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AOF Entrepreneurship

Lesson 3Generating Good Ideas

Student Resources

Resource Description

Student Resource 3.1 Note-Taking Guide: Where Do Business Ideas Come From?

Student Resource 3.2 Reading: Where Do Business Ideas Come From?

Student Resource 3.3 Idea Guide: Generating Ideas as an Entrepreneur

Student Resource 3.4 Assignment: Elevator Pitch

Student Resource 3.5 Notes: Elevator Pitches

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AOF EntrepreneurshipLesson 3 Generating Good Ideas

Student Resource 3.1

Note-Taking Guide: Where Do Business Ideas Come From?

Student Name:_______________________________________________________ Date:___________

Directions: Each row on this note-taking guide reflects one of the many ways that entrepreneurs generate business ideas. As you view the presentation, use this guide to record two keys for each approach.

Spotting an Opportunity in an Industry

1.

2.

Pursuing a Passion

1.

2.

Capitalizing on a Skill or Talent

1.

2.

Researching Market Trends

1.

2.

Adding Value to an Existing Product or Service

1.

2.

Identifying and Solving a Problem

1.

2.




Reading: Where Do Business Ideas Come From?

Business ideas come from many sources. This presentation focuses on some of the ways that entrepreneurs get their ideas.



Entrepreneurs generate business ideas in many different ways. Some spot an opportunity in an industry that they work in, while others capitalize on a specific skill or talent. Others, as you have learned, are inspired by a personal experience (good or bad).

Many entrepreneurs also combine approaches. For instance, perhaps they get their idea for a product from being involved with a certain hobby. The entrepreneur realizes that the products he or she is using that are associated with the hobby could be improved upon. The entrepreneur then takes advantage of this opportunity to create a better, more efficient replacement product. Voilà, a business idea is born!

Whichever method you use to generate a business idea, keep in mind that you might need 10 good ideas just to have one that stands a chance. That’s why entrepreneurs must be determined, persistent, and willing to work hard to pursue their dream.



The traditional approach is one of the main ways that entrepreneurs get their ideas. With the traditional method, individuals begin by choosing an industry or field that they would like to work in or have had experience working in. After they choose the industry, they must conduct a lot of research and analyze the market before the business idea can be developed. It takes a long time and a lot of dedication to move from actually selecting an industry that you’d like to create a product or service for to the final step of starting the business.

According to an article from Small Business Trends, about 55% of new business founders in the United States attribute the creation of their new business idea to their experience in a particular industry.



Entrepreneurs also generate ideas by pursuing a passion. Pursuing a passion is a creative way to develop an idea. Individuals who look for business ideas that revolve around a passion should begin by brainstorming all of the possible ways that they can pursue their passion.

Germaine Griggs was passionate about music. By the age of 9, he had played the piano and directed choirs for more than 10 churches near his home of Long Beach, California. When he was 16, Germaine developed his first company, Hear and Play Music, which teaches people how to play piano by ear. More than 2 million people download his online music lessons every year, and his company serves musicians in more than 110 countries.

One thing to remember when looking for business ideas that revolve around a passion is to make sure that the business idea is in fact your passion and not just something that you like to do.



Starting a business around a particular skill or talent is a common approach to building a business. As you consider your idea, ask yourself if the business concept will take advantage of what you do best.

It is important to realize that an entrepreneur’s skills and abilities should match the business opportunity. It would be ridiculous for someone without a background in the tech industry to create a new web design service, or for someone without gardening skills or knowledge to begin a landscaping service company.

There are many business opportunities available today that are based on personal skills of the entrepreneurs. One of the surest ways to succeed in any business is to try and match your skills and natural interest with the kind of business that you choose for yourself. Not only does matching your skills with the type of business you operate help you keep your costs down (you won’t have to hire those skills from outside), but you will most likely remain passionate about your business.

Remember, you may have a great idea, but that doesn’t mean that it’s a great idea for you. It is critical that you identify your core skills and natural talents and then evaluate whether the business idea you are considering will allow you to capitalize on those skills.



One way to find market opportunities for your product or service is to study social and business trends.

Trends typically:

• Replace what came before them

• Reflect changes in people’s habits, opinions, and/or ideas

• Are widely adopted or popular rather than an isolated instance

• May be widely adopted among certain groups of people but not everyone

Entrepreneurs often learn about new business opportunities by analyzing the trends in industry and society. Businesses need to know how to make products that customers will value and want to buy. It’s not always simple to know what customers want, because their preferences change. For example, for a while jeans with flared legs were cool, but a few years later, skinny jeans were more fashionable. Trends reflecting changing opinions, habits, and ideas can affect what types of products and services customers will buy. Entrepreneurs stay aware of trends by watching and by talking to customers.

