Turning creativity to cash

This report explores the idea of turning creativity into cash by starting a tea business. It covers determining and evaluating different sources of entrepreneurial ideas, explaining the rationale and market gap for the idea, presenting data to support gap analysis, interpreting data to provide evidence of market potential, and applying a SWOT framework to assess the idea's viability. The report also discusses the competitive and market environments in which the idea will be launched.

Turning creativity to
cash

Table of Contents
Introduction.................................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........................3
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant tools
and techniques to support your choice...................................................................................................4
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea....5
P4 Interpret data appropriately to provide evidence of market potential..............................................6
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea................................................................................................................................6
P6 Evaluate the competitive and market environments in which the idea will be launched..................8
to assess potential viability......................................................................................................................8
CONCLUSION...............................................................................................................................................8
REFRENCES..................................................................................................................................................9

Introduction
Entrepreneurship is converting an idea into business, hence the core of entrepreneurship
lies in creating or identifying opportunities that it is said that there will not be any business if one
can not recognize opportunity (Aliaga-Isla and Rialp, 2012). The concerned process completely
depends on the ability of entrepreneur. It requires creativity and imaginative power in order to
turn idea into reality. In the following report the idea which has been considered for starting up
business is of selling tea. With respect to this idea there are different aspects which has been
covered such as determining and evaluate different sources of entrepreneurial ideas and
innovation, explain the rationale and the specific market gap with use of tools and techniques,
presenting data to support the gap analysis along with interpretation of providing evidence of
market potential. In the end application of SWOT framework that support specific
entrepreneurial idea along with evaluation of competitive market to assess the potential of idea
are also discussed in detail.
Overview: Developing ideas is not an easy task and being an undergraduate student
starting up business would require presenting ideas to the potential investors. Thus the in context
of the subject the detail about the idea is given below:
Tea might sound like basic idea but it has huge potential in the markets of UK, with
increasing consciousness of maintain health many people are now switching from coffee to the
tea. Expansion with regards to including different flavors and modes of selling has also been
considered. Customers will have several options like cinnamon, ginger, green, blue and black
along with the option of buying it online as well offline.
P1 Determine and evaluate different sources of entrepreneurial ideas
and innovation
From the book written by Peter Drucker, there are seven sources of entrepreneurship through
which ideas can be developed. These are the ways that allows young entrepreneurs to gain knowledge
about how to recognize opportunities. The seven sources are explained below:
The unexpected: In order to identity the opportunities the first and the easiest way is to
conduct market research. It is essential to constantly analyses the market as there are times when
entrepreneur missed potential opportunity due to negligence. The idea of startup of tea business came
into mind in the same way, while studying about the market beverage pattern suddenly realization came
that tea market has not been taped into in detail. If right measures are taken this large amount of profits
can be generated.
The Incongruity: In simpler words these are the situations that gives birth to innovation, while
solving unusual situation the entrepreneur might see something that leads to creation of something
new. It analyses the situation between what is and what should, for example Facebook that successfully
analyzed there the world needs to become more connected. Thus it can be noted that the key to success
is taking the problems into account and then bringing change so that society will found new ways to live.

Process Need: This is the source which involves recognizing organization’s weak points and
reshaping them in order to make the process more effective. There were not many authentic tea outlets
which are selling healthy flavored tea thus taking the idea and converting it into business is profitable as
the customers have not experienced different attributes of tea. Thus Changing the way of doing business
can also lead to innovation (Alvarez, Barney and Anderson, 2013).
Changing perception: Trends are therefore considered as potential outcomes by many
entrepreneurs, these are the situations that brings change in the mindset of people. For example,
fashion of baggy jeans coming back because now they considered cool and comfortable, this is the
change in the perception of people which gives entrepreneurs reason to start up business.
New knowledge: The advancement of technology also provides several opportunities to
potential entrepreneurs. Customers are now becoming increasing aware about the issues through
internet, this new found knowledge should be explored in order to develop ideas. For example,
Customers becoming aware of side effects of coffee like heart attacks, low and high blood pressure etc.
Industry and market structure change: Changes made by the government in regulating the
industry can be beneficial for the entrepreneurs as it gives them freedom to run their ideas through
business. For example, relaxation made by the government in the sale of tea has given lucrative
opportunity to freely conduct business.
Demographics: This source is connected with the change in the population, income level, etc.
this helps in determining the right target audiences. In context of tea business there are large number
young students and business professionals are its customers.
P2 Explain the rationale and the market gap for a specific
entrepreneurial idea using relevant tools and techniques to support
your choice.
From the business perspective customers are the god, therefore identifying the potential buyers
should be the first priority for every businessman. Tea markets in UK are unexplored, there is large
section of people who are consuming tea. There is need to identify the wants of customers in order to
increase their satisfaction level. There are many advantages of tea such as mate tea that help in
improving the appetite apart from that that unlike coffee drinking too much tea does not have any
consequences. The segmentation of the markets are as follows:
Behavioral: As per this factor customer are put into group on the basis of their buying behavior,
analyzing the buying habits of people shows whether the market is attractive or not. As it was noticeable
that behavior of customers towards tea consumption was favorable thus the idea is selected.
Demographic: Based on this factor grouping of customers involves age, status, income and
profession of people. This is used as tool to identify the target audience, in case of tea business it was
found most younger generation is devoid of the advantages and are considered as potential market.
Geographical: grouping customers on the basis of country, region, location etc. also gives
effective insight about the market, for example there are many immigrants coming from south Asian
country which consumes high amount of tea thus this the scope of tea business is large (Davis, 2012).
.

