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Workshop Scenario:

Please think of yourself in the following scenario as you complete this workshop:

You have spent your entire career working in corporate environments, but you've always had a burning desire to start your own business. You recently had an idea for a new business that you're passionate about, but it's in a completely unrelated field. Despite lacking experience or expertise in this industry, you're determined to make your vision a reality. You feel certain that your business idea can be profitable while making a positive impact in the community.

After learning about the characteristics of successful entrepreneurs in the first lesson, you feel confident that you already possess those skills. But is there a gap in the market for your business? You must gather insights about the problems or challenges faced by your potential customers and how your product or service can bring value. Your business can only succeed with a viable customer base, so you will need to prove it exists before taking any additional steps in your business development.

Lesson Objective:

By the end of the lesson, you will be able to apply an ideation technique to brainstorm a business idea for a unique product or service and identify the appropriate target market.

Important Questions to Answer While Reading:

In order to be successful in this lesson, you must be able to answer these important questions.

1. What are the strengths and weaknesses of the different ideation techniques?

2. What are some of the ways entrepreneurs conduct market research?

2.1 - Ideation Techniques

Every entrepreneurial venture begins with an idea. Ideation is the process of generating new business possibilities and below are some methods for brainstorming. It's important to approach the ideation process with an open mind and be willing to explore a variety of ideas before settling on a final business concept.

1. Problem-Solving: This involves identifying a problem or challenge and brainstorming potential solutions that could be turned into a business opportunity.

2. Mind Mapping: Creating a visual diagram of related ideas using a central concept or word and branching out with related ideas.

3. The SCAMPER Technique: A creative method that helps entrepreneurs generate new possibilities by asking specific questions about modifying existing products or services. The SCAMPER acronym stands for:

• Substitute: What elements of the product, service, or business idea can be substituted with something else? What if we replace this with that?

• Combine: What if we combine elements of the product, service, or business idea with something else? Can we merge two or more products, services, or ideas to create something new?

• Adapt: Can we adapt the product, service, or business idea to work better in a different context or for a different audience? What if we make small modifications to improve the product, service, or idea?

• Modify: What if we change the size, shape, or other attributes of the product, service, or business idea? Can we modify the product, service, or idea to make it more efficient or effective?

• Put to another use: Can we use the product, service, or business idea for another purpose? Can we apply the product, service, or idea to a different industry or market?

• Eliminate: What if we remove an element of the product, service, or business idea? What if we eliminate certain features, processes, or steps?

• Reverse: What if we do the opposite of what we normally do? Can we turn the product, service, or business idea upside down?

4. SWOT Analysis: SWOT stands for strengths, weaknesses, opportunities, and threats; this technique involves analyzing the internal and external factors that can impact a business and using those insights to generate new ideas.

5. Customer Feedback: Potential customers provide feedback to learn more information about their needs and pain points, which can then be used to generate new business ideas.

6. Trend Analysis: This involves analyzing current and future trends in the industry to identify new business opportunities.

It is important to thoroughly flesh out your business idea to make sure that it is viable and can turn a profit one day. What creative, innovative business ideas will you come up with?

2.2 - Identifying Target Markets

Identifying target markets is a critical step for entrepreneurs looking to develop a successful business. You need to have a clear understanding of what you are offering and to whom. What unique value will your business provide?  You will need to gather information about your customer base, including their demographics, interests, behaviors, and purchasing habits.

You will need  insights about the problems and challenges they face and how your product or service can provide a solution. This will help you to identify gaps in the market and provide opportunities to differentiate your business from competitors. Once you’ve identified your market, you can develop a targeted marketing strategy that will help you reach and connect with people. The best businesses provide a solution to a problem and bring real value to the customer. What value will your business bring to the world?

2.3 - Market Research Methods

Market research helps entrepreneurs understand the needs of their customers, identify opportunities, and make informed business decisions. It is an important step in mitigating some of the risks associated with starting a business by reducing uncertainty and increasing the likelihood of success. Some effective market research methods include:

1. Surveys: Collect data from a sample population through questionnaires. Surveys can be conducted online, in person, or over the phone.

2. Focus Groups: Gather a small group of people to participate in a guided discussion about the product or service. Focus groups can provide qualitative insights into customer attitudes, perceptions, and motivations.

3. Interviews: Talk to customers or experts in the industry in one-on-one sessions.

4. Observation: Observe customers in their natural setting to gain insights into their behaviors, preferences, and habits.

5. Secondary Research: Gather information from existing sources, such as industry reports, academic papers, and government statistics regarding market trends.

6. A/B Testing: Test different versions of a product, service, or marketing campaign to determine which version performs better with customers.

Although there is no guarantee that your target market will actually buy your product or service, determining your audience and researching their purchasing habits will help reduce the financial risk involved with launching a business. Seek feedback every step of the way to help avoid costly mistakes and put your business in the best position for future success.

Lesson 2 Assessment:

Now that you have reached the end of this lesson, you should be able to answer the following:

1. What is one new business idea you can come up with that modifies an existing product? What impact would it have?

2. Evaluate the strengths and weaknesses of two ideation techniques discussed in this lesson.

Participate in the 24/7 Discussion Forum

Please answer the following prompts in the comment section below and interact with learners from around the world:

1. Brainstorm a list of business ideas that can generate profits while also having a positive impact on the world.  What existing companies can you think of that do both well?

2. Choose one business idea from your list. Which market research method is optimal for that type of venture? Justify your choice.

Created by 24/7 Instructional Designers: Laura Campion & Vivi Ma