One of the quickest ways to start generating business ideas is simply to look at what’s succeeding right now. Look around you, be observant, and think about the types of trends and fads that are currently in style.



Some products and services aren’t brand-new inventions but are created by adding improvements to existing products and services in a way that increases their value to the customer.

• Think about what you have seen around you and think about ways it could be improved or updated.

• Look at the products and services you use daily and think about how they can be improved.

• Can you combine two products or services to make something new?

• Think of an example of poor service and how you could improve it.

Keep in mind that you don’t want to improve upon an existing product or service that is not wanted or needed. Make sure to do your research and analyze the existing product, its costs, and its current competition before becoming too invested in your new idea.

By the way, a dozen of The Candy Zone’s chocolate-covered Oreo cookies costs $29.98.



Identifying problems and then solving them is one of the ways that individuals become entrepreneurs. Entrepreneurs wonder if things can be done better, faster, and/or cheaper and then capitalize on this opportunity.

When Jasmine Lawrence was 13, she used a chemical relaxer on her hair—but the product was so harsh, almost all her hair fell out. She decided then and there to make her own effective, natural hair care products. She started EDEN BodyWorks, which now distributes to major retailers like Wal-Mart and Whole Foods Market. Jasmine has appeared on the Oprah Winfrey Show, ABC’s Nightline, and NBC’s Today Show.

If you are trying to generate a business idea using this method, keep a notebook where you write down problems as you come across them. You can then begin looking at these problems and brainstorm solutions for them.



Thomas Edison is quoted as saying that “genius is one percent inspiration and ninety-nine percent perspiration.” Successful entrepreneurs expend part of that perspiration constantly searching for business opportunities that others can’t see.




Idea Guide: Generating Ideas as an EntrepreneurStudent Name:_______________________________________________________ Date:___________

Directions: Each cloud in the map below provides one suggestion for how to get inspiration and develop new business ideas. Choose a few of the suggestions and use them to develop several new ideas for potential businesses that you could start. On this sheet or on a separate sheet in your notebook, write a list of your new ideas and record how you generated them. If you find yourself uninspired, keep a record of how you tried to find new ideas and your methods for research.


Watch people trying to perform a task

My New Business Ideas

Make a better version of a product you already like

Talk to others to get a new perspective on something (e.g., local history, a product, a service, or political ideas)Find faster or

easier ways to do an activity you’re already familiar with

Read about a business or industry you’re interested in and identify a specific job that you might likeIdentify a skill you

could learn to complement what you already do well

Learn about a new technology and find new uses or applications for itAsk friends or family for

suggestions for improvements they’d like to see for products or services they use



Assignment: Elevator PitchStudent Name:_______________________________________________________ Date:___________

Directions: The following resource will help you prepare for your upcoming elevator pitch. Remember, the purpose of your pitch is to provide a clear and concise description of your business idea and to explain the problem it solves and why it’s worthy of investment.

Use this resource to help you organize your thoughts regarding your new business idea. Then take out a clean sheet of paper and use these notes to write a short script describing your business idea. You may refer to this information (if needed) as you give your oral presentation.

Keep in mind that your elevator pitch should be between 30 seconds and 1 minute long.

Make sure your elevator pitch meets or exceeds the following assessment criteria: The pitch describes the product idea with detail and clarity.

The pitch describes which method (or combination of methods) was used to generate the business idea.

The pitch explains why the product or service is likely to be successful.

The pitch provides examples of who would be interested in the product or service described.

The pitch is delivered in an enthusiastic, engaging way.

The pitch is completely prepared and is within the specified length.

Business Idea Description of the business idea:

Where the idea came from:

Your special skills and/or abilities that will help you to be successful with this idea:



Consumers who would be interested in this product or service:

The type of unmet need or want that the product or service could fill:

Challenges to implementing this idea:

Other important information, interesting facts, or data to include to generate interest in this idea:




Notes: Elevator PitchesStudent Name:_______________________________________________________ Date:___________

Directions: Take notes as your peers present their business ideas. After you listen to your classmates’ elevator pitches, highlight the business ideas that you think have the potential to be successful. After you’ve done so, decide which five you like the most, and then rank them from 1 to 5 and fill in the sections after the table below. Be sure to include any questions and/or suggestions that you have about each idea. Keep in mind that the ideas you like the most will be used to match you with your culminating project partners.

Business Idea Entrepreneur Description




Business Idea #1: Entrepreneur/Classmate’s name:

What I like most about the business idea:

Questions I have about the business idea:

Suggestions that I have for improving the business idea:

Business Idea #2:Entrepreneur/Classmate’s name:





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