Over the past few weeks my business class groups have been busy trying to develop business venture ideas for their YES companies. It’s always a great ride. Witnessing teenagers get that glimpse of the very real notion that they are already in control of their own financial future, even just by being in business at school, is always a privilege to witness.
The challenges are always the same. Given they’re students and usually low on cash, they require an idea with the following characteristics:
- Minimal financial outlay
- Low barriers to entry
- Not been done before
- Innovative (preferrably)
The big problem is the ability to come up with a concept that matches most (if not all) of the above points. Most of their initial ideas will usually have one of two problems:
- Lack of scalability or continuity, e.g. school sausage sizzle’s or school dances
- Issues around time and expense to get to market, e.g. prohibitive prototyping expense
On day one, I extensively cover what I believe to be the first rule of the business start-up; solve a problem.
Obviously, some of the student groups companies don’t quickly identify problems to solve, so I use a different tactic. I ask them to write their own answers to the following questions on a sheet of paper.
One aim of this was to inspire them to explore areas of business that align with their talents and the interests in their own lives (Paul Graham’s ‘What you’ll wish you’d known’ post was an inspiration for this).
Next, I suggest that instead of trying to come up with a business idea, perhaps they should identify:
- A target group of people with identifiable characteristics (or worldviews)
- A solution to one of their problems
When we did this, atleast one company thrived. They identified numerous prospects, including one which looks at first glance to be very promising. Encouragingly, it also has the 4 characteristics needed for most teenage YES businesses. Again…
- Minimal outlay
- Low barrier to entry
- Not been done before
- Innovative
Their chosen target group? The Elderly. Their solution? … by all accounts, well on it’s way to market.
In conclusion, providing an environment for teenage kiwi entrepreneurs to develop business venture ideas is a unique challenge. It’s often fun, sometimes tiring, but mostly rewarding and a privilege.
What processes have you used when in a formal idea generation setting?
