Section 2

Introduction

In this unit we will look at the generation of ideas and the ways in which you can protect them. 

Research and development is the most prominent way of creating ideas, then comes the need for invention and innovation which enhances the previously invented idea.

It is key to test your idea and establish whether it's suitable for the market you wish to enter and determine whether you will meet the goals and objectives. With this comes the ability to sell. 

Your product or service must be appealing to the consumer in terms of price, appearance, functionality and production, without these, it's likely to fail. Therefore, before launching a product, it's logical to test and try numerous times to make certain that it would be a market success.

Every product or idea needs a market that is willing to accept it, this is more commonly known as a niche. Entrepreneurs must ensure to target the correct niche within which their product will fit perfectly.

The ability to spot a niche in the market is very important to the success of a business. Different factors are essential for spotting gaps in the market which includes; correct timing, adapting services and products to different conditions and changes in size and the location.

These factors will attract different customers and then it becomes easier to select which consumers would benefit the most and which would make the business more profitable. 

We will look later at the concept of owning a franchise. These provide tremendous opportunities as you will have direct links to an established market player. 

Copyright, patents and trademarks are all essential in the world of business today, and we will cover these too. 

Activity 5 - What is a niche and why are they important to entrepreneurs?

A niche is essentially a gap in the market that an entrepreneur feels they can exploit. They consist of a relevant need of a product or service due to lack of such product/service, or simply bad execution from competition. They are important to an entrepreneur as they are perfect for testing their ideas and establishing their potential customers, as well as determining the financial prospects of the business idea.