Of what used is generating ideas that does not translate to something? In the context of this discussion, an idea is a thought or collection of thoughts that generate in the mind. This is usually generated with an intention; when you search for it consciously or unintentionally when it hit you like a flashlight in form of trance or dreams. However, most ideas are often formed during scientific research, brainstorming sessions or through discussions.
A business idea is a concept that can be used for financial gain that is usually focused on a product or service that can be offered for money. An idea is the first milestone in the process of building a successful business. The characteristics of a promising business idea are: Innovative. A successful company always starts with a compelling business idea. It’s the first milestone in the process of founding a growth company.
Point to note is that no matter how brilliant an idea look from conception, it has no commercial value. An idea has to pass through plausibility check before more information of it chances in the marketplace and helps to check its feasibility and innovative content.
Characteristics of A Promising Business Idea
Fulfills a need: At the ideation stage, an idea must have the ability to gain insight into customer needs and an understanding of the potential relevance of emerging technologies.
Innovative: At the product development stage, an idea must have the ability to engage actively with customers to prove the validity of concepts and to assess market potential and risks, and the ability to leverage existing product platforms into new products.
Unique: The best performing companies develop additional capabilities that are very unique compare to their competitor in their business line.
Clear focus: There is a clear cut guideline from conception stage to profitability stage to ensure the target of the idea is well focus without deviation.
Profitable in the long term: At the commercialization stage, an ability to work with pilot users to roll out products carefully but quickly, and to coordinate across the entire organization for an effective launch to target market to maximize profit.
What defines a convincing business idea?
Idea generation is similar to a song composer; you might be gifted with talent of writing beautiful songs without the talent to sing it to audience. It is the same with having multibillion Dollars business idea without the requisite financial backup to convert your idea to a functioning business venture. To some, it is easy to produce countless ideas, even in the dream or in fact be in a situation of idea explosion and thereafter the idea is finally dead with you.
Have you been in a situation when you are endowed with numerous business ideas flowing on your head? Yet in reality you are unable to own a single business venture? A pastor gave example how God reveals to him so many years ago on the formula to design a phone with two Sims card, unfortunately, he ignored or forgot to put it down, few years later two Sims card phone was release into the market.
Present the Idea to Investor
You may have a brilliant business idea without the capacity to develop it, but that is not enough reason to die with such beautiful idea. It is paramount to present your idea in a most presentable and logical form to the investor.
A business idea is addressed to an investor and, therefore, must be formulated with the investor’s perspective in mind. It’s neither an advertising brochure for an “ingenious” product nor a technical description. Rather, it is a decision support document that emphasizes three aspects.
Components of Business Idea
Customer benefits: What is the customer benefit, what problem will be solved? In real business world, the most vital marketing achievement is not how superb the product or service may be, but whether if the product and services satisfied customer’s needs. A customer does not just buy, but they buy to satisfy a need or to solve a problem, for instance, you need food to satisfy your hunger, or needs the service of accountant to file your income tax, etc. The first principle of a successful business idea is therefore, that it clearly describes the need that will be satisfied either product or service. This is a ‘Unique Selling Proposition’ for marketing practitioners.
The Market: What is the market? Knowing the market structure is vital information that guilds you to making headway to determine market acceptability and the commercial value of your business idea. Simply put; a business idea only has commercial value when the “market” accepts it. Another principle of a successful business idea is that it shows the size of the market is suitable for the product or service offered and also to take concerted effort to determine the target group of consumers or clients the product and services are meant for; and how it differentiates itself from the competition.
Returns : How is the money to be earned? From ideation stage, the determining factor is to earn revenue at the end of the process. In fact a business that cannot pay its bill is not worth the name and therefore the value attached to business idea is its ability to generate value and thereby providing an avenue to earn income. A business must have the capacity to be profitable in long term if not at the beginning. Other important principle of a successful business idea is, consequently, it must answers specific questions on how much money can be earned with it and how the money will be earned.
A business venture goes through stages of development similar to the cycle of life for the human race. Parenting strategies that work for your toddler cannot be applied to your teenager. The same goes for your small business. It will be faced with a different cycle throughout its life. What you focus on today will change and require different approaches to be successful.
Your comments and suggestions are highly appreciate.