processing (Steps Involved in Processing and Selection of Business Idea) An entrepreneurial system and entrepreneur needs to take the following steps

processing (Steps Involved in Processing and Selection of Business Idea) An entrepreneurial system and entrepreneur needs to take the following steps 

1. Search for Business ldea 

The task of promotion begins with the search for a suitable business idea The idea may orgnate Trom various sources eg , success story ofa friend or relative demand for certain products, chances of producing a substitute for an imported article, visits to trade fairs and exhibitions, study of project profiles and industrial potential surveys, meetings with Government agencies etc 

The 1dea t relate to the starting of a new business or to take over of an existing enterprise the idea should be sounds workable, so that it may be exploited, it should yield a reasonable return on investment and the one which can be coverted into a business. Sources of Idea] 

A business idea may be discovered from the

 following sources: 

V(a) Observing Market : 

Careful observation of market can reveal a business idea. Market surveys can also reveal the demand and supply position for various products. It is necessary to estimate future demand and to take into account anticipated changes in fashion, omes level technology etc.

 In this connection, it will be useful to ascertain whether the demand is elastic or inelastic and product is repeat purchase or not attempt should be mle to determine the trend of demand and the composition and pattern of potential users of the product. Mb)

 Prospective Consumers: 

Consumer knows best what he wants and the habits tastes which are going to be popular in the near future, contacts with prospective consumers can also reveal the feature that should be built into a product/services. Mc)

 Study of Project Profiles :

 Various government and private agencies publish periodic profile of various project and industries, these (profiles describe in detail the technical, financial and market requirement and prevailing position)A careful scrutiny of such project profiles is very helpful in choosing the line of business. Téchnical and other types of experts may be employed to carry out aspecialised study of project profiles and to suggest the most promising projects for futher evaluation. Vd) Government Organisation Several Government organisation now-a-days assist entrepreneurs in discovering and evaluating business idea. Development bank, state industrial development/investment corporation, technical consultancy organisations, investment centres, export promotion council etc, are provide advice and assistance in technical, financial, marketing and other area of business)

Detailed Analysis:

 After preliminary evaluation of idea, the promising idea is subjected to a through analysis from all angles full investigation is carried out in the technical feasibility and viability of the proposed project. Financial and managerial feasibility are tested, at this stage lot of information is required. Consultation with experts in various areas of the industry may be necessary to carry out the detailed analysis. Due care should be excercised at this stage because the idea is finally accepted or rejected at this stage.

nalyseda Selection The feasibility report is analysed to finally choose the most promising idea. Generally, the following consideration influence the selection of idea for a product or service:

 (a) Product whose imports are banned or restricted by the government.

 (b) Products which can be exported easily and profitably. 

(c) Product whose demand exceeds their supply so that there exists ready demand- 

(d) Product which showed high profitability.

 (e) Product which the entrepreneur has manufacturing and/or marketing experience.

 V () Products based on the expansion or diversification plans of existing firms of the family. 

4. Input Requirements 

Once the promoter is convinced of the feasibility and profitability of the project, he assembles the necessary resources to launch the enterprise. He has to choose partners/collaborator, collects the required finances and acquire land buildings, plant and machinery, furniture and fixture, patents employees etc.

processing An entrepreneurial systear and entrepreneur needs to take the following steps

 1. Search for Business Idea (Steps Involved in Processing and Selection of Business Idea) tromvarious sources eg. success story of a friend or relative demand for certain products chancesof producing a substitute for an imported article visits to trade fairs and exhibitions, study of prokect Protles and industrial potential surveys, meetings with Government agencies ete The idea may reate to the starting of a new business or to take over of an existing enterprise the idea should be Sounds workable, so that it may be exploited, it should yield a reasonable return on investment and the one which can be coverted into a business [Sources of Idea] A business idea may be discovered from the following sources 

V(a) Observing Market Careful observation of market can reveal a business idea. Market surveys can also reveal the demand and supply position for various products. It is necessary to estimate future demand and to take into account anticipated changes in fashion level technology etc In this connection, it will be useful to ascertain whether the demand is clastic or inclastic and product is repeat purchase or not attempt should be m'e to determine the trend of demand and the composition and pattern of potential users of the product sauo 

V[b) Prospective Consumers :

 Consumer knows best what he wants and the habits tastes which are going to be popular in the near future, contacts with prospective consumers can also reveal the feature that should be built into a product/services.

 (C) Study of Project Profiles Various government and private agencies publish periodic profile of various project and industries, these (profiles describe in detail the technical, financial and market requirement and prevailing position) A careful scrutiny of such project profiles is very helpful in choosing the line of business. Téchnical and other types of experts may be employed to carry out a specialised study of project profiles and to suggest the most promising projects for futher evaluation. 

Vd) Government Organisation: 

Several Government organisation now-a-days assist entrepreneurs in discovering and evaluating business idea Development bank state industrial development/investment corporation, technical consultancy organisations. investment centres, export promotion council etc, are provide advice and assistance in technical, finacial, marketing and other area of business)

In addition to the above, 

business idea can be discovered from other sources like a new invention awaiting commercial exploitation, an unexploited resource, an unsatisfied demand, an inferior products etc.

 2 idea Processing 

(a) Preliminary -Evaluation and Testing of Ideas : 

Once business idea are discoverd, screening and testing, of these idea is done, the following consideration are significant in the evaluation and testing of business idea. ) 

Technical Feasibility :

 It refer to the possibility of producing the product. Technical feasibility of an idea is judged in terms of availability of necessary technology, machinery and equipment, labour skills and raw materials. The advoice and assistance of technical expert may be necessary to judge the technical feasibility of various business idea. JO Commercial Viability A cost. benefit analysis is required to ascertain the profitability of the ideas. An elaborate study of market conditions and prevailing situation is made to assess the viability and prospects of the proposed project This is known as feasibility study of the projects. A number of calculation have to made about the likely demand expected sales volume. Selling, price, cost of production, break-even point etc. The services of market analysts and financial expert may be necessary for this propose