Develop a business idea
Material on the topic: "Develop a business idea" with a full explanation and justification.
How to Develop a Business Idea Market Research
Your brilliant idea can really be brilliant - just it might take some work. Whether you are willing to do it or not is what determines your willingness.
Something like a mixture of something vague and real at the beginning of a business process, you need to understand that you are mainly determining your business success or failure. Often, future entrepreneurs experience euphoric moments when they do not imagine the possibilities of this or that idea, then they forget to check whether the idea is viable or not.
Of course, sometimes the idea works anyway, despite the lack of market research. Unfortunately, now are other times, a time of crisis, when the thought of stopping business in their directions often arises. We want to help you avoid the latter. You need to keep your business ideas in the right direction.
For some entrepreneurs, getting an idea and presenting an opportunity is the easiest part. Then market research is often not carried out, which is natural.
Market research can be invaluable in determining the potential of your idea. You can get information from industry associations, web searches, periodicals, government agencies, and so on. A trip to the libraries or hours spent online can set you on the path to truly understanding your market.
Your goal is to gain a general understanding of the type of customer for your product or service, this will serve, or at least provide an understanding of the process based on research.
Your research should define research objectives and give you the information you need to move forward with your ideas, refine that idea, or take it back into development. Create a list of questions you need to answer in your research, and create an outline for answering them.
The type of information will depend on the type of product or service you want to sell, as well as the general objectives of the research. You can use research to determine market potential, size of demand, or to validate the feasibility and positioning of your product or service.
When working with brand development firms, Keller is the first to look at a business idea from four perspectives: company, customers, competitors, and collaborators. This approach allows Keller to carefully develop business ideas before approaching the topic of brand development. Here are the answers he sees for each of the four points:
1. Company. Think about your idea in terms of your product / service features, customer benefits, your company's personality, what key messages you will spread, and what key promises you will make to customers.
In the modern world for several decades there has been such a thing as a "ready-made business", which is the purchase and sale of ready-made, organized cases, and every day many businessmen conclude such deals.
Speaking in scientific terms, a ready-made business is the sum of tangible and intangible assets of a business united by functioning business processes (supply and sales system, customer base, personnel trained and assigned to the enterprise, know-how, technologies, patents, brand, means of individualization of the enterprise, advertising concept) put up for sale on the open market.
A specialist who accompanies the sale and purchase of a ready-made business is usually called a business broker.
Features of a ready-made business
There is a certain peculiarity in the concept of a ready-made business, namely, it is necessary to distinguish between such concepts as “ready-made business” and the related concept “market of mergers and acquisitions (M&A)”. It is generally accepted that the ready-made business market is the purchase and sale of a business up to USD 1 million, transactions for the purchase and sale of a business worth more than USD 1 million are usually referred to as mergers and acquisitions (M&A).
The cost of a ready-made business varies depending on its characteristics, that is, on a certain type of activity. You can sell anything: a small restaurant, a tailoring shop, a construction business, or even an entire factory.
But buying and selling a ready-made business is not as easy as it might seem at first glance. An important condition for a successful transaction is a specialist in this business, who possesses certain knowledge and experience. Since it is necessary to fairly estimate the value of a business, draw up a description about it containing general information, as well as an economic section, technical characteristics, assessment and examination data, tangible assets and development prospects and "pitfalls".
To check a business, the duration of the transition period is on average about a month. In particularly difficult cases, this stage lasts from 6 to 12 months. During this time, the shortcomings identified during the inspections are eliminated, the acquaintance is carried out with key customers (suppliers, networks, etc.), representatives of regulatory and licensing authorities, with whom you will have to communicate in the future. There is an inventory of accounts payable and receivable, commodity balances, cash balances in accounts and at the cash desk, which is more convenient to assign to the first day of the month.
Sometimes a ready-made business may not have technical documentation, sometimes just (newly) created companies are put up for sale, companies and the buyer is provided with a complete business plan.
- history of development, good or bad, which makes it possible to evaluate it;
- availability of premises and equipment;
- staffed staff; <
- well-established connections and sales channels;
- a finished product (service), sometimes a well-known brand;
- a certain demand for goods (services), the ability to predict its change ...
- detailed financial and accounting reports.
- equipment may be worn out, and technological processes may be outdated;
- leases may not be extended;
- staff may be low-skilled;
- counterparties may be unreliable, relations with them could be damaged by the previous owner;
- debts (unpaid taxes, penalties and customs duties or warranties) may subsequently “emerge”.
It is possible to launch a cafe with a large customer flow only if you carefully prepare. To do this, you need a business plan for a cafe: an example with calculations, and in the future - detailed calculations for the costs and revenues of the project, a description of the main stages of starting an enterprise, preparation of documentation, setting criteria for premises.
Before developing a ready-made business plan for a cafe, an entrepreneur must register as a legal entity. The form of ownership for launching a cafe can be any - individual entrepreneur or LLC. After that, you can already solve all the issues that relate to how to open a cafe from scratch and how much initial investment is required.
