CHOOSING BUSINESS

IDEA
Engineering Entrepreneurship
Second Semester of A.Y. 2014/2015
International Program
Civil Engineering Department
Faculty of Engineering
Universitas Atma Jaya Yogyakarta

MURPHY
(Consultant of Small-Medium
Enterprises in the US)

Golden key of success:

Do the right business in the right
time
(SWAT: one shot one killed)

BUSINEES WEEK
Magazine
In a discussion conducted by A.T. Kearney, Inc.:
If a company takes out all its maximum ability in
investment, then new product launched into new
market will influence only 1 out of 20 people. This is
due to people in the new market still use old (similar)
product they are used to. If old product is launched
into new market, it will influence 1 out of 4 people.
If a new product is launched into old market, it
will influence 1 out of 2 people. Finally if an old
product is launched into old market, it will
influence 1 out of 1 people.

IMPLICATION
To be successful:
An entrepreneur needs not only
creative idea in product creation but
also accurate strategy and right
execution cannot work alone,
needs supporting thoughts from idea
to commercialization

EXAMPLE
Far before KFC and McDonalds gain
succeed in Indonesia, Pizza Hut had
come earlier but it did not last long
since Indonesian market was not ready
to consume such that food. After the
succeed of KFC and McDonalds, Pizza
Hut reentered when Indonesia
customers have got used to fast food
with Western taste. Customers started
to chase for variation.

 Succeed is determined by many

things but the most important thing
is knowing your own characters
and being in the area you like
and intimate with.
It is not impossible that succeed is
just a matter of time to people
who really love their work.
Product how simple it is has to be
embraced, talked to, given
command and your personal
touch; know yourself before finding
the real business idea

KNOWING SOUL CALL

Suitable to us opportunity is
personal and close to you, it needs
skill, personality, and to be liked
Access related to network,
supporting environment
Potential commercialization has
to be able to give feasible growth
rate and investment return rate

ANALYSIS
to Find Potential & Suitable Business Idea

1. What do you like most?

2. What is your hobby?
3. What product & process you know best?
4. What do you want to do when you are idle?
5. What is your most important goal in
running own business? (Getting profit or
freedom or something else)
6.What idea emerges as response to the first
four questions above to fulfill question no.
5?

Answer to those questions is different

from one person to another
everyone has uniqueness & different
personality necessary to know
uniqueness & personality of a person
(in addition to hobby) prior to decision
of a business

IV
Co
(Conventional)

Introv
ert

D (Dominant)

Dedicat
ion

Dominati
on

III
Ca (Calm)

II
P (Popular)
Extrove
rt

INTROVERT vs.
EXTROVERT
It is about intensity of desire to
interact
EXTROVERT: tends to build relations
and bonds with other people
INTROVERT: tends to minimalize
contacts with others

DOMINATIVE vs.
DEDICATIVE
It is about urge to dominate others,
whether tendency to
command/control other or to
succumb
DOMINATIVE: tends to control
others
DEDICATIVE: tends to succumb

Quadrant I: DOMINANT
Person
Strong motivation to gain achievement
Behavior is oriented to final result of a work
or responsibility
Like challenges
Ready to work hard even in any ways
Less care to socialization environment, speak
a little, move fast & practically, straight to
the target
Like freedom, do not like to be ruled, free to
create, free to develop own ideas to conquer
challenges

Quadrant I: DOMINANT
Person
Want power since without authority the desire
will be obstructed by more powerful person
When a problem solved, no interest to re-face it
again since no challenge anymore like
variation in activities, the more variation the
more enthusiastic
Consider quality work is the one of high level of
difficulty being challenged & satisfied when
successful
In company: want clear status & carrier ladder
since it is considered as appreciation upon
achievement as result of hard work & drudge

Quadrant II: POPULAR

Person
Motivated to get recognition from people,
feel as important person in neighborhood
Less aware on final result of work and
deadline of accomplishment
Fight to get influence here & there
Want prestige, talk a lot, long for warm
relations, make friends with many parties
Want freedom, far from tight rules &
detail control

Quadrant II: POPULAR

Person
Love interaction and good in it
Do not hesitate to help others,
motivate everyone who needs
encouragement to achieve progress
in business or life
Talking between individual or in front
of public while throwing ideas make
them enthusiastic

Quadrant III: CALM

Person
Pushed by motivation of friendship &
respect each other
Extrovert, like & good in socialization
Cannot have big ambition in reaching any
achievement, everything is done ordinarily
Naturally cool, calm, friendly rarely
considered as arrogant
Considered as easy for consultation or
discussion, especially some of them are
considered as big brain

Quadrant III: CALM

Person
Do not like responsibility & variation of
challenge
Tend to specialization to limit scope of
responsibility in certain area
Like to join group of people, participating as
member
In work: like to be in settled system,
everything is standardized, guidance is clear
Do not like challenge less courage to take
big risks tend to choose safe environment

Quadrant III: CALM

Person
If being located in new strange
environment take time to adjust
Always try to stay in environment
which is already known well
To achieve something: need detail
explanation about target & their role
in it

Quadrant IV: CONVENTIONAL

Person
Work with reference of accuracy, correct
& perfect result in accordance to
standardized principles
Introvert, less care to social environment,
tend to limit from relationship with others
Precise in work, perfectionist, always
refer to perfection of final result
Less aware of deadline, expect guidance
step by step & overall support

Quadrant IV: CONVENTIONAL

Person
Expect safe environment
Can work in group with base of
thought that faced risk can be
minimized & hold together
Expect to get tasks that can occupy
them
Suitable to work requires high
accuracy or in researches

