Coming up with a great business idea is the start to building a successful business. However, it is basis to develop a plan. A truly great idea starts with the ability to identify and solve a problem. Problems must be seen as an opportunity or a challenge for an entrepreneu
Which problems can you solve
Identifying problems by having a problem radar, take a note of everything that annoys you, your friends and family. Write these problems down and reframe them as a challenge of how could you solve this problem.
In your current job
What are the issues that face you in carrying out your current job?
What problems do your customers face when ordering from your company and your competitors.
In your daily life
Things that you find annoying, things that turn you away from a particular product or service.
Who Is The Real Customer
Who is the customer, not necessarily the person who actually pays for the product or service.
Car example; although you may really want to buy your dream Porsche, but other people may well have an input to this decision. Your wife may well prefer a more practical car, a SUV with plenty of space for the family, kids and the mandatory Labrador dog.
Getting to know your customer demand
Market Research
Market research should be broken down into two stages, Primary – asking for feedback from people about the potential product or service and whether they would buy it and Secondary- research through third party sources such as Google Searches, industry data and other sources.
Critical Success Factors
When conducting your research you should establish what are the critical success factors you need to achieve in order to flourish.
As an example : location, Price, Availability, Range /Selection, Product Quality, Service, Convenience.
Once you have established your success factors, rate each of your primary competitors from 0-5. When complete, analyse how your business would compete in each area.
| Competition 1 | Competition 2 | Competition 3 | |
| Price | |||
| Service | |||
| Quality | |||
| Convenient | |||
| Selection |
Research Required
Primary Research
Secondary research
Getting to Know the Market
Understanding the complete supply train
Understand your Core Competition and Secondary Competition
Core Competition
Secondary Competition
Theory of Business
How are you going to make money ?
The business model differs from the business plan in as much as the business plan is about the journey, and the business model is an explanation of the end result.
Furthermore, the business model is how are you going to make money, and it may not be obvious. A Petrol stations sells petrol. However, they make the the majority of profit by selling groceries which have higher margins.
Important items to include in your Business Model include:
- How do you differ from the competition?
- How much are you going to charge
- How are you going to reach your customers?
- How will you sell your product or service?
- How will you produce your product or service?
- How will you retain customers?
