new business module

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BUSINESS SKILLS
Module 2 is about the business idea. The participants start by
learning how to define and develop their business idea. Next,
they are introduced to the capabilities that are of use when
implementing and operating a business. Lastly, they are introduced
to the concept of SWOT analyses and learn how to use
it to analyse the potential of their business idea.
Session 1: Defining a business idea
This session discusses the importance of the business idea. The
participants are provided with a simple tool that can help them
to formulate and develop their business idea. They will apply
the tool to a simple case study, which will serve as a reference
for their own business idea.
1.1 Where can business ideas come from? 7
Business ideas usually come from the environment: you look
at the people in your environment and identify uncovered
needs or unsolved problems. People who want to start a business
should:
• observe the people in their environment and talk with
them;
• consult with entrepreneurs already in business;
• study existing businesses to identify problems and think
about ways to solve them;
• study products that are brought to the area from the
outside and see whether they can provide them locally;
• study the raw materials available locally, in order to get
an idea of what can be produced locally;
• get ideas from existing products on the market;
• observe other markets and areas for new business ideas;
• discuss with friends and family.
1.2 What is needed for a good business idea?
A business starts with a well-defined business idea. Entrepreneurs
need to know what goods or services they will sell,
who they will sell them to, how they will sell them, and what
7 For detailed presentations on business idea generation, see CISP (2011, p. 58), ILO
(2009a), CEFE (2008) and FAO (1999a, p. 8).