HOW TO DEVELOP A BUSINESS IDEA
HOW TO DEVELOP A BUSINESS IDEA
Every human being is innately business conscious. No matter the area of life one is into, there is always the urge to find a way to make it marketable. In our society, people in a bid to live a better life, and see their dreams come true, are constantly looking for businesses to move into and be their own CEO’s, MD’s and so on. Unfortunately, most people who have business ideas find it difficult to develop it, this could be as a result of their engagement with other things, such as work, family, inferiority complex, and so on.
In the words of Batuhan Pekesen, “business ideas are Ideas that provide value for the customer, profit for the entrepreneur and benefit for society and can be transformed into products of services. Business ideas that will sustain the customer, society and entrepreneur have the ability to meet a lot of requirements.” These business ideas could be a solution to an everyday problem, an invention, or a new product and service. According to The Guardian’s Sue Tabbitt “growing a new business from the seed of an idea is tough.” However, there are ways business ideas can be developed but first step is to look for new opportunities.
Define your audience
Identifying your audience is very crucial to developing a business idea. In the words of Melinda Emerson, “even if your idea is really great, it might not correspond to the needs of the market. That Is why the first thing you should do is define your target audience – people who will be buying and using your product. Once you define this specific group, it’s time to listen and observe.” Businesses only flourish when you have people willing to buy your product or patronise your services.
One of the critical questions an entrepreneur should ask his/herself is: what niche stores do I shop in? Why? Does my business idea fit into niche marketing? Why or why not? For conceptual clarification, a niche can be referred to as a narrow, well-defined area. Niche marketing is very popular; the relevance of a niche is that it helps customers get the best variety of products in a category.
An entrepreneur may already have a good business idea but what is rare on the other hand is the ability to execute an idea and turn it into a profitable venture. The opportunity to new businesses might just be in your hands, you have to reason out things that interest you and could equally fetch you money, it could be your hobbies, business skills, or activities you love partaking in. You should also be able to beat deadlines, solve problems, and be willing to take advantage of opportunities presented by your new idea.
It is essential for you to conduct research to see whether your idea is truly original or whether someone else has a similar product or service. Capturing a new market, that is, something no one else is doing, may be more profitable than competing with a similar product or service. You could seek help from a business expert or mentor that will help in evaluation and enhancement of your idea.
Perform a SWOT analysis
It is necessary for an individual to do thorough analysis in a bid to develop a business idea. Monique Craig noted that ‘’a SWOT (Strengths, Weakness, Opportunities, Threats) analysis is basically an analysis of the strengths (of your service, product or industry), the weaknesses of your product or service (high price, faulty design), the opportunities involved in your project and, finally, the potential threats to realizing your idea (like bad economy).’’The relevance of doing a SWOT analysis lies in the fact that it allows you to see internal and external aspects of your product that might be either helpful or harmful to your operation. Consequently, you will be able to spot any holes and patch them up before you release the product to the market.
Nobody can thrive successfully in any venture without an effective plan. Ben David posited “you must create a thorough business plan.’’ Clarification of goals you need to achieve in your business plan is not a bad idea. You have to provide information about your balance sheet, income statements and cash flow. There is no doubting the fact that a well-defined business plan will steer your enterprise on the path of success. Thus, it is extremely important to plan.
Developing a solid business idea is critical to the success of your business. With a business plan in place, it will help you determine how much money you need to start your business. Most lenders will want to review your business plan because they can only give out money to entrepreneurs that can payback. Procedures and strategies on how to generate capital for repayment is equally necessary, not leaving out estimates for sales projection in your first year. Market size, market plan, competition, and your price are some of the factors you need to consider in doing your estimation.
Develop your final product
The next step would be to implement the tweaks and necessary adjustments to create the final product. With adequate knowledge of your product, creating a prototype is a positive step to be taken so that clients will do proper testing. The best system for doing this is market survey. Also, feedback from key actors and major players in the industry or organizing group meeting sessions which entails having people from numerous demographics to discuss your product and help put you in the right path towards succeeding in your business.
The beginning of end of all business idea is the launching of the product. Once your products hit the market, you will know the possibility of the business turning out successful because people will not hesitate in patronizing your product if it solves their problems or needs. In essence, your business idea can only be respected if it yields great outcome.
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