Module 2: From Idea to Reality

Overview:

In this second of three lessons for the future entrepreneur, we will delve into the steps and considerations involved with turning an idea into a business.

Turning an idea into a business:
Researching the market
Weighing the risks of starting a small business

You have a passion or a hobby, can this be a business? You have an idea – there is a need for a product or service – but you need to know more about your market before you go into business. Last, of what risks should you be aware? These are all topics that will be covered during this learning module.

Goal:

Provide the future entrepreneur with an overview of turning an idea into a business, researching the market and weighing the risks of starting a small business.

Objectives:

Understand tools for turning a business idea into reality.
Understand importance of assessing overall market climate.
Develop skills to gather market information.
Weigh risks of starting a small business.

Overheads:

2-A Tools for turning a business idea into reality.
2-B Arm &Hammer products.
2-C Mind Mapping example.
2-D Importance of assessing overall market climate.
2-E Skills to gather market information.
2-F Weighing the risks of starting a small business.

Activities:

2-1 (PDF)- Baking soda exercise. Creativity as a competitive advantage.

PART 1: Ask students to write down all the products they can think of containing baking soda.
Lead discussion with students and make list on board.
Show overhead 2-A, a visual of different products with baking soda in them.
PART 2: Ask students to speculate about why certain phrasing was used in Arm & Hammer’s website.
Lead discussion on what issues/research might have led to this phrasing.
Homework 1: Determine other products that demonstrate the concept of creativity as a competitive advantage, report back in next class.
Homework 2: Look up the definitions of the following and provide an example of each – Patent, Trademark, Servicemark, Copyright.

2-2 (PDF) – Mind mapping exercise. Turning an idea into reality.

Ask students to take out their sheet from the last module in which they listed passion areas/hobbies.
Students will choose one and complete the mind mapping exercise.
Instructor coaches students through the exercise using 2-2 supplement and overhead 2-C.
Suggested timing = 5-10 minutes for sections 2, 3, 4 and the written part of 5. One minute per student for elevator pitch sound off, one minute per student for teacher and student reaction/comment.
Supplement

2-3 (PDF) – Personal creativity – From where do your best ideas come?

Ask students to reflect on times, places, events that stimulate their best ideas.
Discuss ways to capture these ideas.
Homework: Keep a personal log of business ideas. Pick a time to review the log (weekly, monthly) and to put these times on their calendars.

2-4 (PDF) - Market research role play.

Have students review the text/Scarborough list of entrepreneurial traits and the T-SET list of traits.
Students pick three traits with which they identify. Students also pick three areas in which they would like to improve.
Ask students to pick one of each, and report out to class.
Team 1 | Team 2
Supplement

2-5 (PDF) – SWOT chart: Strengths, weaknesses, opportunities, and threats. (Homework or exercise).

Use as homework follow-up exercise to 2-4 or complete as class exercise.
Students review sample SWOT Chart
Students make observations about the different components of the SWOT chart and discuss in class.
Answer Key

2-6 (PDF) - Market research for my business idea (Homework).

Students choose one exercise and complete as homework. (Assignment #1 is suggested, but, other assignments included for flexibility and/or to pursue a specific learning agenda).
Discuss assignments in class or provide written comment to students on papers.

2-7 (PDF) – Weighing my risks in starting a business.

Students imagine they are starting their own business.
Ask students to rate the risks discussed in class from 1-5.
Students take their top three risks and develop “risk mitigation strategies”.
Go around the room and have each student discuss one risk and mitigation strategy.

2-8 (PDF) Thinking Ahead - Preview of Module 3

Homework: Research “business planning” on the internet. What do you find? What is business planning and why is it important?

This curriculum was developed by Katherine Korman Frey, Professor of Entrepreneurship in The George Washington University’s Center for Entrepreneurial Excellence and Managing Director of Vision Forward. Contributing content provided by Dr. George Solomon, and Professors Susan Duffy, Janet Nixdorf and Ayman Tarabishy.