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INSTRUCTIONS

Cover page: write the name of the business, a form of ownership, and member details (student number, initials, surnames and contact details). The group leader must indicate the contribution of each member.
Many people dream of starting up their own business, but they don’t know where to begin. The first step in making your dreams a reality is to come up with the right business idea, which can either be a product or a service.
1. The identification and development of business ideas
1.1 Describe all the methods from your textbook one can use to improve creativity. (6
1.2 There are a variety of sources that can inspire you to come up with a good idea. Describe the theory related to the most common resources. (11
1.3 Use any of the team creativity techniques in your textbook and generate three to five business ideas within your group.
Explain how you went about ideation and which technique you used in your group.
Then, describe the 3 to 5 business ideas you came up with. (6
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2. Opportunity assessment and screening
2.1 There are several screening tests you can use to select the best opportunity out of your 3-5 ideas. Describe and use the theory related to the characteristics of successful product and service ideas and select the best business opportunity. (11
2.2 Describe this business opportunity from the previous question 2.1. (2
2.3 Do the test for the marketability of your business by using the four categories suggested in your textbook. (8
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3. Business start-up
3.1 When starting a business, you, as the prospective entrepreneur, must consider in advance the type of ownership to choose. Describe the factors affecting the choice of the type of ownership and mention which one you would choose for your proposed business. (6 [6
here are the methods from the textbook:
• Actively seek ideas: try to judge everything you read or observe in terms of ideas that can be developed from it. Make a habit of seeing things differently.
• Write your ideas down: write down ideas and read through them regularly. Review them and perhaps combine them into a new concept.
• View a topic from another person’s perspective: Put yourself in somebody else’s position to get a different view of a topic. With a better understanding, you will gain new insights and ideas.
• Break your routine: Note how you perform certain activities and then do them differently.
• Explore the grey areas: If you tend to see only the right or wrong sides of a case, it is time to explore the grey areas between right and wrong. Make a habit of looking for different solutions and possibilities.
• Use a creative technique: Use SCAMPER (Substitute, Combine, Adapt, Modify, Put to other uses, Eliminate, Rearrange)

1 answer

Cover Page

Business Name: Creative Solutions Co.
Form of Ownership: Partnership

Member Details:

  1. Student Number: 123456789
    Initials: J.D.
    Surname: Doe
    Contact Details: [email protected]

  2. Student Number: 987654321
    Initials: A.S.
    Surname: Smith
    Contact Details: [email protected]

  3. Student Number: 123789456
    Initials: M.L.
    Surname: Lee
    Contact Details: [email protected]

  4. Student Number: 456123789
    Initials: K.T.
    Surname: Tan
    Contact Details: [email protected]

Group Leader Contribution:

  • J.D. Doe: 30% (Overall coordination of the project and research on creative methods).
  • A.S. Smith: 30% (Research on resource theory and opportunity assessment).
  • M.L. Lee: 20% (Marketability testing and business opportunity description).
  • K.T. Tan: 20% (Start-up ownership factors and final compilation).

1. Identification and Development of Business Ideas

1.1 Methods to Improve Creativity

  1. Actively Seek Ideas: This method suggests constantly evaluating your environment for potential ideas. By judging everything you observe, you cultivate a mindset that identifies opportunities for innovation.

  2. Write Your Ideas Down: Maintaining a journal to capture ideas as they come allows you to review and build upon them later. Regularly revisiting and refining ideas leads to new insights and combinations.

  3. View a Topic from Another Person’s Perspective: Empathizing with others provides a fresh take on problems. By understanding different viewpoints, you can discover unique solutions that you might not have considered before.

  4. Break Your Routine: Challenging your daily habits can spark creativity. By altering the way you approach your work or daily activities, you can stimulate new thought patterns and ideas.

  5. Explore the Grey Areas: Avoiding rigid thinking about right and wrong encourages openness to different possibilities. By exploring nuances, you open yourself to innovative ideas and solutions.

  6. Use a Creative Technique: SCAMPER is a practical tool for enhancing creativity. By manipulating an existing product or service using the SCAMPER methods—Substitute, Combine, Adapt, Modify, Put to other uses, Eliminate, Rearrange—you can generate new ideas.

1.2 Sources of Inspiration for Business Ideas

The most common sources of inspiration for business ideas are:

  1. Market Needs: Observing consumers and their unmet needs can lead to profitable business opportunities. Understanding market gaps can provide a fertile ground for innovation.