Production or
accounting

Analyst

Creative

Service

Service

Directi
ng

Consulta
tive
Distribution or
promotion

BUSINESS AREA of
CREATIVE
Not suitable for the ones require lobbying
Suitable for production but keep ensuring saleable
or marketable
Example:
Food & beverage
- Screen printing
Craft
- Publishing
Metal
- Children toys
Agriculture & agribusiness - Greeting cards
Livestock & ponds
- Intellectual work
Knit work, embroidery, lace (computer software,
movie/drama script,
songs, art work, etc)

BUSINESS AREA of
CONSULTATIVE
Possibility to be controller
Example:
Consultation service, e.g. IT, tax, finance,
marketing, law, fengshui, psychology, fashion,
fitness, nutrient, construction, computer
Courses, e.g. foreign language, skills (screen
printing, typing, computer, sewing, cooking),
management
Fitness center & sport training
Trading, e.g. distributor, sub-distributor, dealer,
agent, reseller, retailer

BUSINESS AREA of
SERVICE
Example:
Service bureau, e.g. documents, driving course
Technical bureau, e.g. electronic appliances
maintenance, electrical installation
Typing service
Photocopy & binding
Screen printing by order
Workshop, e.g. vehicles (car, motorbike), electronic
appliances repair
Building contractor & repair service
Boarding house
Beauty salon
Middleman/broker: connecting seller & buyer

BUSINESS AREA of
ANALYST
Not so much socialization
Problem solver
Example:
Translator service
Repair service of electronic appliances &
information technology
Intellectual work
Fashion designer
Laundry
Sewing/tailor service

BUSINESS IDEA by
IMITATING
Refer to old business of 2-3
generations: keeping old customers
& get new ones while taste &
demand of society changes from
time to time
On the other hand: fail entrepreneurs
in similar field of successful business
due to fail of adaptation new
ideas are always required to adapt
current business

SCHNAARS (1994)
Many ways to develop ideas from products available
earlier
Many later entrepreneurs outperform pioneers who failed
in evolution
New comers = creative adaptors (creative idea copiers)
Creative adaptors do not break law since counterfeits &
product pirates are forbidden
Creative adaptors observe current business behavior,
find its weaknesses and repair them BUT always
use OWN BRAND
Business ideas emerge due to information indicates
needs. It requires data and considerations.

 Needs might currently be unsatisfied

due to available products are still very
expensive or due to there are other
things still unmet the following should
be done:
1.Study the current industry
2.Assess the industrys input & output
3.Analyze the trend of population &
demographic data
4.Assess the economic trend
5.Analyze the social change
6.Assess the impact of new regulation

1. STUDY THE CURRENT

INDUSTRY
Many institutions provide information & complete
assessment of companies
Easy to obtain names, addresses, date of
establishment, products, number labors, etc
Analysis to obtain:
Needs that have not fulfilled by local industry due to
various reasons, e.g. requirement of high technology,
imported raw materials
Incomplete fulfillment of market needs due to high
variety of needs
Support to current needs, e.g. supply supporting
components or tools of old producer with competitive
price & service

2. ASSESS THE INDUSTRYS INPUT

& OUTPUT
Same data as reference to assess input &
output of current industries
Opportunity is available if:
Current procurement of materials & components is
from far distant long lead time & expensive
transportation cost
Specific components are normally used together
and self-produced can be supplied with much
cheaper price & single producer for economic scale
consideration
It is business opportunity related with further
process sewage recycling

3. ANALYZE THE TREND OF

POPULATION & DEMOGRAPHIC
DATA
Trend of age group of population
Example:

1980s: children market toys, school

equipment
1990s: young families tools &
equipment of home furnishing

4. ASSESS THE
ECONOMIC TREND
Change in economic situation causes
new needs then provides wider
business opportunity
Example: in last 2 decades, people
are much more aware of the
importance of time increase
demand on practical & saving time
products such as rice cooker,
microwave, oven

5. ANALYZE THE SOCIAL

CHANGE
Example: change of someones perception and
awareness on something
new awareness in use of preservative & pesticide
leads to emergence of product without preservative
or with natural preservative or organic
similarly to food with high cholesterol & sodium
tend to use spare time & holidays travelling
equipment, camping tools, etc
increase criminals (of quantity & quality) selfprotection product: security service, safe parking,
alarm, safety lock, CCTV, metal safe deposit box,
authentic money detector

6. ASSESS THE IMPACT OF NEW

REGULATION
New opportunities to fulfill new
regulations, e.g.:
environmental impact control
consumer protection
labors health, safety, & right

Potential business idea

Feasibility selection (rank)
Best idea economically
by scoring 4 components
market
prospe
market growth potential
ct
cost
risk impact

PRACTICAL TIPS
Two effective ways to stimulate
business idea:
1.Attend trading & investment exhibition
2.Implement method of Dr. Herb True, i.e.
[next slide]

METHOD
Modify

COVERAGE
color, shape, voice, smell,
move

Re-arrange

order, components, schedule,

pattern

Duplicate
Reverse

imitate, transfer, copy

Add
Reduce
Replace

front to back, top down,

opposite
unit, action, price, higher,
longer, thicker

miniature, delete, shorten,

break
content, strength, process

ALEXANDER GRAHAM
BELL
When a door is close, then another door
is open. However, we often are stunned
and regret the closing door so that we
cannot see the other opened door.

INSPIRATION

How I Made My Millions

- 10 Ideas that Make
$100M
mymillions.cnbc.com
http://www.cnbc.com/id/43768333