Question

Based on the three most common sources of new business ideas:

1. Changing Environmental Trends

2. Unsolved Problems

3. Gaps in the Marketplace.

Briefly describe how each of the sources pawns potential business ideas.

Answer 1

Solution:

1. With changing environmental trends it is common to observe changes in the lifestyle of the consumers. With changes comes the demand for a specific type of items which are necessary to meet the demand of the changing environment. The changes in environmental trends will bring about a gradual change in the way consumers consume the products and services hence making avenues for a variety of different needs of the consumers which have to be fulfilled by the market. Hence, the new business ideas arise in such a situation to cater to the changes in the environmental trends and hence affecting the lives of the consumers. Hence, businesses look forward to introducing new products to cater to the changes in environmental trends as well as the lifestyles of the consumers.
2. The most basic way of generating ideas for business is through solving the existing problems in the society. If a business is being able to solve the existing problem of the society with its products and services then certainly the business will be able to create value for the consumers. The generation of ideas by understanding the problems which are prevalent and then finding solutions to those problems is a way of generating new ideas and make the business through those ideas. Hence, generating ideas by solving the existing problems of society is a great old way of doing or starting a business.
3. There will often be a linkage in two industries or marketplaces. There are people who find a way to link those industries by offering sophisticated services and hence bridging the gaps in the marketplace with their services. Generally, such services are business to business and provide solutions to businesses who often find it costly to do it themselves. ridging the gaps of the marketplace is of great importance in terms of generating ideas for business. Most of the research firms are based on this terminology and are deriving immense value from these ideas to bridge the marketplace gaps.

These are the ways in which the above sources help in nurturing the new ideas and helping develop effective businesses out of them.