P3 Present data needed to support gap analysis in the evaluation of a
specific entrepreneurial idea
The chosen idea has been investigated from various sources such as primary and secondary
sources. Gap analysis is one such tool that is used to compare the actual performance with future
desired performance. An analysis is made by the entrepreneur in which gaps are recognized which
occurs due to changing taste and preferences of people (Hills and Hultman, 2013). Recognizing
whether the product is meeting the requirements of users or not is the main purpose of using this tool.
There are different ways to conduct the market research which are explained below:
Primary research: This method of research is considered very authentic as data is collected from the
direct sources. By conducting surveys, interviews are the means through information with regards to the
consumption of tea are found. As it is exploratory in nature the reasons can also be found in detail as to
where the organization is lacking.
Secondary research: As per this method information from internet, newspapers, magazines can be
found. One of the article written in the newspapers showed that are over millions of people who
consumed tea. The main benefit of this source is that it helps in providing actual finding as it considers
large number of people and it takes much less time which is not the case with primary research. Social
platforms are turning out beneficial in providing information about the society trends for example
people discussing about subjects on food and beverage forums (Hills and Hultman, 2013).
Sample size: The size of sample is 40
Name:
Age:
Occupation
(1) Which one do you think is better?
a. Tea
b. Coffee
(2) The amount of time you drink tea?
a) Twice a day
b) Thrice a day
c) None at all
(3) Which flavor do you like the most in tea?
(a) Lemon
(b) Green
(c) Black
(4) Why do you prefer tea over coffee?
(a) Taste better
(b) Healthier
(c) Both
(5) Any suggestions that you would like to give
…………………………………………………………….
(1) Which one do you think is better Frequency

a. Tea 30
b. coffee 10
(2) The amount of time you drink tea Frequency
a. Twice a day 30
b. Thrice a day 5
c. None at all 5
(3) Which flavor do you like the most in
tea
Frequency
a. lemon 5
b. green 15
c. black 20
(4) why do you prefer tea over coffee Frequency
a. taste better 10
b. healthier 20
c. both 10
P4 Interpret data appropriately to provide evidence of market
potential.
Interpretation:
As per the analysis made on first question it can be seen that majority of the respondents said
they prefer tea over coffee. This shows that the idea has potential to work successfully in the market.
Interpretation:
As per the analysis made on second question the results show that over 30 respondents drink
tea twice in a day remaining 5 people said that they drink they drink tea twice a day. On the other hand,
there are still 5 people who does not drink tea at all (Hulbert, Gilmore and Carson, 2013).
Interpretation:
As per the analysis made on the third question it can be seen there are over 20 people who
prefer black tea flavor the next 15 people likes green tea while remaining 5 prefer lemon.
Interpretation:
As per the analysis made on the third question it is shown the answer as to why people prefer
tea over coffee, there were 10 people said it is because the taste is better, the other 20 reasoned it by
saying tea is healthier while remaining 10 agree to both the above mentioned scenario (Nieto and
González-Álvarez, 2016).
The data shows that idea will work in the market and investors should put money into it.
Majority of the answers in favor of tea. From the recommendations sections the insights of product can
be understood. This will allow entrepreneur to further explore the product and make changes into it.

