Justification of a business idea
People like Henry Ford and John Rockefeller are still considered significant representatives of those who managed to achieve heights in their business. Millions of dollars, patents, success and power - all this did not fall out of the sky: they, like all mortals, started with the idea of a small business. Even if no one believed, considered a fool (this is especially true in relation to Ford).
Commitment, faith and love for what they do work wonders. But, in addition to this, you need to take into account the willingness of potential customers to your innovations. Own business allows a person to get rid of the constant dependence that appears when working "for an uncle", he becomes the master of his time and gets the opportunity to do what he really loves and knows how. However, there are also pitfalls, among which the main one is negligence. What is an idea? This is a fragile organism that needs to be maintained 24/7 until it gets stronger and begins to bear fruit. Working for someone, though it puts in a frame, but provides a regime "from nine to six, plus a lunch break and endless smoke breaks." Success is directly proportional to the amount of time you spend ... you have to put in effort.
So what's the idea? In this case, it means a certain verified strategy that is based on your knowledge and skills. Moreover, it is worth emphasizing once again that its essence is set out in detail, taking into account all costs and risks. Think of it as an algorithm that describes the path to success in your chosen field. An abstract picture, which shows a schematic of your brainchild, next to you in a crown, and the caption: “WE ARE RICH, WE ARE RICH. "Is not a business idea.
The modern market dictates its own rules, whatever one may say. The abundance of goods and services that are offered at almost every corner made people jaded, it is difficult to surprise and attract them. However, it is not the gods who burn the pots, you can achieve success by maintaining a balance of the following indicators:
- the demand for the idea among the population;
- the relevance of the idea for you;
- the viability of the idea, if we consider long-term prospects.
This item is characterized by the enthusiasm with which consumers will respond to your proposal. It depends on many factors, including the territorial and ethical relevance of the business, value for money. For example: you are a genius cook, your main specialization is homemade semi-finished pork products. The decision to open a shop selling quality handmade delicacies in states that preach Islam will become somewhat ill-considered. Of course, the example is quite grotesque, but it shows the essence.
If nothing more or less original comes to mind, then you can just walk through human weaknesses (those that do not intersect with the criminal code of the Russian Federation), to which at all times the passion for delicious food and entertainment belonged ...
Relevance to you
Let's say you see that there is a certain niche that has potential, but for some unknown reason is still free. It would seem - here it is, your chance! However, the soul does not lie in this matter, and that's it. It is impossible to start work with violence against oneself, since one will have to work very hard, and killing an endless number of hours for something that does not attract is too great a luxury. In this case, there are two ways: get a partner who will readily take on the elements of a business idea that you cannot handle, or simply refuse in order to find your own, because what is an idea? This is a list of steps to achieve a result. If you are "blown away" in the middle of the path, then no one will get better from this, even the notorious "you tried" will not save.
Every person's dream is to do what they love and get paid for it. Unfortunately, most of the amoeba-like individuals are rarely paid for lying on the couch, so we will consider only those hobbies that imply at least some kind of activity.
Today we propose to discuss the following topic: "Justification of a business idea". We have collected and prepared a complete description of the business model and invite yours to express your opinion in the comments.
Justification of a business idea
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Project feasibility study - the way to successfully implement a new business idea
Starting a new business, the question always arises, will a business idea justify? Experience has shown that even the most unusual business idea can become the key to a successful business. Research has found that out of five business ideas, only one is commercially successful.
Starting a new business requires a lot of financial and time investment and, of course, you should know if the implementation of this business idea will be an obstacle. One of the reasons for starting a successful business is the economic feasibility of the project.
What is a project feasibility study?
During the feasibility study of a project, market research takes place, which makes it possible to establish whether or not a particular business idea will be successful, and whether its implementation makes sense. The purpose of the economic feasibility study of the project is to identify any “decisive” issue that determines the success of the business in the market. The economic feasibility study of the project covers comprehensive and detailed information about the structure of the business, product, market, logistics issues, financial model.
Why is a project feasibility study important?
It is possible to implement a business idea without a feasibility study of the project, but in this case, the question of the viability of the idea is at risk. This is the case when the expenditure of resources is expedient, since as a result we get an economically sound and formed business idea. The economic feasibility study has advantages that enable the project to be successful:
• Demand Research: A business case always analyzes whether there is real demand for a particular product. At the same time, it also provides for potential consumer offers. • Resource assessment: The business case provides an opportunity to identify existing resources and, at the same time, to assess the additional resources required for the project. • Marketing: a business case for a project provides opportunities and ways to offer a product to the consumer. • Financial calculations and timing: One of the most significant benefits of a business case is the financial projection of a potential project. An assessment and analysis of the project's profitability is made and a time schedule is drawn up.
Today, companies clearly see the benefits of preparing and using a business case to start a new business. The economic feasibility of the project can occur both with the help of internal personnel and resources, and the services of consultants from outside with relevant experience in this area. From business advisors, you can get qualified service and an objective determination of whether your business idea will be commercially viable and successful or not.
Material on the topic: "Justification of a business idea" with full explanation and justification.
DEVELOPMENT OF THE SECTION OF THE BUSINESS PLAN "DESCRIPTION AND JUSTIFICATION OF THE PROJECT IDEA"
As a result of studying Chapter 3, the student develops the PC-17 competence (the ability to assess the economic and social conditions for doing business, identify new market opportunities and form new business models).
To obtain this competency, the student must:
- • know methods of identifying new project ideas;
- • be able to substantiate the idea of a business project;
- • have the skills to find a business idea project.
FORMATION OF THE TITLE LIST OF THE BUSINESS PLAN OF THE PROJECT
The cover page of the business plan performs information and advertising functions:
The information function will achieve its goal if the developer of the title page creates a concise but informative formulation of the essence of the project according to the principle "minimum words - maximum information".
The advertising function will be provided if the business area, location and other information for the project participants are reflected in the name of the project, which can later be used for advertising purposes and accompany the planned business.
Any title page must contain the following information:
- • the name of the enterprise - the initiator of the project;
- • the approval signature of the head of the enterprise - the initiator of the project;
- • the degree of confidentiality of the project. Note that the confidentiality memorandum establishes the responsibility of persons familiarizing with the business plan, and their guarantees of non-proliferation of the information contained in it without the consent of the head of the enterprise;
- • name of the project, after which it is recommended to give a brief annotation about the essence of the project in the volume of one or two proposals;
- • estimated cost of the project;
- • sources of funding;
- • year and month of the business plan.
An example of a cover page is given in Appendix 4.
Entrepreneurial Idea and Rationale