POTENTIAL SOURCES OF BUSINESS IDEAS

A meticulous management of money gives birth to wealth, while a judicious management of wealth gives birth to affluence. It is generally believed in some quarters that everyone in possession of huge fund is a potential business men and women as this affords them the opportunity of venturing into any sort of business they deem fit so long as it boost their status in the society. It has therefore been proved that invest able funds or capita is the secondary factor to be considered by any potential business men and women, while the prerequisite or primary factor is adjudged to be a good business ideas, a bankable and captivating business plan as well as a diligent investment appraisal. The last two factors shall be discussed in the subsequent write-up.
The free market economy is not static but dynamic, giving rise to different economic states; inventions; innovations; new entrepreneurs emerge in new and old activities with the intention of allocative and productive efficiency, they modernize in order to maximize profits or increase their market shares. The planning of entry into the market by new entrepreneurs, and of the diversification by the old, requires some sound ideas about the nitty- gritty of such business. An idea about venturing into certain line of business can be conceived in many ways as stated below:
a) A careful observation of the trends of market prices and rate of turnover of some products:- Any products with a very high turnover whose price is as well frequently upward trended indicate the fact that there is excess demand over supply and existing producers must be making supernormal profits. If there is no barrier to entry therefore, business idea may be conceived from such a scenario. Information asymmetry as regards the true picture of market trends may be a problem, the potential business inclined men and women must be abreast of current happenings in the market in other to take full advantages of disequilibrium in the price and quantity bought and sold.
b) Annual Bulletin of Import Statistics:- In Nigeria, CBN statistical bulletin, CBN annual reports, Nigeria Bureau of Statistics as well as various economic and business journals do publish volumes and value of various imported products into the country for a given year. Where a study of these statistics reveals a large volume of imports of some products, ideas about import- substituting projects may spring up there from. For instance, Nigeria imports millions of tonnes of fish annually to supplement our local production of fish, to stem the tide of capital outflow, therefore, an idea on substituting locally produced goods for foreign can be muted. It should be noted that the smuggling of rice, turkey to mention a few, to Nigeria is evidence that domestic production and supply of such products is not adequate, the market is larger than the supply. A potential business inclined person can key into these opportunities by bridging the gap between locally produced and imported goods.
c) A study of the Needs of Existing Enterprises:- Technological dynamism and size of existing enterprises have necessitated the demand for certain services which are better contracted out. An investigation of similar needs of large enterprises may point to some business idea. It’s even possible for one to elicit information on the kind, type of inputs needed from the manufacturing or the procurement manager. If these inputs can be supplied at relatively low cost business idea can spring up from there.
d) Observation of Experience in other Countries:- A thorough investigation of the development and practices in technologically advanced countries may suggest business idea.
e) An idea about Production Efficiency:- An idea on resource allocation efficiency or cost reduction techniques on the company’s production mix can be sold to such company. One can as well become a consultant in the field.
f) Ability to convert some people’s problems into business:- While some see problems and challenges and waste hours discussing it, some perceive it as business opportunities and explore it with mouth watering return.
g) Specialised institutes and government agencies such as Federal Institute of Industrial Research Oshodi (FIIRO), International Institute of Tropical Agriculture (IITA) and others, often provide technical supports in the area of research and development. The potential business men and women can key into these opportunities.
All these and many more like: a study of available skills, investigation of local raw materials, an examination of inter-industry relationship, investigation of similarities in production techniques of apparently different products, a study of previous development plans etc that space may not permit us are needed to be thoroughly understudied for a proper and sound business idea generation.