Project Ideas

GENERATION AND

What is the difference between a successful
SCREENING OF venture and an unsuccessful one?
PROJECT IDEAS
The successful one entered into right
business at right time.

How do you get project ideas?

By scanning the environment.

Sanjeev Bajaj
Reader, Finance Area

Generation of Ideas Scanning the Environment

How to get commercially viable project
ideas?
 Stimulate the flow of ideas by
• Setting clear objectives
• Fostering a conducive climate
• Encourage research.

Economic Sector

Governmental Sector

Technological Sector

Socio-demographic Sector

Competition Sector

Keep your senses in receiving mode.
Supplier Sector

Geographic Sector

1
 Tools for Identifying
Core Competencies
Investment Opportunities

Marketing and Distribution Among many these three are popular

Production and Operations
Porter Model : Profit Potential of Industry

Research and Development
Life Cycle Approach

Corporate Resources and Personnel
Experience Curve

Finance and Accounting

Porter Model : Profit

Life Cycle Approach
Potential of Industry
Potential
Entrants

Pioneering Stage
Threat of new
Rapid Growth Stage
entrants

Maturity and Stabilization Stage
Bargaining power Bargaining power
THE INDUSTRY
Suppliers
of suppliers
Rivalry among
of buyers
Buyers

Decline Stage
existing firms

Threat of substitute
products

Substitutes

2
The Experience Curve How to Get Project Ideas

Analyze the performance of existing

Cost control for long-term survival industries
Key factors which contribute to cost control
Examine the inputs and outputs of various
are industries

Learning effect
Review import and export

Technological improvements
Study plan outlays and governmental

Economies of scale
guidelines

Look at the suggestions of FIs and
Developmental Agencies

Investigate local materials and resources

How to Get Project Ideas Filtering the bad ones

Analyze economic and social trends
Compatibility with promoter

Study new technological developments
Consistency with governmental priorities and

Draw clues from consumption abroad policies

Explore the possibility of reviving the sick
Availability of inputs

units
Adequacy of the market

Identify unfulfilled psychological needs
Reasonableness of cost

Attend trade fares
Acceptability of risk level

Search, search and search

3
A Successful Entrepreneur

Possess following qualities and traits

Willingness to make sacrifices

Leadership

Decisiveness

Confidence in the project

Marketing orientation

Strong ego

Open mindedness

Receptive