Analyze and evaluate the following:

1. The Idea—How Do You Get It?

• Dealing with problems – yours or others
• "Talk it into being"
• Brainstorm with friends
• Mentors can help!
• Ask others if they heard of any good ideas
• From your travels
• Be enthusiastic and positive
• The engineering and other universities, schools (BYU, WordPerfect, Novell, Dynix)
• Remember, a great idea does not guarantee success

2. How the founders of the Inc. 500 got their ideas: (Source: Carl Vesper's book—Chapter by Jeff Timmons)

• While working in the same industry – 43%
• Hobby or advocation – 16%
• Saw somebody else do it – 15%
• Saw an unfilled niche – 11%
• Did a systematic search – 7%
• Don't know – 5%

3. The Difference Between an Idea and a Business Opportunity:

• Propriety position
  • What is the hill your competition will have to climb?
  • Market position, copyright, patent, strategic relationship, etc.
• Expanding market – Why is that important?
  • Easier to sell new customers than take from competition
  • More likely to survive
• High margins
• Can it be implemented on a "bootstrapping" basis?
• "If it is a good idea, it is too late" (e.g. Fred Smith – Federal Express)
• One you can be committed to, believe in
• One with a big potential but can be broken down into bite-size pieces
• One that does not have a high customer education cost—does not require changing habits of the customer
• One that can exceed the competition's offering
• One that can be targeted and reached
• Is the window open? Leonardo de Vinci — Great ideas, airships, submarines
 

Additional resources:	SBA.gov: Finding a Niche
	SBA.gov: Product Basics