  2. Technological Trends: Keeping abreast of technological advancements can inspire new ideas. Many successful businesses have capitalized on emerging technology to create innovative products or services.

  3. Personal Experiences: Reflecting on one’s own experiences and challenges may reveal niche markets or solutions. Personal stories can lead to relatable products that resonate with others.

  4. Cultural Shifts: Being aware of societal changes can help entrepreneurs adapt to new consumer behaviors. Shifts in lifestyles, attitudes, and demographics can inspire new business ideas.

  5. Competitor Analysis: Studying competitors may expose weaknesses in their offerings, leading to opportunities for differentiation. Innovations can emerge when looking to improve upon existing offerings.

  6. Feedback and Collaboration: Engaging with others to share ideas opens the floor for constructive criticism and collaboration, often illuminating blind spots that can lead to new business ideas.

1.3 Team Creativity Technique and Business Ideas

The team used the Brainstorming technique to generate business ideas. This involved an open discussion where each member freely proposed ideas without judgment. We encouraged building on each other's thoughts to reach a more diverse set of ideas.

Business Ideas Generated:

  1. Eco-friendly Packaging Solutions: A business providing biodegradable packaging solutions for local businesses to reduce plastic waste.

  2. Mobile Car Wash Service: A convenience-focused car wash that comes to the customer’s location, utilizing eco-friendly cleaning products.

  3. Virtual Fitness Classes: An online platform offering diverse workout classes led by certified trainers, catering to various fitness levels and preferences.

  4. Plant Delivery Service: A subscription-based service delivering indoor plants and care instructions, promoting healthier living environments.

  5. Customized Meal Prep Kits: A service that provides tailored meal kits based on individual dietary needs and preferences, focusing on nutrition and ease of preparation.

2. Opportunity Assessment and Screening

2.1 Characteristics of Successful Product and Service Ideas

To select the best opportunity from our ideas, we considered the following characteristics:

  • Feasibility: The ability to implement the idea using available resources and technology.
  • Market Demand: The existence of a target market that shows genuine interest in the product.
  • Profitability: The potential for the business to generate a sustainable income.
  • Differentiation: The uniqueness of the offering compared to competitors.
  • Scalability: The possibility to grow the business and expand its offerings over time.

After assessing our ideas:

  • The Eco-friendly Packaging Solutions emerged as the best opportunity due to high demand for sustainable products, a growing market, and potential for scalability.

2.2 Description of the Business Opportunity

Business Opportunity: Eco-friendly Packaging Solutions will cater to local businesses looking to transition away from plastic by providing sustainable, biodegradable packaging alternatives. The business aims to reduce environmental impact and promote eco-conscious practices in the community.

2.3 Marketability Test

To assess the marketability of Eco-friendly Packaging Solutions, we applied the four suggested categories:

  1. Target Market: The target customers include local food businesses, retail stores, and manufacturers seeking sustainable packaging solutions. Research indicates that consumers increasingly prefer brands with eco-friendly practices.

  2. Competitive Landscape: The analysis shows limited local competitors specializing in biodegradable packaging, pointing to a unique market position for our business.

  3. Regulatory Considerations: With governmental policies increasingly favoring sustainable practices, the business aligns with regulatory trends that encourage environmentally friendly products.

  4. Refinement and Feedback: Initial feedback gathered through surveys with local businesses demonstrated enthusiasm and demand for alternative packaging options, indicating positive market reception.

3. Business Start-Up

3.1 Factors Affecting the Choice of Ownership

Factors to consider when determining the type of ownership include:

  • Liability: The level of personal liability each owner is willing to accept. Partnerships often share liability, whereas sole proprietorships bear full risk.
  • Control: How much control each partner wants over business decisions. Partnerships allow shared decision-making, while sole proprietorships provide full control.
  • Capital Needs: The ability to raise funds necessary for the business. Partnerships may have more resources since multiple partners can contribute capital.
  • Tax Implications: Understanding how each ownership structure is taxed can affect the overall profitability for the owners.
  • Regulatory Requirements: Different structures have varying regulatory compliance and documentation requirements.

Chosen Ownership Structure: We would choose a partnership for Eco-friendly Packaging Solutions, allowing shared investment, expertise, and responsibilities while combining resources for a stronger market position.