperament: Temperament helps the entrepreneur to implement the identified idea into a profitable project. Temperament is exhibited through
    1. determination
    2. boldness to take action
    3. enthusiasm
    4. zeal to carry out the proposed mission
    5. Any other qualities that put him into action to convert the idea into venture.
  3. Technique: He/She should have/know various techniques to manage various resources like money, men, material, machines and more importantly time

Why should the entrepreneur be very careful while generating the ideas?

The entrepreneur should be very careful while generating the ideas because the implementation of the idea without a detailed investigation, without consulting the experts, could result in losses.

What is investigation of ideas?

Investigation of ideas is a series of activities performed to gauge the potential of the idea to convert it into economically viable opportunity.

Why should an entrepreneur consider the investigation of the idea?

After idea generation it is essential for the entrepreneur to consider the investigation of the idea to gauge its economic viability. Directly jumping into implementation after generating the idea could result in a failed venture. So investigation of the idea is critical.

Which factors play a key role in deciding the price of a product or service?

Unit cost of a product for a particular operation and whether this cost is comparable with similar unit cost of the product for this operation will determine the sales price of the product.

Define annual turnover.

The total sales of a product or service in a year is defined as the annual turnover of the company.

Define market assessment.

The study of various critical aspects like quality of the product, supply sources and delivery mechanism is considered as the market assessment.

Define feasibility report.

Feasilbility report is the report prepared considering all the key factors that contribute to the entrepreneurial success of the product or service under consideration.

Give an account of talent, temparament and technique contribute to the entrepreneurial process.

  1. Talent: He/She should have minimum levels of innovative and creative skills and should be able to perceive a long term futuristic vision which help him to gauge future prospects of the idea.
  2. Temperament: Temperament helps the entrepreneur to implement the identified idea into a profitable project. Temperament is exhibited through
    1. determination
    2. boldness to take action
    3. enthusiasm
    4. zeal to carry out the proposed mission
    5. Any other qualities that put him into action to convert the idea into venture.
  3. Technique: He/She should have/know various techniques to manage various resources like money, men, material, machines and more importantly time

What are all the factors that play key role in testing an idea.

The following are the factors that play a key role in the testing of an idea.

  1. Product or service identification.
  2. Application and usages
  3. Scale of operation
  4. Cost involved
  5. Level of competition
  6. Technological challenges
  7. Profitability and annual turnover.

What role does the market supply play on the business idea?

Market supply refers to the comprehensive details of the total quantity of the product made available in the market by all existing competitors. Along with the current players, we should take into account the future players that are likely to etner the market. If the product or service is seasonal, it is usual practice that the supply will increase during the season. These kind of fluctuations should also be taken into consideration. All these existing players are competitors to the entrepreneur. So, the entrepreneur should pay special and deep attention to their current manufacturing capacity, fluctuation in the supply from them, the financial standing, the good will of their product or service.
For example, when an entrepreneur wants to start a garment industry, they should thoroughly investigate all the existing brands available in the market, the manufacturing capacity, their popularity in the market, the increase in the demand during the festive season, holidays, seasonal changes etc.

What is the impact of market on the entrepreneurship business idea?

The market will influence the business idea in the following ways:

  1. Demand: There should be demand for the product. The demand usually depends on the size of the market in which the product is being launched. Demand assessment also requires the study of the target consumers of the product or service, their preferences and any other parameters that are likely to impact the demand for the product.
  2. Market supply and nature of competition: The entrepreneur should calculate the total supply of the product, the current competitors, future competitors, fluctuations in the supply to meet the corresponding fluctuations in demand, financial standard of the competitors, their goodwill in the market etc. All these factors should be deeply studied.
  3. Cost and Price: Unit cost of the product for a given operation play a critical role while identifying the product and also in determining the price. The cost born by the competitors interms of transportation delays, wastage, maintenance of inventory should be studied to take advantage of these factors and present a competitive price.
  4. Product Innovation and changes: The entrepreneur should study the innovations and changes being introduced in the same sector by the other entrepreneurs who are already int eh market or about to enter the market. Changes in the technology should be closely monitored as these changes are likely to reduce the cost in improve the quality there by bringing competitive advantage.

Other useful resources for your reference

Books & Other Material

  1. Entrepreneurial Opportunities
  2. Entrepreneurial Planning
  3. Enterprise Marketing
  4. Enterprise Growth Strategies
  5. ‎Business Arithmetic
  6. ‎Resource Mobilization
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