Business Idea Generation and Opportunity Identification
What the domain tests
This domain tests the difference between an idea and a validated opportunity, and the screening process.
Core rules
- Idea: a thought. Opportunity: an idea with demonstrated demand, feasible delivery, acceptable risk and a route to profit.
- Sources: customers' complaints, observation, hobbies, trade fairs, government schemes, research and existing products in new markets.
- Screening criteria: market size and growth, willingness to pay, competition, competitive advantage, technical feasibility, financial viability, regulatory fit, promoter capability and timing.
- Tools: brainstorming, SCAMPER, focus groups, surveys, mystery shopping, SWOT and feasibility study.
- Validation: talk to paying customers, test a prototype and estimate unit economics before scaling.
Worked example
Students notice long queues at a campus canteen at 9 p.m. and propose late-night delivery. The idea becomes an opportunity only after checking: 120 orders per week at ₹60 average, 35% contribution margin, two competitors closing at 8 p.m., delivery cost of ₹15 per order, and permission from the college. The gap is real, but the venture is viable only if order density keeps delivery cost below contribution.
Traps
Passion is not demand. 'No competition' often means no market, not a gap. Do not skip willingness-to-pay and unit economics. Do not confuse a feasibility study with a business plan-the former tests viability, the latter operationalises it. Do not ignore licences and local permissions.