Mgt601 Assignment No. 2 idea solution Fall 21 December 2011

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SME Management (MGT601)

Fall 2011

Assignment 02 Phase 01

The Business Idea

Marks: 15 Due date: December 20, 2011, Bonus day: 21 Dec 2011

Conceptual Background

There is no doubt that entrepreneur in any society plays the role of engine of growth and development. It is also true that SMEs serve as the seed bed for entrepreneurship development in any society. Success of any new business depends on the business idea and a good business idea is one which is derived from the needs of the market and aims at adding value to the life of people.

A business idea is simply a concept of the business to be started for earning profit by fulfilling the needs of society. In business idea it is described that which product to deal in and whom to offer it. The better way of finding good business idea is to first find out the unmet or poorly met needs of any segment of the market and then to develop a product or service for meeting the needs better than competitors do. Innovative business idea can increase the possibility of the success of the potential business if it can solve the customer problem in a better way.

While developing business idea business market should also be focused as there are good potential opportunities existing in this segment. This has been emphasized because most of the beginners remain focused on consumer market and ignore the business segment. Another important aspect should be kept in view while developing business idea that it should be well within the resources of the potential entrepreneur.

Task (phase 1)

We consider you all as potential entrepreneurs and want you to start preparing for the purpose before entering into the practical life. Therefore you are assigned the task to describe your business idea in one page. Your business idea should be original and market oriented. Do keep it in view that you have to develop a comprehensive business plan based on this business idea in the phase two of this assignment.

Basic Questions

While describing your business idea, following questions must be addressed in complete but concise manner.

1. What is the need to be addressed by the potential business?

2. How is this need not currently being served?

3. What is the sector in which business will be launched?

4. What is the product or service?

5. How the proposed product or service will meet the need of the customer?

6. How this business will add value to society?

7. Will the business be profitable?

8. How this business will be profitable?

9. How have you come to have this idea?

10. How this business matches with your interest and personality?