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Developing a Business Concept |
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 So you have decided you want to work for yourself, build
something of your own and take the business world by storm. Making the
decision to start your own business is just the beginning.
The next
step is developing your business concept. What will you sell? Will your
business be product or service orientated? Who will be your customers?
Every successful business must have a strong business concept. If you
have nothing to sell or a market to sell too, then you literally have
no business. When deciding what it is you plan to offer, you should
look at what you are good at. Most successful businesses are started by
people that have even have prior experience or a strong interest in a
specific business sector.
Where do I find a successful business idea?
Many businesses can be successful, but the most important detail of a
successful entrepreneur is knowing your business. Success is derived
from knowledge. When identifying your business concept, look at what
you know. Many successful businesses have been created by individuals
who had a strong interest or experience in their proposed business idea.
Wolfgang Ley was an ambitious businessman with a strong interest for
business. His wife Margaretha was a former model with an passion for
design and fashion. The two used their experience and interests in
developing one of the largest designer fashion labels in the world
known as Escada.
Experience
What have you done in the past that you really enjoyed? Are any of your
previous or past careers consistently been dealt with a problem that
you can create a solution for and market it through a new business?
Personal Interests
Do you have a hobby or special interest that you can create a business
concept with? Why not develop a business around something you love.
Many successful businesses have began this way.
An Established Business
If you have no idea what type of business to develop, but have the
money to invest, consider purchasing a franchise or an already
developed business.
Purchasing a franchise or business provides you with all the initial
steps taken care of including a strong business concept. With a
franchise and the right business, a market is already identified, sales
tactics are in place, stock is available and administration is provided
as well.
Will my idea work as a business?
Immediately after deciding the concept for your business, the next step
is determining if it will work. Will it make money? This is the most
important question you need to ask yourself. If no money is to be made,
then the concept is worthless as a business opportunity.
To find out if your business concept is profitable, research must be
done thoroughly. Finding out if there is a market for your products or
services takes time and a few points need to be considered.
Competition
Determine if there are other businesses that are offering the same
product or service as yourself. If so, identify those local, national
and global competitors. Knowing your competitors is vital to the
success of your business.
Your competitors will fall under two categories; direct and indirect.
Knowing both types of competition is crucial as both can have a
profound effect on the success of your business. Direct competitors
offer the same product or services to the market you are looking to
target. Indirect competitors are those businesses that offer
similar products or services to a common market.
Customers
Who will buy your products or services? This is an
important question to answer as you must know your market in order to
know if your business will survive. Key information to obtain in your
research is demographics, consumer spending and geographic markets.
Market
Through your research you must identify whether your market is
increasing, decreasing or already saturated. Know the trends and issues
your market share is facing or being presented with. Use the
information you find in developing your business concept. With this
information, you must find out how these trends or issues can be
capitalized on through your offering.
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Business 
