WHICH BUSINESS IDEA IS BEST
 TO PURSUE?

• After using the methods of idea generation you must have come up with many business ideas.
• After doing all of the things described in this module, Muthoni came up with 17 business ideas.
• She needed to select the best Idea for her just like you need to
• There are three steps and methods of selecting the best idea for you;
• Idea Screening
• Field Study
• SWOT Analysis
• Let us explore each and how you can use them

Idea Screaning

WHICH	•Which unfulfilled need do you want to satisfy for your customers? •Which needs do your goods or services satisfy for the customers?
WHAT	•What goods or services do your customers want? •What quality of products do your customers want? •What information do you have about the goods or services for this business? •What are the positive or negative impacts your business will have on your community and the natural environment?
WHO	•Who will be your customers for this particular business? Will there be enough of them to make your business profitable? •Who are your competitors and what are their strengths and weaknesses?
HOW	•How will you be able to supply the quality of goods and services that your customers want? •How much do you know about the quality of goods and services that your customers want? •How does running this sort of business suit your personal characteristics, skills and situation? •How do you know that there is a need for this business in your area? •How do you think you will feel about running this business in ten years?

Other Important Questions To Consider

• Where can you get advice and information about this business?
• Will this be the only business of this type in your area?
• If there are other similar businesses, how will you be able to successfully compete with them?
• What is your competitive advantage?
• Why do you think this business will be viable?
• Does this business need equipment, premises or qualified staff?
• Do you think you will be able to get the finances to provide these things?
• Where will you get the resources to start this business?
• Could your business model save money by reducing, re-using or recycling waste?
• To answer these questions objectively, you should get more information by doing a field study.

2. FIELD STUDY

• By talking to possible future customers or suppliers and to members of the business community, you can gather useful information about the factors that would affect your business idea.
• You could just have informal discussions and make observations or you could arrange more formal visits and interviews.
• Field visits take time and effort, but by doing field research, you would already be starting to act like a successful business person.
• The contacts you make during these visits would also be useful when you start your business.

Who to talk to?

There are three important groups that you should talk to:

a)Potential customers: Their views are essential to your understanding of whether or not your proposed product is important to them and if you need to modify your idea to meet their needs.

b)Competitors and suppliers: Their views will reveal the challenges of competition that you would face, as well as other issues related to your potential business.

c)suppliers and entities:

d)Financial institutions: Find out the lending requirements to determine whether borrowing for a new business is possible.

e)Key informants and opinion leaders: These are people who would know a lot about the type and field of business you want to go into and/or a lot about your potential customers. Their views would give you a lot to think about and could also give you a better insight into the feasibility of your business idea.

ACTIVITY 11

For each business idea, plan how to get more information through field study by completing the form below:

3. SWOT ANALYSIS

ACTIVITY 12

Now do a SWOT analysis for each of the three business ideas you have selected. First make three copies of the SWOT analysis form. Think carefully about the strengths and weaknesses of each business idea. Then think of the external environment for this business. What are the opportunities and threats in your business environment? The “key informants” you spoke to during your field research may have pointed these out to you.