Starting A New Business

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 1Competition 2Competition 3
Price
Service
Quality 
Convenient 
Selection 
Competition Analysis Chart

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:

  1. How do you differ from the competition?
  2. How much are you going to charge
  3. How are you going to reach your customers?
  4. How will you sell your product or service?
  5. How will you produce your product or service?
  6. How will you retain customers?
Weekly NewsletterPlease Subscribe Now