Launch of the cafe
If an entrepreneur decided to open his cafe from scratch, and not buy a franchise, it is necessary first of all to analyze the market and conduct marketing research on the possible risks of this business. Further, the structure of work required to launch a large cafe practically coincides with the stages that contain a business plan for opening any establishment.
Then you should prepare a detailed business plan of the cafe with calculations. He will become not only a "guide" on the way to launch a cafe, but also legal documentation for obtaining a bank loan, building permits from the city administration, SES and other government agencies. At this stage, it is necessary to find the location of the building for the future cafe, develop a design idea, a menu concept, basic cooking technologies and select suppliers of products.
Stages of opening a cafe
To launch a cafe with a large customer flow, you need to pay attention to all stages of the business plan:
- Obtain a technical conclusion of the premises, agree on a business plan with Rospotrebnadzor, the State Fire Service, the city administration.
- Develop a design project for the premises. Conduct electrical, sewerage and ventilation systems, water supply and other communications. Purchase materials, conclude an agreement with a construction company and carry out construction, installation and finishing work.
- Obtain a medical certificate and an opinion from Rospodrebnadzor, an opinion from the State Fire Inspection. Obtain licenses for the retail sale of food, alcohol and tobacco products.
- Select and prepare the cafe's pricing policy, accounting system, modify the menu. Develop internal documentation regarding corporate culture, job responsibilities, service standards. Also here it is necessary to draw up costing and technological maps for cooking. A sample of an internal document can be developed independently or taken from online banks for office work.
- Purchase the necessary equipment, including a cash register, furniture, kitchen utensils and additional inventory. Choose an automated business process accounting system. Buy software and install it on computers.
- Develop requirements for vacancies and choose the most appropriate resume of candidates for the concept of the cafe. Approve personnel and conduct training based on the developed documentation - job descriptions and service standards.
- Choose an advertising policy, develop a basic marketing strategy for 1-2 years. To produce advertising products that match the corporate identity of the institution. The final and important step is organizing and conducting the first marketing campaign.
Preparing for each of these stages helps to determine how to open a cafe from scratch and how much it will cost in the end, since almost every job requires certain financial costs.
Opening a cafe with a large customer flow implies a huge amount of investment, but as a result, the profitability of such projects is 1.5-2 times higher than it was invested in them. High profitability can be obtained if you always focus on long-term prospects and conduct monthly market research in order to timely adjust to the interests of the target audience.
Anyone who at least once made an attempt to start his own business, as a rule, understood one thesis: the success of a commercial project does not depend on beautiful ghostly prospects and fantasies. In order for partners and investors to have a real desire to invest in a new business, a professionally worked out business plan is required.
This article is devoted to the independent preparation of a business plan.
Consulting specialists ask for decent money for drawing up a business plan. But, as it turned out, it can be written without assistance. It is enough to have an idea with a touch of perspective, provided by a calculation in numerical terms. Implemented on paper, this set will be called a business plan.
Business Planning Basics
Business Ideas and Misconceptions
A promising merchant sits, thinking: what to sell this, while remaining the winner. It should be remembered: in such an interesting business, it is important not to focus on the technical properties of the product. It is enough to focus on the possible benefits.
And spice it up with an additional product - all kinds of bonuses in the form of a long warranty, installments, convenient delivery and installation. By thinking like this, a simple idea turns into a business idea.
Speaking seriously, the main sources of business ideas are indicated below:
As you can see, there are a lot of sources for new ideas. The above are not all, but only a part.
The only thing left is to draw up a productive business plan for the enterprise and breathe life into new ideas.
And all the advantages of having such knowledge turn into the greatest disadvantages. A dozen new, unknown responsibilities are added to the well-known, so familiar work for us. A businessman's dream becomes a specialist's nightmare.
The ability to correctly submit your product to Avito will allow you to earn good money. You can start by selling your own unwanted items. You can buy goods from those who want to sell them faster and cheaper, and then resell them at a higher price. An interesting option is to sell other people's goods and services for a percentage. To do this, you almost do not need investments, and earnings with active work start from 300-400 dollars per month.
For a small agency, an office of 10 sq. m, minimal equipment and 2-3 people. It is profitable to open such a business in a big city. Then there will be a great demand for the development of printing materials, and for the creative industry, such as the creation of logos, corporate identity, slogans. You will have to invest from $ 1000, but the monthly income will be at least $ 700.
In this area, income is only getting more every month. In the future, you can count on a net profit of 2-3 thousand dollars.
This is a very interesting business, and moreover -. A small office, computer and advertising are the main expenses for its organization. Then your main task will be the selection of contractors for customers and the development of holiday programs. And almost all earnings are "clean" money. For a small agency, you will need investments in the region of $ 1000, and the profit will be from $ 1,500 per month.
An excellent enterprise that is very easy to scale, gradually increasing your vehicle fleet. Two cars with drivers and one dispatcher are all you need to start. With an initial investment of about 15 thousand dollars, the net profit will reach 1000-2021 dollars per month.
Husband for an hour
No capital investments. Your task is to organize a base of employees of various specializations, coordinate their work and look for customers. With daily, even the smallest, orders, net profit per month starts at $ 500.
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