P5 Apply a SWOT framework to collate evidence to support an
objective assessment of a specific entrepreneurial idea.
SWOT is a framework that helps in evaluating the ability of organization or idea. In context of
business idea this tool is applied to understand the different aspects. The strengths, weakness, threat
and opportunity are explained below:
Strengths: before selecting idea to run business one should first analyses the strength which
hold. An idea which is not lucrative should not be considered thus with the first element of SWOT it is
assessed what are the key strengths of selecting tea as business idea (Sahut, Gharbi and Mili, 2015).
 IMO certificate: This certificate which is given by the international agency after inspecting
the quality of goods. Gaining this certificate gives advantage over competitors as people
are assured about the product being ecofriendly. When there is proof that ensure that
customers can trust the company for selling quality products.
 Health safety: Another strength of this idea is with respect to health of customers, as there are
more and more people who wants products that does not harm their health therefore taking this
idea can help in garnering more customers with time.
 Different flavors: There are variety of different flavors such as black, green, espresso, ginger etc.
which are included in the product profile, this allow the customers to try out something different.
This helps in serving the needs of variety of sections.
Weakness: These are the incapability or the areas where the improvement is required. Through
gap analysis it can be identified what are the issues that are required to be overcome. Every entrepreneur
goes through some several problems that affects the profitability of business. Weakness of the discusses
idea are as follows:
 Availability of Substitutes: the main weakness of tea as business is that there is strong availability
of other substitutes like coffee and other energy drinks. Even though there is large market of tea
but there is large section of people who still prefer coffee over tea therefore idea needs to be
marketed appropriately in order to change the preference of audience.
 Labor intensive: The industry is considered largely as labor intensive thus changes in the wage
rate act as roadblock in the profitability of business. The companies have to comply to the
demand of workers with respect to settlement of wages which increases the cost of business.
 No brand value: Being an undergraduate there is lack of experience in understanding how the
business works and how to determine the factors in order to control its impacts. As customers are
not aware about the brand thus generating sales would be difficult.
Opportunity: Under this aspect identifying potential situations that can provide valuable
outcomes hence entrepreneur has to strongly analyze the market and understand each and every detail so
that advantages of opportunity can be availed (Siegel and Renko, 2012).International borders: by
collaborating with the other tea businesses there is an opportunity to expand the company. As the product
is used internationally there is not much requirement to spend tons of money in generating advertisements
which explains the usage of products.
 Greater antioxidant: Rich ingredients in the tea provide several opportunities for further growth of
business.
Threats: These are the problems that impacts the businesses though it one uses his expertise
these threats can be converted into opportunity.

 Fluctuations in the demand of consumers due to availability of other beverages like coffee, juices
and other drinks.
P6 Evaluate the competitive and market environments in which the
idea will be launched
to assess potential viability.
Competitive research or competitive intelligence is a field of strategic research that specializes in
the collection and analysis of information about rival firms. It's an essential tactic for finding out what
your competitors are doing and what kind of threat they present to your financial well-being (Spigel,
2017).
Identify competitors: Every business has competitors that threats the position of business, in
order to compete with others one should have the potential to drive out such elements so that
profitability of business remain intact. The selected business proposal has competitors like bird and
blend tea co, Britannia tea company, canton tea etc. Though most of these are already established
brand therefore fighting with them would require strong strategic plans (Wilson and Martin, 2015).
Competitors profiling: in this step detailing the competitor’s strengths and weakness is done,
this is done understand what are the factors that makes them stand out from others. This also include
the marketing strategy which they use, financial policy etc (Wood and McKelvie, 2015).
CONCLUSION
From the above report it has been concluded that starting up business would involve identifying
the opportunities and converting them into reality. Every entrepreneur has different ideas into their
mind before they decide to pitch them in front of investors. Though recognizing opportunity is not easy
task but there are different sources through attractive ideas can be found. Through the peter Drucker
entrepreneur innovation book one can find the appropriate source such as changing perceptions,
process need, unexpected etc. Gap analysis is a tool that helps in finding the flaws or gaps which needed
to be covered. It helps in reaching the desired position by meeting the customer expectations. For the
purpose of checking the potential of business proposal in the market, techniques such as primary and
secondary can be used. Tools like SWOT and competitor analysis different aspects of idea can be
explored and based on that decisions are taken by managers about how they achieve success in the
market.

REFRENCES
Books and Journal
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implications of discovery and creation processes for entrepreneurial and organizational
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