Notes-L4

Generating Ideas
Why This Lesson
Identifying the most viable and marketable opportunities and the trend is the first and
most critical step to start a new venture. Opportunities can present themselves in a
variety of ways and different circumstances. An opportunity may appear as a social
problem that needs to be addressed or a new trend that yet to gather momentum.
The key to finding the right opportunity for you is creativity. Creativity is an important
attribute for an entrepreneur. Creativity can enable entrepreneurs to stand out from
the crowd and establish a business model which is different from the existing one in
the market and offer a unique solution to the potential customers.
Creativity and Innovation
Creativity is the ability to use imagination to see something in a new way or to make
connections between disparate objects, thoughts, or ideas. Nevertheless, innovation
is a process to bring a commercial value to the invented (created) concept. Having
a high level of risk tolerance and the willingness to explore unknown phenomena are
two of the most essential factors for being creative and innovative. For the
entrepreneur, creativity and innovativeness should be translated to the ability to find
new solutions for existing problems or offer a better value proposition to the market.
There is no single formula for being creative. Creative ideas can come from anywhere
and at any time. A creative idea with a viable financial value can be a grandmother’s
delicious recipes or designing a new type of space shuttle by Elon Musk. For those
who need a little inspiration, there are plenty of exercises that can encourage
creative thinking. Table 4-1 provides some sample techniques.
Creative Problem-Solving Techniques
Table 4-1: Creative Problem-Solving Techniques
Name Technique
Brainstorming This is the process of identifying as many ideas as possible and
choosing potential solutions from the ideas that are generated.
Define the problem to be solved.
For example: How do we make high-quality shoes?

Generate ideas for solving the problem without criticism or
judgment of any of the ideas. All ideas, even those that seem
crazy, are welcome and useful in this process.
For example: hire a team of cobblers, set up a traditional factory,

use a 3D printing machine, buy already manufactured shoes and
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alter them, use recycled paper, melt the wax around consumers’
feet, give materials to third graders and see what they develop,
etc.
Try to generate as many ideas as possible, more is better.

Brainstorming can be done individually or with a team. Look at
all the answers, and see whether any of them may be useful to
test or whether any spur additional ideas.
Analogy This is the process of thinking of something similar to the problem
you want to solve. This technique gets you thinking about another
topic or field as a way to generate fresh ideas.
Identify what information you want to end up with, and find a

phrase that captures it, for example: how to make shoes.
Then create a list of items that are like that original idea in some
way, for example: how to build a house. Making shoes and
building a house both involve using raw materials to create a
complex final product.
Try to generate as many items and analogies as possible—more

is better.
Choose one analogy, ideally one that is in a very different field or

topic area from what you are trying to solve, and describe all the
active and passive aspects of the items in your analogy, for
example, shoes are used by consumers to protect their feet but
also to make fashion statements. A single shoe is small enough to
hold in your hand. People generally own many shoes.
Are there aspects of the analogy that are directly applicable to

the problem you are going to solve? Do the differences give you
any ideas about how to solve your problem?
Asking who, This is the process of coming up with as many ways to think about
what, why, a problem as you can. This technique is helpful to open up your
when, where, mind to think about a problem from many different angles.
and how
Use these terms to create a list of questions about the problem
you are trying to solve, for example: What is the best way to make
high-quality shoes—by machine or by hand?
Look for answers to the questions. This can be with a formal

technique like brainstorming or more informal techniques such as
a checklist.
Use the answers to generate actions or next steps, for example: if

the best way to make shoes is by hand, how do we find the
talented craftspeople to make our shoes? If we can’t find very
many people who make high-quality shoes, do we want to use
machines or train people to make shoes the way we want them?
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New Opportunities
Where do entrepreneurs find ideas for new opportunities? In addition to using

creative problem-solving techniques for inspiration, there are many other ways to find
ideas for new business ventures. While inspiration can come from anywhere, several
key sources are useful for generating ideas and sparking innovation.
➢ Demography. Use statistical data about the population (such as gender,

age, race, employment status) to learn about various segments of the population
and become aware of changing demographic shifts. If there is growth in a certain
area of the population, this may spark ideas for products or services aimed at that
demographic group. For example, a growing population of elderly people may
present opportunities for new healthcare services and leisure activities.
➢ Technology. Keep up to date with technology in your field and related

fields, equipment, techniques, current trends, and projections for future trends. For
example, new equipment and technology might offer opportunities for ventures that
process raw materials in more cost-efficient and environmentally safe ways.
➢ Laws and regulations. Study existing and proposed laws and regulations to
understand how changes may affect the manufacture or sale of a product or service.
For example, a regulatory change may mean that you can start a venture importing
several types of cheese that were previously illegal to bring into the country and
selling them to restaurants and grocery chains.
➢ Supply levels. Examine supply chains and issues in manufacturing to identify

opportunities in areas where supply is lacking or excessive. For example, you may
discover that you can buy surplus printed books that publishers would otherwise
discard and sell them to middle-income level countries via online platforms.
➢ Franchising. Explore the possibility of taking advantage of an existing

business model and brand. The parent company, or franchisor, enables entrepreneurs
to use its brand and assets in exchange for a fee and/or royalty payments. For
example, you may purchase an auto supplies franchise for a given geographic
territory that allows you to sell the company’s products, use its brand, and operate
using its business model within that territory.
➢ Licensing. Find an existing, legally protected asset or property of another

business and lease its use. For example, you can license the use of an athletic team’s
logo to put on mugs and plaques in Malaysia.
➢ Hobbies. Determine whether something that you do for fun has a broader
application. For example, if you enjoy helping others learn how to read, that may
present an opportunity to create a nonprofit venture that works with teachers to
provide remedial reading help for adults in your community

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Generating Ideas

Why This Lesson

Creativity and Innovation

Creative Problem-Solving Techniques

Table 4-1: Creative Problem-Solving Techniques

For example: How do we make high-quality shoes?

For example: hire a team of cobblers, set up a traditional factory,

Try to generate as many ideas as possible, more is better.

Identify what information you want to end up with, and find a

Try to generate as many items and analogies as possible—more

Choose one analogy, ideally one that is in a very different field or

Are there aspects of the analogy that are directly applicable to

Look for answers to the questions. This can be with a formal

Use the answers to generate actions or next steps, for example: if

Where do entrepreneurs find ideas for new opportunities? In addition to using

➢ Demography. Use statistical data about the population (such as gender,

➢ Technology. Keep up to date with technology in your field and related

➢ Supply levels. Examine supply chains and issues in manufacturing to identify

➢ Franchising. Explore the possibility of taking advantage of an existing

➢ Licensing. Find an existing, legally protected asset or property of another

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